Contracting methods and management systems of remedial action contracts within the U.S. Navy's installation restoration program.
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Authors
Banaji, Darius
Subjects
Advisors
Moavenzadeh, Fred
Date of Issue
1993-09
Date
Publisher
Cambridge, MA; Massachusetts Institute of Technology
Language
en_US
Abstract
To date, Department of Defense (DoD) officials have identified over 17,660 potentially hazardous waste sites at nearly 2,000 DoD installations. Some DoD experts estimate the total cleanup bill to exceed $24 billion over the next 20 years. To date, the Navy itself is responsible for the cleanup of some 2,500 potential sites at nearly 300 Navy and Marine Corps installations. The Navy estimates their cleanup costs will exceed $3 billion.
To meet the challenges of the next century, the Navy should carefully investigate those areas of its Installation Restoration Program that can be improved. Key components of the program include: Comprehensive Long-term Environmental Action, Navy (CLEAN) contracts already in place for activities from site investigation through remedial design; and a relatively new and evolving component, Remedial Action Contracts (RACs), charged with site remediation.
This thesis analyzes the contract framework and management system for Navy RACs, and assesses the following:
1.) The evolution of the pilot RACs;
2.) The effectiveness of these contracts for timely site remediation;
3.) Recommended improvements required for future RACs.
The two "most" suitable contracting methods for Navy Remedial Action Contracts are, General Contractor or Design-Build Team, both on a reimbursable basis. All eight pilot RACs were written for a general contractor on a cost-plus-fixed-fee basis, with competitive source selection. Contractors are responsible for site remediation by predominant contaminant type at any Navy/Marine Corps installation throughout the U.S. and its territories. The second generation of RACs are also being written for a general contractor through competitive source selection, but on a cost-plus-award-fee basis, with each contract being geographic specific, and requiring that the contractor be generally capable of remediating all contaminant types.
The Navy has selected an appropriate contract organization, type, and award method for environmental restoration contracting. However, to date, only a few sites have been cleaned up. The process has been slower than anticipated. An immediate partial solution would be to modify the pilot RACs and those contracts pending award, to include the concept of partnering.
As the Navy's program matures and additional contracts are written, the Navy should consider the distinct advantages of adopting a design-build contract (on a cost-plus-award-fee basis). In addition, the Navy should consider the combination of a "cost type" contract with unit prices for tasks that can be quantified. This would reduce the financial risk to the Navy, increase control over contractor productivity, and reduce the administrative burdens of a purely "cost type" contract.
Finally, the success of the program will not be determined solely by the choice of an innovative contracting method, but by the individuals tasked to provide technical, contractual, and daily site monitoring. A more aggressive training program should be in place before awarding any future remedial action contracts.
Type
Thesis
Description
Series/Report No
Department
Civil and Environmental Engineering
Organization
Identifiers
NPS Report Number
Sponsors
Funder
Format
111 leaves.