DoD awards $16.5M for POL tank repair at Pearl Harbor-Hickam, with 4 bids received

Contract Overview

Contract Amount: $16,450,563 ($16.5M)

Contractor: Dawson Enterprises, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-18

End Date: 2029-11-30

Contract Duration: 1,534 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE WORK INCLUDES CLEANING, INSPECTION AND REPAIR OF FOUR (4) PETROLEUM, OIL AND LUBRICANT (POL) STORAGE TANKS LOCATED AT US NAVY JOINT BASE PEARL HARBOR-HICKAM, HAWAII.

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to DAWSON ENTERPRISES, LLC for work described as: THE WORK INCLUDES CLEANING, INSPECTION AND REPAIR OF FOUR (4) PETROLEUM, OIL AND LUBRICANT (POL) STORAGE TANKS LOCATED AT US NAVY JOINT BASE PEARL HARBOR-HICKAM, HAWAII. Key points: 1. Contract focuses on essential infrastructure maintenance for petroleum storage. 2. Competition level suggests a potentially healthy market for specialized construction services. 3. Long performance period indicates a need for sustained, reliable service. 4. Firm-fixed-price structure shifts risk to the contractor. 5. Geographic concentration in Hawaii may limit broader market participation. 6. The contract value is significant for this specific type of infrastructure repair.

Value Assessment

Rating: good

The contract value of approximately $16.5 million for the cleaning, inspection, and repair of four POL storage tanks appears reasonable given the scope of work and the specialized nature of the services required. Benchmarking against similar large-scale industrial maintenance contracts for military installations suggests that pricing is within expected ranges. The firm-fixed-price contract type further supports value assessment by establishing a clear cost ceiling. However, a more precise value-for-money determination would benefit from detailed cost breakdowns and comparison with historical data for similar tank repairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With four bids received, the competition level suggests a moderate degree of market interest and engagement for this specialized service. While four bidders provide a basis for price discovery, a higher number of bids could potentially lead to more aggressive pricing and further enhance value for the government. The agency's approach to full and open competition is a positive indicator for market fairness.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it fosters a competitive environment, likely driving down costs and ensuring the government receives fair market value for the services rendered.

Public Impact

The U.S. Navy benefits from the ensured operational readiness and safety of critical fuel storage infrastructure at Joint Base Pearl Harbor-Hickam. Services include essential cleaning, inspection, and repair of four large-capacity petroleum, oil, and lubricant (POL) storage tanks. The geographic impact is localized to Joint Base Pearl Harbor-Hickam in Hawaii, supporting its mission-critical functions. Workforce implications include employment opportunities for skilled labor in construction, inspection, and specialized maintenance within the Hawaii region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 4 years) could present challenges in adapting to evolving environmental regulations or unforeseen structural issues.
Reliance on a single contractor for a critical infrastructure task may pose risks if performance falters.
Geographic isolation of Hawaii could impact contractor mobilization and material sourcing, potentially leading to cost overruns if not managed effectively.

Positive Signals

Award to Dawson Enterprises, LLC, suggests a contractor with the capability to handle complex industrial maintenance.
Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition indicates a robust selection process, likely resulting in a qualified bidder.
The contract's focus on essential infrastructure maintenance ensures the continued operational capability of a key military installation.

Sector Analysis

This contract falls within the Construction and Maintenance sector, specifically focusing on industrial facilities and infrastructure. The market for specialized tank cleaning, inspection, and repair services is often characterized by a limited number of highly qualified firms due to safety regulations, environmental compliance requirements, and the need for specialized equipment and expertise. Comparable spending benchmarks for similar large-scale industrial maintenance projects on military bases can vary significantly based on tank size, material, location, and the extent of required repairs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature and significant value of POL tank maintenance, it is common for such contracts to be awarded to larger firms with the requisite experience and resources. There is no explicit information regarding subcontracting plans for small businesses, which would be a key area to monitor for potential small business participation and impact on the local small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting officers and technical representatives, ensuring compliance with contract terms and performance standards. Accountability measures are embedded within the firm-fixed-price structure, incentivizing the contractor to meet deadlines and quality requirements. Transparency is facilitated through the Federal Procurement Data System (FPDS), which reports contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Base Operations Support Contracts
Petroleum Storage and Distribution Infrastructure Maintenance
Department of Defense Infrastructure Modernization Programs

Risk Flags

Potential for cost overruns due to Hawaii's geographic isolation and associated logistics.
Risk of unforeseen structural issues or environmental compliance changes during the long performance period.
Contractor performance degradation over the multi-year duration.
Dependence on a single contractor for critical infrastructure maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to DAWSON ENTERPRISES, LLC. THE WORK INCLUDES CLEANING, INSPECTION AND REPAIR OF FOUR (4) PETROLEUM, OIL AND LUBRICANT (POL) STORAGE TANKS LOCATED AT US NAVY JOINT BASE PEARL HARBOR-HICKAM, HAWAII.

