DoD's $2.2M pollution procurement contract awarded to Global PCCI for water transportation support

Contract Overview

Contract Amount: $2,206,970 ($2.2M)

Contractor: Global Pcci (GPC)

Awarding Agency: Department of Defense

Start Date: 2025-02-26

End Date: 2027-05-30

Contract Duration: 823 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: POLLUTION PROCUREMENTS

Place of Performance

Location: IRVINE, ORANGE County, CALIFORNIA, 92612

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $2.2 million to GLOBAL PCCI (GPC) for work described as: POLLUTION PROCUREMENTS Key points: 1. Contract aims to address environmental concerns related to water transportation operations. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. Performance period spans over two years, indicating a medium-term commitment. 5. The specific services are categorized under 'Other Support Activities for Water Transportation'. 6. Geographic focus is California, a region with significant maritime activity and environmental regulations.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of 'pollution procurement' and the services rendered. The Cost Plus Fixed Fee (CPFF) structure, while common for complex or uncertain scopes, carries inherent risks of cost escalation. Comparing it to similar contracts for environmental remediation or support services in the maritime sector would be necessary to assess if the $2.2 million ceiling represents a fair price for the expected outcomes. The fixed fee component offers some cost control, but the variable cost component requires diligent oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more favorable terms for the government. The number of bidders is not specified, but the open competition is a positive signal for market engagement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The Department of the Navy benefits from enhanced environmental compliance and support for its water transportation operations. Services delivered are related to pollution procurement and other support activities for water transportation. The geographic impact is concentrated in California, a state with stringent environmental regulations. Workforce implications may include specialized environmental technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
The broad category of 'pollution procurement' lacks specific detail, potentially leading to scope creep.
Performance period of over two years requires sustained oversight to ensure objectives are met.

Positive Signals

Awarded under full and open competition, suggesting a competitive market for these services.
The contract addresses critical environmental support needs for naval operations.
Specific location in California aligns with a region requiring robust environmental management.

Sector Analysis

This contract falls within the broader environmental services sector, specifically focusing on support for maritime operations. The market for environmental consulting and remediation services is substantial, driven by increasing regulatory pressures and corporate responsibility initiatives. Comparable spending benchmarks would involve analyzing other government contracts for environmental compliance, pollution control, and waste management within the defense and transportation sectors, particularly those involving coastal or port operations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The prime contractor, Global PCCI, will likely determine its own subcontracting strategy, which may or may not involve small businesses depending on their capabilities and the specific needs of the contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures will be tied to the contract's performance work statement and deliverables. Transparency is facilitated by the contract award notice, but detailed programmatic oversight and Inspector General jurisdiction would depend on the specific agency policies and the nature of the work performed.

Related Government Programs

Environmental Remediation Services
Water Transportation Support
Naval Operations Support
Pollution Control Services
Department of Defense Procurements

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Ambiguity in 'pollution procurement' scope could lead to scope creep.
Need for robust government oversight to manage CPFF contract effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.2 million to GLOBAL PCCI (GPC). POLLUTION PROCUREMENTS

Who is the contractor on this award?

The obligated recipient is GLOBAL PCCI (GPC).

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2025-02-26. End: 2027-05-30.

What is the specific nature of the 'pollution procurement' services required under this contract?

The provided data categorizes this contract under 'Other Support Activities for Water Transportation' and mentions 'POLLUTION PROCUREMENTS' as the description. Without further details from the contract's statement of work, it is difficult to ascertain the precise nature of these services. However, it likely pertains to activities aimed at preventing, mitigating, or cleaning up pollution associated with naval water transportation operations. This could include waste management, spill response, hazardous material handling, environmental monitoring, or compliance with environmental regulations related to maritime activities in California.

How does the Cost Plus Fixed Fee (CPFF) structure impact the potential cost to taxpayers for this contract?

The Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee provides some incentive for the contractor to control costs (as it doesn't increase with higher costs), the primary cost driver is the reimbursement of actual expenses. This structure is often used when the scope of work is not well-defined or involves significant uncertainty. For taxpayers, this means the total cost can fluctuate based on actual expenditures, and diligent oversight by the contracting agency is crucial to ensure costs remain reasonable and necessary. If costs escalate unexpectedly, the total expenditure could exceed initial projections.

What are the potential risks associated with awarding a contract for 'pollution procurement' under a CPFF structure?

The primary risk associated with a CPFF contract for 'pollution procurement' is the potential for cost overruns. Since the contractor is reimbursed for allowable costs, there can be less incentive to find the most cost-effective solutions compared to a fixed-price contract. The 'pollution procurement' aspect itself can be complex and subject to unforeseen environmental conditions or regulatory changes, which could drive up costs. Additionally, defining 'allowable costs' and ensuring the contractor's efforts are efficient and effective requires robust government oversight. Without stringent monitoring and clear performance metrics, the government might end up paying more than necessary for the services rendered.

What is the significance of this contract being awarded to Global PCCI (GPC) in California?

The award to Global PCCI (GPC) for pollution procurement services in California is significant due to California's stringent environmental regulations and its extensive coastline with major naval and commercial ports. GPC's ability to secure this contract suggests they possess the necessary expertise and certifications to operate within this demanding regulatory environment. The contract's focus on water transportation implies services related to port operations, vessel maintenance, or environmental compliance for maritime activities. The geographic concentration in California highlights the importance of addressing environmental impacts in a region with high population density and ecological sensitivity.

How does the $2.2 million contract value compare to similar environmental support contracts for water transportation?

Direct comparison of the $2.2 million contract value is difficult without specific details on the scope of work and the duration of similar contracts. However, for environmental support services related to water transportation, this value appears to be in the mid-range for a multi-year delivery order. Larger, more complex environmental remediation projects or long-term operational support contracts can easily reach tens or hundreds of millions of dollars. Smaller, more specialized tasks might be in the hundreds of thousands. The value should be assessed against the specific deliverables, the complexity of the environmental challenges, and the duration of the contract (823 days in this case).

What are the potential long-term implications of this contract for environmental management in naval water transportation?

This contract signifies the Department of the Navy's ongoing commitment to environmental stewardship and compliance within its water transportation operations. By procuring specialized pollution procurement services, the Navy aims to mitigate environmental risks, ensure regulatory adherence, and potentially improve operational sustainability. The success of this contract could lead to the adoption of best practices and technologies that can be replicated across other naval installations or maritime activities. It also underscores the growing importance of environmental considerations in defense procurements, reflecting a broader trend towards integrating sustainability into military operations.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Other Support Activities for Water Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0002417R4323

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2465 CAMPUS DRIVE, SUITE 100, IRVINE, CA, 92612

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $2,206,970

Exercised Options: $2,206,970

Current Obligation: $2,206,970

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0002419D4323

IDV Type: IDC

Timeline