DoD Awards $22.5M Renovation Contract to Performance Systems Inc. in Hawaii
Contract Overview
Contract Amount: $22,458,942 ($22.5M)
Contractor: Performance Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2013-09-13
End Date: 2015-12-27
Contract Duration: 835 days
Daily Burn Rate: $26.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: RENOVATE 1ST FLOOR
Place of Performance
Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $22.5 million to PERFORMANCE SYSTEMS INC. for work described as: RENOVATE 1ST FLOOR Key points: 1. Contract value of $22.5 million for building construction. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. Risk of cost overruns or schedule delays exists due to project duration. 4. Sector is Commercial and Institutional Building Construction.
Value Assessment
Rating: fair
The contract value of $22.5 million for an 835-day duration appears reasonable for a significant renovation project. Benchmarking against similar large-scale construction contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'Full and Open Competition After Exclusion of Sources' suggests that while the competition was intended to be broad, specific criteria or exclusions may have limited the pool of eligible bidders, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for this renovation project. The effectiveness of the competition method in securing the best price for the government is a key consideration for taxpayer impact.
Public Impact
Military personnel and operations may be impacted by the renovation timeline. Local economy in Hawaii may benefit from construction jobs and related spending. Potential for disruption to existing facilities during the renovation period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Project duration of 835 days presents schedule risk.
- Fixed-price contract can shift risk to contractor but may inflate initial bids.
Positive Signals
- Clear project scope for renovation.
- Department of Defense is a stable contracting entity.
- Contract awarded to a single entity for streamlined execution.
Sector Analysis
The Commercial and Institutional Building Construction sector involves significant capital investment and project management complexity. Spending benchmarks vary widely based on project scope, location, and specific construction needs.
Small Business Impact
The data does not indicate if small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would typically involve contract management by the Department of the Army to ensure adherence to scope, schedule, and quality standards. Accountability rests with the contractor to deliver the renovation as specified.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Schedule delays impacting facility availability.
- Limited competition may not yield the lowest possible price.
- Contractor performance risk over an extended duration.
Tags
commercial-and-institutional-building-co, department-of-defense, hi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.5 million to PERFORMANCE SYSTEMS INC.. RENOVATE 1ST FLOOR
Who is the contractor on this award?
The obligated recipient is PERFORMANCE SYSTEMS INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.5 million.
What is the period of performance?
Start: 2013-09-13. End: 2015-12-27.
What was the rationale for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and how did this impact the final price?
The rationale for excluding sources typically relates to specific technical requirements, past performance, or security clearances necessary for the project. This exclusion can limit the number of bidders, potentially reducing competitive pressure and leading to a higher final price than if a truly open competition were held. A thorough review of the solicitation documents would clarify the specific exclusions and their justification.
What are the primary risks associated with a renovation project of this scale and duration, and what mitigation strategies are in place?
Primary risks include unforeseen structural issues discovered during renovation, material cost fluctuations, labor shortages, and potential delays due to weather or supply chain disruptions. Mitigation strategies often involve contingency planning, robust project management, clear communication channels, and performance incentives or penalties outlined in the contract.
How does the firm fixed-price contract structure affect the government's financial exposure and the contractor's incentive to control costs for this renovation?
A firm fixed-price contract places the primary risk of cost overruns on the contractor, incentivizing them to manage costs efficiently to maximize profit. For the government, this structure provides cost certainty, as the price is fixed regardless of the contractor's actual costs. However, contractors may build in higher profit margins or contingency to account for potential risks, potentially leading to a higher initial bid price.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9128A12R0010
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 94-155 LEOOLE ST STE 302, WAIPAHU, HI, 96797
Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,458,942
Exercised Options: $22,458,942
Current Obligation: $22,458,942
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128A12D0008
IDV Type: IDC
Timeline
Start Date: 2013-09-13
Current End Date: 2015-12-27
Potential End Date: 2015-12-27 00:00:00
Last Modified: 2021-02-26
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