Who is the contractor on this award?

The obligated recipient is DAWSON ENTERPRISES, 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 $16.5 million.

What is the period of performance?

Start: 2025-09-18. End: 2029-11-30.

What is Dawson Enterprises, LLC's track record with similar Department of Defense contracts, particularly involving POL tank maintenance?

A review of federal procurement data would be necessary to fully assess Dawson Enterprises, LLC's track record. Specifically, one would look for prior awards for similar services (POL tank cleaning, inspection, repair) to the Department of Defense or other federal agencies. Key metrics to examine include contract values, performance history (any past performance issues or commendations), and the complexity of previously awarded projects. Understanding their experience with firm-fixed-price contracts and projects of similar duration and scope would provide insight into their capability to successfully execute this current award.

How does the awarded price of approximately $16.5 million compare to the estimated cost or independent government cost estimate for this project?

Without access to the government's independent cost estimate (ICE) or the contractor's detailed proposal, a direct comparison is challenging. However, the value can be benchmarked against publicly available data for similar projects. Factors influencing the cost include the size and condition of the tanks, the specific repair requirements (e.g., lining, structural reinforcement), labor rates in Hawaii, and mobilization costs. If the awarded price is significantly below the ICE, it might indicate aggressive bidding or potential risks to quality. Conversely, if it's substantially higher, it warrants scrutiny regarding cost-effectiveness and potential overpricing.

What are the primary risks associated with the long performance period (nearly 5 years) for this contract?

The extended performance period presents several potential risks. Firstly, unforeseen environmental regulations or compliance standards could emerge during the contract term, requiring costly adjustments or modifications. Secondly, the physical condition of the tanks might change in unexpected ways, necessitating additional repairs beyond the initial scope, which could lead to change orders and cost increases if not managed contractually. Thirdly, there's a risk of contractor performance degradation over time, requiring diligent oversight. Finally, market conditions for materials and labor could fluctuate significantly over five years, impacting the contractor's ability to maintain profitability without seeking adjustments.

What specific performance metrics or deliverables will be used to evaluate Dawson Enterprises, LLC's success in fulfilling this contract?

Performance evaluation for this contract would likely center on adherence to technical specifications for cleaning, inspection, and repair, ensuring all work meets or exceeds Navy standards and industry best practices. Key deliverables would include detailed inspection reports, certification of repairs, and confirmation of tank integrity post-service. Metrics would likely track schedule adherence, quality of workmanship (e.g., absence of defects, compliance with safety protocols), and responsiveness to any issues identified during the performance period. The firm-fixed-price nature implies that meeting these quality and schedule requirements within the agreed budget is paramount.

How has spending on POL tank maintenance at Navy installations in Hawaii trended over the past five years?

Analyzing historical spending trends for POL tank maintenance at Navy installations in Hawaii requires access to detailed procurement databases. Generally, such spending can be cyclical, influenced by the age of infrastructure, deferred maintenance backlogs, and capital investment priorities. A rising trend might indicate aging infrastructure requiring more frequent repairs, while a stable trend could suggest consistent maintenance programs. Significant fluctuations could be linked to major overhauls or specific infrastructure initiatives. Understanding this trend provides context for the current $16.5 million award, indicating whether it represents a typical investment or a significant deviation.

What is the potential impact of this contract on the small business industrial base in Hawaii?

As this contract was not set aside for small businesses and was awarded under full and open competition, its direct impact on small business set-asides is nil. However, the potential for small business involvement exists through subcontracting opportunities. Dawson Enterprises, LLC may engage local Hawaiian small businesses for specific services, labor, or material supply. The extent of this subcontracting will determine the positive or negative impact on the local small business ecosystem. Without explicit subcontracting goals or reporting, this remains an area for potential oversight to ensure small businesses can participate.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 900 FORT ST MALL STE 1850, HONOLULU, HI, 96813

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, 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: $16,450,563

Exercised Options: $16,450,563

Current Obligation: $16,450,563

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $269,930

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N3943020D2222

IDV Type: IDC

Timeline