Coast Guard Awards $646K Contract for Gas Tank Demolition at Kauai Station
Contract Overview
Contract Amount: $64,646 ($64.6K)
Contractor: Haloa Construction LLC
Awarding Agency: Department of Homeland Security
Start Date: 2026-04-09
End Date: 2026-07-08
Contract Duration: 90 days
Daily Burn Rate: $718/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DEMOLISH GAS TANK AT U.S. COAST GUARD STATION KAUAI, HAWAII
Place of Performance
Location: LIHUE, KAUAI County, HAWAII, 96766
State: Hawaii Government Spending
Plain-Language Summary
Department of Homeland Security obligated $64,646 to HALOA CONSTRUCTION LLC for work described as: DEMOLISH GAS TANK AT U.S. COAST GUARD STATION KAUAI, HAWAII Key points: 1. Contract awarded to HALOA CONSTRUCTION LLC for $646,460. 2. Project involves demolishing a gas tank at U.S. Coast Guard Station Kauai. 3. The contract is a definitive contract with a firm fixed price. 4. The duration of the contract is 90 days.
Value Assessment
Rating: fair
The contract value of $646,460 for demolishing a gas tank appears reasonable given the specialized nature of the work and the location. Benchmarking against similar demolition projects would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited competition approach. This method may impact price discovery and potentially lead to higher costs compared to a fully open bidding process.
Taxpayer Impact: Taxpayer funds are being used for this essential infrastructure maintenance. The limited competition raises questions about whether the best possible price was secured.
Public Impact
Ensures environmental safety by removing an aging gas tank. Supports Coast Guard operations in Hawaii by maintaining facility integrity. Provides work for a local construction company in Hawaii.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may result in suboptimal pricing.
- Potential for unforeseen site conditions impacting cost or schedule.
Positive Signals
- Addresses necessary infrastructure maintenance.
- Clear contract end date provides schedule certainty.
Sector Analysis
This contract falls under the construction sector, specifically related to oil and gas infrastructure. Spending benchmarks for similar demolition projects in Hawaii or other coastal regions would be relevant for comparison.
Small Business Impact
The awardee, HALOA CONSTRUCTION LLC, is not specified as a small business. Further analysis would be needed to determine if small business participation was considered or achieved.
Oversight & Accountability
Oversight will be provided by the U.S. Coast Guard, a component of the Department of Homeland Security. Accountability for project completion and adherence to safety and environmental standards is expected.
Related Government Programs
- Oil and Gas Pipeline and Related Structures Construction
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Limited competition
- Potential for environmental hazards
- Short contract duration may increase pressure
- Geographic isolation of Kauai
Tags
oil-and-gas-pipeline-and-related-structu, department-of-homeland-security, hi, definitive-contract, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $64,646 to HALOA CONSTRUCTION LLC. DEMOLISH GAS TANK AT U.S. COAST GUARD STATION KAUAI, HAWAII
Who is the contractor on this award?
The obligated recipient is HALOA CONSTRUCTION LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $64,646.
What is the period of performance?
Start: 2026-04-09. End: 2026-07-08.
What specific environmental and safety regulations must be adhered to during the demolition process, and how will compliance be verified?
The demolition process must comply with all federal, state, and local environmental and safety regulations pertaining to hazardous material handling and disposal. This includes regulations from the EPA and OSHA. Compliance verification will likely involve site inspections, documentation review of waste disposal manifests, and potentially air and water quality monitoring by the contracting officer's representative (COR) or a designated third party.
What is the rationale behind the 'not available for competition' designation, and were any efforts made to justify or explore alternative competitive strategies?
The 'not available for competition' designation typically arises when only one source is capable of meeting the requirement, or in specific emergency situations. For this project, the rationale might stem from unique site access challenges, specialized equipment needs, or prior work familiarity. Agencies are generally required to document the justification for limiting competition, and efforts to explore alternatives, even if unsuccessful, should be part of the procurement record.
How does the $646,460 cost compare to industry benchmarks for similar gas tank demolition projects in a similar geographic region?
Without specific benchmark data for gas tank demolition in Hawaii, a direct comparison is difficult. However, the cost includes labor, equipment, disposal fees, and potential environmental mitigation. Factors like remote location, specialized disposal requirements for potentially hazardous materials, and local labor rates in Hawaii could justify this price point. A detailed cost breakdown from the contractor would be necessary for a thorough assessment.
Industry Classification
NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 91-170 OLAI ST, KAPOLEI, HI, 96707
Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $64,646
Exercised Options: $64,646
Current Obligation: $64,646
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2026-04-09
Current End Date: 2026-07-08
Potential End Date: 2026-07-08 12:00:00
Last Modified: 2026-04-09
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