DoD's $8.8M Facilities Support Services Contract Awarded to KOA LANI JV LLC in Hawaii

Contract Overview

Contract Amount: $8,818,762 ($8.8M)

Contractor: KOA Lani JV LLC

Awarding Agency: Department of Defense

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: FA5 RANGE OPERATIONS SERVICES TI-0001 TI-0002 TI-0003

Place of Performance

Location: KEKAHA, KAUAI County, HAWAII, 96752

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $8.8 million to KOA LANI JV LLC for work described as: FA5 RANGE OPERATIONS SERVICES TI-0001 TI-0002 TI-0003 Key points: 1. The contract value of $8.8 million represents a significant investment in facilities support services for the Department of the Navy. 2. Competition dynamics indicate a full and open competition, suggesting a robust market for these services. 3. The contract type (Cost Plus Incentive Fee) introduces performance-based incentives, potentially driving efficiency and cost savings. 4. The duration of one year (364 days) allows for focused service delivery and performance evaluation. 5. The award to KOA LANI JV LLC highlights the participation of a joint venture in a key defense support role. 6. The specific NAICS code (561210) points to a specialized segment within facilities management.

Value Assessment

Rating: good

The contract's value of $8.8 million for a one-year period of facilities support services appears reasonable given the scope of work typically associated with such contracts for a military installation. Benchmarking against similar large-scale facilities support contracts within the Department of Defense suggests that the pricing structure, while not fully detailed here, is likely competitive due to the full and open competition. The Cost Plus Incentive Fee (CPIF) structure allows for potential savings if performance targets are met, indicating a focus on value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. The process suggests a competitive environment where various qualified companies had the opportunity to submit proposals. The level of competition is expected to drive price discovery and ensure that the government receives a fair market price for the services rendered. The exclusion of sources clause might indicate specific requirements that narrowed the initial pool but still allowed for broad competition.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive bidding process, which typically leads to more favorable pricing and better service quality.

Public Impact

The primary beneficiaries are the Department of the Navy personnel and operations at the facilities managed under this contract. Services delivered include comprehensive facilities support, likely encompassing maintenance, repair, operations, and potentially other base support functions. The geographic impact is concentrated in Hawaii (HI), specifically on installations managed by the Department of the Navy in that state. The contract supports a workforce involved in facilities management and maintenance, contributing to local employment in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if performance targets are not met or if scope creep occurs.
Reliance on a single joint venture entity for critical facilities support could pose a risk if the JV faces internal challenges or capacity issues.
The specific details of the incentive structure are not provided, making it difficult to fully assess the alignment of contractor incentives with government objectives.

Positive Signals

The use of full and open competition suggests a healthy market and potential for high-quality service providers.
The Cost Plus Incentive Fee contract type incentivizes the contractor to perform efficiently and cost-effectively.
The award to a joint venture may indicate a commitment to developing and utilizing diverse business entities in federal contracting.

Sector Analysis

Facilities Support Services fall under the broader commercial and institutional building construction and maintenance sector. This contract represents a significant portion of spending within this niche for the Department of the Navy in Hawaii. Comparable spending benchmarks for large-scale base operations and facilities management contracts within the Department of Defense can range from millions to tens of millions annually, depending on the size and complexity of the installation.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract award. However, the nature of joint ventures often involves the inclusion of smaller businesses as partners, which could indirectly benefit small businesses through subcontracting opportunities. Further analysis would be needed to determine the extent of small business subcontracting planned by KOA LANI JV LLC.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting officers and program managers. Accountability measures are built into the Cost Plus Incentive Fee structure, which ties a portion of the contractor's profit to performance metrics. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Facilities Maintenance and Repair Contracts
Department of Defense Construction and Engineering Contracts
Government Facilities Management Contracts

Risk Flags

Potential for cost overruns with CPIF contract type.
Reliance on a joint venture structure requires careful monitoring of partner dynamics and performance.
Specific performance metrics and incentive targets for the CPIF contract are not detailed, limiting full assessment of value.
The 'exclusion of sources' clause warrants review to ensure it did not unduly restrict competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.8 million to KOA LANI JV LLC. FA5 RANGE OPERATIONS SERVICES TI-0001 TI-0002 TI-0003

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 $8.8 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

What is the historical spending pattern for facilities support services by the Department of the Navy in Hawaii?

Analyzing historical spending for facilities support services by the Department of the Navy in Hawaii requires access to detailed federal procurement data over multiple fiscal years. Generally, such spending fluctuates based on infrastructure needs, modernization projects, and operational tempo. Contracts for base operations and facilities management are typically long-term, with values often in the millions of dollars annually. The specific amount of $8.8 million for a one-year period suggests a substantial requirement, possibly for a significant installation or a consolidation of services. Without specific historical data for this command or region, it's difficult to pinpoint exact trends, but consistent investment in maintaining military readiness and infrastructure is a common theme.

How does the Cost Plus Incentive Fee (CPIF) structure typically work in practice for facilities support contracts?

A Cost Plus Incentive Fee (CPIF) contract is designed to share risks and rewards between the government and the contractor. The contractor is reimbursed for allowable costs and receives a fixed fee, but the final fee is adjusted based on performance against pre-determined targets. For facilities support, these targets could include metrics like response times for maintenance requests, energy efficiency improvements, preventative maintenance completion rates, or customer satisfaction scores. If the contractor exceeds targets, they earn a higher fee (up to a ceiling); if they fall short, their fee is reduced (down to a floor). This structure incentivizes the contractor to not only control costs but also to improve service quality and efficiency, aligning their financial interests with the government's objectives.

What are the potential risks associated with awarding a facilities support contract to a joint venture?

Awarding a facilities support contract to a joint venture (JV) like KOA LANI JV LLC can present both opportunities and risks. A key risk is the potential for internal disagreements or operational inefficiencies between the JV partners, which could impact service delivery. The JV's financial stability and the experience of its constituent members are crucial; a lack of experience or financial backing could lead to performance issues. Furthermore, the management structure of the JV needs to be robust to handle the complexities of a large federal contract. If the JV partners have conflicting business objectives or if one partner dominates, it could undermine the intended benefits of the collaboration. Ensuring clear lines of responsibility and strong project management is vital to mitigate these risks.

What specific types of facilities support services are typically included under NAICS code 561210?

NAICS code 561210, Facilities Support Services, encompasses a broad range of services aimed at operating and maintaining buildings and other physical facilities. This typically includes services such as general building maintenance and repair, janitorial services, pest control, landscaping and grounds maintenance, security systems operation, and potentially specialized services like energy management or waste management. For a military installation, these services are critical for ensuring operational readiness, safety, and habitability. The contract awarded to KOA LANI JV LLC likely includes a comprehensive suite of these services, tailored to the specific needs of the Department of the Navy facilities in Hawaii.

How does the 'full and open competition after exclusion of sources' clause impact the bidding process and potential pricing?

The clause 'full and open competition after exclusion of sources' indicates that while the competition was intended to be broad, certain sources were initially excluded based on specific criteria outlined in the solicitation. This exclusion is typically justified by factors such as unique capabilities, proprietary information, or specific security requirements. After this initial exclusion, the remaining pool of potential offerors competed under full and open competition. This approach aims to balance the need for specialized capabilities with the principle of broad competition. It can lead to a more focused competition among highly qualified bidders, potentially resulting in innovative solutions. However, if the exclusion criteria are too narrow or not well-justified, it could limit the number of bidders and potentially impact price competition compared to a truly unrestricted full and open competition.

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, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Not Designated a Small Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $195,186,213

Exercised Options: $37,833,282

Current Obligation: $8,818,762

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