DoD awards $5.9M remediation contract to GSI MMRP JV LLC for Hawaii site

Contract Overview

Contract Amount: $5,913,540 ($5.9M)

Contractor: GSI Mmrp JV LLC

Awarding Agency: Department of Defense

Start Date: 2022-12-14

End Date: 2026-12-31

Contract Duration: 1,478 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TIME CRITICAL REMOVAL ACTION MRS TG001A BELLOWS AFS HI

Place of Performance

Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $5.9 million to GSI MMRP JV LLC for work described as: TIME CRITICAL REMOVAL ACTION MRS TG001A BELLOWS AFS HI Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a specific justification for limited initial bidders. 2. The contract is a delivery order under a larger contract, suggesting it's part of an ongoing or pre-established program. 3. Fixed-price contract type aims to control costs, but performance risks remain. 4. The duration of nearly 5 years suggests a substantial scope of work for environmental remediation. 5. The contractor, GSI MMRP JV LLC, is a joint venture, potentially indicating specialized capabilities or a strategic partnership. 6. The contract is for remediation services, a critical environmental function for the Department of Defense.

Value Assessment

Rating: fair

The contract value of $5.9 million over approximately 5 years for remediation services in Hawaii appears reasonable on the surface. However, without specific benchmarks for similar environmental remediation projects in the region or detailed scope of work, a precise value-for-money assessment is challenging. The fixed-price nature of the contract suggests an attempt to control costs, but the ultimate cost-effectiveness will depend on the contractor's efficiency and the actual environmental conditions encountered. Further analysis would require comparing this contract's unit costs for specific remediation activities against industry standards and other government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method implies that while the competition was intended to be open, specific sources were initially excluded, and then the remaining sources competed. This could be due to pre-qualification requirements, specific technical expertise needed, or other justifications. The number of bidders is not specified, but the method suggests a potentially narrower field than a completely unrestricted full and open competition. This could impact price discovery and potentially lead to higher prices if the pool of qualified bidders was small.

Taxpayer Impact: Taxpayers benefit from a competitive process, even if limited, as it aims to secure the best value among qualified providers. However, the exclusion of certain sources warrants scrutiny to ensure it was justified and did not unduly restrict competition, potentially increasing costs.

Public Impact

The primary beneficiaries are the Department of the Army and potentially the local community in Hawaii, through the environmental cleanup of a military site. The services delivered involve environmental remediation, addressing hazardous materials or contamination. The geographic impact is localized to the specific military installation in Hawaii where the remediation is taking place. The contract supports specialized environmental services workforce, potentially creating or sustaining jobs in the remediation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions require extensive remediation beyond the initial scope.
Reliance on a joint venture may introduce complexities in management, coordination, and accountability.
The 'after exclusion of sources' clause requires careful review to ensure fair competition was maintained.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
The contract is awarded to a joint venture, potentially bringing together diverse expertise for complex remediation tasks.
The duration allows for thorough completion of remediation activities.

Sector Analysis

The environmental remediation sector is a critical component of government contracting, particularly for agencies managing large land holdings like the Department of Defense. This contract falls within the broader environmental services industry, which includes hazardous waste management, site cleanup, and compliance consulting. The market for remediation services is driven by regulatory requirements and the need to address historical contamination. Comparable spending benchmarks would typically involve analyzing the cost per acre or per cubic yard of contaminated material remediated for similar projects across different government agencies and private sector clients.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. As the contractor is a joint venture, its structure and the small business status of its parent entities would need further investigation to determine any indirect impact on the small business ecosystem. Without explicit set-aside provisions, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Military Munitions Response Program (MMRP)
Defense Environmental Programs
Site Remediation Contracts

Risk Flags

Limited Competition Justification
Potential for Unforeseen Site Conditions
Joint Venture Management Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.9 million to GSI MMRP JV LLC. TIME CRITICAL REMOVAL ACTION MRS TG001A BELLOWS AFS HI

Who is the contractor on this award?

The obligated recipient is GSI MMRP JV 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 $5.9 million.

What is the period of performance?

Start: 2022-12-14. End: 2026-12-31.

What is the specific nature of the environmental contamination being addressed at the Hawaii site?

The provided data does not specify the exact nature of the environmental contamination. However, the contractor's name, 'GSI MMRP JV LLC,' strongly suggests involvement with the Military Munitions Response Program (MMRP). This program addresses contamination from past military activities, which can include unexploded ordnance (UXO), discarded military munitions, and associated chemical contaminants (like heavy metals and solvents) in soil and groundwater. The remediation services would likely involve site investigation, risk assessment, and the physical removal or treatment of hazardous substances to meet environmental standards.

How does the $5.9 million cost compare to similar remediation projects in Hawaii or other DoD sites?

A direct cost comparison for this $5.9 million contract is difficult without more specific details on the scope of work, the type and extent of contamination, and the remediation technologies employed. Remediation projects vary significantly in cost based on these factors. Generally, DoD remediation projects can range from hundreds of thousands to tens or hundreds of millions of dollars. To benchmark this contract, one would need to compare its cost per unit of contaminant removed, cost per acre treated, or cost per cubic yard of soil remediated against similar projects managed by the Army Corps of Engineers or other environmental agencies in comparable geographic locations and geological conditions. The fixed-price nature suggests an effort to contain costs, but the complexity of environmental work can lead to unforeseen expenses.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks include encountering unforeseen environmental conditions (e.g., deeper contamination, unexpected hazardous materials) that could increase costs and extend timelines, despite the fixed-price structure. Performance risks also exist, where the contractor may not meet quality standards or deadlines. Mitigation strategies likely include detailed site investigations prior to full remediation, robust contract oversight by the government, clearly defined performance metrics, and contingency planning within the contract. The use of a joint venture might also introduce management and coordination risks, which would need to be managed through clear roles and responsibilities outlined in the contract and vigilant oversight.

What is the track record of GSI MMRP JV LLC in performing similar environmental remediation contracts?

The provided data identifies GSI MMRP JV LLC as the contractor, a joint venture. To assess their track record, one would need to examine past performance on similar contracts, particularly those related to the Military Munitions Response Program (MMRP) or other complex environmental remediation efforts for the Department of Defense or other federal agencies. This would involve reviewing past performance evaluations, any history of contract disputes or terminations, and the successful completion of projects of similar scale and complexity. Information on the individual companies forming the joint venture might also provide insights into their collective capabilities and experience.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact the overall value and efficiency for taxpayers?

This procurement method, while aiming for competition, suggests that certain potential bidders were excluded upfront, possibly due to specific qualifications, past performance, or other criteria deemed necessary for this particular project. While this can ensure that only highly capable contractors participate, it may limit the overall pool of competition compared to unrestricted full and open competition. If the exclusion criteria were overly restrictive or not well-justified, it could reduce competitive pressure, potentially leading to higher prices for taxpayers. Conversely, if the exclusions were necessary to ensure specialized expertise for a complex task, it could lead to a more efficient and effective outcome, ultimately benefiting taxpayers through successful project completion.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 181 S KUKUI ST, HONOLULU, HI, 96813

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,913,540

Exercised Options: $5,913,540

Current Obligation: $5,913,540

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128A20D0001

IDV Type: IDC

Timeline