Department of Defense contract for building repairs at Joint Base Pearl Harbor Hickam awarded to Insight Pacific, LLC for over $21.5 million

Contract Overview

Contract Amount: $21,572,252 ($21.6M)

Contractor: Insight Pacific, LLC

Awarding Agency: Department of Defense

Start Date: 2015-04-27

End Date: 2019-04-26

Contract Duration: 1,460 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF REPAIR AMC PASSENGER TERMINAL, BUILDING 2028, JOINT BASE PEARL HARBOR HICKAM (JBPHH), OAHU, HAWAII

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to INSIGHT PACIFIC, LLC for work described as: IGF::OT::IGF REPAIR AMC PASSENGER TERMINAL, BUILDING 2028, JOINT BASE PEARL HARBOR HICKAM (JBPHH), OAHU, HAWAII Key points: 1. The contract value of over $21.5 million for building repairs represents a significant investment in infrastructure maintenance. 2. Competition dynamics for this contract appear robust, suggesting potential for competitive pricing. 3. The duration of the contract (1460 days) indicates a long-term need for these repair services. 4. The firm-fixed-price contract type shifts performance risk to the contractor. 5. The geographic location in Hawaii may influence labor and material costs. 6. The contract falls under commercial and institutional building construction, a broad sector with varying cost drivers.

Value Assessment

Rating: fair

The contract value of $21.57 million for building repairs at Joint Base Pearl Harbor Hickam is substantial. Benchmarking this against similar large-scale construction and repair projects within the Department of Defense or other federal agencies would be necessary for a precise value-for-money assessment. The provided data does not include specific details on the scope of work or unit pricing, making direct comparison difficult. However, the duration of nearly four years suggests a comprehensive scope that could justify the awarded amount if executed efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was initially broad, certain sources were excluded before the final award. This suggests a competitive process, but the exclusion of specific sources warrants further investigation to understand its impact on the final price and contractor selection. The presence of four bidders (no=4) indicates a reasonable level of competition for this type of specialized construction service.

Taxpayer Impact: A full and open competition, even with some source exclusions, generally benefits taxpayers by encouraging multiple firms to bid, which can drive down costs and improve service quality.

Public Impact

The primary beneficiaries are the Department of Defense and military personnel stationed at Joint Base Pearl Harbor Hickam, who will utilize the repaired facilities. The services delivered include the repair and maintenance of passenger terminal building 2028. The geographic impact is localized to Oahu, Hawaii, specifically within the Joint Base Pearl Harbor Hickam installation. The contract supports the construction and maintenance workforce, potentially creating or sustaining jobs in the Hawaii region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise during repairs, given the age of the building.
Dependency on a single contractor for a critical infrastructure repair project over a multi-year period.
The 'after exclusion of sources' clause in the competition type could warrant a review to ensure no viable contractors were unfairly excluded.

Positive Signals

The firm-fixed-price contract structure incentivizes the contractor to manage costs effectively.
The award to a single contractor for a defined scope and duration provides clarity and accountability.
The contract is for essential infrastructure repair, directly supporting military operations and personnel.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often focuses on maintaining and upgrading government facilities, including military bases, administrative buildings, and public infrastructure. The market for such services is competitive, with numerous firms capable of undertaking large-scale repair and renovation projects. Benchmarks for similar projects would typically consider factors like square footage, type of repairs (e.g., structural, HVAC, electrical), and location-specific labor and material costs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb=false) and the contractor, Insight Pacific, LLC, is not explicitly identified as a small business in the provided snippet. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor may still engage small businesses as subcontractors, which would be detailed in their subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and project management offices. The firm-fixed-price nature of the contract places the onus on the contractor to manage costs and schedule. Transparency is typically maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance.

Related Government Programs

Military Base Infrastructure Maintenance
Federal Building Repair Contracts
Department of Defense Construction Projects
Commercial Building Renovation

Risk Flags

Potential for cost increases due to unforeseen conditions in older building structures.
Market volatility in material and labor costs over the contract's multi-year duration.
Need to verify the rationale behind 'exclusion of sources' in the competition process.
Ensuring consistent quality and performance oversight throughout the 4-year contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to INSIGHT PACIFIC, LLC. IGF::OT::IGF REPAIR AMC PASSENGER TERMINAL, BUILDING 2028, JOINT BASE PEARL HARBOR HICKAM (JBPHH), OAHU, HAWAII

Who is the contractor on this award?

