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
- Long project duration (1250 days) increases risk of cost escalation.
- Potential for unforeseen site conditions in underground construction.
- Dependence on a single contractor for a large, multi-year project.
Positive Signals
- Awarded under full and open competition.
- Addresses critical infrastructure needs.
- Firm Fixed Price contract provides cost certainty.
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
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long project duration increases risk.
- Potential for unforeseen site conditions.
- Complexity of underground utility work.
- Dependence on a single large contractor.
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: 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: 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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