Performance-Based Acquisition: A tool to reduce costs and improve performance at US Army environmental remediation sites

The US Army, like most US federal and state environmental organizations, is faced with limited resources to conduct environmental work, an increasing workload, and challenges in achieving closeout of its environmental cleanup programs. In 2001, in an effort to incorporate proven private sector tools into federal cleanup programs, the Department of Defense (DoD) Business Initiative Council (BIC), initiated the use of Performance-Based Acquisition (PBA) for environmental cleanup. Since fiscal year 2000, the US Army Environmental Command (USAEC) has successfully awarded more than 55 performance-based contracts for environmental remediation. These contracts range in size from $500,000 to $52.4 million, and include closing properties (Base Realignment and Closure (BRAC)) and some of the US Army's most complex active installations. The contracts address a range of activities including investigation through monitoring and site completion, as well as various technical challenges including dense non-aqueous phase liquids (DNAPL) in ground water, karst systems, munitions and explosives of concern, and biological agents. The contracts are most often firm-fixed price, and 50 percent of the contracts required contractors to purchase environmental insurance in the form of remediation stop loss insurance (also known as cleanup cost cap insurance). The USAEC has conducted continuous process improvement since inception of the initiative. This paper presents results of two studies that were conducted in 2005-2006 to determine what lessons learned can be applied to future activities and to measure performance of contractors currently executing work under the performance based contracts. (authors)