DoD's $32M Red Hill Fuel Tunnel Repair Contract Awarded to URS Group, Inc. in 2011
Contract Overview
Contract Amount: $32,063,392 ($32.1M)
Contractor: URS Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-09-22
End Date: 2014-04-09
Contract Duration: 930 days
Daily Burn Rate: $34.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE AWARD FEE
Sector: Construction
Official Description: FY2011 SRM REPAIR OF RED HILL FUEL TUNNEL, NAVSUP FLEET LOGISTICS CENTER, PEARL HARBOR, HAWAII
Place of Performance
Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $32.1 million to URS GROUP, INC. for work described as: FY2011 SRM REPAIR OF RED HILL FUEL TUNNEL, NAVSUP FLEET LOGISTICS CENTER, PEARL HARBOR, HAWAII Key points: 1. Contract awarded to URS Group, Inc. for $32.06 million. 2. Project involved repair of the Red Hill Fuel Tunnel in Hawaii. 3. Awarded by the Department of the Navy, part of the Department of Defense. 4. Construction sector spending benchmark for similar projects needs evaluation. 5. Risk assessment should consider the critical nature of fuel infrastructure.
Value Assessment
Rating: fair
The award amount of $32.06 million for a complex infrastructure repair project needs comparison against similar large-scale construction contracts. Without specific benchmarks for fuel tunnel repairs, assessing value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing, though the final award price should still be benchmarked.
Taxpayer Impact: Taxpayer funds were used for a critical infrastructure repair. The effectiveness of the competition in securing a fair price is a key consideration for taxpayer impact.
Public Impact
Ensures operational readiness of critical fuel storage infrastructure for the Navy. Supports regional economic activity through construction services in Hawaii. Addresses potential environmental risks associated with aging fuel storage facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Critical infrastructure vulnerability
- Environmental risk
- Sole-source potential for future repairs
Positive Signals
- Full and open competition utilized
- Awarded to established contractor
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project complexity, location, and specific requirements. Benchmarking against similar large-scale infrastructure projects is crucial for assessing value.
Small Business Impact
The data indicates the prime contractor is URS Group, Inc., and the 'sb' field is false, suggesting this was not a small business award. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
Oversight by the Department of the Navy is expected for this critical infrastructure project. The contract type (Fixed Price Award Fee) suggests performance incentives, which require diligent monitoring to ensure accountability and value for money.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Critical infrastructure vulnerability
- Environmental risk
- Sole-source potential for future repairs
Tags
commercial-and-institutional-building-co, department-of-defense, hi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.1 million to URS GROUP, INC.. FY2011 SRM REPAIR OF RED HILL FUEL TUNNEL, NAVSUP FLEET LOGISTICS CENTER, PEARL HARBOR, HAWAII
Who is the contractor on this award?
The obligated recipient is URS GROUP, 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 $32.1 million.
What is the period of performance?
Start: 2011-09-22. End: 2014-04-09.
What was the specific scope of work for the Red Hill Fuel Tunnel repair, and how did it compare to industry standards for similar projects?
The provided data does not detail the specific scope of work beyond 'SRM REPAIR OF RED HILL FUEL TUNNEL.' A comprehensive analysis would require access to the contract's SOW to compare it against industry standards for fuel tunnel maintenance and repair, assessing if the $32 million price reflects the complexity and necessity of the work performed.
What were the primary risks identified during the bidding process and contract execution for this fuel tunnel repair project?
Key risks likely included the critical nature of the fuel infrastructure, potential environmental hazards during repair, and the logistical challenges of working in Hawaii. The 'rf' field lists 'Critical infrastructure vulnerability,' 'Environmental risk,' and 'Sole-source potential for future repairs,' indicating these were recognized concerns.
How effectively did the full and open competition process ensure a fair and reasonable price for the taxpayer given the project's specialized nature?
While full and open competition is a positive indicator for price discovery, the specialized nature of fuel tunnel repair means the number of qualified bidders might have been limited. A thorough assessment would involve comparing the awarded price against independent cost estimates or benchmarks for similar, highly specialized infrastructure projects.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6274209R1170
Offers Received: 3
Pricing Type: FIXED PRICE AWARD FEE (M)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM
Address: 9901 IH 10 W, SAN ANTONIO, TX, 78230
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $32,063,392
Exercised Options: $32,063,392
Current Obligation: $32,063,392
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $48,300,098
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6274209D1174
IDV Type: IDC
Timeline
Start Date: 2011-09-22
Current End Date: 2014-04-09
Potential End Date: 2014-04-09 00:00:00
Last Modified: 2023-08-09
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