DoD awards $24.5M for dredging and disposal at Joint Base Pearl Harbor-Hickam, with a 3-year performance period

Contract Overview

Contract Amount: $24,480,796 ($24.5M)

Contractor: Cape-Weston JV3 LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-30

End Date: 2026-10-31

Contract Duration: 914 days

Daily Burn Rate: $26.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: CTO N6274224F0133 CONFINED DISPOSAL FACILITY CELL DREDGE MATERIAL PROCESSING CELL #2 & CELL #3 JOINT BASE PEARL HARBOR-HICKAM, OAHU HAWAII

Place of Performance

Location: JBPHH, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to CAPE-WESTON JV3 LLC for work described as: CTO N6274224F0133 CONFINED DISPOSAL FACILITY CELL DREDGE MATERIAL PROCESSING CELL #2 & CELL #3 JOINT BASE PEARL HARBOR-HICKAM, OAHU HAWAII Key points: 1. The contract value represents a significant investment in environmental remediation and infrastructure maintenance for a key naval installation. 2. The chosen contract type (Cost Plus Award Fee) suggests a need for flexibility and performance incentives in a complex project. 3. The duration of the contract (over 3 years) indicates a substantial scope of work requiring sustained effort. 4. The geographic location in Hawaii points to specific environmental challenges and logistical considerations. 5. The NAICS code 562910 signifies a focus on remediation and waste management services. 6. The contract was awarded under full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: good

The contract's value of $24.5 million for dredging and disposal services appears reasonable given the scope and duration. While specific benchmarks for this exact type of project in Hawaii are not readily available, the Cost Plus Award Fee structure allows for adjustments based on performance, which can lead to better value if managed effectively. The award amount is within the expected range for large-scale environmental remediation projects at military installations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were invited to submit proposals. The specific mention of 'after exclusion of sources' suggests that while the initial solicitation was broad, certain sources may have been excluded based on specific criteria, but the overall competition remained open to all eligible offerors. This approach generally fosters competitive pricing and encourages innovation.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it is expected to drive down costs through competitive bidding and ensure the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the Department of the Navy and the personnel stationed at Joint Base Pearl Harbor-Hickam, who will benefit from improved environmental conditions and operational readiness. The services delivered include dredging of confined disposal facilities and processing of dredged material, crucial for maintaining the base's infrastructure and environmental compliance. The geographic impact is localized to Oahu, Hawaii, addressing specific environmental needs of the naval base. The contract supports the environmental services sector, potentially creating or sustaining jobs in specialized dredging and remediation fields within Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if not closely monitored.
Logistical challenges associated with performing large-scale dredging and material processing in an island environment.
Environmental risks associated with dredging operations, requiring strict adherence to regulations.
Dependence on a single joint venture (CAPE-WESTON JV3 LLC) for a critical infrastructure project.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The Cost Plus Award Fee structure incentivizes contractor performance and efficiency.
The project addresses critical environmental and operational needs for a major naval installation.
The contract duration allows for thorough execution and completion of complex tasks.

Sector Analysis

This contract falls within the Environmental Remediation and Waste Management sector, a critical component of infrastructure support for government facilities. The market for such services is specialized, involving companies with expertise in dredging, material processing, and environmental compliance. Spending in this area is often driven by regulatory requirements and the need to maintain operational capacity at key installations. Comparable spending benchmarks would typically be found in large-scale civil engineering and environmental services contracts for military bases or major port facilities.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests the prime contract was awarded to a larger entity or joint venture. However, the prime contractor may engage small businesses for subcontracting opportunities, which would be detailed in their subcontracting plan. The absence of a direct small business set-aside means the direct economic impact on the small business ecosystem for this prime award is limited.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and project management offices. The Cost Plus Award Fee structure necessitates robust oversight to ensure costs are reasonable and performance meets award criteria. Transparency is typically maintained through contract reporting mechanisms and public contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Environmental Remediation Services
Dredging and Port Infrastructure Projects
Department of Defense Construction and Maintenance Contracts

Risk Flags

Potential for cost overruns
Environmental compliance risks
Logistical challenges in island environment
Dependence on joint venture performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to CAPE-WESTON JV3 LLC. CTO N6274224F0133 CONFINED DISPOSAL FACILITY CELL DREDGE MATERIAL PROCESSING CELL #2 & CELL #3 JOINT BASE PEARL HARBOR-HICKAM, OAHU HAWAII

Who is the contractor on this award?

