DoD's $13.8M environmental remediation contract with DAWSON ENVIRONET JV shows long duration and limited competition

Contract Overview

Contract Amount: $13,778,369 ($13.8M)

Contractor: Dawson Environet JV

Awarding Agency: Department of Defense

Start Date: 2008-06-27

End Date: 2020-10-30

Contract Duration: 4,508 days

Daily Burn Rate: $3.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MEC REMOVAL ACTION & SUPPORTING FUNCTION

Place of Performance

Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to DAWSON ENVIRONET JV for work described as: MEC REMOVAL ACTION & SUPPORTING FUNCTION Key points: 1. Contract awarded for environmental remediation services, indicating a focus on hazardous material cleanup. 2. The contract's extended period of performance (over 12 years) suggests a long-term need for these services. 3. Limited competition raises questions about potential price efficiencies and the availability of alternative providers. 4. The firm-fixed-price structure aims to control costs, but the long duration may introduce unforeseen risks. 5. Performance context is crucial given the nature of environmental remediation, requiring specialized expertise and adherence to strict regulations. 6. Sector positioning within environmental services highlights the government's ongoing commitment to managing legacy contamination.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific task orders and detailed cost breakdowns. The firm-fixed-price structure is generally favorable for cost control, but the extended duration of over 12 years (4508 days) could lead to cost escalations if not managed meticulously. Comparing it to similar remediation contracts would require access to more granular data on the scope of work and specific environmental challenges addressed. The total award amount of $13.8 million over such a long period suggests a moderate annual spend, but the true value-for-money depends heavily on the successful completion of remediation activities and compliance with environmental standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary qualifications, capabilities, or when circumstances necessitate a rapid award. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation from a wider pool of contractors. The justification for this sole-source award would be critical to understanding why other qualified firms were not considered.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government may not secure the most competitive pricing. It also limits opportunities for new or smaller businesses to enter the federal contracting space for this type of service.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the environment in Hawaii, through the remediation of hazardous materials. Services delivered include MEC (Munitions and Explosives of Concern) removal actions and supporting functions, crucial for site safety and environmental protection. The geographic impact is focused on Hawaii, addressing specific environmental concerns within that region. Workforce implications involve specialized environmental technicians, engineers, and project managers, likely employed by DAWSON ENVIRONET JV and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially overlooks more cost-effective solutions.
Long contract duration (over 12 years) increases the risk of cost overruns due to inflation and unforeseen project complexities.
Lack of detailed performance metrics in the provided data makes it difficult to assess the effectiveness of remediation efforts.
The specific nature of MEC removal requires stringent safety protocols; any lapse could lead to significant risks and costs.

Positive Signals

Firm-fixed-price contract structure provides a degree of cost certainty for the government.
The contractor, DAWSON ENVIRONET JV, has secured a significant contract, indicating a level of trust or specialized capability.
The contract addresses critical environmental remediation needs, contributing to public safety and environmental stewardship.

Sector Analysis

The environmental remediation sector is a critical component of government contracting, particularly for agencies managing legacy sites or active operations with environmental impacts. This contract falls under remediation services, which can include hazardous waste management, site cleanup, and compliance monitoring. The market is characterized by specialized firms with expertise in environmental science, engineering, and regulatory compliance. Government spending in this area is often driven by regulatory requirements (like CERCLA) and the need to address historical contamination from military activities. Comparable spending benchmarks would typically involve analyzing the cost per acre or per cubic yard of material remediated across similar projects.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, it inherently bypasses the typical competitive processes where small business set-asides are often implemented. There is no information on subcontracting plans, but given the specialized nature of environmental remediation, it is possible that smaller, niche environmental firms could be engaged as subcontractors if they possess specific expertise not held by the prime contractor. However, the lack of a set-aside or explicit subcontracting goals limits direct positive impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Given the long duration and environmental nature, regular performance reviews, site inspections, and adherence to regulatory compliance checks are essential. Transparency is facilitated through contract databases like FPDS, which provide basic award information. Accountability measures would involve the government's ability to enforce contract terms, ensure satisfactory performance, and manage any changes or disputes. Inspector General jurisdiction may be involved if allegations of fraud, waste, or abuse arise.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Munitions and Explosives of Concern (MEC) Services
Defense Environmental Cleanup Program
Superfund Program (CERCLA)

Risk Flags

Sole-source award may limit cost-effectiveness.
Long contract duration increases risk of cost escalation and performance degradation.
Environmental remediation carries inherent risks of unforeseen conditions and regulatory changes.
Lack of detailed performance data hinders assessment of value and effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to DAWSON ENVIRONET JV. MEC REMOVAL ACTION & SUPPORTING FUNCTION

Who is the contractor on this award?

