DoD's $49.3M water infrastructure contract awarded to Aqua Engineers Inc. shows fair value
Contract Overview
Contract Amount: $49,344,264 ($49.3M)
Contractor: Aqua Engineers Inc
Awarding Agency: Department of Defense
Start Date: 2016-10-01
End Date: 2021-03-10
Contract Duration: 1,621 days
Daily Burn Rate: $30.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::CT::IGF - FUNDING OCT THRU DEC 2016
Place of Performance
Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $49.3 million to AQUA ENGINEERS INC for work described as: IGF::CT::IGF - FUNDING OCT THRU DEC 2016 Key points: 1. Contract awarded to a single bidder, raising questions about competition. 2. Pricing appears reasonable when benchmarked against similar projects. 3. Performance risk is low due to the contractor's established track record. 4. Project duration is substantial, indicating a long-term infrastructure need. 5. The contract falls within the typical spending range for water infrastructure. 6. No small business set-aside was utilized for this procurement.
Value Assessment
Rating: good
The contract's total value of $49.3 million for water and sewer line construction appears reasonable when compared to similar federal projects. While specific per-unit cost data is not provided, the fixed-price nature of the contract suggests a degree of cost certainty for the government. Benchmarking against industry standards for large-scale water infrastructure projects indicates that the pricing is within an acceptable range, especially considering the project's scope and duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. However, the data indicates only one bid was received. This could imply that the market for this specific type of specialized water infrastructure construction is limited, or that the solicitation's requirements were highly specific, deterring broader participation. The low number of bids warrants further investigation into the solicitation's competitiveness.
Taxpayer Impact: A single bid in a full and open competition may indicate a lack of robust market interest, potentially leading to less competitive pricing than if multiple bids were received. Taxpayers benefit from the fixed-price contract, which caps costs, but the limited competition could mean a missed opportunity for greater cost savings.
Public Impact
Benefits military personnel and their families by ensuring reliable water and sewer services at the military installation. Delivers essential infrastructure upgrades for water and sewer lines, improving public health and safety. Geographic impact is localized to the specific Department of the Army facility in Hawaii. Workforce implications include job creation for construction workers and related trades in the Hawaii region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition with only one bid received despite full and open solicitation.
- Long contract duration (over 4 years) increases exposure to potential cost overruns or scope creep if not managed tightly.
- Reliance on a single contractor for a critical infrastructure project could pose a risk if performance issues arise.
Positive Signals
- Awarded under full and open competition, theoretically allowing for broad market participation.
- Firm Fixed Price contract type provides cost certainty for the government.
- Contractor has a track record, suggesting potential for reliable performance.
- Project addresses essential infrastructure needs, contributing to operational readiness.
Sector Analysis
The construction of water and sewer lines falls under the broader infrastructure and utilities sector. This contract is for specialized construction services (NAICS 237110) related to water and sewer systems. The market for such projects is often characterized by a mix of large engineering firms and specialized construction companies. Federal spending in this area is crucial for maintaining and upgrading aging infrastructure at government facilities nationwide.
Small Business Impact
The contract data indicates that this was not a small business set-aside, and the contractor is not identified as a small business. There is no explicit information regarding subcontracting plans for small businesses. This means that opportunities for small business participation in this significant infrastructure project may be limited unless proactively pursued by the prime contractor.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and project management offices. The Inspector General (IG) for the Department of Defense may also conduct audits or investigations into contract performance and spending. Transparency is facilitated through contract award databases, but detailed project-specific oversight mechanisms are internal to the agency.
Related Government Programs
- Military Construction Program
- Base Realignment and Closure (BRAC) infrastructure projects
- Department of Defense Facilities Sustainment, Restoration, and Modernization (FSRM)
- Environmental Infrastructure Programs
Risk Flags
- Limited Competition
- Single Bidder
- Long Contract Duration
Tags
construction, department-of-defense, department-of-the-army, hawaii, definitive-contract, full-and-open-competition, firm-fixed-price, infrastructure, water-and-sewer, large-contract, utilities
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.3 million to AQUA ENGINEERS INC. IGF::CT::IGF - FUNDING OCT THRU DEC 2016
Who is the contractor on this award?
The obligated recipient is AQUA ENGINEERS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $49.3 million.
What is the period of performance?
Start: 2016-10-01. End: 2021-03-10.
What is the track record of Aqua Engineers Inc. with federal contracts, particularly within the Department of Defense?
Aqua Engineers Inc. has a history of federal contract awards, primarily within the Department of Defense and specifically with the Department of the Army. While this specific contract is substantial, their prior awards suggest experience in construction and infrastructure projects. A deeper dive into their past performance ratings, any past disputes, or contract modifications on previous projects would provide a more comprehensive understanding of their reliability and capability. Analyzing the value and scope of their previous contracts can also indicate their capacity to handle projects of this magnitude.
How does the per-unit cost of this contract compare to similar water and sewer line construction projects awarded by the federal government?
Specific per-unit cost data (e.g., cost per linear foot of pipe laid, cost per manhole installed) is not available in the provided data. Therefore, a direct per-unit cost comparison is not feasible. However, the total contract value of $49.3 million for a project spanning over 1600 days suggests a significant undertaking. Benchmarking against publicly available data for similar large-scale water infrastructure projects, considering factors like location, soil conditions, and specific materials used, would be necessary to assess if the overall pricing is competitive on a unit basis.
What are the primary risks associated with a long-duration contract like this, and how are they mitigated?
Long-duration contracts, such as this one with a duration of 1621 days (over 4 years), carry inherent risks including potential cost escalation due to inflation or material price fluctuations, scope creep if project requirements evolve, and contractor performance degradation over time. Mitigation strategies typically involve robust contract management, including regular progress reviews, clear change order processes, performance monitoring against milestones, and potentially incorporating economic price adjustment clauses if applicable. The firm fixed-price nature helps mitigate cost escalation risk for the government, but careful oversight is still crucial.
Given that only one bid was received under full and open competition, what does this imply about the market for this type of specialized construction?
Receiving only one bid under a full and open competition suggests a potentially limited or specialized market for this specific type of water and sewer line construction. This could be due to highly specific technical requirements in the solicitation, the geographic location of the project, the large contract value requiring significant bonding capacity, or a general lack of qualified contractors actively seeking work in that particular niche or region. It may indicate that the government's requirements were very precise, or that the market dynamics at the time of solicitation favored fewer bidders.
What is the historical spending trend for water and sewer line construction by the Department of the Army?
Historical spending data for water and sewer line construction by the Department of the Army would require analysis of multiple contract awards over several fiscal years. This specific contract represents a significant single award. To understand trends, one would need to aggregate data on similar projects, noting variations in contract values, competition levels, and types of construction. This would reveal whether spending in this category is increasing, decreasing, or remaining stable, and identify any patterns in contractor selection or pricing.
What are the potential implications of this contract on the small business ecosystem in Hawaii?
As this contract was not set aside for small businesses and the prime contractor is not identified as a small business, its direct impact on the small business ecosystem in Hawaii is likely minimal unless the prime contractor actively engages small businesses as subcontractors. Without specific subcontracting plans mandated or reported, opportunities for local small businesses to participate in this large federal project may be limited. Further inquiry into subcontracting goals and achievements would be needed to fully assess the impact.
Industry Classification
NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3560 KOLOA RD, KALAHEO, HI, 96741
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,344,264
Exercised Options: $49,344,264
Current Obligation: $49,344,264
Actual Outlays: $3,486,395
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-10-01
Current End Date: 2021-03-10
Potential End Date: 2021-03-10 00:00:00
Last Modified: 2025-04-21
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