Army Awards $72.5M Sewage Treatment Contract to Aqua Engineers Inc. for 50 Years
Contract Overview
Contract Amount: $72,520,642 ($72.5M)
Contractor: Aqua Engineers Inc
Awarding Agency: Department of Defense
Start Date: 2004-03-01
End Date: 2054-02-28
Contract Duration: 18,261 days
Daily Burn Rate: $4.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE REDETERMINATION
Sector: Construction
Official Description: THE ORIGINAL CONTRACT W912CN-04-C-0014 WAS AWARDED ON DECEMBER 30, 2003 BY THE US ARMY GARRISON - HAWAII. THEN, CONTRACT ADMINISTRATION WAS TRANSFERRED TO MICC FORT SAM HOUSTON, TEXAS UNDER CONTRACT NUMBER W9124J-17-C-0020 EFFECTIVE JANUARY 23, 2017.
Place of Performance
Location: SCHOFIELD BARRACKS, HONOLULU County, HAWAII, 96857
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $72.5 million to AQUA ENGINEERS INC for work described as: THE ORIGINAL CONTRACT W912CN-04-C-0014 WAS AWARDED ON DECEMBER 30, 2003 BY THE US ARMY GARRISON - HAWAII. THEN, CONTRACT ADMINISTRATION WAS TRANSFERRED TO MICC FORT SAM HOUSTON, TEXAS UNDER CONTRACT NUMBER W9124J-17-C-0020 EFFECTIVE JANUARY 23, 2017. Key points: 1. Long-term contract (50 years) for sewage treatment facilities. 2. Awarded by Department of Defense (US Army Garrison - Hawaii). 3. Full and open competition was utilized. 4. Potential for significant taxpayer investment over the contract duration.
Value Assessment
Rating: questionable
The contract value of $72.5M over 50 years suggests an average annual spend of $1.45M. This needs to be benchmarked against similar long-term sewage treatment facility maintenance and operation contracts to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the extremely long duration may limit future competitive opportunities and price adjustments.
Taxpayer Impact: The long-term nature of this contract requires careful monitoring to ensure taxpayer funds are used efficiently and that the pricing remains competitive over the 50-year period.
Public Impact
Ensures continued operation of essential sewage treatment facilities for military personnel and families in Hawaii. Long-term commitment provides stability for service delivery and infrastructure maintenance. Potential for cost savings through economies of scale over the extended period, if managed effectively. Requires robust oversight to ensure performance and prevent cost overruns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (50 years)
- Potential for price escalation over time
- Limited flexibility for technological upgrades
- Significant taxpayer investment
Positive Signals
- Full and open competition
- Essential service provision
- Long-term stability
Sector Analysis
This contract falls within the Construction and Facilities Maintenance sector, specifically for sewage treatment facilities. Long-term contracts in this area are common for critical infrastructure, but their duration necessitates careful financial planning and oversight.
Small Business Impact
The data indicates the prime contractor is Aqua Engineers Inc. There is no information provided on whether small businesses were involved as subcontractors or if this contract was set aside for small business participation.
Oversight & Accountability
Contract administration was transferred from US Army Garrison - Hawaii to MICC Fort Sam Houston, Texas. This suggests established oversight processes are in place, but the long duration requires continuous monitoring for performance and financial accountability.
Related Government Programs
- Sewage Treatment Facilities
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration (50 years)
- Potential for cost overruns due to unforeseen changes
- Risk of technological obsolescence
- Exposure to evolving environmental regulations
- Limited flexibility for future improvements or competition
Tags
sewage-treatment-facilities, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.5 million to AQUA ENGINEERS INC. THE ORIGINAL CONTRACT W912CN-04-C-0014 WAS AWARDED ON DECEMBER 30, 2003 BY THE US ARMY GARRISON - HAWAII. THEN, CONTRACT ADMINISTRATION WAS TRANSFERRED TO MICC FORT SAM HOUSTON, TEXAS UNDER CONTRACT NUMBER W9124J-17-C-0020 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 $72.5 million.
What is the period of performance?
Start: 2004-03-01. End: 2054-02-28.
What is the average annual cost for sewage treatment facility operations and maintenance in similar geographic locations or for comparable military installations?
Benchmarking the average annual cost against similar contracts is crucial. For sewage treatment facilities, annual costs can vary widely based on size, complexity, and location. Factors like labor rates, chemical costs, and regulatory compliance significantly influence pricing. A thorough analysis would compare this contract's annual spend ($1.45M) to industry standards and other government contracts to identify potential over or under-spending.
What are the risks associated with a 50-year contract for sewage treatment facilities, particularly regarding technological obsolescence and environmental regulations?
A 50-year contract presents significant risks. Technology for sewage treatment evolves rapidly; by the end of the term, current methods may be obsolete or inefficient. Environmental regulations are also subject to change and often become more stringent, potentially requiring costly upgrades not accounted for in the original pricing. The fixed-price redetermination structure may not adequately cover unforeseen technological or regulatory shifts over such an extended period.
How does the fixed-price redetermination contract type ensure cost-effectiveness and value for taxpayers over the 50-year duration?
The fixed-price redetermination (FPR) contract type aims to balance contractor risk with cost control. Initially, a fixed price is set, but it can be adjusted based on actual costs incurred, subject to negotiation. For a 50-year contract, this mechanism is critical. However, its effectiveness hinges on robust auditing of the contractor's costs and effective negotiation during redetermination periods to ensure the price remains fair and reflects actual value, preventing excessive profit or taxpayer burden.
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: SEALED BID
Solicitation ID: DAPC5099R6059
Offers Received: 3
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: $131,028,702
Exercised Options: $131,028,702
Current Obligation: $72,520,642
Actual Outlays: $2,360,126
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-03-01
Current End Date: 2054-02-28
Potential End Date: 2054-02-28 00:00:00
Last Modified: 2026-01-13
More Contracts from Aqua Engineers Inc
- 200411!002532!2100!w912cn!aca, Fort Shafter !w912cn04c0014 !A!N! !Y! !p00003!20040809!20290105!007182967!007182967!007182967!n!aqua Engineers Inc !3560 Koloa Road STE a !lawai !hi!96765!69050!003!15!schofield Barracks !honolulu !hawaii !+000001158139!n!n!000000000000!z244!maint/Sewage&waste Facilities !S1 !services !000 !* !221320!E! !3! ! !D! ! !99990909!B! ! !A! !a!n!a!2!003!a! !C!N!Z! ! !n!b!n!n! ! !A! !A!A!00 !A!B!N! ! ! ! ! ! !0001! ! — $223.0M (Department of Defense)
- 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 — $71.1M (Department of Defense)
- -- Funding OCT Thru DEC 2016 — $65.7M (Department of Defense)
- Initial Capital Improvements — $53.0M (Department of Defense)
- - Funding OCT Thru DEC 2016 — $49.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)