DoD Awards $23.6M for Red Hill Water Treatment Facility Design Services to HDR Engineering, Inc

Contract Overview

Contract Amount: $23,584,408 ($23.6M)

Contractor: HDR Engineering, Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-29

End Date: 2029-06-30

Contract Duration: 2,466 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ARCHITECT ENGINEER SERVICE FOR DESIGN-BID-BUILD, FULL PLANS AND SPECIFICATIONS FOR PROJECT FY24 MCON PROJECT P-716 RED HILL WATER TREATMENT FACILITY, JBPHH (RED HILL), HI.

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96813

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $23.6 million to HDR ENGINEERING, INC for work described as: ARCHITECT ENGINEER SERVICE FOR DESIGN-BID-BUILD, FULL PLANS AND SPECIFICATIONS FOR PROJECT FY24 MCON PROJECT P-716 RED HILL WATER TREATMENT FACILITY, JBPHH (RED HILL), HI. Key points: 1. The contract is for Architect-Engineer services for the design-bid-build of the Red Hill Water Treatment Facility. 2. The award was made under full and open competition, indicating a competitive bidding process. 3. The project duration is 2466 days, spanning from September 2022 to June 2029. 4. The contract type is Firm Fixed Price, providing cost certainty for the government.

Value Assessment

Rating: good

The award amount of $23.6 million for A-E services appears reasonable for a project of this scale and complexity, especially given the critical nature of water treatment facilities. Benchmarking against similar large-scale infrastructure design projects would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders likely submitted proposals. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: The competitive nature of the award is expected to result in a fair price for the taxpayer, ensuring value for the significant investment in this critical facility.

Public Impact

Ensures the design of a critical water treatment facility at Joint Base Pearl Harbor-Hickam. Supports the operational readiness and environmental safety of the base. Provides long-term infrastructure improvements for the U.S. Navy. The project's extended duration highlights its complexity and importance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if design complexities are underestimated.
Schedule delays could impact facility completion and operational readiness.

Positive Signals

Firm Fixed Price contract provides cost control.
Full and open competition likely secured competitive pricing.
Experienced contractor selected for a critical infrastructure project.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to large-scale public infrastructure. Spending benchmarks for similar A-E services for water treatment facilities would typically vary based on project size, complexity, and location.

Small Business Impact

The data indicates this contract was awarded to HDR Engineering, Inc., a large business. There is no specific indication of small business participation in this particular award, which is common for large, specialized engineering contracts.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for oversight. The firm fixed price contract and full and open competition provide a framework for accountability, but ongoing monitoring of design progress and adherence to specifications is crucial.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Critical infrastructure project with significant environmental and operational implications.
Long contract duration increases risk of scope changes and schedule slippage.
Potential for unforeseen site conditions impacting design complexity.
Dependence on a single A-E firm for the entire design package.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.6 million to HDR ENGINEERING, INC. ARCHITECT ENGINEER SERVICE FOR DESIGN-BID-BUILD, FULL PLANS AND SPECIFICATIONS FOR PROJECT FY24 MCON PROJECT P-716 RED HILL WATER TREATMENT FACILITY, JBPHH (RED HILL), HI.

Who is the contractor on this award?

The obligated recipient is HDR ENGINEERING, 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 $23.6 million.

What is the period of performance?

Start: 2022-09-29. End: 2029-06-30.

What are the key performance indicators (KPIs) for the successful completion of the design phase, and how will they be monitored?

Key performance indicators for the design phase typically include adherence to schedule milestones, quality of design documents (plans and specifications), compliance with regulatory requirements, and effective communication between the A-E firm and the government. Monitoring will likely involve regular progress meetings, design reviews at key stages (e.g., 30%, 60%, 90% completion), and independent government quality assurance checks to ensure the design meets all functional and technical requirements.

What are the primary risks associated with the long duration of this design contract, and what mitigation strategies are in place?

The primary risks associated with a long design duration include potential scope creep, changes in regulatory requirements over time, contractor personnel turnover, and inflation impacting future construction costs. Mitigation strategies may include clearly defined contract clauses for change management, periodic reviews to ensure alignment with current regulations, incentives for contractor retention, and robust project management oversight to maintain focus and control.

How does the firm fixed price structure incentivize HDR Engineering, Inc. to deliver a high-quality design efficiently within the allocated budget?

The firm fixed price (FFP) structure incentivizes HDR Engineering, Inc. to manage its costs effectively to maximize profit. This means they are motivated to complete the design efficiently and avoid costly errors or rework. While FFP primarily focuses on cost control, the government's quality assurance processes and the contractor's reputation are also strong motivators for delivering a high-quality design that meets all specifications and requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: HDR, Inc

Address: 1132 BISHOP ST STE 1200, HONOLULU, HI, 96813

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

Financial Breakdown

Contract Ceiling: $23,584,408

Exercised Options: $23,584,408

Current Obligation: $23,584,408

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $7,384,156

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6247818D5027

IDV Type: IDC

Timeline