DoD Awards $373M Contract for Maui Wildfire Debris Removal, Facing Potential Cost Overruns

Contract Overview

Contract Amount: $373,314,199 ($373.3M)

Contractor: ECC Constructors LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-05

End Date: 2026-02-25

Contract Duration: 782 days

Daily Burn Rate: $477.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DEBRIS REMOVAL & DISPOSAL OPERATIONS FOR 268 PROPERTIES IN LAHAINA, HI DUE TO THE HAWAII WILDFIRE IN AUGUST 2023.

Place of Performance

Location: LAHAINA, MAUI County, HAWAII, 96761

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $373.3 million to ECC CONSTRUCTORS LLC for work described as: DEBRIS REMOVAL & DISPOSAL OPERATIONS FOR 268 PROPERTIES IN LAHAINA, HI DUE TO THE HAWAII WILDFIRE IN AUGUST 2023. Key points: 1. The contract addresses a critical post-disaster need, removing debris from 268 properties in Lahaina, HI. 2. ECC Constructors LLC secured the award, indicating potential consolidation or specialization in disaster recovery services. 3. The contract's duration of 782 days suggests a complex and lengthy recovery process. 4. The significant award value highlights the immense cost of natural disasters and subsequent cleanup efforts. 5. The 'Other Waste Collection' NAICS code points to a specialized service beyond standard waste management.

Value Assessment

Rating: questionable

The awarded amount of $373.3 million is substantial. Benchmarking against similar large-scale debris removal contracts is difficult due to the unique nature of wildfire damage and the specific location. However, the contract's duration and the potential for unforeseen complications in disaster zones warrant close monitoring for cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a robust price discovery process. However, the urgency of disaster response can sometimes limit the number of responsive bidders or lead to higher initial bids.

Taxpayer Impact: Taxpayers are funding a critical recovery operation. While competition aims for fair pricing, the scale and urgency of the disaster may influence the final cost.

Public Impact

Restoration of affected areas in Maui, enabling residents to begin rebuilding. Significant economic activity generated through the contract, supporting jobs and local businesses involved in cleanup. Potential environmental considerations related to debris disposal and site remediation. Long-term impact on the Lahaina community's recovery trajectory and resilience.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to unforeseen disaster-related complexities.
Long contract duration increases exposure to changing economic conditions and material costs.
Limited historical data for benchmarking such large-scale wildfire debris removal contracts.

Positive Signals

Addresses a critical and urgent post-disaster need.
Awarded through full and open competition, promoting fairness.
Clear end date provides a defined project scope.

Sector Analysis

This contract falls under the 'Other Waste Collection' sector, which is highly specialized and often activated during emergencies. Spending in this area is typically event-driven, with significant spikes following natural disasters. Benchmarks are scarce due to the infrequent and large-scale nature of such operations.

Small Business Impact

While the primary contractor is ECC Constructors LLC, the scale of this operation likely involves numerous subcontractors. Analysis is needed to determine the extent of small business participation in the debris removal and disposal process.

Oversight & Accountability

The Department of Defense, specifically the Department of the Army, is overseeing this contract. Given the significant funding and the critical nature of the work, robust oversight will be necessary to ensure efficient execution, adherence to timelines, and proper financial management.

Related Government Programs

Other Waste Collection
Department of Defense Contracting
Department of the Army Programs

Risk Flags

High contract value.
Long contract duration (782 days).
Potential for unforeseen costs in disaster recovery.
Complexity of wildfire debris removal and disposal.
Limited benchmarking data for similar operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $373.3 million to ECC CONSTRUCTORS LLC. DEBRIS REMOVAL & DISPOSAL OPERATIONS FOR 268 PROPERTIES IN LAHAINA, HI DUE TO THE HAWAII WILDFIRE IN AUGUST 2023.

Who is the contractor on this award?

The obligated recipient is ECC CONSTRUCTORS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $373.3 million.

What is the period of performance?

Start: 2024-01-05. End: 2026-02-25.

What is the estimated cost per property for debris removal and disposal?

The total contract value is $373,314,199.4 for 268 properties. This equates to approximately $1,392,963 per property. This figure is exceptionally high and requires further investigation into the scope of work, including the type and volume of debris, hazardous material abatement, and disposal methods, to determine if it aligns with industry standards for extreme disaster scenarios.

What are the primary risks associated with the long contract duration and the nature of wildfire debris?

The 782-day duration presents risks of inflation impacting material and labor costs, potential discovery of unforeseen hazardous materials requiring specialized handling, and logistical challenges in accessing damaged sites. Furthermore, the long timeline increases the potential for scope creep or changes in regulatory requirements for debris disposal, all of which could lead to cost overruns and delays.

How effectively will this contract contribute to the long-term recovery and rebuilding efforts in Lahaina?

This contract is crucial for the initial phase of recovery by clearing land for rebuilding. Its effectiveness will be measured by the timely and safe removal of debris, minimizing environmental impact, and enabling residents and businesses to commence reconstruction. Successful execution is foundational for subsequent recovery stages, but the contract's scope is limited to debris removal, not the rebuilding itself.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HWY STE 301, BURLINGAME, CA, 94010

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

Financial Breakdown

Contract Ceiling: $373,314,199

Exercised Options: $373,314,199

Current Obligation: $373,314,199

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EK22D0004

IDV Type: IDC

Timeline