DOT Awards $5.8M for Pahoa ATCBI and RCAG Tower Construction to Chitina Diversified Services

Contract Overview

Contract Amount: $5,790,579 ($5.8M)

Contractor: Chitina Diversified Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2023-11-20

End Date: 2027-01-31

Contract Duration: 1,168 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PAHOA, HI- DELIVER A FULLY FUNCTIONAL ATCBI AND RCAG TOWER, EQUIPMENT BUILDING, AND ENGINE GENERATOR BUILDING WITH INTERIOR/EXTERIOR FINISH, UPDATED ELECTRICAL SYSTEMS & UPDATED FIRE ALARM SYSTEMS IN ACCORDANCE WITH THE APPLICABLE DRAWINGS, SPECI

Place of Performance

Location: PAHOA, HAWAII County, HAWAII, 96778

State: Hawaii Government Spending

Plain-Language Summary

Department of Transportation obligated $5.8 million to CHITINA DIVERSIFIED SERVICES, LLC for work described as: PAHOA, HI- DELIVER A FULLY FUNCTIONAL ATCBI AND RCAG TOWER, EQUIPMENT BUILDING, AND ENGINE GENERATOR BUILDING WITH INTERIOR/EXTERIOR FINISH, UPDATED ELECTRICAL SYSTEMS & UPDATED FIRE ALARM SYSTEMS IN ACCORDANCE WITH THE APPLICABLE DRAWINGS, SPECI Key points: 1. Construction project for critical aviation infrastructure in Pahoa, HI. 2. Awarded to Chitina Diversified Services, LLC, a small business. 3. Full and open competition after exclusion of sources indicates a specific justification for the procurement method. 4. Project duration is 1168 days, ending January 31, 2027.

Value Assessment

Rating: fair

The contract value of $5.8M for a fully functional ATCBI and RCAG tower, equipment building, and generator building appears within a reasonable range for complex construction projects of this nature, though specific benchmarks are unavailable without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be broad, specific sources were initially excluded, potentially impacting the full range of competitive pricing. The final award was made after this process.

Taxpayer Impact: Taxpayer funds are being used for essential aviation infrastructure upgrades, which is a necessary public investment. The final price will be assessed against the value delivered.

Public Impact

Enhances aviation safety and efficiency in Pahoa, HI. Supports critical infrastructure development in a remote location. Potential for local economic impact through construction jobs and related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to project complexity and duration.
Risk of delays impacting operational readiness of the facility.

Positive Signals

Award to a small business, supporting economic development.
Focus on essential aviation infrastructure.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction (NAICS 236220). Spending in this sector is driven by infrastructure needs, modernization efforts, and government facility requirements. Benchmarks vary widely based on project scope and location.

Small Business Impact

Chitina Diversified Services, LLC is identified as a small business. Awarding contracts to small businesses is a government priority, fostering competition and economic growth. Further analysis would be needed to determine the specific small business size standard met.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of Transportation, Federal Aviation Administration. Oversight will involve monitoring project progress, adherence to specifications, and financial management to ensure accountability and effective use of funds.

Related Government Programs

Commercial and Institutional Building Construction
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Potential for scope creep impacting cost and schedule.
Dependency on specialized materials or equipment.
Geographical challenges in Hawaii impacting logistics and labor.
Contractor's capacity to manage a large, multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $5.8 million to CHITINA DIVERSIFIED SERVICES, LLC. PAHOA, HI- DELIVER A FULLY FUNCTIONAL ATCBI AND RCAG TOWER, EQUIPMENT BUILDING, AND ENGINE GENERATOR BUILDING WITH INTERIOR/EXTERIOR FINISH, UPDATED ELECTRICAL SYSTEMS & UPDATED FIRE ALARM SYSTEMS IN ACCORDANCE WITH THE APPLICABLE DRAWINGS, SPECI

Who is the contractor on this award?

The obligated recipient is CHITINA DIVERSIFIED SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $5.8 million.

What is the period of performance?

Start: 2023-11-20. End: 2027-01-31.

What specific technical requirements or site conditions led to the 'exclusion of sources' in the initial phase of this full and open competition?

The exclusion of sources typically occurs when specific capabilities, past performance, or unique qualifications are deemed essential for a project's success, and only a limited number of contractors are believed to possess them. For this ATCBI and RCAG tower project, it might relate to specialized construction techniques, experience with FAA standards, or site-specific challenges in Pahoa, HI, that narrowed the initial pool of potential bidders.

How will the FAA ensure that the final construction cost remains aligned with the initial firm-fixed-price contract, given the project's nearly four-year duration?

The firm-fixed-price (FFP) contract structure aims to lock in costs, shifting most cost overrun risk to the contractor. The FAA will ensure alignment through rigorous oversight of project milestones, adherence to the defined scope of work, and strict change order management. Any deviations must be justified and approved, with potential cost impacts carefully scrutinized against the contract terms.

What are the key performance indicators (KPIs) for the successful completion of the ATCBI and RCAG tower, and how will their achievement be measured?

Key performance indicators will likely include adherence to construction timelines, meeting all technical specifications outlined in the drawings and FAA standards, successful integration and testing of all equipment (ATCBI, RCAG, generator), and final inspection and acceptance by the FAA. Measurement will involve regular site inspections, progress reports, quality assurance checks, and formal sign-offs at various project stages.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 821 N ST STE 204, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,790,579

Exercised Options: $5,790,579

Current Obligation: $5,790,579

Actual Outlays: $2,106,086

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline