DoD Awards $95.3M Contract for Maui Temporary Housing Site Construction

Contract Overview

Contract Amount: $95,323,281 ($95.3M)

Contractor: Aktarius LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-11

End Date: 2025-02-01

Contract Duration: 296 days

Daily Burn Rate: $322.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TEMPORARY HOUSING SITE KILOHANA, LAHAINA, COUNTY OF MAUI, HAWAII

Place of Performance

Location: LAHAINA, MAUI County, HAWAII, 96761

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $95.3 million to AKTARIUS LLC for work described as: TEMPORARY HOUSING SITE KILOHANA, LAHAINA, COUNTY OF MAUI, HAWAII Key points: 1. Significant investment in post-disaster recovery infrastructure. 2. Limited competition raises questions about price discovery. 3. Potential for cost overruns given the urgency and scale. 4. Construction sector faces challenges with material and labor costs.

Value Assessment

Rating: questionable

The contract value of $95.3M for 296 days of work is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to similar large-scale civil engineering projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited solicitation approach. This limits price discovery and may lead to higher costs than a fully competitive process.

Taxpayer Impact: Taxpayers may bear a higher cost due to the lack of competitive bidding, though the urgency of the situation might justify this approach.

Public Impact

Provides essential temporary housing for disaster-affected residents. Supports local economic activity through construction jobs and material sourcing. Addresses critical infrastructure needs in Maui following recent events.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Other Heavy and Civil Engineering Construction. Large-scale infrastructure projects like this can be subject to significant cost fluctuations due to material prices, labor availability, and unforeseen site conditions.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. Future subcontracts could potentially offer opportunities for small businesses in the construction supply chain.

Oversight & Accountability

Oversight will be crucial to ensure the funds are used efficiently and effectively, meeting the intended purpose of providing temporary housing. Regular progress reports and site inspections are recommended.

Related Government Programs

Risk Flags

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, hi, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.3 million to AKTARIUS LLC. TEMPORARY HOUSING SITE KILOHANA, LAHAINA, COUNTY OF MAUI, HAWAII

Who is the contractor on this award?

The obligated recipient is AKTARIUS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $95.3 million.

What is the period of performance?

Start: 2024-04-11. End: 2025-02-01.

What specific factors led to the decision to not compete this contract fully, and how was the price determined to be fair and reasonable?

The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION.' A thorough review would require access to the justification for this decision, likely related to urgency or unique capabilities. The determination of a fair and reasonable price in such cases often relies on historical data, cost analysis, or comparison to similar, albeit potentially less relevant, market prices.

What are the primary risks associated with constructing temporary housing under a non-competitive, firm-fixed-price contract in a disaster zone?

Key risks include potential cost overruns if initial estimates did not account for all disaster-related challenges (e.g., site access, material transport, labor shortages), and the possibility of the contractor not achieving optimal efficiency due to the lack of competitive pressure. Scope creep, driven by evolving needs or unforeseen site conditions, also poses a risk to the fixed price.

How will the effectiveness of this temporary housing solution be measured, beyond simply completion of construction?

Effectiveness should be measured by the timely occupancy and suitability of the housing for displaced residents, the duration it remains functional, and the overall satisfaction of its users. Post-occupancy evaluations, resident feedback mechanisms, and assessments of the infrastructure's resilience to local environmental conditions will provide a comprehensive view of its effectiveness.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 243 SOUTHWOOD DR, PANAMA CITY, FL, 32405

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $95,323,281

Exercised Options: $95,323,281

Current Obligation: $95,323,281

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2024-04-11

Current End Date: 2025-02-01

Potential End Date: 2025-02-01 00:00:00

Last Modified: 2024-11-14

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