DoD Awards $149M Contract for Pacific Missile Range Facility Operations, Highlighting Facilities Support Services
Contract Overview
Contract Amount: $149,418,367 ($149.4M)
Contractor: KOA Lani JV LLC
Awarding Agency: Department of Defense
Start Date: 2021-04-01
End Date: 2025-12-31
Contract Duration: 1,735 days
Daily Burn Rate: $86.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: RANGE OPERATIONS SUPPORT AND BASE OPERATIONS SUPPORT SERVICES AT THE PACIFIC MISSILE RANGE FACILITY, KEKAHA, HAWAII FA5 RANGE OPERATIONS SERVICES
Place of Performance
Location: KEKAHA, KAUAI County, HAWAII, 96752
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $149.4 million to KOA LANI JV LLC for work described as: RANGE OPERATIONS SUPPORT AND BASE OPERATIONS SUPPORT SERVICES AT THE PACIFIC MISSILE RANGE FACILITY, KEKAHA, HAWAII FA5 RANGE OPERATIONS SERVICES Key points: 1. The contract focuses on essential range and base operations support at a critical military facility. 2. KOA LANI JV LLC is the incumbent contractor, suggesting potential for continuity but also a need to assess ongoing value. 3. The award method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' warrants scrutiny regarding its impact on price discovery. 4. The sector is Defense, specifically supporting naval operations at a key Pacific installation.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar facilities support contracts is needed to assess if the $149M value is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while open to all, specific sources were initially excluded. This could limit the competitive pool and potentially impact price discovery, requiring justification for the exclusion.
Taxpayer Impact: The significant value of this contract means taxpayer funds are being utilized for essential base operations. Ensuring competitive pricing and efficient service delivery is crucial for maximizing the value of this investment.
Public Impact
Ensures continued operational readiness of the Pacific Missile Range Facility. Supports critical naval training and testing activities in the Indo-Pacific region. Impacts local economy through contractor employment and resource utilization in Hawaii. Potential for technological advancements in range operations through contractor innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method may impact price.
- Cost Plus Incentive Fee contract type requires careful oversight.
- Long duration (through 2025) increases risk of cost escalation.
Positive Signals
- Supports critical national defense infrastructure.
- Ensures continuity of essential services.
- Potential for contractor expertise in specialized operations.
Sector Analysis
This contract falls within the Facilities Support Services sector, crucial for maintaining military installations. Spending benchmarks for similar base operations support contracts are typically high due to the comprehensive nature of services required, including maintenance, logistics, and security.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Analysis should determine if opportunities were missed for small business participation or if the nature of the services requires large prime contractors.
Oversight & Accountability
Oversight will be critical given the Cost Plus Incentive Fee structure and the limited competition method. The Department of the Navy must ensure robust performance monitoring and cost controls to safeguard taxpayer funds and achieve mission objectives.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPIF contract type.
- Limited competition may reduce price competitiveness.
- Complexity of managing operations at a remote missile range.
- Dependency on a single contractor for critical infrastructure support.
- Ensuring adequate performance metrics are established and monitored.
Tags
facilities-support-services, department-of-defense, hi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $149.4 million to KOA LANI JV LLC. RANGE OPERATIONS SUPPORT AND BASE OPERATIONS SUPPORT SERVICES AT THE PACIFIC MISSILE RANGE FACILITY, KEKAHA, HAWAII FA5 RANGE OPERATIONS SERVICES
Who is the contractor on this award?
The obligated recipient is KOA LANI JV LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $149.4 million.
What is the period of performance?
Start: 2021-04-01. End: 2025-12-31.
What specific sources were excluded in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, and what was the justification?
The justification for excluding specific sources needs to be thoroughly reviewed. Typically, exclusions are based on unique capabilities, security requirements, or prior performance. Understanding these reasons is vital to assess if the exclusion unduly limited competition and potentially inflated costs, impacting the overall value for taxpayers.
How effectively will the incentive fee structure in this Cost Plus Incentive Fee contract drive cost savings and performance improvements?
The effectiveness of the incentive fee hinges on clearly defined metrics and achievable targets. The Department of the Navy must establish robust performance metrics tied to cost, schedule, and quality. Regular monitoring and transparent reporting are essential to ensure the incentives align with desired outcomes and prevent potential cost overruns.
What are the key performance indicators (KPIs) being used to measure the success of these range operations support services?
Key Performance Indicators should encompass operational readiness, safety compliance, cost efficiency, and responsiveness to mission requirements. Establishing clear, measurable, and relevant KPIs allows for objective assessment of contractor performance and ensures the services provided meet the critical needs of the Pacific Missile Range Facility.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0060417R3005
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 2300 DISCOVERY DR STE 600, ORLANDO, FL, 32826
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $176,124,370
Exercised Options: $176,124,370
Current Obligation: $149,418,367
Actual Outlays: $48,802,292
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0060421D4000
IDV Type: IDC
Timeline
Start Date: 2021-04-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-09-16
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