DoD's $26.1M Guam water/sewer contract awarded to DCK Pacific, LLC, with 6 bidders

Contract Overview

Contract Amount: $26,162,071 ($26.2M)

Contractor: DCK Pacific, LLC

Awarding Agency: Department of Defense

Start Date: 2008-03-25

End Date: 2011-10-05

Contract Duration: 1,289 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE BID ITEM, CLIN 0001 - 0004

Place of Performance

Location: CHALAN PAGO, GUAM County, GUAM, 96910

Plain-Language Summary

Department of Defense obligated $26.2 million to DCK PACIFIC, LLC for work described as: BASE BID ITEM, CLIN 0001 - 0004 Key points: 1. The contract value appears reasonable given the scope of water and sewer infrastructure work. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The duration of the contract (over 3 years) indicates a significant, long-term infrastructure project. 4. Awarded to DCK Pacific, LLC, performance history and past contract values with this entity warrant review. 5. The project's location in Guam highlights critical infrastructure needs in U.S. territories. 6. Fixed-price contract type shifts risk to the contractor, which can be beneficial for the government if managed effectively.

Value Assessment

Rating: good

The contract's base value of approximately $26.1 million for water and sewer line construction in Guam appears to be within a reasonable range for such infrastructure projects. Benchmarking against similar large-scale utility construction contracts, especially those in remote or island locations where logistics can increase costs, suggests fair pricing. The firm fixed-price nature of the contract also provides cost certainty for the government, assuming the contractor can manage their expenses effectively. Without specific details on the scope of work and material costs, a precise value-for-money assessment is challenging, but the initial award amount does not raise immediate red flags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of six bidders suggests a healthy level of competition for this significant infrastructure project. A competitive environment generally encourages bidders to offer more favorable pricing and terms to secure the contract. The number of bidders also provides a degree of confidence that the government received a competitive offer and that the selection process was robust.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price for the services rendered. It prevents potential price inflation that could occur with limited or sole-source procurements.

Public Impact

Residents and businesses in Guam will benefit from improved and reliable water and sewer services. The contract delivers essential infrastructure upgrades, crucial for public health and environmental protection. Geographic impact is concentrated on Guam, addressing specific needs of the island territory. The project is expected to create or sustain jobs in the construction sector in Guam. Enhanced utility infrastructure can support future economic development and population growth on the island.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Logistical challenges in Guam could impact project timelines and costs.
Ensuring long-term durability and maintenance of the new infrastructure.
Dependence on a single contractor for a critical utility project over several years.

Positive Signals

Awarded through full and open competition, indicating competitive pricing.
Firm fixed-price contract provides cost certainty for the government.
Project addresses critical public health and environmental infrastructure needs.
Long contract duration allows for comprehensive project execution.
Contractor selected through a competitive process with multiple bidders.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil engineering for water and sewer infrastructure. The market for such projects is often characterized by specialized engineering firms and construction companies with experience in utility work. Government spending in this area is critical for maintaining and upgrading aging public infrastructure across the nation and its territories. Comparable spending benchmarks would typically involve analyzing other large-scale municipal or federal water and sewer projects, considering factors like project complexity, location, and prevailing labor and material costs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the primary award went to a larger entity, there may be opportunities for small businesses to participate as subcontractors to DCK Pacific, LLC. The extent of small business subcontracting will depend on the prime contractor's strategy and any specific requirements outlined in the contract. Analysis of subcontracting plans would be necessary to fully assess the impact on the small business ecosystem in Guam.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and project management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, although detailed project progress reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Construction Program
Public Works and Facilities Maintenance
Environmental Infrastructure Projects
Water and Wastewater Systems Construction
Department of Defense Infrastructure Modernization

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Logistical challenges inherent to island construction.
Environmental impact during construction and operation.
Long-term maintenance and operational costs post-construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to DCK PACIFIC, LLC. BASE BID ITEM, CLIN 0001 - 0004

Who is the contractor on this award?

The obligated recipient is DCK PACIFIC, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.2 million.

What is the period of performance?

Start: 2008-03-25. End: 2011-10-05.

What is the track record of DCK Pacific, LLC with the Department of Defense and similar infrastructure projects?

DCK Pacific, LLC has a history of performing construction work, including projects for the Department of Defense. To assess their track record thoroughly, one would need to examine past contract performance evaluations (e.g., CPARS reports), the value and complexity of previously awarded contracts, and any instances of disputes, claims, or performance issues. Specifically for water and sewer projects, understanding their experience with similar scope, scale, and geographic challenges (like those found in Guam) is crucial. A review of their financial stability and bonding capacity would also be relevant for a contract of this magnitude and duration.

How does the awarded amount compare to the estimated cost or engineer's estimate for this project?

The provided data does not include the government's estimate or the engineer's estimate for this project, making a direct comparison difficult. However, the contract was awarded under full and open competition with six bidders. Typically, when an award is made significantly below the government estimate, it suggests strong competition and potentially efficient contractor proposals. Conversely, if the award was close to or exceeded the estimate, it might warrant further investigation into the estimate's accuracy or the competitive landscape. Without the estimate, we rely on the competitive nature of the award as an indicator of value.

What are the specific risks associated with constructing water and sewer lines in Guam?

Constructing water and sewer lines in Guam presents several specific risks. These include potential encounters with uncharted underground utilities, challenging soil conditions, seismic activity considerations, and the logistical complexities of importing materials and equipment to an island location. Environmental risks, such as protecting sensitive marine ecosystems during excavation and discharge, are also significant. Furthermore, the tropical climate, including typhoons and heavy rainfall, can disrupt work schedules and potentially damage ongoing construction. Managing these risks requires robust planning, experienced personnel, and contingency measures.

What is the historical spending pattern for water and sewer infrastructure projects by the Department of the Navy in Guam?

Historical spending patterns for water and sewer infrastructure by the Department of the Navy in Guam would reveal the frequency and scale of such investments. Analyzing past contracts awarded for similar projects in Guam would provide context for the $26.1 million award. This analysis could identify trends in contract values, durations, types of work performed (e.g., new construction vs. repair), and the primary contractors involved. Understanding this historical spending can help assess whether the current contract represents a typical investment or a significant deviation, potentially indicating a new initiative or a response to urgent needs.

What are the potential long-term implications of this infrastructure investment for Guam's resilience and development?

This investment in water and sewer infrastructure is critical for Guam's long-term resilience and development. Upgraded systems enhance public health by ensuring access to clean water and effective wastewater treatment, reducing the risk of waterborne diseases and environmental contamination. Reliable utilities are fundamental for economic growth, supporting existing businesses and attracting new investment. Furthermore, modern infrastructure is often designed to be more resilient to natural disasters like typhoons and sea-level rise, contributing to the island's overall preparedness and sustainability. This project directly addresses foundational needs essential for the well-being and future prosperity of Guam's population.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6274208R1307

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 707 RICHARDS ST STE 400, HONOLULU, HI, 01

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

Financial Breakdown

Contract Ceiling: $26,162,071

Exercised Options: $26,162,071

Current Obligation: $26,162,071

Contract Characteristics

Cost or Pricing Data: NO

Timeline