Coast Guard Awards $550K for Oil Spill Response in Hawaii

Contract Overview

Contract Amount: $55,000 ($55.0K)

Contractor: Pacific Environmental Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2026-03-23

End Date: 2026-05-22

Contract Duration: 60 days

Daily Burn Rate: $917/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: UCGPH26005 - PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC.

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Homeland Security obligated $55,000 to PACIFIC ENVIRONMENTAL CORPORATION for work described as: UCGPH26005 - PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC. Key points: 1. Contract awarded to Pacific Environmental Corporation for emergency spill response. 2. Limited competition raises questions about price discovery and value. 3. Potential for cost overruns exists given the time-and-materials contract type. 4. Focus on environmental remediation highlights a critical public safety need.

Value Assessment

Rating: fair

The $550,000 award for a 60-day period appears reasonable for emergency response services. However, without more detailed cost breakdowns or benchmarks for similar rapid-response contracts, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, suggesting a limited source selection. This approach may be justified by urgency but can hinder competitive pricing and potentially lead to higher costs for taxpayers.

Taxpayer Impact: Taxpayer funds are used for emergency preparedness and response, ensuring environmental protection. The lack of competition could mean a less optimal use of funds.

Public Impact

Ensures rapid response to environmental hazards like oil spills. Protects Hawaii's sensitive marine ecosystems and coastal communities. Supports the U.S. Coast Guard's mission in maritime safety and security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Time and materials pricing
Potential for scope creep

Positive Signals

Addresses critical environmental need
Supports emergency response capabilities

Sector Analysis

This contract falls under environmental remediation services, a sector crucial for responding to industrial accidents and natural disasters. Spending benchmarks vary widely based on incident severity and response duration.

Small Business Impact

The contract was not awarded to a small business. Opportunities for small businesses in environmental remediation exist, but this specific award did not leverage them.

Oversight & Accountability

The U.S. Coast Guard is responsible for overseeing this contract. Standard oversight procedures should be in place to monitor performance and costs, especially given the contract type.

Related Government Programs

Remediation Services
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Lack of competitive bidding
Time and materials pricing structure
Potential for cost overruns
Limited transparency in vendor selection

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $55,000 to PACIFIC ENVIRONMENTAL CORPORATION. UCGPH26005 - PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC.

Who is the contractor on this award?

The obligated recipient is PACIFIC ENVIRONMENTAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $55,000.

What is the period of performance?

Start: 2026-03-23. End: 2026-05-22.

What is the justification for not competing this contract, given the potential for higher costs?

The justification for not competing likely stems from the urgent nature of oil spill or hazardous chemical incidents, where immediate response is critical. However, a thorough review of the circumstances is needed to ensure that competition was truly not feasible and that the selected vendor offers the best value under the exigencies.

How will the agency ensure cost control with a time-and-materials contract for an undefined scope?

The agency must implement rigorous oversight, including detailed tracking of labor hours, material costs, and equipment usage. Establishing clear task orders, regular progress reviews, and defined not-to-exceed limits are crucial. Independent cost estimates and benchmarking against similar past responses can also help manage costs effectively.

What is the potential long-term environmental and economic impact if this response is inadequate?

An inadequate response could lead to severe, long-lasting environmental damage to marine life, fisheries, and tourism-dependent economies. Cleanup costs could escalate significantly, and reputational damage to the region and responsible parties could be substantial. Effective mitigation is therefore paramount.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 65 N NIMITZ HWY, HONOLULU, HI, 96817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $55,000

Exercised Options: $55,000

Current Obligation: $55,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70Z08425GHONO0001

IDV Type: BOA

Timeline