Navy awards $35.6M for Red Hill fuel tank construction and repair, with APTIM Federal Services as prime

Contract Overview

Contract Amount: $35,573,808 ($35.6M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2016-08-31

End Date: 2023-06-09

Contract Duration: 2,473 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF GPOL CIR RED HILL TANKS 14, 17 AND 18

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $35.6 million to APTIM FEDERAL SERVICES, LLC for work described as: IGF::OT::IGF GPOL CIR RED HILL TANKS 14, 17 AND 18 Key points: 1. Contract value represents a significant investment in critical fuel infrastructure. 2. The fixed-price nature of the contract aims to control costs for the government. 3. The duration of the contract suggests a complex and lengthy project. 4. The award was made under full and open competition, indicating a broad market solicitation. 5. This contract addresses essential maintenance and construction needs for fuel storage facilities.

Value Assessment

Rating: fair

The contract value of $35.6 million for construction and repair of fuel tanks appears substantial. Benchmarking against similar large-scale infrastructure projects within the Department of Defense is necessary for a precise value-for-money assessment. However, the firm-fixed-price structure suggests an effort to cap government liability. The contract's duration of over 2000 days indicates a long-term commitment, which could imply significant scope or complexity, potentially justifying the overall cost if executed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified contractors had the opportunity to bid. The presence of two bids indicates a degree of competition, though the exact number of solicitations and proposals received would provide a clearer picture of market interest. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of offers, potentially driving down prices and ensuring the government receives competitive bids for its projects.

Public Impact

The primary beneficiaries are the Department of the Navy and its operational readiness, ensuring secure fuel storage. Services delivered include construction and repair of critical fuel storage tanks at the Red Hill facility. The geographic impact is localized to Hawaii, specifically the Red Hill Bulk Fuel Storage Facility. Workforce implications include potential job creation for construction and skilled trades in the Hawaii region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extended construction period.
Environmental risks associated with fuel storage infrastructure require stringent oversight.
Dependence on a single prime contractor for a project of this scale carries inherent risks.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive bidding process.
Long-term duration allows for comprehensive project execution and potential for phased delivery.

Sector Analysis

This contract falls within the construction and infrastructure sector, specifically related to energy storage and transportation. The Department of Defense frequently engages in large-scale construction and maintenance projects to support its global operations. Comparable spending benchmarks would involve analyzing other major fuel storage facility construction or repair contracts awarded by federal agencies, particularly within the military.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, APTIM Federal Services. The extent of small business involvement will depend on the prime's subcontracting plan and the availability of qualified small businesses for specialized construction or support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Department of the Navy's acquisition and program management teams. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services and infrastructure. Transparency is generally maintained through contract award databases and reporting requirements, though specific project oversight details may not be publicly disclosed.

Related Government Programs

Department of Defense Fuel Storage Facilities
Military Construction Projects
Infrastructure Maintenance Contracts
Naval Facilities Engineering Command Contracts

Risk Flags

Environmental Risk
Long-Term Project Management
Infrastructure Integrity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.6 million to APTIM FEDERAL SERVICES, LLC. IGF::OT::IGF GPOL CIR RED HILL TANKS 14, 17 AND 18

Who is the contractor on this award?

The obligated recipient is APTIM FEDERAL SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.6 million.

What is the period of performance?

Start: 2016-08-31. End: 2023-06-09.

What is the historical spending pattern for fuel tank construction and repair by the Department of the Navy?

Analyzing historical spending patterns for fuel tank construction and repair by the Department of the Navy requires access to detailed contract databases and budget allocations over several fiscal years. Generally, the Navy, like other branches of the military, allocates significant funds towards maintaining and upgrading its infrastructure, including fuel storage. Spending can fluctuate based on the age of existing facilities, new operational requirements, and regulatory changes. For instance, major overhauls or replacements of aging tank systems, such as the Red Hill facility, would represent substantial capital expenditures. Without specific data on past contracts for similar projects, it's difficult to provide precise figures, but it's understood that such infrastructure maintenance is a recurring and significant budgetary item for the Navy, often involving multi-year commitments and substantial dollar values.

How does the awarded price compare to similar fuel tank construction projects within the federal government?

Comparing the $35.6 million award for the Red Hill fuel tanks to similar federal projects requires identifying comparable contracts in terms of scope, size, location, and complexity. Large-scale fuel storage construction or repair projects for military installations can vary widely in cost due to factors like geographic location, environmental regulations, specific technical requirements, and the duration of the project. A direct comparison would necessitate analyzing contracts for similar fuel tank capacities, materials, and construction methods. Given the specialized nature of military fuel storage, costs can be higher than commercial equivalents due to stringent security, safety, and operational readiness standards. The firm-fixed-price nature of this award suggests an attempt to control costs, but a definitive value assessment requires a detailed benchmark analysis against recently awarded, comparable federal contracts.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

Key performance indicators (KPIs) for a construction and repair contract like this typically revolve around schedule adherence, quality of work, safety compliance, and adherence to technical specifications. The Department of the Navy would likely establish specific milestones for different phases of the construction and repair work, with payments tied to the successful completion of these milestones. Quality control would involve inspections and testing to ensure the tanks meet all structural integrity and safety standards. Safety KPIs would focus on incident rates and compliance with occupational safety regulations. Performance measurement would likely involve regular progress reports from the contractor, site inspections by government representatives, and potentially independent quality assurance reviews. Failure to meet these KPIs could result in penalties or contract modifications.

What is APTIM Federal Services' track record with similar large-scale construction projects for the Department of Defense?

APTIM Federal Services has a significant track record of performing large-scale construction, engineering, and environmental services for the Department of Defense and other federal agencies. Their portfolio often includes projects related to infrastructure development, facility maintenance, and environmental remediation. To assess their specific track record for fuel tank construction and repair, a review of their past performance on similar contracts would be necessary. This would involve examining contract awards, project completion records, and any past performance evaluations or awards. Generally, companies like APTIM are selected for such projects based on their demonstrated capabilities, experience, and past performance on complex government contracts, suggesting they possess the necessary expertise for this type of work.

What are the potential risks associated with the long duration (2473 days) of this contract?

The extended duration of 2473 days (approximately 6.7 years) for this contract presents several potential risks. Firstly, there is an increased risk of cost escalation due to inflation or unforeseen changes in material and labor costs over such a long period, even with a fixed-price contract, if scope changes occur. Secondly, the project's timeline could be impacted by unforeseen site conditions, environmental challenges, or regulatory changes that emerge during the execution phase. Thirdly, maintaining consistent project oversight and contractor performance over nearly seven years requires sustained effort and resources from the government. Finally, there's a risk of technological obsolescence or evolving operational requirements that might necessitate modifications to the original project scope, potentially leading to change orders and increased costs.

Industry Classification

NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N3943014R1405

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aptim Holdings LLC (UEI: 080821711)

Address: 1725 DUKE ST, STE 400, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $35,573,808

Exercised Options: $35,573,808

Current Obligation: $35,573,808

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $3,905,397

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N3943015D1632

IDV Type: IDC

Timeline