Coast Guard awards $3.7M contract for Diamond Head Lighthouse maintenance, a sole-source procurement

Contract Overview

Contract Amount: $3,741,144 ($3.7M)

Contractor: JBA Construction LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-06

End Date: 2027-04-06

Contract Duration: 365 days

Daily Burn Rate: $10.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MAINTAIN AND REPAIR DIAMOND HEAD LIGHTHOUSE, REPRESENTATIONAL FACILITY AND GUEST COTTAGE AT U.S. COAST GUARD, HONOLULU, HAWAII

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96815

State: Hawaii Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.7 million to JBA CONSTRUCTION LLC for work described as: MAINTAIN AND REPAIR DIAMOND HEAD LIGHTHOUSE, REPRESENTATIONAL FACILITY AND GUEST COTTAGE AT U.S. COAST GUARD, HONOLULU, HAWAII Key points: 1. The contract focuses on essential maintenance and repair of a critical historical landmark. 2. The sole-source nature of the award warrants scrutiny regarding potential cost efficiencies and market alternatives. 3. The duration of the contract suggests a need for ongoing specialized services. 4. Performance will be assessed against the firm-fixed-price structure, indicating defined cost expectations. 5. The contract is situated within the broader context of federal facility management and historical preservation.

Value Assessment

Rating: fair

The contract value of $3.7 million for a one-year period for lighthouse and cottage maintenance appears reasonable given the specialized nature of the work and the historical significance of the Diamond Head Lighthouse. However, without comparable sole-source lighthouse maintenance contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty for the government, but it limits the ability to capture potential savings if costs are lower than anticipated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The justification for this approach is not detailed in the provided data, but it typically implies that only one responsible source was available or that the urgency of the requirement precluded full and open competition. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces.

Taxpayer Impact: The absence of competition for this contract means taxpayers may not have received the lowest possible price for these services. A competitive process could have encouraged multiple firms to bid, potentially leading to cost savings.

Public Impact

The U.S. Coast Guard benefits from the continued operational readiness and preservation of a key navigational aid and historical site. The services delivered include essential maintenance and repair of the Diamond Head Lighthouse and a guest cottage. The geographic impact is localized to Honolulu, Hawaii, specifically at the U.S. Coast Guard's Diamond Head facility. The contract supports specialized construction and maintenance labor, potentially benefiting local skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of competition raises questions about whether the most cost-effective solution was secured.
The specific justification for the sole-source award needs further investigation to ensure it was appropriate.

Positive Signals

Contract ensures the preservation and functionality of a significant historical and navigational landmark.
Firm-fixed-price contract provides budget certainty for the U.S. Coast Guard.
The contract duration suggests a commitment to maintaining critical infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on the maintenance and repair of specialized government facilities. The market for lighthouse maintenance is niche, often requiring specialized historical preservation expertise. Comparable spending benchmarks are difficult to establish due to the unique nature of lighthouses and the sole-source award. However, federal spending on facility maintenance and repair across various agencies represents a significant portion of the federal budget.

Small Business Impact

The data indicates that this contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Coast Guard contracting and program officials. As a Department of Homeland Security contract, it may also be subject to review by the DHS Office of Inspector General, particularly concerning procurement integrity and performance. Transparency is facilitated by contract databases, but detailed performance metrics and cost justifications for sole-source awards are often less publicly accessible.

Related Government Programs

Federal Building and Facilities Maintenance
Historical Preservation Contracts
Navigational Aids Maintenance
Department of Homeland Security Facility Management

Risk Flags

Sole-source award requires justification review.
Potential for non-competitive pricing.
Need for robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.7 million to JBA CONSTRUCTION LLC. MAINTAIN AND REPAIR DIAMOND HEAD LIGHTHOUSE, REPRESENTATIONAL FACILITY AND GUEST COTTAGE AT U.S. COAST GUARD, HONOLULU, HAWAII

Who is the contractor on this award?

The obligated recipient is JBA CONSTRUCTION LLC.

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 $3.7 million.

What is the period of performance?

Start: 2026-04-06. End: 2027-04-06.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification, such as the existence of only one responsible source or an unusual and compelling urgency, is not detailed in the summary data. Typically, agencies must document and justify sole-source procurements to ensure they are necessary and that the government is obtaining fair and reasonable pricing. Without this documentation, it is difficult to assess the appropriateness of bypassing the competitive bidding process for this $3.7 million contract.

How does the $3.7 million cost compare to similar lighthouse maintenance contracts?

Direct comparison of this $3.7 million contract to similar lighthouse maintenance contracts is challenging due to the unique nature of each lighthouse, its historical significance, and the specific services required. Furthermore, the sole-source award limits the availability of benchmark pricing derived from competitive bids. While $3.7 million for a one-year maintenance contract for a significant facility like Diamond Head Lighthouse might seem substantial, its value can only be truly assessed against detailed cost breakdowns, historical maintenance records for this specific lighthouse, and potentially against contracts for the maintenance of other unique historical federal structures, if such data were available.

What are the potential risks associated with a sole-source contract for lighthouse maintenance?

The primary risk associated with a sole-source contract is the potential for inflated pricing due to the lack of competition. Without competing bids, the contractor may have less incentive to offer the most cost-effective solution. Additionally, there's a risk that the chosen contractor may not possess the absolute best or most innovative maintenance techniques available in the market, as alternatives were not explored through a competitive process. Ensuring adequate oversight and performance monitoring becomes even more critical to mitigate these risks and verify that the services are performed to the required standards and at a fair price.

What is the track record of JBA CONSTRUCTION LLC in performing similar federal contracts?

The provided data identifies JBA CONSTRUCTION LLC as the contractor but does not include specific details about their past performance on federal contracts, particularly those involving historical landmark maintenance or lighthouse upkeep. A thorough assessment of JBA CONSTRUCTION LLC's track record would require accessing historical contract databases to review their performance ratings, any past issues or disputes, and their experience with similar projects. This information is crucial for understanding their capability to successfully execute the Diamond Head Lighthouse maintenance and repair work.

What is the historical spending pattern for the maintenance of Diamond Head Lighthouse?

The provided data does not include historical spending patterns for the maintenance of the Diamond Head Lighthouse. To analyze this, one would need to examine past contracts awarded for the upkeep of this specific facility over several years. Understanding historical spending would help determine if the current $3.7 million award represents an increase, decrease, or stable cost compared to previous maintenance efforts, and whether the frequency and scope of maintenance have changed. This context is vital for evaluating the long-term financial commitment and value.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 740 KOHOU ST STE A, HONOLULU, HI, 96817

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,741,144

Exercised Options: $3,741,144

Current Obligation: $3,741,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline