Navy awards $18.7M for waterfront facility repairs in Guam, highlighting construction needs

Contract Overview

Contract Amount: $18,699,000 ($18.7M)

Contractor: Bulltrack-Watts, a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2010-06-30

End Date: 2013-10-08

Contract Duration: 1,196 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR AND MODERNIZATION OF WATERFRONT FACILITIES AT SUMAY COVE

Place of Performance

Location: SANTA RITA, GUAM County, GUAM, 96915

Plain-Language Summary

Department of Defense obligated $18.7 million to BULLTRACK-WATTS, A JOINT VENTURE for work described as: REPAIR AND MODERNIZATION OF WATERFRONT FACILITIES AT SUMAY COVE Key points: 1. Contract addresses critical infrastructure maintenance for naval operations. 2. Competition level suggests a potentially competitive bidding environment. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration indicates a significant, multi-year undertaking. 5. Geographic location in Guam points to strategic importance in the Pacific.

Value Assessment

Rating: good

The contract value of $18.7 million for waterfront facility repair and modernization appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for military installations, especially in remote or strategically important locations like Guam, suggests that the pricing is likely within an expected range. The firm fixed-price structure provides cost certainty for the Department of the Navy, although it places the risk of cost overruns on the contractor. Without specific details on the scope of work and material costs, a precise per-unit cost comparison is difficult, but the overall award seems to align with industry standards for such infrastructure projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was intended to be broad, certain sources were excluded. The solicitation process likely involved a pre-qualification or specific requirement that narrowed the field of eligible bidders. With 6 bidders participating, the competition level suggests a moderate degree of interest, which can contribute to price discovery. However, the exclusion of sources might limit the full potential for competitive pricing compared to a purely unrestricted full and open competition.

Taxpayer Impact: The exclusion of certain sources, while potentially justified by specific project needs, may have limited the number of competitive bids, potentially impacting the final price achieved for taxpayers. A more open competition could have driven prices lower.

Public Impact

Naval operations in the Pacific region benefit from modernized waterfront facilities. Construction services are delivered in Guam, supporting local and regional infrastructure. The project implies employment opportunities for skilled construction labor in Guam. Enhanced port facilities support logistical capabilities and force projection.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Dependence on a joint venture for execution could introduce management complexities.
Logistical challenges associated with construction in a remote island location like Guam.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a joint venture may leverage specialized expertise for complex construction.
Project addresses critical infrastructure needs, ensuring operational readiness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on large-scale infrastructure development for government facilities. The market for military construction is substantial, driven by the need to maintain and modernize aging bases and support evolving strategic requirements. Projects like this often involve significant capital investment and require contractors with specialized experience in handling complex, large-scale building and repair operations, often in challenging geographic locations. Comparable spending benchmarks would typically be assessed against other major military construction awards, particularly those involving port or waterfront facilities.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration, as indicated by 'ss: false' and 'sb: false'. The award was made to a joint venture, which may or may not include small business entities within its structure. Subcontracting opportunities for small businesses could arise during the execution of the project, particularly for specialized trades or material supply, but there is no explicit set-aside requirement mentioned. The overall impact on the small business ecosystem is likely indirect, depending on the subcontracting plans of the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and project management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified work within the agreed-upon price. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Base Guam Infrastructure Projects
Military Construction Program (MILCON)
Department of Defense Facilities Sustainment, Restoration, and Modernization (FSRM)

Risk Flags

Potential for cost overruns due to fixed-price nature and project complexity.
Logistical challenges inherent in construction on an island territory.
Scope of 'modernization' may be subject to interpretation and change orders.
Dependence on joint venture partners for successful execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to BULLTRACK-WATTS, A JOINT VENTURE. REPAIR AND MODERNIZATION OF WATERFRONT FACILITIES AT SUMAY COVE

Who is the contractor on this award?

The obligated recipient is BULLTRACK-WATTS, A JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2010-06-30. End: 2013-10-08.

What specific types of waterfront facilities are included in this repair and modernization project?

