Navy Awards $125.9M Construction Contract to Hawaiian Dredging for Bravo 12-14 Repairs
Contract Overview
Contract Amount: $12,594,610 ($12.6M)
Contractor: Hawaiian Dredging Construction Company, Inc
Awarding Agency: Department of Defense
Start Date: 2007-06-26
End Date: 2009-09-13
Contract Duration: 810 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: OPTION 1, BRAVO 12 - 14, REPAIR
Place of Performance
Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $12.6 million to HAWAIIAN DREDGING CONSTRUCTION COMPANY, INC for work described as: OPTION 1, BRAVO 12 - 14, REPAIR Key points: 1. Significant contract value of $125.9 million for heavy civil engineering construction. 2. Full and open competition indicates a potentially competitive bidding process. 3. Contract awarded to Hawaiian Dredging Construction Company, Inc., a single entity. 4. Project duration of 810 days suggests a complex and lengthy undertaking.
Value Assessment
Rating: fair
The contract value of $125.9 million for heavy and civil engineering construction appears within a reasonable range for a project of this scale and duration. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders were allowed to participate. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The $125.9 million expenditure represents a significant investment of taxpayer funds, with the expectation of receiving value through the completed construction project.
Public Impact
Impacts naval infrastructure readiness in Hawaii. Supports local employment and economic activity in Hawaii during the construction period. Potential for disruption to base operations during repair work.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is lengthy (810 days).
- Single awardee may limit ongoing competition.
- No specific mention of small business subcontracting goals.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Project addresses critical infrastructure needs.
Sector Analysis
This contract falls under the Construction sector, specifically heavy and civil engineering. Spending in this sector is often project-driven and influenced by infrastructure needs and government investment priorities. Benchmarks for similar large-scale repair and construction projects are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The data indicates that the prime contractor is not a small business, and there is no explicit mention of small business subcontracting requirements or participation in this award. Further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the Department of Defense. Oversight would typically involve contract management teams ensuring adherence to specifications, timelines, and budget, with potential for audits and reviews.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lengthy contract duration.
- Potential for scope creep despite fixed price.
- Lack of explicit small business participation noted.
- Single prime contractor may limit future competition.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, hi, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.6 million to HAWAIIAN DREDGING CONSTRUCTION COMPANY, INC. OPTION 1, BRAVO 12 - 14, REPAIR
Who is the contractor on this award?
The obligated recipient is HAWAIIAN DREDGING CONSTRUCTION COMPANY, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $12.6 million.
What is the period of performance?
Start: 2007-06-26. End: 2009-09-13.
What specific repairs are included in the Bravo 12-14 project, and how do they contribute to the Navy's operational readiness?
The specific repairs for Bravo 12-14 are not detailed in the provided data. However, such projects typically involve structural repairs, upgrades to utilities, or modernization of facilities critical for naval operations. Understanding the exact scope would clarify the direct impact on the Navy's ability to conduct its missions effectively and maintain its assets.
Given the firm fixed price, what mechanisms are in place to manage potential cost overruns or scope creep during the 810-day project duration?
A firm fixed price contract aims to transfer risk to the contractor. However, mechanisms like change order processes, strict adherence to the original scope, and performance monitoring are crucial. The Navy's contracting officers would manage any proposed changes, ensuring they are justified and properly priced, to prevent uncontrolled cost increases beyond the agreed-upon fixed price.
How was the 'fair' value assessment determined, and what benchmarks were used to evaluate the $125.9 million price against similar construction contracts?
The 'fair' value assessment is a preliminary judgment based on the contract's scale and type. A more rigorous evaluation would involve comparing the per-unit costs (e.g., cost per square foot, cost per linear foot of repair) to historical data for similar Navy or civilian construction projects in the same geographic region. Factors like material costs, labor rates, and project complexity influence these benchmarks.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6274204R1300
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kajima Corporation (UEI: 690593314)
Address: 614 KAPAHULU AVE, HONOLULU, HI, 01
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,594,610
Exercised Options: $12,594,610
Current Obligation: $12,594,610
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6274204D1302
IDV Type: IDC
Timeline
Start Date: 2007-06-26
Current End Date: 2009-09-13
Potential End Date: 2009-09-13 00:00:00
Last Modified: 2010-11-24
More Contracts from Hawaiian Dredging Construction Company, Inc
- FY19 Mcon P-169 Water Transmission Line, Waiawa, Jbphh, Oahu — $74.5M (Department of Defense)
- Mcon Project P-923, Regimental Consolidated Communications/Electronics Facility, Marine Corps Base Hawaii, Kaneohe, Hawaii — $67.6M (Department of Defense)
- Design and Construction, FY11 Mcon P-858, Bachelor's Enlisted Quarters, Marine Corps Base Hawaii — $60.3M (Department of Defense)
- HI STP SR30(1) Lahaina Bypass 1B-2 2.7 Mile Bypass Design-Build Contract — $41.4M (Department of Transportation)
- FY09 MCA PN68823, Ueph SB, Oahu, Hawaii — $32.0M (Department of Defense)
View all Hawaiian Dredging Construction Company, Inc federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)