DoD Awards $37.6M for Hawaii Water Line Replacement, Completing FY21 Project

Contract Overview

Contract Amount: $37,606,020 ($37.6M)

Contractor: Kiewit Infrastructure West CO

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2025-03-03

Contract Duration: 1,250 days

Daily Burn Rate: $30.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WON 1574357/1582944 FY21 REPLACE UNDERGROUND SALT WATER DISTRIBUTION LINES AND 12-INCH WATER LINE ALONG LAKE ERIE ST., VARIOUS LOCATIONS IN THE PHNSY AND WATERFRONT, JBPHH, HAWAII

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $37.6 million to KIEWIT INFRASTRUCTURE WEST CO for work described as: WON 1574357/1582944 FY21 REPLACE UNDERGROUND SALT WATER DISTRIBUTION LINES AND 12-INCH WATER LINE ALONG LAKE ERIE ST., VARIOUS LOCATIONS IN THE PHNSY AND WATERFRONT, JBPHH, HAWAII Key points: 1. Significant investment in critical infrastructure for Joint Base Pearl Harbor-Hickam. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Project duration is substantial, indicating complexity and potential for cost overruns. 4. Focus on essential utility upgrades, a common area for government spending.

Value Assessment

Rating: good

The award amount of $37.6 million for replacing underground water lines appears reasonable given the scope and duration. Benchmarking against similar infrastructure projects of this scale would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives fair value. The number of bids received (5) indicates a healthy level of interest.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades, ensuring operational readiness and safety at a key military installation.

Public Impact

Ensures reliable water supply for critical military operations at JBPHH. Improves aging infrastructure, reducing the risk of leaks and service disruptions. Supports local economy through construction jobs and material procurement. Enhances environmental protection by replacing potentially failing underground lines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector, specifically focusing on utility infrastructure. Government spending in this area is often driven by the need to maintain and upgrade aging public facilities and military installations.

Small Business Impact

While the prime contractor is Kiewit Infrastructure West Co., the data does not specify subcontracting efforts or participation by small businesses in this particular delivery order. Further analysis would be needed to determine SMB involvement.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for large construction projects, including progress monitoring and quality assurance, would be in place.

Related Government Programs

Risk Flags

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 $37.6 million to KIEWIT INFRASTRUCTURE WEST CO. WON 1574357/1582944 FY21 REPLACE UNDERGROUND SALT WATER DISTRIBUTION LINES AND 12-INCH WATER LINE ALONG LAKE ERIE ST., VARIOUS LOCATIONS IN THE PHNSY AND WATERFRONT, JBPHH, HAWAII

Who is the contractor on this award?

The obligated recipient is KIEWIT INFRASTRUCTURE WEST CO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $37.6 million.

What is the period of performance?

Start: 2021-09-30. End: 2025-03-03.

What is the estimated cost per linear foot of water line replaced, and how does this compare to industry benchmarks for similar projects in Hawaii?

The total award is $37.6 million for replacing underground salt water distribution lines and a 12-inch water line. Without the exact linear footage or scope of work, a precise per-foot cost cannot be calculated. However, large-scale utility replacement projects can range significantly, often from hundreds to thousands of dollars per linear foot depending on depth, soil conditions, and complexity. A detailed cost breakdown would be needed for a robust benchmark comparison.

What are the primary risks associated with the 1250-day duration of this project, and what mitigation strategies are in place?

The extended duration presents risks such as potential material cost inflation, labor availability fluctuations, and the possibility of encountering unforeseen subsurface conditions (e.g., hazardous materials, complex geological formations). Mitigation strategies likely include robust contract clauses for change orders, contingency planning for material price volatility, and detailed site investigation reports prior to commencement.

How effectively does this project contribute to the long-term operational resilience and cost-efficiency of JBPHH's water systems?

Replacing aging underground lines with modern materials significantly enhances operational resilience by reducing the likelihood of catastrophic failures and costly emergency repairs. This proactive investment is expected to improve long-term cost-efficiency by minimizing water loss, lowering maintenance needs, and preventing disruptions to essential base functions, thereby safeguarding critical military readiness.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247817R4032

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 707 RICHARDS ST STE 750, HONOLULU, HI, 96813

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

Financial Breakdown

Contract Ceiling: $37,606,020

Exercised Options: $37,606,020

Current Obligation: $37,606,020

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $5,396,039

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247820D4004

IDV Type: IDC

Timeline

Start Date: 2021-09-30

Current End Date: 2025-03-03

Potential End Date: 2025-03-03 00:00:00

Last Modified: 2024-09-28

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