DoD's $74.5M Water Transmission Line Contract Awarded to Hawaiian Dredging Construction Company
Contract Overview
Contract Amount: $74,546,726 ($74.5M)
Contractor: Hawaiian Dredging Construction Company, Inc
Awarding Agency: Department of Defense
Start Date: 2019-03-29
End Date: 2025-03-15
Contract Duration: 2,178 days
Daily Burn Rate: $34.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY19 MCON P-169 WATER TRANSMISSION LINE, WAIAWA, JBPHH, OAHU
Place of Performance
Location: PEARL CITY, HONOLULU County, HAWAII, 96782
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $74.5 million to HAWAIIAN DREDGING CONSTRUCTION COMPANY, INC for work described as: FY19 MCON P-169 WATER TRANSMISSION LINE, WAIAWA, JBPHH, OAHU Key points: 1. The contract is for a critical water transmission line project at Joint Base Pearl Harbor-Hickam. 2. Hawaiian Dredging Construction Company, Inc. secured the award. 3. The project is a firm-fixed-price definitive contract. 4. The contract duration is 2178 days, spanning from March 2019 to March 2025. 5. This project is not set aside for small businesses.
Value Assessment
Rating: good
The contract value of $74.5M for a large-scale water transmission line appears reasonable given the project's scope and duration. Benchmarking against similar large infrastructure projects would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely led to a fair price discovery. The use of a definitive contract indicates a clear scope of work.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades at a major military installation, ensuring operational readiness and potentially improving local water services.
Public Impact
Ensures reliable water supply for Joint Base Pearl Harbor-Hickam. Supports critical military operations and personnel on Oahu. Potential for improved water quality and infrastructure resilience. Contributes to the local economy through construction jobs and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2178 days) may present risks for cost escalation or scope creep if not managed tightly.
- Firm-fixed-price contracts can shift risk to the contractor, but require precise initial scope definition.
- No small business participation noted, potentially missing opportunities for local economic development.
Positive Signals
- Awarded under full and open competition, indicating a competitive process.
- Addresses critical infrastructure needs for a major military base.
- Firm-fixed-price contract provides cost certainty for the government.
Sector Analysis
This contract falls within the construction sector, specifically water and sewer line construction. Large infrastructure projects like this are common within the Department of Defense to maintain and upgrade essential facilities.
Small Business Impact
The contract was not awarded to a small business and there is no indication of a small business set-aside. This means opportunities for small business participation were not prioritized in the award.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Robust oversight will be crucial given the project's long duration and significant value to ensure compliance and successful completion.
Related Government Programs
- Water and Sewer Line and Related Structures Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration presents potential for cost escalation and scope creep.
- No small business participation noted.
- Firm-fixed-price contract shifts risk to contractor, requiring precise initial scope.
- Project is critical infrastructure, making delays or failures highly impactful.
Tags
water-and-sewer-line-and-related-structu, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.5 million to HAWAIIAN DREDGING CONSTRUCTION COMPANY, INC. FY19 MCON P-169 WATER TRANSMISSION LINE, WAIAWA, JBPHH, OAHU
Who is the contractor on this award?
The obligated recipient is HAWAIIAN DREDGING CONSTRUCTION COMPANY, 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 $74.5 million.
What is the period of performance?
Start: 2019-03-29. End: 2025-03-15.
What is the specific breakdown of the $74.5M contract value, and how does it compare to industry benchmarks for similar water transmission line projects?
A detailed breakdown of the contract value is not provided in the available data. However, the total award of $74.5 million for a water transmission line project at a major military installation like JBPHH is substantial. Benchmarking against similar large-scale civil engineering projects, considering factors like terrain, material costs, and labor in Hawaii, would be necessary for a precise comparison. The firm-fixed-price nature suggests the government sought cost certainty upfront.
What are the primary risks associated with a 2178-day firm-fixed-price contract for water infrastructure, and what mitigation strategies are in place?
Key risks include potential cost overruns for the contractor if material or labor costs escalate significantly over the nearly six-year period, and the risk of scope creep if project requirements evolve. Mitigation strategies typically involve detailed contract clauses, performance monitoring, change order management processes, and contingency planning by both the government and the contractor to address unforeseen issues and maintain project integrity.
How will the effectiveness of this water transmission line project be measured, and what are the key performance indicators (KPIs) for the contractor?
Effectiveness will likely be measured by the successful completion of the transmission line according to specified technical requirements, ensuring reliable water flow, pressure, and quality. Key performance indicators may include adherence to project timelines, quality of construction, compliance with environmental regulations, and successful system testing and commissioning. The government will monitor these KPIs throughout the contract duration.
Industry Classification
NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6274218R1319
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 605 KAPIOLANI BOULEVARD, HONOLULU, HI, 96813
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $74,546,726
Exercised Options: $74,546,726
Current Obligation: $74,546,726
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-03-29
Current End Date: 2025-03-15
Potential End Date: 2025-03-15 00:00:00
Last Modified: 2025-12-22
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