Manson-Nan Hawaii JV awarded $17.5M contract for heavy civil engineering construction by the Department of the Navy

Contract Overview

Contract Amount: $17,492,281 ($17.5M)

Contractor: Manson-Nan Hawaii JV

Awarding Agency: Department of Defense

Start Date: 2010-09-29

End Date: 2013-07-29

Contract Duration: 1,034 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 1ST OPTION PERIOD

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $17.5 million to MANSON-NAN HAWAII JV for work described as: 1ST OPTION PERIOD Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1034 days indicates a significant, long-term project. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. The award to a joint venture might indicate specialized capabilities or capacity requirements. 5. Geographic focus on Hawaii suggests regional economic impact and specific logistical considerations.

Value Assessment

Rating: fair

The contract value of $17.5 million for heavy civil engineering construction over approximately 2.8 years appears within a reasonable range for such projects. Benchmarking against similar large-scale civil engineering contracts awarded by the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the contractor assumed most of the cost risk, which can be beneficial for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders suggests a healthy level of competition for this requirement. This broad competition is generally expected to drive down prices and encourage innovative solutions, leading to better value for the government.

Taxpayer Impact: A competitive bidding process with multiple bidders typically results in more favorable pricing for taxpayers by fostering a market-driven cost structure.

Public Impact

The primary beneficiaries are the Department of the Navy, receiving essential heavy civil engineering construction services. Services delivered likely include infrastructure development, repair, or maintenance critical to naval operations in Hawaii. The geographic impact is concentrated in Hawaii, potentially supporting local employment and businesses. Workforce implications may include the creation of construction jobs and demand for skilled labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen site conditions or material price fluctuations.
Dependence on a single joint venture for critical infrastructure could pose a risk if performance issues arise.
Limited transparency on the specific scope of work and performance metrics could hinder effective oversight.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract structure shifts cost risk to the contractor.
The contract duration suggests a commitment to a significant project with potential for long-term impact.
The award to a joint venture may signify specialized expertise and capacity to handle complex projects.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a critical component of national infrastructure and defense readiness. The market for such services is substantial, driven by government needs for base development, maintenance, and upgrades, as well as private sector projects. Comparable spending benchmarks would typically be found in large-scale public works and military construction projects, often involving significant capital investment and specialized engineering expertise.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contracts often create opportunities for smaller specialized firms.

Oversight & Accountability

Oversight mechanisms would typically involve the contracting officer's representative (COR) and potentially the Naval Facilities Engineering Command (NAVFAC) given the nature of the work. Accountability measures are inherent in the firm fixed-price contract, with penalties for non-performance. Transparency is often managed through contract reporting systems and public contract databases, though detailed project oversight information may not be publicly available.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Construction Projects
Heavy and Civil Engineering Services
Military Base Infrastructure Development

Risk Flags

Potential for cost overruns due to fixed-price nature and construction complexities.
Dependence on joint venture performance for critical infrastructure.
Limited public detail on specific project scope and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.5 million to MANSON-NAN HAWAII JV. 1ST OPTION PERIOD

Who is the contractor on this award?

The obligated recipient is MANSON-NAN HAWAII JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.5 million.

What is the period of performance?

Start: 2010-09-29. End: 2013-07-29.

What specific types of heavy and civil engineering construction were performed under this contract?

While the contract is broadly categorized under 'Other Heavy and Civil Engineering Construction' (ND: 237990), the specific scope of work is not detailed in the provided data. Typically, this category encompasses projects such as the construction or repair of roads, bridges, tunnels, dams, airports, and other large-scale infrastructure. Given the Department of the Navy as the agency, the work likely involved facilities supporting naval operations, potentially including airfield improvements, port facilities, utility infrastructure, or site preparation for new construction at naval bases in Hawaii.

How does the awarded amount of $17.5 million compare to similar Department of the Navy construction contracts?

The $17.5 million award value for this contract needs to be benchmarked against similar heavy and civil engineering construction projects undertaken by the Department of the Navy, particularly in the Hawaii region. Without access to a database of comparable contracts, a precise comparison is difficult. However, for large-scale civil engineering projects, this value suggests a significant undertaking, likely involving substantial site work, structural components, or extensive infrastructure development. The number of bidders (6) indicates a competitive market for this type of work, which generally supports reasonable pricing.

What are the potential risks associated with a firm fixed-price contract for this type of construction?

Firm fixed-price (FFP) contracts place the primary cost risk on the contractor. For heavy and civil engineering construction, risks include unforeseen geological conditions, extreme weather events impacting schedules, fluctuations in material costs, and labor availability. If the contractor underestimated these factors during bidding, they might incur losses or attempt to cut corners, potentially impacting quality. Conversely, if the contractor accurately predicted costs and managed risks effectively, the government benefits from price certainty. The government's role in managing scope and ensuring timely decisions is crucial to mitigating FFP risks.

What is the significance of the contract being awarded to a joint venture?

The award to 'MANSON-NAN HAWAII JV' signifies a joint venture, which is a business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This often occurs when a project requires a combination of specialized expertise, significant financial capacity, or bonding capabilities that a single company might not possess. For this heavy civil engineering project, the joint venture structure likely enabled the partners to meet the demanding requirements of the Department of the Navy, potentially offering a broader skill set or greater capacity than individual firms might have provided alone.

What does the contract duration of 1034 days imply about the project's complexity and timeline?

A contract duration of 1034 days, approximately 2.8 years, indicates a substantial and complex construction project. Such extended timelines are typical for large-scale civil engineering works that may involve extensive planning, phased construction, environmental considerations, and coordination with multiple stakeholders. This duration suggests the project is not a simple repair or minor upgrade but rather a significant development or overhaul of infrastructure, requiring sustained effort and management over an extended period.

How might this contract impact the local economy and workforce in Hawaii?

Given the contract's geographic location (HI - Hawaii), this award is likely to have a positive impact on the local economy. It would create demand for local construction labor, materials, and potentially equipment rentals. The joint venture might also engage local subcontractors, further distributing economic benefits. The duration of the contract suggests sustained employment opportunities within the construction sector for the period of performance. This influx of activity can stimulate related industries and contribute to regional economic growth.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247809R4017

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 636 LAUMAKA ST, HONOLULU, HI, 01

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $17,492,281

Exercised Options: $17,492,281

Current Obligation: $17,492,281

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247809D4016

IDV Type: IDC

Timeline