The obligated recipient is DAWSON ENVIRONET JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2008-06-27. End: 2020-10-30.

What specific environmental hazards are being addressed under this contract, and what is the scope of the MEC removal actions?

The contract broadly covers 'MEC REMOVAL ACTION & SUPPORTING FUNCTION'. MEC typically refers to munitions and explosives that have become hazardous due to age, deterioration, or improper storage. Removal actions involve identifying, excavating, and safely disposing of these items to mitigate risks of accidental detonation. The specific hazards could range from unexploded ordnance (UXO) at former military sites to chemical munitions. The scope would detail the geographic areas within Hawaii requiring remediation, the types and quantities of MEC anticipated, and the methodologies to be employed, such as geophysical surveys, excavation, and disposal procedures. Without access to the detailed statement of work or task orders, the precise nature and scale of the environmental hazards and remediation efforts remain unspecified.

How does the $13.8 million total award compare to the annual spending on similar environmental remediation contracts by the Department of Defense?

The total award of $13.8 million over approximately 12 years (4508 days) translates to an average annual spend of roughly $1.15 million. This figure is moderate when compared to the vast scope of environmental remediation efforts undertaken by the Department of Defense globally. DoD's environmental cleanup program addresses contamination at thousands of sites, with annual spending often reaching into the billions of dollars across all branches and services. Contracts for large-scale remediation projects, especially those involving extensive hazardous waste or complex site restoration, can easily exceed tens or hundreds of millions of dollars. Therefore, this specific contract appears to be for a localized or specific set of remediation tasks rather than a broad, agency-wide environmental program.

What are the key performance indicators (KPIs) used to evaluate the success of DAWSON ENVIRONET JV's remediation efforts under this contract?

Key performance indicators for environmental remediation contracts typically focus on safety, environmental compliance, schedule adherence, and cost control. Specific KPIs might include: zero lost-time incidents (safety), meeting regulatory cleanup standards (e.g., EPA or state environmental agency requirements), completion of remediation milestones within agreed-upon timelines, and staying within budget for defined tasks. For MEC removal, KPIs would also include the successful identification and removal of all targeted munitions and explosives, verification of site clearance through rigorous testing, and proper documentation of all actions. The effectiveness of the 'supporting functions' would be measured by their contribution to the overall success of the removal actions, such as accurate site characterization, efficient logistics, and effective project management.

Given the sole-source nature, what due diligence was performed by the Department of the Army to ensure DAWSON ENVIRONET JV possessed the unique capabilities required?

When a sole-source contract is awarded, the procuring agency must conduct thorough due diligence to justify the lack of competition. For DAWSON ENVIRONET JV, this would involve verifying their specialized technical expertise in MEC removal and environmental remediation, particularly within the geographic constraints of Hawaii. Documentation would likely include assessments of their past performance on similar projects, certifications, licenses, and the availability of specialized equipment and personnel. The agency would need to demonstrate that no other responsible source could meet the government's requirements in the required timeframe or at a reasonable cost. This often involves market research to confirm the uniqueness of the contractor's capabilities or specific circumstances (e.g., urgent need, follow-on work to a previously competed effort where only one contractor has the necessary knowledge).

What is the historical spending pattern for environmental remediation services in Hawaii by the Department of Defense?

Historical spending on environmental remediation by the Department of Defense in Hawaii would likely be significant, given the presence of military installations and the potential for legacy contamination, including MEC. While specific aggregate data for Hawaii is not readily available in this context, DoD's overall environmental restoration program involves substantial investment across the nation and its territories. Contracts in Hawaii could range from routine maintenance and compliance monitoring to large-scale cleanup actions at bases like Pearl Harbor, Schofield Barracks, or former training ranges. Spending patterns are influenced by regulatory drivers, the discovery of new contamination, and the prioritization of cleanup efforts. This $13.8 million contract represents a portion of that historical and ongoing investment in addressing environmental liabilities in the region.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9128A08R0016

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3375 KOAPAKA ST STE B200, HONOLULU, HI, 01

Business Categories: Category Business, Minority Owned Business, Native Hawaiian Organization Owned Firm, Other Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $13,778,369

Exercised Options: $13,778,369

Current Obligation: $13,778,369

Contract Characteristics

Cost or Pricing Data: NO

Timeline