DHS Coast Guard Awards $14.8M Design-Build Dive Locker in Honolulu to J.I. Garcia Construction
Contract Overview
Contract Amount: $14,860,862 ($14.9M)
Contractor: J. I. Garcia Construction, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2026-01-28
End Date: 2028-04-10
Contract Duration: 803 days
Daily Burn Rate: $18.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN-BUILD REGIONAL DIVE LOCKER (RDL) AT BASE HONOLULU, HONOLULU, HI
Place of Performance
Location: HONOLULU, HONOLULU County, HAWAII, 96819
State: Hawaii Government Spending
Plain-Language Summary
Department of Homeland Security obligated $14.9 million to J. I. GARCIA CONSTRUCTION, INC. for work described as: DESIGN-BUILD REGIONAL DIVE LOCKER (RDL) AT BASE HONOLULU, HONOLULU, HI Key points: 1. The contract is for a design-build project for a Regional Dive Locker. 2. J.I. Garcia Construction, Inc. is the awardee. 3. The project is located at Base Honolulu, Hawaii. 4. The contract value is $14,860,862. 5. The period of performance is 803 days.
Value Assessment
Rating: good
The contract value of $14.8 million for a design-build regional dive locker appears reasonable given the scope and location. Benchmarking against similar large-scale construction projects in Hawaii would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a limited competition. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for this construction project, with the final cost influenced by the competitive nature of the award.
Public Impact
Enhances U.S. Coast Guard operational capabilities in Honolulu. Supports critical diving and maritime safety infrastructure. Contributes to the local economy through construction activities. Ensures a modern facility for specialized Coast Guard operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have impacted final price.
- Potential for cost overruns in design-build projects.
- Long performance period could introduce risks.
Positive Signals
- Addresses a specific operational need for the Coast Guard.
- Awarded to a single, presumably qualified, contractor.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on infrastructure needs and economic conditions. The $14.8M award is substantial for a single facility.
Small Business Impact
The awardee is J.I. Garcia Construction, Inc. Analysis of whether this is a small or large business is not provided in the data. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The award process, including the 'Exclusion of Sources' aspect, warrants oversight to ensure fairness and adherence to procurement regulations. The firm fixed price contract offers some cost control.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Limited competition raises questions about optimal price.
- Design-build complexity can lead to scope creep or delays.
- Long performance period increases exposure to market volatility.
- Reliance on a single contractor for critical infrastructure.
Tags
commercial-and-institutional-building-co, department-of-homeland-security, hi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $14.9 million to J. I. GARCIA CONSTRUCTION, INC.. DESIGN-BUILD REGIONAL DIVE LOCKER (RDL) AT BASE HONOLULU, HONOLULU, HI
Who is the contractor on this award?
The obligated recipient is J. I. GARCIA CONSTRUCTION, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $14.9 million.
What is the period of performance?
Start: 2026-01-28. End: 2028-04-10.
What specific criteria led to the exclusion of other sources in this 'Full and Open Competition After Exclusion of Sources' award?
The exclusion of sources typically occurs when specific capabilities, security clearances, or proprietary technologies are required, limiting the pool of eligible bidders. For a design-build project like a dive locker, this could relate to specialized design expertise, existing site knowledge, or unique construction methods necessary for the base's operational requirements. The contracting agency would need to justify this exclusion based on demonstrable needs.
How does the firm fixed price contract mitigate risks associated with the 803-day performance period for this design-build project?
A firm fixed price contract shifts most of the cost risk to the contractor, J.I. Garcia Construction, Inc. This means the government is obligated to pay the agreed-upon price regardless of the contractor's actual costs. For an 803-day performance period, this provides significant budget certainty for the U.S. Coast Guard. However, it places the burden on the contractor to accurately estimate all costs, including potential inflation, labor shortages, or material price fluctuations over the project's duration.
What is the expected impact of this new dive locker facility on the U.S. Coast Guard's operational effectiveness in the region?
The new Regional Dive Locker (RDL) is expected to significantly enhance the U.S. Coast Guard's operational effectiveness by providing a modern, purpose-built facility for dive operations. This likely includes improved training capabilities, better equipment maintenance and storage, and potentially increased readiness for underwater missions, search and rescue, and port security. A dedicated facility streamlines operations and supports the specialized needs of dive teams.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4717 E HEDGES AVE, FRESNO, CA, 93703
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,860,862
Exercised Options: $14,860,862
Current Obligation: $14,860,862
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70Z04724DPCNI0007
IDV Type: IDC
Timeline
Start Date: 2026-01-28
Current End Date: 2028-04-10
Potential End Date: 2028-04-10 04:34:11
Last Modified: 2026-01-28
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