Kamaka Air LLC awarded $132.3M contract for air transport of waste in Hawaii

Contract Overview

Contract Amount: $132,300 ($132.3K)

Contractor: Kamaka AIR LLC

Awarding Agency: Department of the Interior

Start Date: 2025-04-14

End Date: 2027-04-10

Contract Duration: 726 days

Daily Burn Rate: $182/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: KALA WASTE DISPOSAL VIA AIR TRANSPORT

Place of Performance

Location: KALAUPAPA, KALAWAO County, HAWAII, 96742

State: Hawaii Government Spending

Plain-Language Summary

Department of the Interior obligated $132,300 to KAMAKA AIR LLC for work described as: KALA WASTE DISPOSAL VIA AIR TRANSPORT Key points: 1. Contract value of $132.3 million over approximately two years. 2. Awarded to Kamaka Air LLC, a single bidder. 3. Potential for cost overruns due to fixed-price contract and remote location. 4. Service area is limited to Hawaii, impacting local logistics. 5. Contract type is Firm Fixed Price, offering cost certainty if managed efficiently. 6. Nonscheduled chartered freight air transportation is a niche service.

Value Assessment

Rating: fair

The contract value of $132.3 million for approximately two years of waste transport via air in Hawaii appears high. Benchmarking against similar contracts for freight air transport is difficult due to the specialized nature of waste disposal and the remote island geography. The firm fixed-price structure suggests an expectation of cost control, but the remote location and specialized service could lead to higher-than-average operational costs. Without more specific data on waste volume and transport frequency, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves limited competition. Only one bid was received from Kamaka Air LLC. While SAP is designed for efficiency in acquiring goods and services below certain thresholds, the lack of multiple bidders raises questions about the extent of market research and outreach conducted. This limited competition may have resulted in a less competitive price than could have been achieved through a broader solicitation.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the lowest possible price. A single bidder scenario can reduce pressure on the contractor to offer the most cost-effective solution.

Public Impact

Residents and businesses in Hawaii will benefit from improved waste management services. The contract ensures the transportation of waste, a critical public service for environmental health. Geographic impact is concentrated within the state of Hawaii, addressing unique logistical challenges. Potential for local job creation within Kamaka Air LLC's operations in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have led to a higher price for taxpayers.
Reliance on a single provider for a critical service like waste transport poses a risk.
The specialized nature of air transport for waste could present unforeseen operational challenges and costs.

Positive Signals

Firm Fixed Price contract provides cost certainty if performance is managed effectively.
Contract addresses a critical public service need in a geographically challenging area.
Potential for positive impact on local employment in Hawaii.

Sector Analysis

The contract falls within the transportation and logistics sector, specifically focusing on air freight for specialized cargo (waste). The market for nonscheduled chartered air freight is niche, particularly when combined with waste disposal logistics. Comparable spending benchmarks are difficult to establish due to the unique combination of services and the remote island location. The overall market for air cargo is substantial, but this specific segment is highly specialized.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and the contractor, Kamaka Air LLC, is not explicitly identified as a small business in this snippet. Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside. The impact on the broader small business ecosystem is likely minimal unless Kamaka Air LLC itself utilizes small businesses for support services.

Oversight & Accountability

Oversight will likely be managed by the National Park Service, a division of the Department of the Interior. Accountability measures will be tied to the performance standards within the Firm Fixed Price contract. Transparency is generally facilitated through federal contract databases, but specific operational oversight details are not provided. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Waste Management Contracts
Air Cargo Services
Department of the Interior Logistics
National Park Service Operations

Risk Flags

Limited Competition
Potential for High Cost
Reliance on Single Provider

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $132,300 to KAMAKA AIR LLC. KALA WASTE DISPOSAL VIA AIR TRANSPORT

Who is the contractor on this award?

The obligated recipient is KAMAKA AIR LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $132,300.

What is the period of performance?

Start: 2025-04-14. End: 2027-04-10.

What is the track record of Kamaka Air LLC in handling government contracts, particularly for waste transport?

Information regarding Kamaka Air LLC's specific track record with government contracts, especially concerning waste transport, is not detailed in the provided data. A thorough analysis would require examining past performance reviews, contract history, and any reported issues or successes with federal or state agencies. Without this historical data, it is difficult to assess their reliability and experience in managing such a critical and specialized service. Further investigation into their operational history and client testimonials would be necessary to gauge their capabilities and past performance.

How does the cost per ton-mile for waste transport under this contract compare to industry benchmarks?

Calculating a precise cost per ton-mile for this contract is challenging without detailed information on the volume of waste, the specific routes, and the average weight of the transported waste. The contract is for nonscheduled chartered freight air transportation, which is inherently more expensive than standard freight. Furthermore, the remote island geography of Hawaii likely increases operational costs significantly due to fuel, maintenance, and logistical complexities. A direct comparison to general industry benchmarks for air cargo would likely show this contract to be at a higher cost, but this premium may be justified by the unique service requirements and location.

What are the primary risks associated with using air transport for waste disposal in Hawaii?

The primary risks associated with using air transport for waste disposal in Hawaii include high operational costs due to fuel consumption, specialized aircraft requirements, and the need for frequent maintenance in a remote location. Weather disruptions, common in island environments, could lead to delays and impact the continuity of service. Furthermore, the environmental impact of increased air traffic and potential for accidents, though statistically low, are inherent risks. Dependence on a single contractor, Kamaka Air LLC, also introduces a risk of service interruption if the company faces financial or operational difficulties.

What is the historical spending pattern for waste management and air transport services by the Department of the Interior in Hawaii?

Historical spending data for waste management and air transport services by the Department of the Interior (DOI) in Hawaii is not provided in the current data snippet. To assess historical patterns, one would need to analyze past contract awards for similar services within the DOI's operations in the region. This would involve looking at the frequency, duration, and value of previous contracts, as well as the contractors involved. Understanding these patterns would help determine if the current $132.3 million contract represents an increase, decrease, or continuation of previous spending levels and if the chosen method of air transport is a recurring solution or a new approach.

What are the specific performance metrics and service level agreements (SLAs) included in the contract to ensure effective waste disposal?

The provided data does not detail the specific performance metrics or Service Level Agreements (SLAs) associated with this contract. Typically, a firm fixed-price contract for essential services like waste transport would include clauses related to timeliness of pickups and deliveries, waste handling protocols, reporting requirements, and potentially environmental compliance standards. The effectiveness of the waste disposal will hinge on the clarity and enforceability of these unstated SLAs. The National Park Service, as the contracting agency, would be responsible for monitoring compliance and ensuring that the contractor meets all stipulated performance obligations to maintain public health and environmental standards.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140P8225Q0009

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 144 PALEKONA ST, HONOLULU, HI, 96819

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $208,500

Exercised Options: $132,300

Current Obligation: $132,300

Actual Outlays: $20,522

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline