Over $71 million awarded for sewage treatment facilities in Hawaii, with contract duration extending to 2058
Contract Overview
Contract Amount: $71,066,309 ($71.1M)
Contractor: Aqua Engineers Inc
Awarding Agency: Department of Defense
Start Date: 2008-09-29
End Date: 2058-09-29
Contract Duration: 18,262 days
Daily Burn Rate: $3.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE REDETERMINATION
Sector: Other
Official Description: THE ORIGINAL CONTRACT W912CN-08-C-0087 WAS AWARDED ON SEPTEMBER 29, 2008 BY THE PACIFIC REGION CONTRACTING OFFICE (HAWAII) CONTRACT ADMINISTRATION WAS TO MICC- FORT SAM HOUSTON UNDER CONTRACT W9124J-17-C-0004 EFFECTIVE JANUARY 23, 2017
Place of Performance
Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $71.1 million to AQUA ENGINEERS INC for work described as: THE ORIGINAL CONTRACT W912CN-08-C-0087 WAS AWARDED ON SEPTEMBER 29, 2008 BY THE PACIFIC REGION CONTRACTING OFFICE (HAWAII) CONTRACT ADMINISTRATION WAS TO MICC- FORT SAM HOUSTON UNDER CONTRACT W9124J-17-C-0004 EFFECTIVE JANUARY 23, 2017 Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Long contract duration of over 50 years may indicate a need for sustained services. 3. Fixed Price Redetermination contract type allows for price adjustments, potentially impacting final cost. 4. The contract is for sewage treatment facilities, a critical infrastructure service. 5. Awarded by the Department of Defense, potentially for military installations in Hawaii. 6. No indication of small business set-aside or participation, warranting further investigation.
Value Assessment
Rating: fair
The total award amount is over $71 million, with a significant duration extending to 2058. Benchmarking this value is challenging without more specific details on the scope of services and the number of facilities covered. The fixed price redetermination type suggests that initial pricing may be adjusted, making a direct comparison to similar fixed-price contracts difficult. Further analysis would require understanding the specific deliverables and the cost drivers for sewage treatment over such a long period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This typically leads to a more competitive pricing environment. The number of bidders is not specified, but the open competition suggests a healthy market for these services. The agency's approach to competition is a positive sign for price discovery and value for money.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.
Public Impact
The primary beneficiaries are likely military personnel and their families stationed in Hawaii, who rely on these facilities. The contract ensures the provision of essential sewage treatment services, crucial for public health and environmental protection. The geographic impact is concentrated in Hawaii, where the facilities are located. The contract supports jobs in the engineering, construction, and maintenance sectors related to wastewater management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 50 years) introduces long-term financial commitment and potential for cost overruns if not managed effectively.
- Fixed Price Redetermination contract type can lead to price uncertainty and potential increases over the contract's life.
- Lack of specific details on performance metrics makes it difficult to assess the contractor's ongoing performance and value.
- Absence of small business participation information raises concerns about equitable distribution of contract opportunities.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Contract addresses a critical infrastructure need (sewage treatment), ensuring essential services.
- Long-term nature of the contract suggests a stable, ongoing requirement for these services.
Sector Analysis
The sewage treatment facilities sector is a critical component of public and military infrastructure. This contract falls within the broader environmental services and infrastructure management market. The Department of Defense, like other large federal agencies, often requires extensive support for its facilities, including waste management. Benchmarking this specific contract is difficult due to its long duration and specialized nature, but it represents a significant investment in maintaining essential services.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information on subcontracting plans. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem is likely minimal unless significant subcontracting opportunities arise, which are not detailed here.
Oversight & Accountability
Oversight mechanisms for this contract would typically involve the contracting agency (Department of Defense, potentially through the Defense Logistics Agency) and potentially the Government Accountability Office (GAO) for contract disputes. Transparency is dependent on the agency's reporting practices. Inspector General jurisdiction would apply if fraud, waste, or abuse is suspected.
Related Government Programs
- Department of Defense Facilities Maintenance Contracts
- Environmental Services Contracts
- Public Works and Utilities Contracts
- Infrastructure Development and Management
Risk Flags
- Long contract duration may increase long-term financial risk.
- Fixed Price Redetermination clause introduces potential for cost increases.
- Lack of small business participation data.
