Hawaii's Kapalama Stream Bridge project awarded $25.2M to Hawaiian Dredging Construction Company

Contract Overview

Contract Amount: $25,235,170 ($25.2M)

Contractor: Hawaiian Dredging Construction Company, Inc

Awarding Agency: Department of Transportation

Start Date: 2019-03-20

End Date: 2023-03-31

Contract Duration: 1,472 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HI STP SR56(1) KAPAA STREAM BRIDGE&MAILIHUNA INT

Place of Performance

Location: KAPAA, KAUAI County, HAWAII, 96746

State: Hawaii Government Spending

Plain-Language Summary

Department of Transportation obligated $25.2 million to HAWAIIAN DREDGING CONSTRUCTION COMPANY, INC for work described as: HI STP SR56(1) KAPAA STREAM BRIDGE&MAILIHUNA INT Key points: 1. The contract value represents a significant investment in critical infrastructure for Hawaii. 2. Competition dynamics for this project are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on project scope and contractor performance history. 4. Performance context is established by comparing this project to similar infrastructure developments. 5. The project's sector positioning is within the vital highway, street, and bridge construction industry. 6. The firm-fixed-price contract type suggests a defined cost structure for the government.

Value Assessment

Rating: good

The awarded amount of $25.2 million for the Kapalama Stream Bridge and Mailihuna Intersection project appears reasonable given the scope of highway, street, and bridge construction. Benchmarking against similar large-scale infrastructure projects in Hawaii or other island states would provide a more precise value-for-money assessment. The firm-fixed-price contract type generally offers cost certainty, but the final value is dependent on the contractor's efficiency and management of unforeseen issues.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely encouraged to submit proposals. The presence of two bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing, but the specific nature of large infrastructure projects in certain geographic areas can sometimes limit the pool of qualified proposers.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving the best possible price through a competitive bidding process.

Public Impact

The primary beneficiaries are the residents and commuters of Honolulu, Hawaii, who will experience improved transportation infrastructure. The project delivers essential upgrades to the Kapalama Stream Bridge and the Mailihuna Intersection, enhancing traffic flow and safety. The geographic impact is localized to the Honolulu area, specifically impacting the Kapalama Stream corridor. Workforce implications include job creation for construction workers, engineers, and related support staff in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Dependence on timely delivery of materials and equipment in an island environment.
Risk of project delays due to weather or environmental factors.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded to a known contractor with experience in the region.
Project addresses critical infrastructure needs, indicating strong government support.

Sector Analysis

The highway, street, and bridge construction sector is a critical component of national infrastructure, involving significant government investment. This contract fits within the broader category of public works projects aimed at improving transportation networks. Comparable spending benchmarks for similar bridge construction projects can vary widely based on size, complexity, and location, but projects in the range of $20-30 million are common for significant urban or regional infrastructure improvements.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. While Hawaiian Dredging Construction Company, Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific needs of the project.

Oversight & Accountability

Oversight for this project would typically be managed by the Department of Transportation and the Federal Highway Administration, ensuring compliance with contract terms, safety regulations, and quality standards. Accountability measures are embedded in the contract through performance milestones and payment schedules. Transparency is generally maintained through public contract databases and reporting requirements, though specific day-to-day oversight details are not provided.

Related Government Programs

Federal Highway Administration Bridge Program
State Infrastructure Improvement Projects
Transportation Infrastructure Investment Act

Risk Flags

Potential for schedule delays due to island logistics
Risk of encountering unforeseen site conditions impacting cost and schedule
Dependence on timely material and equipment delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $25.2 million to HAWAIIAN DREDGING CONSTRUCTION COMPANY, INC. HI STP SR56(1) KAPAA STREAM BRIDGE&MAILIHUNA INT

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 Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2019-03-20. End: 2023-03-31.

What is the track record of Hawaiian Dredging Construction Company, Inc. on similar federal projects?

Hawaiian Dredging Construction Company, Inc. has a history of performing large-scale construction projects, including significant infrastructure work in Hawaii. While specific details on their track record with federal highway projects are not provided in this data snippet, their selection for a project of this magnitude suggests they possess the necessary qualifications and experience. A deeper dive into their past performance ratings, any past disputes or claims, and the successful completion of comparable projects would offer a more comprehensive assessment of their reliability and capability for this specific contract.

How does the awarded amount compare to the estimated cost or bids from other competitors?

The provided data indicates an award amount of $25,235,169.53 and notes that there were two bidders. However, it does not include the estimated cost or the specific bid amounts from each competitor. To assess value for money, a comparison of the awarded amount against the government's estimate and the bids received is crucial. If the awarded amount was significantly lower than the estimate and other bids, it suggests good price discovery. Conversely, if it was close to or exceeded the estimate, further scrutiny of the bidding process and the scope of work might be warranted.

What are the primary risks associated with this specific bridge construction project?

Key risks for this bridge construction project include potential unforeseen subsurface conditions (e.g., soil stability, underground utilities), environmental challenges (e.g., working near a stream, potential for erosion or flooding), and logistical complexities inherent in island construction (e.g., material sourcing, transportation costs, labor availability). Weather delays are also a significant risk factor in Hawaii. The firm-fixed-price contract structure shifts some of the financial risk of cost overruns to the contractor, but delays can still impact the government and public.

What is the historical spending pattern for highway, street, and bridge construction by the Department of Transportation?

The Department of Transportation, through agencies like the Federal Highway Administration, consistently allocates substantial funding towards highway, street, and bridge construction. Annual federal spending in this category typically runs into the tens of billions of dollars nationwide, supporting state and local projects. This specific $25.2 million contract represents a localized investment within that broader federal commitment. Analyzing historical spending trends would reveal patterns in project types, geographic distribution, and the average contract values for similar infrastructure initiatives.

How does the contract duration (1472 days) align with typical project timelines for similar infrastructure?

A duration of 1472 days, approximately four years, for a bridge and intersection project of this scale is generally within the expected range for complex infrastructure development. Factors influencing project duration include the complexity of design, the extent of site preparation, environmental reviews, permitting processes, construction methods, and potential for weather-related delays. For major bridge construction, multi-year timelines are common, especially when considering the need for detailed engineering, phased construction to maintain traffic flow, and rigorous quality control.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge 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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kajima Corporation

Address: 201 MERCHANT ST STE 900, HONOLULU, HI, 96813

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $25,235,170

Exercised Options: $25,235,170

Current Obligation: $25,235,170

Actual Outlays: $23,603,902

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFH6817D00004

IDV Type: IDC

Timeline