DoD Awards $14.2M Contract for Luke AFB Lubricant Repairs and Inspections to Hoolauliima Government Solutions

Contract Overview

Contract Amount: $14,213,723 ($14.2M)

Contractor: Hoolaulima Government Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-07

End Date: 2026-05-26

Contract Duration: 1,449 days

Daily Burn Rate: $9.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: VARIOUS PETROLEUM OIL LUBRICANT REPAIRS AND API 653 INSPECTIONS AT LUKE AFB, ARIZONA

Place of Performance

Location: LUKE AIR FORCE BASE, MARICOPA County, ARIZONA, 85309

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to HOOLAULIMA GOVERNMENT SOLUTIONS, LLC for work described as: VARIOUS PETROLEUM OIL LUBRICANT REPAIRS AND API 653 INSPECTIONS AT LUKE AFB, ARIZONA Key points: 1. Contract awarded to Hoolauliima Government Solutions, LLC for essential petroleum oil lubricant repairs and API 653 inspections. 2. The contract is a definitive contract with a firm fixed price, indicating clear cost expectations. 3. The award was not competed, raising questions about potential price discovery and value for taxpayer money. 4. The sector involves critical infrastructure maintenance within the Oil and Gas Pipeline and Related Structures Construction industry.

Value Assessment

Rating: questionable

The contract value of $14.2 million for a 4-year period needs further benchmarking against similar maintenance and inspection contracts for Air Force bases. Without competitive bidding, it's difficult to ascertain if this price represents optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have limited price discovery and potentially resulted in a higher cost than if multiple vendors had bid.

Taxpayer Impact: The absence of competition raises concerns about whether taxpayers received the best possible price for these essential services.

Public Impact

Ensures operational readiness of critical equipment at Luke AFB through necessary repairs and inspections. Supports infrastructure integrity and safety by adhering to API 653 standards for petroleum storage. Provides a long-term service agreement, offering stability for the contractor and consistent maintenance for the Air Force.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing due to sole-source award

Positive Signals

Addresses critical maintenance needs
Long-term contract duration provides stability

Sector Analysis

This contract falls under the Oil and Gas Pipeline and Related Structures Construction sector, specifically focusing on maintenance and inspection services for petroleum-based infrastructure. Spending in this area is crucial for maintaining operational readiness and safety at military installations.

Small Business Impact

Information regarding small business participation in this contract is not provided. Further analysis would be needed to determine if small businesses were involved or had opportunities to compete.

Oversight & Accountability

The non-competitive nature of this award warrants closer oversight to ensure fair pricing and prevent potential waste. Accountability for the justification of a sole-source award should be clearly documented.

Related Government Programs

Oil and Gas Pipeline and Related Structures Construction
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Lack of transparency in pricing
Potential for cost overruns
Limited oversight due to non-competitive nature

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to HOOLAULIMA GOVERNMENT SOLUTIONS, LLC. VARIOUS PETROLEUM OIL LUBRICANT REPAIRS AND API 653 INSPECTIONS AT LUKE AFB, ARIZONA

Who is the contractor on this award?

The obligated recipient is HOOLAULIMA GOVERNMENT SOLUTIONS, LLC.

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 $14.2 million.

What is the period of performance?

Start: 2022-06-07. End: 2026-05-26.

What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. Without specific documentation, it's presumed the Air Force determined this was the case. However, steps to ensure fair and reasonable pricing in sole-source procurements often include detailed cost analyses, comparison to historical data, or independent government cost estimates.

How does the awarded price compare to industry benchmarks for similar lubricant repair and inspection services at other military installations?

Benchmarking this $14.2 million contract against similar services at other bases is crucial for assessing value. Without access to comparative data or a detailed cost breakdown, it's difficult to definitively state if the price is competitive. A lack of competition inherently makes such comparisons challenging and raises concerns about potential overpayment.

What are the potential risks associated with a sole-source contract for essential maintenance services like lubricant repairs and inspections?

The primary risk of a sole-source contract is the potential for inflated pricing due to the absence of competitive pressure. Other risks include reduced innovation, potential complacency from the contractor, and a lack of transparency in the procurement process. This can ultimately lead to less value for taxpayer dollars.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20079 STONE OAK PKWY STE 1215, SAN ANTONIO, TX, 78258

Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,213,723

Exercised Options: $14,213,723

Current Obligation: $14,213,723

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline