Navy awards $24.2M construction contract to Healy Tibbitts Builders, Inc. for heavy civil engineering
Contract Overview
Contract Amount: $24,255,905 ($24.3M)
Contractor: Healy Tibbitts Builders, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-05-11
End Date: 2009-12-01
Contract Duration: 935 days
Daily Burn Rate: $25.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NAVFAC SPEC 40-07-1318
Place of Performance
Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $24.3 million to HEALY TIBBITTS BUILDERS, INC. for work described as: NAVFAC SPEC 40-07-1318 Key points: 1. Contract value of $24.2 million for heavy civil engineering services. 2. Awarded under full and open competition, indicating a broad bidder pool. 3. Firm-fixed-price contract type suggests defined scope and cost certainty. 4. Performance period of 935 days spans over two years. 5. Contract awarded as a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The North American Industry Classification System (NAICS) code 237990 points to specialized heavy construction projects.
Value Assessment
Rating: fair
The contract value of $24.2 million for heavy civil engineering services appears within a reasonable range for large-scale construction projects. However, without specific details on the scope of work, comparing it to similar contracts is challenging. The firm-fixed-price structure provides cost predictability for the government, but the ultimate value for money depends on the quality of execution and adherence to project timelines. Benchmarking against market rates for similar specialized construction in Hawaii would provide a clearer picture of cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple qualified bidders were solicited and considered. With 7 bids received, the competition level appears healthy, which typically leads to more competitive pricing and better value for the government. The open nature of the bidding process allows for a wide range of contractors to participate, potentially uncovering innovative solutions and cost efficiencies.
Taxpayer Impact: The full and open competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. The presence of multiple bidders drives down costs through competitive pressure.
Public Impact
The primary beneficiaries are the Department of the Navy and its operational readiness, through the construction or repair of critical infrastructure. Services delivered include heavy and civil engineering construction, likely involving significant infrastructure development or maintenance. The geographic impact is concentrated in Hawaii (ST=HI, SN=HAWAII), supporting military installations or related public works in the region. Workforce implications include job creation for skilled construction labor, engineers, and project managers in Hawaii.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price structure.
- Risk of schedule delays due to the complexity of heavy civil engineering projects and potential weather impacts in Hawaii.
- Dependence on the contractor's specialized expertise and equipment for successful project completion.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a robust selection process and potential for competitive pricing.
- Award to an established contractor (Healy Tibbitts Builders, Inc.) may indicate a track record of successful project execution.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which encompasses a wide range of infrastructure projects such as highways, bridges, dams, and marine facilities. The NAICS code 237990 specifically relates to pipeline, pipe, and diversion channel construction, as well as other heavy construction projects not elsewhere classified. Spending in this sector is often driven by government infrastructure investment and military base development. Comparable spending benchmarks would depend on the specific type and scale of the civil engineering work performed.
Small Business Impact
The contract was awarded under full and open competition and does not indicate a small business set-aside (SS=false, SB=false). Therefore, it is unlikely that small businesses were specifically targeted for this prime contract. However, the prime contractor, Healy Tibbitts Builders, Inc., may engage small businesses as subcontractors to fulfill portions of the work, contributing to the small business ecosystem. Further analysis of subcontracting plans would be needed to assess the direct impact on small businesses.
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 delivery of specified services within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though detailed project-specific oversight reports are not always publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Facilities Engineering Command (NAVFAC) Contracts
- Heavy and Civil Engineering Construction Projects
- Department of Defense Infrastructure Projects
- Military Construction Projects
- Public Works Contracts
Risk Flags
- Potential for scope creep if not managed tightly.
- Risk of contractor default or performance issues.
- Unforeseen site conditions impacting cost and schedule.
- Dependency on specialized equipment and labor.
Tags
construction, heavy-civil-engineering, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, delivery-order, hawaii, large-contract, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.3 million to HEALY TIBBITTS BUILDERS, INC.. NAVFAC SPEC 40-07-1318
Who is the contractor on this award?
The obligated recipient is HEALY TIBBITTS BUILDERS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $24.3 million.
What is the period of performance?
Start: 2007-05-11. End: 2009-12-01.
What is the specific scope of work for this $24.2 million heavy civil engineering contract awarded to Healy Tibbitts Builders, Inc.?
The provided data indicates the contract falls under NAICS code 237990, which covers 'Other Heavy and Civil Engineering Construction.' This broad category can include projects such as pipeline construction, diversion channels, and other specialized heavy engineering works not classified elsewhere. Without access to the detailed contract statement of work (SOW), the precise nature of the services—whether it involves port facilities, utility infrastructure, earthmoving, or other specific civil engineering tasks—remains unspecified. The contract was awarded as a delivery order, suggesting it might be a task order under a larger IDIQ contract, further obscuring the specific project details in this summary view.
How does the $24.2 million award compare to typical spending for similar heavy civil engineering projects by the Department of the Navy?
Comparing the $24.2 million award requires context on the specific type and scale of heavy civil engineering work. The Department of the Navy, through NAVFAC, undertakes numerous large-scale construction and infrastructure projects globally. Projects involving port upgrades, airfield construction, or major utility systems can easily reach tens or hundreds of millions of dollars. A $24.2 million contract for a specific component or a medium-sized project within this category would be considered substantial but not exceptionally large in the context of major military infrastructure development. Benchmarking against historical NAVFAC awards for similar NAICS codes and project types in Hawaii would provide a more precise comparison.
What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?
Key performance indicators for this firm-fixed-price construction contract would likely include adherence to schedule, quality of workmanship, safety compliance, and budget control. Risk mitigation strategies are inherent in the contract type and procurement process. The firm-fixed-price nature shifts much of the cost risk to the contractor. The full and open competition process aims to select a contractor with a proven track record and robust risk management capabilities. Specific mitigation strategies might involve detailed project planning, regular progress reviews, site inspections, and contingency planning for unforeseen conditions, though these are not explicitly detailed in the provided summary data.
What is the track record of Healy Tibbitts Builders, Inc. with federal contracts, particularly with the Department of the Navy?
Healy Tibbitts Builders, Inc. has a history of securing federal contracts, including those with the Department of the Navy and other agencies involved in construction and infrastructure. As a significant player in the heavy civil engineering sector, particularly in Hawaii, their track record likely includes numerous successful project completions. While specific details on past performance metrics, past performance evaluations (past performance information), or any contract disputes are not provided here, the award of a $24.2 million contract suggests a level of confidence from the awarding agency in their capabilities and reliability. A deeper dive into contract databases and performance reviews would offer a more comprehensive assessment.
How does the firm-fixed-price (FFP) contract type influence the risk and value proposition for the government in this scenario?
The firm-fixed-price (FFP) contract type is generally favored by the government for construction projects when the scope of work is well-defined and risks are manageable. For this $24.2 million contract, the FFP structure provides the Department of the Navy with a high degree of cost certainty, meaning the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This shifts the risk of cost overruns to Healy Tibbitts Builders, Inc. The value proposition for the government is enhanced by this cost predictability, allowing for more accurate budgeting and financial planning. However, it also means the government may not directly benefit from contractor cost savings, and the contractor may build in a higher contingency into their price to account for potential risks.
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 NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6274204R1300
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Weeks Marine Inc (UEI: 044665230)
Address: 99-994 IWAENA STREET, AIEA, HI, 96701
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $24,255,905
Exercised Options: $24,255,905
Current Obligation: $24,255,905
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6274204D1300
IDV Type: IDC
Timeline
Start Date: 2007-05-11
Current End Date: 2009-12-01
Potential End Date: 2009-12-01 00:00:00
Last Modified: 2018-10-17
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