DoD's $198M Pearl Harbor Wharf Repair Contract Awarded to Hawaii Harbors Constructors JV

Contract Overview

Contract Amount: $197,969,875 ($198.0M)

Contractor: Hawaii Harbors Constructors JV

Awarding Agency: Department of Defense

Start Date: 2025-07-30

End Date: 2028-10-26

Contract Duration: 1,184 days

Daily Burn Rate: $167.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RM17-1007 REPAIR WHARVES B20 B21, JOINT BASE PEARL HARBOR-HICKAM, HAWAII

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $198.0 million to HAWAII HARBORS CONSTRUCTORS JV for work described as: RM17-1007 REPAIR WHARVES B20 B21, JOINT BASE PEARL HARBOR-HICKAM, HAWAII Key points: 1. Contract value of $197,969,875 for wharf repair at Joint Base Pearl Harbor-Hickam. 2. Awarded under full and open competition, indicating a broad market solicitation. 3. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 4. Performance period spans over three years, from July 2025 to October 2028. 5. The North American Industry Classification System (NAICS) code 237990 suggests a focus on heavy and civil engineering construction. 6. The contractor, Hawaii Harbors Constructors JV, is a joint venture. 7. The contract is not set aside for small businesses.

Value Assessment

Rating: good

The contract value of approximately $198 million for wharf repair is substantial. Benchmarking this against similar large-scale maritime infrastructure projects is challenging without more specific cost breakdowns. However, the firm-fixed-price structure suggests an effort to control costs. The award to a joint venture may indicate a need for specialized expertise or capacity for a project of this magnitude. Further analysis would require comparing unit costs for specific repair elements (e.g., per linear foot of wharf repaired) to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the evaluation process are not detailed. Full and open competition generally promotes price discovery and can lead to more favorable pricing for the government compared to limited or sole-source procurements.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive offers for its investments.

Public Impact

The primary beneficiaries are the U.S. Navy and Department of Defense, ensuring the operational readiness of critical naval infrastructure at Joint Base Pearl Harbor-Hickam. The contract will deliver essential repairs and maintenance to wharves B20 and B21, crucial for vessel berthing and support operations. The geographic impact is concentrated in Hawaii, specifically at Joint Base Pearl Harbor-Hickam. The project is expected to create or sustain jobs in the construction sector within Hawaii, particularly for skilled trades involved in heavy civil engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise beyond the scope of the initial repair estimates.
Dependence on the joint venture's capacity and management to execute a project of this scale effectively.
Risk of schedule delays due to weather, material availability, or complex construction challenges in a marine environment.

Positive Signals

Firm-fixed-price contract type mitigates cost uncertainty for the government.
Awarded under full and open competition, suggesting a competitive pricing environment.
The project addresses critical infrastructure needs, ensuring long-term operational capability for the Navy.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to maritime infrastructure. The market for large-scale port and wharf construction and repair is specialized, often dominated by firms with significant experience and bonding capacity. The Department of Defense is a major client in this sector due to its extensive global network of bases and ports. Comparable spending benchmarks would involve analyzing other large military or civilian port infrastructure projects, considering factors like location, scope of work, and material costs.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. The award to a joint venture might imply that the prime contractor will utilize a range of subcontractors, but the extent to which small businesses will participate is not specified. Further review of the contract details would be needed to assess potential subcontracting opportunities for small businesses within the broader construction ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, potentially through contracting officers' representatives (CORs) and quality assurance personnel. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost. Transparency would be enhanced by public reporting of progress and any significant issues encountered during the project. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) projects
Military Construction (MILCON) projects
Port and Harbor Infrastructure Maintenance
Defense Base Realignment and Closure (BRAC) related construction

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor performance risk associated with a joint venture entity.
Adequacy of competition level (2 bidders) for optimal price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $198.0 million to HAWAII HARBORS CONSTRUCTORS JV. RM17-1007 REPAIR WHARVES B20 B21, JOINT BASE PEARL HARBOR-HICKAM, HAWAII

Who is the contractor on this award?

