DoD Awards $54.5M for Rotary Wing Parking Apron Phase 2 at Wheeler Army Airfield
Contract Overview
Contract Amount: $54,539,774 ($54.5M)
Contractor: Kiewit Infrastructure West CO
Awarding Agency: Department of Defense
Start Date: 2022-10-06
End Date: 2025-07-18
Contract Duration: 1,016 days
Daily Burn Rate: $53.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY22 MCA PN93672 ROTARY WING PARKING APRON PHASE 2, WHEELER ARMY AIRFIELD, OAHU, HAWAII
Place of Performance
Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $54.5 million to KIEWIT INFRASTRUCTURE WEST CO for work described as: FY22 MCA PN93672 ROTARY WING PARKING APRON PHASE 2, WHEELER ARMY AIRFIELD, OAHU, HAWAII Key points: 1. Contract awarded to Kiewit Infrastructure West Co. for construction services. 2. Project aims to improve rotary wing aircraft parking and support facilities. 3. Spending falls within the Highway, Street, and Bridge Construction sector. 4. Firm Fixed Price contract type suggests defined scope and cost control.
Value Assessment
Rating: good
The $54.5M award for Phase 2 of the rotary wing parking apron project appears reasonable given the scope of construction services required for a significant military airfield upgrade. Benchmarking against similar large-scale airfield construction 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, indicating a robust price discovery process. This method allows multiple bidders to compete, generally leading to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for essential military infrastructure upgrades, ensuring operational readiness and efficiency for rotary wing aircraft.
Public Impact
Enhances operational capabilities at Wheeler Army Airfield. Supports military readiness and aviation infrastructure. Contributes to local construction economy in Hawaii.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Schedule delays could impact airfield operations.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type.
- Addresses critical infrastructure needs.
Sector Analysis
This project falls under the Highway, Street, and Bridge Construction sector, specifically related to airfield infrastructure. Spending benchmarks for similar large-scale airfield construction projects can vary significantly based on location, scope, and specific requirements.
Small Business Impact
While the primary award went to Kiewit Infrastructure West Co., it is common for large prime contractors to utilize small businesses for subcontracting opportunities on projects of this magnitude. Further analysis of subcontracting plans would be needed to confirm small business participation.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reporting, are expected to be in place.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for unforeseen site conditions.
- Risk of schedule delays impacting operations.
- Dependence on prime contractor's management of subcontractors.
- Weather-related construction impacts in Hawaii.
Tags
highway-street-and-bridge-construction, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.5 million to KIEWIT INFRASTRUCTURE WEST CO. FY22 MCA PN93672 ROTARY WING PARKING APRON PHASE 2, WHEELER ARMY AIRFIELD, OAHU, HAWAII
Who is the contractor on this award?
The obligated recipient is KIEWIT INFRASTRUCTURE WEST CO.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $54.5 million.
What is the period of performance?
Start: 2022-10-06. End: 2025-07-18.
What is the projected impact of this apron expansion on aircraft turnaround times and operational efficiency?
The expansion of the rotary wing parking apron is expected to significantly improve aircraft turnaround times by providing dedicated, modern parking and support facilities. This will reduce congestion on existing taxiways and aprons, allowing for more efficient aircraft movement and mission readiness. Enhanced accessibility to maintenance and fueling services directly from the apron will further streamline operations.
Are there any identified environmental risks associated with the construction, and what mitigation strategies are in place?
Construction projects of this scale can pose environmental risks such as soil erosion, water runoff, and potential disturbance to local ecosystems. Mitigation strategies likely include adherence to strict environmental protection plans, implementation of erosion control measures, proper waste management, and compliance with all relevant environmental regulations. Regular environmental monitoring during construction will ensure these strategies are effective.
How does the firm fixed price contract structure mitigate potential cost escalations for the government?
A firm fixed price (FFP) contract establishes a ceiling price that the contractor must not exceed, regardless of cost overruns incurred by the contractor. This structure shifts the risk of cost escalation to the contractor, providing the government with cost certainty. Any deviations or changes requiring additional funding must be formally negotiated and approved through contract modifications.
Industry Classification
NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge 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: W9128A22R0009
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 707 RICHARDS ST STE 750, HONOLULU, HI, 96813
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,949,774
Exercised Options: $54,539,774
Current Obligation: $54,539,774
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $17,804,411
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-10-06
Current End Date: 2025-07-18
Potential End Date: 2025-07-18 00:00:00
Last Modified: 2025-09-10
More Contracts from Kiewit Infrastructure West CO
- Port of Nome Modification Phase 1A, Nome, Alaska — $399.4M (Department of Defense)
- JBE054 Runway Extension, Jber, Alaska — $377.3M (Department of Defense)
- This IS the Award for Phase IV of the Folsom JFP — $326.8M (Department of Defense)
- Yose 196416 Rehabilitate EL Portal Wastewater Treatment Facility and Administrative Camp the Work of This Contract IS for the Construction OF: Yose 196416 Rehabilitate EL Portal Wastewater Treatment Facility and Administrative Camp in Yosemite NAT — $217.7M (Department of the Interior)
- Construction of MUD Mountain DAM Fish Passage Facility in Buckley, WA — $152.7M (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)