DoD Awards $12.6M for Guam K-Span Storage Structures Under Full and Open Competition
Contract Overview
Contract Amount: $12,565,380 ($12.6M)
Contractor: Environet Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-27
End Date: 2027-11-02
Contract Duration: 766 days
Daily Burn Rate: $16.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT BEAR K-SPAN WRM STORAGE STRUCTURES 1 - 6
Place of Performance
Location: YIGO, GUAM County, GUAM, 96929
Plain-Language Summary
Department of Defense obligated $12.6 million to ENVIRONET INC. for work described as: CONSTRUCT BEAR K-SPAN WRM STORAGE STRUCTURES 1 - 6 Key points: 1. Contract awarded for construction of K-Span storage structures in Guam. 2. Competition method was 'Full and Open Competition After Exclusion of Sources', indicating a competitive process. 3. The award value is $12,565,380. 4. The contract is for the Department of the Air Force within the Department of Defense. 5. Project duration is 766 days.
Value Assessment
Rating: good
The contract value of $12.6 million for constructing storage structures appears reasonable given the scope and location. Benchmarking against similar construction projects in Guam or similar climates would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This method suggests that while sources were initially excluded, the remaining pool was competed openly, likely leading to competitive pricing.
Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve value.
Public Impact
Enhances logistical capabilities for the Air Force in Guam. Supports infrastructure development in a strategic Pacific location. Creates construction jobs and economic activity in Guam.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to remote location (Guam).
- Logistical challenges in material transport and construction.
- Weather-related delays impacting project timeline.
Positive Signals
- Competitive bidding process likely secured a fair price.
- Clear project scope and fixed-price contract reduce financial risk.
- Strategic importance of the infrastructure for military operations.
Sector Analysis
The construction sector, particularly for government infrastructure projects, is subject to rigorous oversight and competitive bidding. Spending benchmarks for similar structures in the Pacific region would be relevant for a deeper analysis.
Small Business Impact
The data does not indicate if small businesses participated in this contract. Further analysis would be needed to determine the extent of small business involvement and opportunities.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The fixed-price contract type and the competitive award process provide a degree of accountability for cost and performance.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Geographic location (Guam) may increase logistical costs and complexity.
- Potential for weather-related delays impacting the construction schedule.
- Reliance on a single contractor for delivery orders could pose a risk if performance issues arise.
- The exclusion of sources prior to competition warrants further scrutiny to ensure maximum value.
Tags
commercial-and-institutional-building-co, department-of-defense, gu, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.6 million to ENVIRONET INC.. CONSTRUCT BEAR K-SPAN WRM STORAGE STRUCTURES 1 - 6
Who is the contractor on this award?
The obligated recipient is ENVIRONET INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $12.6 million.
What is the period of performance?
Start: 2025-09-27. End: 2027-11-02.
What is the estimated cost per square foot for these K-Span structures, and how does it compare to industry averages for similar facilities in the Pacific region?
Without specific square footage details, a precise cost per square foot cannot be calculated. However, the total award of $12.6 million for six structures suggests a significant investment. Industry averages for specialized storage facilities in remote or high-cost regions like Guam can vary widely, but this figure warrants comparison with publicly available data on similar military construction projects to ensure cost-effectiveness.
What specific sources were excluded prior to the 'full and open competition,' and what was the justification for their exclusion?
The justification for excluding specific sources prior to the 'full and open competition' is not detailed in the provided data. Typically, such exclusions might be based on factors like past performance, specialized capabilities, or specific security requirements. Understanding these reasons is crucial for assessing whether the competition was truly as broad as possible and if any potential cost savings were foregone.
How will the effectiveness of these new storage structures be measured post-construction to ensure they meet the Air Force's logistical needs?
The effectiveness of the storage structures will likely be measured through post-occupancy evaluations and operational assessments by the Department of the Air Force. Key metrics could include capacity utilization, ease of access, environmental controls (if applicable), durability, and overall contribution to logistical efficiency. Performance metrics defined in the contract's statement of work and acceptance criteria will guide this evaluation.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 64-705 WAIKELEHUA PL, KAMUELA, HI, 96743
Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $12,565,380
Exercised Options: $12,565,380
Current Obligation: $12,565,380
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA524024D0002
IDV Type: IDC
Timeline
Start Date: 2025-09-27
Current End Date: 2027-11-02
Potential End Date: 2027-11-02 00:00:00
Last Modified: 2025-09-26
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