DoD awards $13.1M contract for Octocoral Removal in Hawaii, supporting P-209 mitigation efforts

Contract Overview

Contract Amount: $13,105,342 ($13.1M)

Contractor: Stantec Gs-Aecom Pacific JV

Awarding Agency: Department of Defense

Start Date: 2024-08-30

End Date: 2029-09-30

Contract Duration: 1,857 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OCTOCORAL REMOVAL ACTIONS TO SUPPORT P-209 MITIGATION

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to STANTEC GS-AECOM PACIFIC JV for work described as: OCTOCORAL REMOVAL ACTIONS TO SUPPORT P-209 MITIGATION Key points: 1. Contract focuses on environmental mitigation, aligning with broader ecological protection goals. 2. Competition dynamics suggest a potentially competitive bidding process for specialized services. 3. Performance period spans over five years, indicating a long-term commitment to the project. 4. The contract type is Firm Fixed Price, which transfers cost risk to the contractor. 5. Geographic focus on Hawaii highlights specific regional environmental challenges. 6. The award value is substantial for specialized environmental engineering services.

Value Assessment

Rating: good

The contract value of $13.1 million for engineering services related to octocoral removal appears reasonable given the specialized nature of the work and the five-year performance period. Benchmarking against similar environmental mitigation contracts is challenging without more specific details on the scope of work and the ecological sensitivity of the area. However, the firm-fixed-price structure suggests that the government has a clear understanding of the costs involved, which can lead to better value if the contractor manages risks effectively. The absence of reported cost overruns or significant modifications in the award data also points towards a well-defined and potentially value-driven contract.

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 approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was intended and likely achieved, which is a positive sign for price discovery and achieving a fair market price.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are the U.S. Navy and the Hawaiian marine ecosystem, through the mitigation of impacts from the P-209 project. Services delivered include specialized engineering and environmental consulting for octocoral removal. The geographic impact is concentrated in Hawaii, addressing specific local environmental concerns. The contract supports specialized environmental engineering jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long performance period (over 5 years) could introduce risks related to changing environmental regulations or unforeseen site conditions.
Firm Fixed Price contracts can sometimes lead to scope creep if not managed meticulously, potentially increasing costs if not carefully controlled.
Reliance on a single JV entity for a critical environmental task requires robust oversight to ensure consistent performance.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm Fixed Price contract structure transfers cost risk to the contractor.
Clear project objective (Octocoral Removal for P-209 Mitigation) provides focus.
Long-term contract allows for sustained effort and potential for learning curve efficiencies.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing specialized engineering expertise. The market for environmental consulting and mitigation services is significant, driven by regulatory requirements and increasing awareness of ecological impacts. This specific contract addresses a niche requirement for marine ecosystem protection, likely within a broader defense infrastructure development context. Comparable spending benchmarks for such specialized ecological services are difficult to ascertain without more granular data on the scope and location.

Small Business Impact

The data indicates that small business participation (SB set-aside and subcontracting) was not a specific requirement or focus for this particular contract award (SS=false, SB=false). This suggests the prime contract was not set aside for small businesses, and there is no explicit mention of mandatory small business subcontracting goals. Therefore, the direct impact on the small business ecosystem for this specific award appears minimal, though the prime contractor may engage small businesses as subcontractors at their discretion.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, likely through contracting officers and technical representatives. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and oversight reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Marine Ecosystem Protection Programs
Defense Infrastructure Projects
Naval Facilities Engineering Command Contracts
Ecological Impact Mitigation

Risk Flags

Long-term contract duration may increase exposure to unforeseen conditions.
Firm Fixed Price requires careful contractor performance monitoring to ensure quality and scope adherence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to STANTEC GS-AECOM PACIFIC JV. OCTOCORAL REMOVAL ACTIONS TO SUPPORT P-209 MITIGATION

Who is the contractor on this award?

The obligated recipient is STANTEC GS-AECOM PACIFIC JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2024-08-30. End: 2029-09-30.

What is the specific scope of 'Octocoral Removal Actions' and how does it relate to P-209 mitigation?