The obligated recipient is INSIGHT PACIFIC, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2015-04-27. End: 2019-04-26.

What is the specific scope of work for the repair of Passenger Terminal Building 2028?

The provided data identifies the contract as 'IGF::OT::IGF REPAIR AMC PASSENGER TERMINAL, BUILDING 2028, JOINT BASE PEARL HARBOR HICKAM (JBPHH), OAHU, HAWAII'. While it specifies the location and the building (Passenger Terminal, Building 2028), the exact scope of 'REPAIR AMC' (Repair and Maintenance Contract) is not detailed. Typically, such contracts involve addressing structural deficiencies, updating systems (like HVAC, electrical, plumbing), improving finishes, and ensuring compliance with current building codes and safety standards. A comprehensive review of the original contract solicitation documents (e.g., the Statement of Work or Performance Work Statement) would be necessary to ascertain the precise nature and extent of the repairs required.

How does the awarded amount of $21.57 million compare to similar building repair contracts at other military installations?

Directly comparing the $21.57 million award without detailed scope information is challenging. However, large-scale infrastructure repair projects at major military installations can range widely. For instance, significant renovations of operational facilities like terminals or barracks can easily run into tens of millions of dollars, especially in high-cost areas like Hawaii. Factors influencing cost include the size of the building, the age and condition of existing systems, the complexity of the required repairs (e.g., seismic retrofitting, hazardous material abatement), and prevailing labor and material rates. To provide a robust comparison, one would need to identify contracts with similar building types, square footage, and repair scopes at comparable bases, adjusting for regional economic differences.

What are the potential risks associated with a nearly four-year contract for building repairs?

A contract duration of 1460 days (approximately four years) for building repairs presents several potential risks. Firstly, the risk of unforeseen conditions discovered during the repair process is significant, especially for older structures. These could include hidden structural damage, asbestos, or outdated electrical/plumbing systems not initially identified, potentially leading to scope creep and cost increases, despite the firm-fixed-price structure. Secondly, market fluctuations in material costs (e.g., steel, concrete) and labor availability over a four-year period can impact the contractor's profitability and potentially lead to claims or disputes if not adequately managed. Thirdly, there's a risk of contractor performance degradation over a long duration, requiring diligent oversight to ensure quality and adherence to schedule. Finally, changes in military operational needs or base priorities could necessitate modifications to the contract.

What does 'Full and Open Competition After Exclusion of Sources' imply for the bidding process and taxpayer value?

This specific procurement method, 'Full and Open Competition After Exclusion of Sources,' suggests an initial broad solicitation, followed by the exclusion of certain potential offerors before the final evaluation and award. This implies that while the government aimed for a wide initial reach, specific reasons led to the exclusion of some entities. The implications for taxpayer value are mixed: on one hand, it still involves competition, which generally drives better pricing. On the other hand, the exclusion of sources could potentially limit the number of competitive bids received, possibly leading to a higher price than if all capable sources had been allowed to compete. Understanding the justification for the exclusion is key to assessing its impact on overall value.

What is the track record of Insight Pacific, LLC in performing similar federal construction contracts?

The provided data identifies Insight Pacific, LLC as the contractor but does not offer details on their track record. To assess their performance history, one would need to consult federal procurement databases like SAM.gov (System for Award Management) or FPDS (Federal Procurement Data System) to review past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. A positive track record with similar-sized and scoped construction projects would indicate a lower risk for this current contract, while a history of issues might raise concerns about project execution and cost control.

How does the firm-fixed-price (FFP) contract type affect risk allocation and potential cost certainty?

A Firm-Fixed-Price (FFP) contract type, as indicated for this award, places the primary responsibility for cost overruns on the contractor. This means the contractor agrees to a set price for the defined scope of work, and any costs incurred above that price are absorbed by them. This structure offers significant cost certainty for the government, as the final price is known upfront, barring any contract modifications. It incentivizes the contractor to manage resources efficiently and control costs to maximize their profit margin. The main risk for the government shifts from cost overruns to potential contractor underperformance or quality issues if the contractor attempts to cut corners to maintain profitability under the fixed price.

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: N6247812R4000

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3010 E MIRALOMA AVE, ANAHEIM, CA, 92806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,572,252

Exercised Options: $21,572,252

Current Obligation: $21,572,252

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247814D4000

IDV Type: IDC

Timeline