A collection of charred household items sits at a Kula property on Aug. 17. The U.S. Army Corps of Engineers has awarded a $52.5 million contract to Dawson Solutions LLC to conduct site assessments for hazardous household material and bulk asbestos removal in Kula, Olinda and Lahaina following the August wildfires. — The Maui News / MATTHEW THAYER photo

A company in the midst of a federal probe is beginning the next phase of fire debris cleanup in Kula and Olinda under a $52.5 million contract awarded this week by the federal government.

Dawson Solutions, who was chosen by the U.S. Army Corps of Engineers to do hazardous site assessments for household materials and bulk asbestos removal following the August wildfires, said it has cooperated with officials and that the investigation will not affect its work on Maui.

The company began work Friday and expects to be finished by Oct. 31. It will then move on to Lahaina, where work will continue through the remainder of the three-month contract, which ends Jan. 14.

“We realize the USACE had many options to choose from for this contract, and we are honored to have been selected for this vitally important phase to restore Maui and assist in the healing journey of the people of Maui,” David Johnson, chief executive officer and president of Dawson, said in a statement to The Maui News on Thursday.

Johnson said that the company’s work does not involve debris removal, and that it is continuing efforts to contain hazardous material started by the U.S. Environmental Protection Agency.

The EPA’s work to clear hazardous materials from burned properties is the first phase of the federal cleanup following multiple wildfires that killed at least 99 people and destroyed about 2,200 structures in Lahaina, while burning 19 homes in Kula and more than 1,000 acres in Olinda.

The EPA has finished work Upcountry and is about 75 percent done with properties in Lahaina.

The U.S. Army Corps of Engineers is overseeing Phase 2, which involves debris removal. On Tuesday, the agency announced that it had awarded the contract for hazardous site assessments and bulk asbestos removal to Dawson Solutions LLC, a Native Hawaiian Organization 8(a) contractor. The 8(a) program is a business development program designed to help socially and economically disadvantaged small businesses, according to the U.S. Department of the Interior.

Dawson Solutions is one of 11 for-profit subsidiaries, collectively known as Dawson, under the nonprofit Hawaiian Native Corporation established in 2004, its website says. According to Johnson, Dawson has been operating for nearly 30 years and has grown to a global enterprise with more than 1,200 employees in 47 states and 20 countries.

“Despite our growth, we have never lost sight of our local roots,” Johnson said.

Dawson’s U.S. headquarters are located in Denver and its global headquarters are in Honolulu.

In June, Honolulu Civil Beat reported that federal authorities executed a search warrant at Dawson’s Honolulu offices, confiscating company computers and cellphones in what some employees described as a “raid.” Dawson told Civil Beat it was “cooperating with the government’s efforts to obtain records for a federal investigation” but did not provide details. The FBI and IRS declined to comment at the time.

Christopher Dawson, the founder and chairman of the Hawaiian Native Corp. and CEO of Dawson, stepped down shortly after, and Johnson was named CEO, Civil Beat reported in July.

“It is unfortunate that the visit by federal investigators was characterized as a ‘raid,’ ” Johnson said Thursday. “They came to request information from our Honolulu offices, and we gladly cooperated. It is important to note the ongoing investigation was not directed at DAWSON or any of our operating companies. Although we have not been informed about what they may be specifically seeking, we have been told there may have been financial or tax irregularities, so we have fully cooperated and provided all of the information they have requested.”

Johnson pointed out that Dawson’s companies have continued to fulfill existing contracts and receive awards, and that they “do not anticipate any impact to our ability to fulfill this new Maui contract.”

“We would like to reassure Maui residents that we are a responsible company, and we believe the fact that the federal government continues to award us contracts attests to this,” Johnson said. “The ongoing federal investigation does not involve our companies or ability to fulfill our contractual obligations.”

The FBI Honolulu office said by phone Wednesday that it is “neither able to confirm nor deny such an investigation exists.”

Edward Rivera, regional public affairs specialist for the Army Corps of Engineers, said via email on Wednesday that the agency “does not know the details of the investigation” and that it chose Dawson because, after the vetting process, the company “was eligible for contract award and award was made.” Several Native Hawaiian Organization 8(a) contractors were considered for the sole-source contract, and each were vetted for their technical capability, available capacity and past performance, among other requirements, Rivera said.

When asked if the investigation would interfere with Dawson’s work on Maui, Rivera responded, “The Government determined that DAWSON Services LLC (DAWSON) is a responsible contractor eligible for a contract award. DAWSON must perform the required services per the contract. If they cannot perform the services, the Government has an appropriate mechanism with the contract terms to hold DAWSON accountable.”

But state Sen. Angus McKelvey, whose district covers West Maui and whose condo was damaged but survived the fire, said that he has “concerns across the board” with the selection of Dawson.

“I have huge concerns because of the fact that they got raided,” he said Wednesday. “What’s going to happen in the future if they’re in the middle of an awarded contract job and all of a sudden they’re shut down by the feds and that’s that?”

McKelvey acknowledged that “they have the right to due process,” but that “my concern is that’s a huge red flag.”

He said he’s also worried that choosing a company that’s not based on Maui will drive up costs, pointing out that off-island businesses have to ship in equipment and personnel, pay for flights and find lodging. Many of them end up hiring Maui companies anyway to help with the work, turning contractors who get the original project award into “the middleman.”

“The tip of the spear is our local contractors,” McKelvey said. “They have a lot of sensitive working knowledge. … People who have done projects in the community and know the area. I hope they end up being used regardless.”

Maui County Council Vice Chairwoman Yuki Lei Sugimura, who holds the Upcountry residency seat, doesn’t hold the same reservations. She said she’s “not worried about Dawson” because the Army Corps of Engineers is the one ultimately overseeing the debris removal.

“Before a contract is secured, the federal government or U.S. Army Corps of Engineers does their investigation and due diligence on that,” she said Friday.

Sugimura said the Army Corps of Engineers held a meeting Thursday night to talk to homeowners and make sure they had submitted their right-of-entry paperwork to allow the government to work on their properties. They were told the next steps would involve an assessment, then the actual debris removal, Sugimura said.

“Everybody’s anxious because people want to get back to a stable life,” she said.

Johnson said that Dawson is partnering with Maui-based companies. They hope to work with arborists with expertise in assessing burned trees, Maui-based accredited asbestos consultants and EPA-certified labs “who are well versed and experienced in site surveillance.”

“Since the scope of work is primarily focused on hazardous assessment, there is not much machinery involved,” Johnson said. “Our most important assets will be people. We’re looking for people who are willing to join us for the meticulous site assessment work and who share our commitment to malama Maui families and the ‘aina. The EPA has designated a temporary storage facility for hazardous materials in Lahaina, and we believe disposal will be another phase in the recovery process.”

Cultural observers will be in place for all stages of Phase 2, the Army Corps of Engineers said.

When asked how the $52.5 million would be divided between the work in Kula and Lahaina, Johnson said, “It is difficult to breakdown the total contract amount by location, but what we do know is that the majority of the contract is allocated for personnel, logistics and safety.”

He explained that the company wants to immediately fill more than 50 positions and is partnering with other Native Hawaiian organizations and the Council for Native Hawaiian Advancement to recruit employees. Job listings are available at www.hawaiian council.org/mauijobs/.

The Army Corps of Engineers said the schedule for ash and debris removal for Lahaina will be determined after Maui County determines where the temporary debris storage site will be located.

* Managing Editor Colleen Uechi can be reached at cuechi@mauinews.com.