Maui Sewer Project Awarded $25.4M to Dawson McG, LLC for Lahaina Emergency Repairs
Contract Overview
Contract Amount: $25,395,640 ($25.4M)
Contractor: Dawson MCG, LLC
Awarding Agency: Department of Defense
Start Date: 2024-07-10
End Date: 2025-05-01
Contract Duration: 295 days
Daily Burn Rate: $86.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: LAHAINA EMERGENCY SEWER SYSTEM PROJECT, FLEMING ROAD AND MALO STREET, LAHAINA, MAUI, HAWAII
Place of Performance
Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $25.4 million to DAWSON MCG, LLC for work described as: LAHAINA EMERGENCY SEWER SYSTEM PROJECT, FLEMING ROAD AND MALO STREET, LAHAINA, MAUI, HAWAII Key points: 1. The contract is for critical emergency sewer system repairs in Lahaina, Maui, following a disaster. 2. Dawson McG, LLC is the sole awardee, indicating a lack of competition. 3. The project's urgency and location may have influenced the procurement method. 4. The sector is construction, specifically water and sewer infrastructure.
Value Assessment
Rating: fair
The award amount of $25.4M for a 295-day construction project is difficult to benchmark without detailed scope. The provided benchmark of $8.6M (BR) seems significantly lower than the awarded amount, suggesting either a very different scope or potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition raises concerns about whether the government secured the best possible price for this essential infrastructure repair.
Public Impact
Restoration of vital public infrastructure in a disaster-affected area. Potential for long-term economic recovery and improved public health in Lahaina. Ensures essential services are re-established for residents and businesses.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns due to emergency nature
- Limited transparency in pricing
Positive Signals
- Addresses critical infrastructure needs
- Supports disaster recovery efforts
- Firm fixed price contract limits cost escalation risk
Sector Analysis
This contract falls within the construction sector, specifically focusing on water and sewer infrastructure. Emergency repairs in disaster zones often command premium pricing due to urgency and limited contractor availability.
Small Business Impact
There is no indication that small businesses were involved in this contract award. The limited competition nature of the award may have excluded potential small business subcontractors.
Oversight & Accountability
The Department of the Army, under the Department of Defense, awarded this contract. Oversight will be crucial to ensure the project is completed on time, within budget, and to the required specifications, especially given the limited competition.
Related Government Programs
- Water and Sewer Line and Related Structures Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to higher costs.
- Significant difference between awarded amount and benchmark requires justification.
- Potential for scope creep or unforeseen issues in emergency repairs.
- Limited information on subcontractor involvement, including small businesses.
Tags
water-and-sewer-line-and-related-structu, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.4 million to DAWSON MCG, LLC. LAHAINA EMERGENCY SEWER SYSTEM PROJECT, FLEMING ROAD AND MALO STREET, LAHAINA, MAUI, HAWAII
Who is the contractor on this award?
The obligated recipient is DAWSON MCG, 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 $25.4 million.
What is the period of performance?
Start: 2024-07-10. End: 2025-05-01.
What specific factors necessitated a limited competition award for this emergency sewer project, and were all reasonable efforts made to solicit broader bids?
The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION.' This suggests a sole-source or emergency procurement justification was likely used, possibly due to the immediate need for repairs following a disaster. Further investigation into the specific justification and whether alternative procurement methods were considered is warranted to ensure taxpayer funds were used efficiently.
How does the awarded amount of $25.4M compare to the benchmark of $8.6M (BR), and what accounts for this significant difference?
The awarded amount is nearly three times the provided benchmark ($25.4M vs $8.6M). This discrepancy could be due to a vastly different project scope, the inclusion of materials, labor, and overhead specific to emergency response, or potential overpricing. A detailed breakdown of the contract's scope of work and cost components is needed for a proper comparison.
What is the expected impact of this project on the long-term functionality and resilience of Lahaina's sewer infrastructure?
This project aims to restore essential sewer services in Lahaina, Maui, which is critical for public health and environmental protection. The successful completion of these emergency repairs should significantly improve the immediate functionality of the system and contribute to the overall resilience of the community's infrastructure in the aftermath of a disaster.
Industry Classification
NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W9128A24R0025
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 900 FORT STREET MALL STE 1850, HONOLULU, HI, 96813
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: $25,395,640
Exercised Options: $25,395,640
Current Obligation: $25,395,640
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-07-10
Current End Date: 2025-05-01
Potential End Date: 2025-05-01 00:00:00
Last Modified: 2025-05-14
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