Navy awards $11.6M construction contract to Healy Tibbitts Builders, Inc. for heavy engineering

Contract Overview

Contract Amount: $11,582,433 ($11.6M)

Contractor: Healy Tibbitts Builders, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-03-06

End Date: 2009-07-12

Contract Duration: 493 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: OPTION 3

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to HEALY TIBBITTS BUILDERS, INC. for work described as: OPTION 3 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 493 days indicates a significant, multi-phase project. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. Awarded by the Department of the Navy, indicating a defense-related infrastructure need. 5. The North American Industry Classification System (NAICS) code 237990 points to specialized heavy civil engineering construction. 6. The contract was awarded in Hawaii, suggesting a focus on regional infrastructure development.

Value Assessment

Rating: fair

The contract value of $11.6 million for heavy and civil engineering construction appears within a reasonable range for a project of this scope and duration. Without specific project details or comparable contract benchmarks for similar heavy engineering tasks in Hawaii, a precise value-for-money assessment is challenging. However, the firm-fixed-price contract type suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator for the government if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 7 bids indicates a healthy level of interest and competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value.

Taxpayer Impact: The full and open competition with multiple bidders suggests that taxpayer dollars were likely used efficiently, as the competitive process should drive down prices and encourage innovation from the participating firms.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially military personnel stationed in Hawaii, who will benefit from improved infrastructure. The services delivered involve heavy and civil engineering construction, likely related to port facilities, airfields, or other critical infrastructure. The geographic impact is concentrated in Hawaii, supporting regional development and potentially military readiness. The contract supports the construction workforce in Hawaii, providing employment opportunities for skilled laborers and tradespeople.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not precisely defined, given the firm-fixed-price nature.
Dependence on the contractor's ability to manage complex heavy engineering tasks effectively within the specified timeline.
Geographic isolation of Hawaii could present logistical challenges impacting project timelines and costs.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract shifts cost risk to the contractor, potentially protecting the government from overruns.
Multiple bids received (7) suggest strong market interest and competitive pricing.
Contract awarded to a known entity (Healy Tibbitts Builders, Inc.) which may have a track record in the region.

Sector Analysis

The heavy and civil engineering construction sector is critical for national infrastructure development and defense readiness. This contract falls under the broader construction industry, specifically focusing on large-scale projects such as ports, roads, bridges, and other non-building structures. The market for such services in Hawaii is influenced by military presence, tourism, and local development needs. Comparable spending benchmarks would typically be assessed against similar Department of Defense or civilian infrastructure projects in the Pacific region.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The award went to Healy Tibbitts Builders, Inc., which is likely a larger firm given the contract value. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses within the construction ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Navy. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified work within budget. Transparency is generally facilitated through contract award databases, though specific project details and oversight reports may not always be publicly accessible.

Related Government Programs

Military Base Construction
Naval Facilities Engineering Command Contracts
Heavy Construction Services
Infrastructure Development Projects
Department of Defense Procurement

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Logistical challenges associated with construction in Hawaii.
Contractor's capacity to manage complex heavy engineering projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to HEALY TIBBITTS BUILDERS, INC.. OPTION 3

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 $11.6 million.

What is the period of performance?

Start: 2008-03-06. End: 2009-07-12.

What is the specific nature of the heavy and civil engineering construction project awarded to Healy Tibbitts Builders, Inc. by the Department of the Navy?

The provided data indicates the contract falls under NAICS code 237990, which covers "Other Heavy and Civil Engineering Construction." This typically includes projects such as bridges, tunnels, waterways, dams, power plants, and other large-scale infrastructure not elsewhere classified. Given the award by the Department of the Navy and the location in Hawaii, the project could be related to port improvements, airfield construction or maintenance, coastal defense structures, or other critical facilities supporting naval operations in the region. Without more specific contract details, the exact scope remains general, but it clearly involves significant civil engineering work.

How does the awarded amount of $11.6 million compare to similar heavy engineering construction contracts awarded by the Department of the Navy in recent years?

Comparing the $11.6 million award to similar contracts requires access to a broader dataset of Department of the Navy procurements within the heavy and civil engineering sector. However, for a project spanning approximately 16 months (493 days), this value suggests a substantial undertaking. Larger naval infrastructure projects, such as shipyard upgrades or major base construction, can range from tens of millions to hundreds of millions of dollars. Smaller, more specialized projects might fall below this threshold. The $11.6 million figure appears to represent a mid-to-large scale project within this category, but its true value benchmark depends heavily on the specific scope, complexity, and location.

What are the potential risks associated with a firm-fixed-price contract for heavy and civil engineering construction in a location like Hawaii?

A firm-fixed-price (FFP) contract places the primary responsibility for cost overruns on the contractor. For heavy and civil engineering, risks include unforeseen site conditions (e.g., geological issues, environmental hazards), material price fluctuations, labor availability challenges, and logistical complexities, especially in remote locations like Hawaii. If the scope is not meticulously defined, scope creep can lead to disputes or contractor claims for additional compensation, even under an FFP. Weather delays can also impact schedules and costs. The contractor must accurately estimate all potential costs and contingencies to bid competitively and profitably under an FFP structure.

What does the number of bidders (7) suggest about the effectiveness of the full and open competition for this contract?

Receiving 7 bids for this $11.6 million heavy engineering contract indicates a reasonably competitive procurement process under full and open competition. A higher number of bidders generally suggests that the solicitation was well-publicized and that the requirements were clear enough to attract interest from multiple qualified firms. This level of competition increases the likelihood that the government received a fair and reasonable price, as contractors are incentivized to offer their best terms to win the award. It also provides a broader pool of potential solutions and reduces the risk of relying on a single source.

What is the historical spending pattern for NAICS code 237990 by the Department of the Navy, and how does this contract fit within that pattern?

Historical spending data for NAICS code 237990 by the Department of the Navy would reveal the frequency and value of contracts awarded for heavy and civil engineering construction. This specific $11.6 million contract represents a single instance within that pattern. Analyzing past spending would show whether the Navy consistently invests in this type of infrastructure, the typical contract sizes, and the geographic distribution of these awards. This contract appears to be a standard procurement for essential infrastructure maintenance or development, fitting within the Navy's ongoing need to maintain and upgrade its facilities across various locations, including strategic bases in Hawaii.

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: 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, 01

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,582,433

Exercised Options: $11,582,433

Current Obligation: $11,582,433

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6274204D1300

IDV Type: IDC

Timeline