The 'Octocoral Removal Actions' likely refer to the physical removal of octocorals (soft corals) from a specific area to mitigate the environmental impact of the P-209 project. The P-209 project is a Department of Defense initiative, potentially related to naval operations or infrastructure development in Hawaii. Octocorals are important components of marine ecosystems, and their removal may be necessary to prevent damage during construction or operational activities, or to transplant them to a suitable location. The mitigation aspect implies that this removal is part of a plan to offset or compensate for unavoidable environmental disturbances caused by the P-209 project, ensuring compliance with environmental regulations and minimizing ecological harm.

How does the $13.1 million contract value compare to similar environmental mitigation projects in Hawaii?

Direct comparison of the $13.1 million contract value to similar environmental mitigation projects in Hawaii is challenging without specific details on the scope, duration, and ecological sensitivity of those other projects. However, for specialized marine environmental services, particularly those involving complex removal, relocation, or restoration efforts over a multi-year period, this value appears within a reasonable range. Factors influencing cost include the density and type of octocorals, the accessibility of the work area, the required scientific expertise, and the specific mitigation or restoration outcomes mandated by regulatory bodies. Larger-scale dredging, habitat restoration, or invasive species removal projects in Hawaii have seen significantly higher contract values, while smaller, more localized efforts might be less expensive.

What are the key performance indicators (KPIs) expected for this Octocoral Removal contract?

While specific KPIs are not detailed in the award abstract, typical performance indicators for such an environmental services contract would likely include: successful removal and/or transplantation of a target quantity or area of octocorals; adherence to environmental protection protocols during removal (e.g., minimizing turbidity, protecting surrounding habitats); compliance with all relevant permits and regulations; timely reporting of progress and findings; and achievement of specific ecological outcome metrics, if defined (e.g., survival rates of transplanted corals). The contractor's ability to meet these objectives within the firm-fixed-price structure will be crucial for successful contract performance and value realization.

What is the track record of STANTEC GS-AECOM PACIFIC JV in environmental services and DoD contracts?

STANTEC GS-AECOM PACIFIC JV represents a joint venture combining the expertise of Stantec and AECOM, both large, established engineering and consulting firms with extensive experience in environmental services and government contracting, including significant work with the Department of Defense. AECOM, in particular, has a long history of managing large-scale infrastructure, environmental remediation, and military support projects globally. Stantec also has a strong portfolio in environmental consulting, water resources, and ecological services. While the specific JV's track record might be newer, the parent companies possess substantial relevant experience, suggesting a capable entity for undertaking complex environmental projects like octocoral removal and mitigation.

What are the potential risks associated with a five-year Firm Fixed Price contract for environmental services?

A five-year Firm Fixed Price (FFP) contract for environmental services, such as octocoral removal, carries several potential risks. Firstly, the long duration increases the possibility of unforeseen environmental conditions or changes in regulatory requirements that were not anticipated during contract negotiation, potentially making the fixed price inadequate. Secondly, if the contractor underestimates the complexity or volume of work, they bear the full cost overrun, which could impact their financial stability or lead to attempts to reduce scope or quality if not closely monitored. Conversely, if the contractor significantly overestimates costs, taxpayers may end up paying a premium. Effective risk management by both the government and contractor, including robust change order processes and performance monitoring, is essential to mitigate these FFP risks over an extended period.

How does this contract fit into the broader context of DoD's environmental stewardship and compliance efforts?

This contract aligns directly with the Department of Defense's commitment to environmental stewardship and compliance with federal environmental laws, such as the National Environmental Policy Act (NEPA) and the Endangered Species Act. Military installations often operate in ecologically sensitive areas, and projects like P-209 can have significant environmental footprints. By awarding contracts for specific mitigation actions like octocoral removal, the DoD demonstrates its proactive approach to managing these impacts, ensuring that operational needs are balanced with ecological protection. This also supports broader DoD goals related to climate resilience and conservation, particularly in regions like Hawaii which host critical natural resources and biodiversity.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM

Address: 1001 BISHOP STREET, HONOLULU, HI, 96813

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,105,342

Exercised Options: $13,105,342

Current Obligation: $13,105,342

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6274224D1806

IDV Type: IDC

Timeline