The obligated recipient is HAWAII HARBORS CONSTRUCTORS JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $198.0 million.

What is the period of performance?

Start: 2025-07-30. End: 2028-10-26.

What is the track record of Hawaii Harbors Constructors JV in performing similar large-scale maritime construction projects for the DoD?

Information regarding the specific track record of 'Hawaii Harbors Constructors JV' in performing large-scale maritime construction projects for the Department of Defense (DoD) is not directly available in the provided data. As a joint venture, its performance history may be a composite of its member companies or a newly established entity for this specific project. To assess their track record, one would typically review past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any documented successes or failures on similar projects. Without this detailed history, it's difficult to definitively gauge their experience and capability for this significant wharf repair undertaking. Further investigation into the individual companies forming the joint venture might provide more insight into their collective experience.

How does the awarded price compare to the estimated cost or budget for this wharf repair project?

The provided data indicates the awarded contract price is $197,969,875. However, it does not include the government's independent government cost estimate (IGCE) or the initial budget allocated for this project. Without the IGCE, it is impossible to determine if the awarded price represents a significant deviation (either higher or lower) from the government's expectation. In a full and open competition with two bids, the awarded price is generally expected to be competitive. However, a direct comparison to the government's estimate is crucial for a thorough value-for-money assessment. If the awarded price is substantially below the IGCE, it might raise questions about the completeness of the bids or potential risks. Conversely, if it's significantly above, it warrants scrutiny of the bidding process and cost justification.

What are the key performance indicators (KPIs) and quality assurance measures for this contract?

Specific Key Performance Indicators (KPIs) and detailed quality assurance (QA) measures for this contract are not explicitly listed in the provided summary data. However, as a firm-fixed-price contract for heavy construction, standard QA practices would likely be in place. These typically involve rigorous inspection of materials and workmanship, adherence to technical specifications and drawings, and progress monitoring. The Naval Facilities Engineering Command (NAVFAC) or the contracting officer's representative (COR) would be responsible for overseeing these QA aspects. KPIs might include metrics related to schedule adherence, defect rates, safety compliance, and overall structural integrity of the repaired wharves. The contract's success will hinge on the effective implementation and enforcement of these QA protocols throughout the performance period.

What is the historical spending trend for wharf maintenance and repair at Joint Base Pearl Harbor-Hickam?

Historical spending data specifically for wharf maintenance and repair at Joint Base Pearl Harbor-Hickam is not included in the provided contract details. To analyze spending trends, one would need access to historical contract databases or budget reports from the Department of the Navy or NAVFAC covering previous fiscal years. Such an analysis would involve identifying all contracts related to wharf repair, maintenance, and construction at this specific installation, summing their values over time, and looking for patterns in spending frequency, contract values, and types of work performed. Understanding these trends could help contextualize the current $198 million award, indicating whether it represents a typical investment, a surge in activity, or a response to deferred maintenance.

What are the potential risks associated with the firm-fixed-price contract type for this project?

While a firm-fixed-price (FFP) contract type is generally favored for cost control, it carries specific risks for a project like wharf repair. The primary risk for the government is that the contractor may cut corners on quality or materials to maximize profit if unforeseen difficulties arise, especially if the initial pricing was aggressive. Conversely, the contractor bears the risk of cost overruns if their initial estimates were inaccurate or if unexpected site conditions (e.g., subsurface issues, environmental hazards) significantly increase the cost of performance. For a complex construction project involving maritime infrastructure, the potential for unforeseen conditions is considerable. Effective government oversight and clearly defined specifications are crucial to mitigate these risks and ensure the project is completed to the required standards within the fixed price.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering 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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 99-994 IWAENA ST STE A, AIEA, HI, 96701

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $197,969,875

Exercised Options: $197,969,875

Current Obligation: $197,969,875

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247822D4006

IDV Type: IDC

Timeline