- Limited information on specific performance metrics and deliverables.
Tags
defense, department-of-defense, sewage-treatment-facilities, hawaii, definitive-contract, full-and-open-competition, fixed-price-redetermination, infrastructure, environmental-services, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $71.1 million to AQUA ENGINEERS INC. THE ORIGINAL CONTRACT W912CN-08-C-0087 WAS AWARDED ON SEPTEMBER 29, 2008 BY THE PACIFIC REGION CONTRACTING OFFICE (HAWAII) CONTRACT ADMINISTRATION WAS TO MICC- FORT SAM HOUSTON UNDER CONTRACT W9124J-17-C-0004 EFFECTIVE JANUARY 23, 2017
Who is the contractor on this award?
The obligated recipient is AQUA ENGINEERS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $71.1 million.
What is the period of performance?
Start: 2008-09-29. End: 2058-09-29.
What specific sewage treatment technologies or standards are required under this contract?
The provided data does not specify the exact sewage treatment technologies or standards required. However, given the long duration and the nature of federal contracts, it is likely that the requirements would align with current and evolving EPA regulations for wastewater treatment, as well as any specific military environmental standards. The fixed price redetermination clause suggests that the scope might be broad, allowing for adaptation to new technologies or regulatory changes over the contract's lifespan. Further details would typically be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).
How does the $71 million award compare to similar sewage treatment contracts for federal facilities?
Comparing the $71 million award for sewage treatment facilities in Hawaii is challenging without more granular data. The total award amount is substantial, but its value is heavily influenced by the contract's duration (extending to 2058) and the scope of services. A direct comparison to shorter-term contracts or those for different geographical regions or facility types would be misleading. To assess value, one would need to analyze the annual or per-facility costs, the complexity of the treatment required, and the specific services included (e.g., O&M, upgrades, new construction). The fixed price redetermination aspect also complicates direct cost comparisons.
What are the potential risks associated with a contract duration extending over 50 years?
A contract duration of over 50 years presents several risks. Firstly, there's the risk of technological obsolescence; the treatment methods or infrastructure in place may become outdated. Secondly, regulatory environments can change significantly over decades, potentially requiring costly upgrades or modifications not fully anticipated. Thirdly, long-term contracts increase the risk of cost escalation, especially with a fixed price redetermination clause, as economic conditions, material costs, and labor rates fluctuate. Finally, there's the risk of contractor performance degradation over time or the contractor going out of business, necessitating a transition that could be disruptive and costly.
What is the historical spending pattern for sewage treatment facilities by the Department of Defense in Hawaii?
The provided data only includes one contract (W912CN-08-C-0087) with a significant award amount and long duration for sewage treatment facilities in Hawaii. To understand historical spending patterns, one would need to examine past contracts awarded by the DoD or other federal agencies for similar services in the region. This would involve searching contract databases for previous awards, analyzing their values, durations, and scopes. Without this broader context, it's difficult to determine if this $71 million award represents a typical, increased, or decreased level of spending for such services in Hawaii.
What are the implications of the 'Fixed Price Redetermination' contract type for cost control?
The 'Fixed Price Redetermination' (FPR) contract type aims to balance the government's need for cost certainty with the contractor's need for flexibility, particularly in long-term or uncertain projects. Initially, a target price is set. As the contract progresses, the price can be redetermined based on actual costs incurred, subject to negotiation and agreement between the government and the contractor. This can be advantageous if costs are higher than anticipated due to unforeseen circumstances, protecting the contractor from losses. However, for the government, it introduces uncertainty, as the final price may be higher than the initial target. Effective cost control relies heavily on robust oversight, clear criteria for redetermination, and strong negotiation by the contracting officer.
Industry Classification
NAICS: Utilities › Water, Sewage and Other Systems › Sewage Treatment Facilities
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912CN04R0083
Offers Received: 1
Pricing Type: FIXED PRICE REDETERMINATION (A)
Evaluated Preference: NONE
Contractor Details
Address: 3560 KOLOA RD, KALAHEO, HI, 96741
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: $116,871,883
Exercised Options: $116,871,883
Current Obligation: $71,066,309
Actual Outlays: $15,107,712
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-29
Current End Date: 2058-09-29
Potential End Date: 2058-09-29 00:00:00
Last Modified: 2026-01-13
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