The obligated recipient is CAPE-WESTON JV3 LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.5 million.

What is the period of performance?

Start: 2024-04-30. End: 2026-10-31.

What is the track record of CAPE-WESTON JV3 LLC in performing similar large-scale dredging and environmental remediation projects for the Department of Defense?

Information regarding the specific track record of CAPE-WESTON JV3 LLC for large-scale dredging and environmental remediation projects for the Department of Defense is not detailed in the provided data. As a joint venture, its performance history would likely be a composite of its member companies' experiences. Further investigation into the individual entities comprising CAPE-WESTON JV3 LLC and their past performance on similar government contracts would be necessary to fully assess their capabilities and reliability for this project. Reviewing past performance evaluations and contract awards for the JV or its parent companies would provide a clearer picture of their suitability and success rates in executing complex environmental projects.

How does the awarded amount of $24.5 million compare to similar dredging and disposal contracts at other naval bases or in similar geographic regions?

Benchmarking the $24.5 million award requires comparing it to contracts with similar scope, scale, and location. Dredging and disposal projects can vary significantly based on the volume of material, complexity of the site, environmental regulations, and logistical challenges. For a project at a major naval installation like Joint Base Pearl Harbor-Hickam, which involves confined disposal facilities and material processing over a 3-year period, this value appears to be within a reasonable range for substantial environmental remediation efforts. However, without access to a database of comparable contracts specifically detailing these parameters, a precise value-for-money assessment is difficult. Factors like the specific type of sediment, disposal methods, and required environmental mitigation measures heavily influence costs.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential cost overruns due to the Cost Plus Award Fee (CPAF) structure, which requires careful monitoring of expenditures and performance. Environmental risks are also significant, as dredging operations can impact marine ecosystems and require strict adherence to environmental permits and regulations. Logistical challenges in Hawaii, such as material transport and disposal, could lead to delays and increased costs. Furthermore, unforeseen subsurface conditions or changes in regulatory requirements could necessitate contract modifications. Mitigation strategies likely involve robust project management, detailed environmental monitoring plans, contingency planning for logistical issues, and clear communication channels between the contractor and the Navy to address any emerging challenges promptly.

How effective is the Cost Plus Award Fee (CPAF) contract type in ensuring value for money for this specific dredging project?

The Cost Plus Award Fee (CPAF) contract type is intended to provide flexibility while incentivizing contractor performance, which can be beneficial for complex projects like dredging where scope may evolve or unforeseen conditions arise. For this project, CPAF allows the Navy to reimburse the contractor's allowable costs plus a fee that is adjusted based on performance against defined criteria. This structure aims to achieve value for money by encouraging the contractor to meet or exceed performance targets related to cost control, schedule adherence, and quality. However, the effectiveness hinges on the clarity and measurability of the award criteria and the rigor of the Navy's oversight in evaluating performance and determining the award fee.

What is the historical spending pattern for dredging and disposal services at Joint Base Pearl Harbor-Hickam or similar naval facilities in the Pacific region?

Historical spending patterns for dredging and disposal services at Joint Base Pearl Harbor-Hickam or similar naval facilities in the Pacific region are not provided in the current data. To establish such a pattern, one would need to analyze past contracts awarded for similar services at this base and comparable installations in the region over several fiscal years. This analysis would reveal trends in contract values, frequency of awards, types of services procured, and the contractors typically involved. Understanding historical spending can help contextualize the current $24.5 million award, identify potential cost efficiencies or escalations over time, and assess the overall investment in maintaining the operational capacity and environmental integrity of these critical naval assets.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6274220R1801

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 500 PINNACLE CT STE 100, NORCROSS, GA, 30071

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,480,796

Exercised Options: $24,480,796

Current Obligation: $24,480,796

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6274222D1800

IDV Type: IDC

Timeline