The provided data does not specify the exact types of waterfront facilities. However, 'waterfront facilities' typically encompass a range of structures essential for naval operations, such as piers, wharves, docks, quay walls, and potentially associated buildings like maintenance sheds, control towers, or administrative offices located along the water's edge. The 'REPAIR AND MODERNIZATION' aspect suggests that the project could involve structural repairs to existing elements, upgrades to meet current operational standards (e.g., accommodating larger vessels, enhanced cargo handling capabilities), and potentially the modernization of utility systems (power, water, communications) supporting these areas. Further details would likely be found in the contract's Statement of Work (SOW).

How does the $18.7 million award compare to typical spending on similar naval infrastructure projects in the Pacific?

The $18.7 million award for waterfront facility repair and modernization in Guam is a significant sum, reflecting the scale and complexity typical of military infrastructure projects, especially in strategic locations. While specific comparisons are difficult without detailed project scopes, projects involving piers, wharves, and dredging can easily run into tens or hundreds of millions of dollars. Guam's status as a key strategic hub in the Pacific often commands higher costs due to logistical challenges, material transport, and the need for robust, long-term infrastructure. This award appears to be within the expected range for substantial facility upgrades at a major naval installation, though it might be on the lower end for entirely new construction or major expansions.

What are the primary risks associated with a firm fixed-price contract for a project of this nature and duration?

The primary risk with a firm fixed-price (FFP) contract for a multi-year construction project like this is the potential for the contractor to incur significant cost overruns if actual costs exceed the agreed-upon price. This risk is amplified by factors such as unforeseen site conditions (e.g., unexpected soil issues, environmental hazards), fluctuations in material prices, labor shortages, or design changes. While the government benefits from cost certainty, the contractor bears the burden of managing these risks. If the contractor miscalculates costs or encounters significant unforeseen issues, they may face financial losses, potentially impacting project quality or leading to disputes. Effective risk mitigation relies on thorough initial site assessments, robust contract language, and diligent contractor oversight.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the bidding process and potential outcomes?

This designation signifies a nuanced approach to competition. 'Full and Open Competition' generally means all responsible sources are permitted to submit offers. However, the addition of 'After Exclusion of Sources' indicates that specific sources were intentionally excluded from the bidding process, likely due to pre-qualification requirements, specific technical capabilities, or other criteria outlined in the solicitation. This suggests that while the competition aimed for broad participation among eligible firms, it was not entirely unrestricted. The outcome is a balance: it allows for competition among a defined set of qualified bidders, potentially ensuring specialized expertise, but it might limit the number of offers received compared to a completely unrestricted competition, which could influence the final price achieved.

How might the geographic location in Guam impact the project's execution and cost?

The geographic location in Guam presents several unique challenges and potential cost drivers for this construction project. Guam is an island territory, meaning most materials, equipment, and potentially specialized labor must be shipped or flown in, significantly increasing transportation costs and lead times. Logistics are complex, requiring careful planning and coordination. Furthermore, construction in a tropical environment involves considerations for weather (typhoons, heavy rainfall), humidity, and potentially unique environmental regulations or site conditions. These factors can extend project timelines and increase overall costs compared to similar projects on the U.S. mainland. However, Guam's strategic importance also means significant investment in its infrastructure, suggesting a commitment to overcoming these challenges.

What is the significance of the contract being awarded to a joint venture (BULLTRACK-WATTS)?

Awarding a contract to a joint venture (JV), such as BULLTRACK-WATTS, often indicates that the project requires a combination of specialized skills, resources, or capacity that may exceed the capabilities of a single firm. JVs allow companies to pool their expertise, share risks, and bid on larger, more complex projects. In this case, BULLTRACK-WATTS likely brings together complementary strengths in construction, potentially marine construction or specific modernization techniques. This structure can enhance the likelihood of successful project execution by leveraging the best attributes of each partner company. It also allows the government to access a broader range of capabilities through a single contracting entity.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4019210R2800

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bulltrack Construction Company, Inc. (UEI: 068458319)

Address: 3097 STONEY WAY, MARYSVILLE, CA, 95901

Business Categories: Category Business, Emerging Small Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $19,029,350

Exercised Options: $18,699,000

Current Obligation: $18,699,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4019210D2801

IDV Type: IDC

Timeline