DoD Awards $8.4M for Guam Energy Efficient Upgrades to Modern International Inc

Contract Overview

Contract Amount: $8,432,707 ($8.4M)

Contractor: Modern International Inc

Awarding Agency: Department of Defense

Start Date: 2020-09-04

End Date: 2026-04-16

Contract Duration: 2,050 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WON 1640495, P-690 ENERGY EFFICIENT LIGHTS, HVACS AND PV AT APRA PALMS, NBG

Place of Performance

Location: SANTA RITA, GUAM County, GUAM, 96915

Plain-Language Summary

Department of Defense obligated $8.4 million to MODERN INTERNATIONAL INC for work described as: WON 1640495, P-690 ENERGY EFFICIENT LIGHTS, HVACS AND PV AT APRA PALMS, NBG Key points: 1. The contract focuses on energy efficiency improvements for HVAC and lighting systems. 2. Modern International Inc. secured the award through full and open competition. 3. Potential risks include project delays or cost overruns in a remote location. 4. The construction sector is experiencing significant demand, potentially impacting pricing.

Value Assessment

Rating: good

The award amount of $8.4M for energy-efficient lighting, HVAC, and PV systems appears reasonable given the scope and location. Benchmarking against similar large-scale building retrofits in 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, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the energy efficiency upgrades.

Public Impact

Improved energy efficiency at APRA Palms and NBG facilities. Potential for reduced long-term operational costs for the Department of Defense. Supports modernization of critical infrastructure in Guam. Creation of jobs in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Geographic location in Guam may increase logistical costs and complexity.
  • Potential for supply chain disruptions affecting materials and labor.
  • Long contract duration (2026) increases exposure to market fluctuations.

Positive Signals

  • Focus on energy efficiency aligns with sustainability goals.
  • Awarded through full and open competition.
  • Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is often influenced by infrastructure needs, modernization efforts, and energy efficiency mandates, with significant government investment.

Small Business Impact

The award went to Modern International Inc., a prime contractor. There is no explicit indication of small business subcontracting in the provided data, which warrants further investigation to ensure small business participation.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for oversight. The firm fixed price contract and delivery order structure provide some level of accountability, but ongoing monitoring is crucial.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for cost overruns due to remote location.
  • Risk of supply chain delays impacting project timeline.
  • Dependency on contractor's technical expertise for energy efficiency.
  • Long-term maintenance and operational costs post-installation.

Tags

commercial-and-institutional-building-co, department-of-defense, gu, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.4 million to MODERN INTERNATIONAL INC. WON 1640495, P-690 ENERGY EFFICIENT LIGHTS, HVACS AND PV AT APRA PALMS, NBG

Who is the contractor on this award?

The obligated recipient is MODERN INTERNATIONAL INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $8.4 million.

What is the period of performance?

Start: 2020-09-04. End: 2026-04-16.

What is the projected energy savings from these upgrades, and how does it compare to the contract cost?

The provided data does not include specific projections for energy savings. A thorough analysis would require comparing the estimated annual energy cost reduction against the total contract value of $8.4M to determine the payback period and overall return on investment for the government.

Are there specific performance metrics or milestones tied to the energy efficiency improvements in the contract?

The data indicates a firm fixed price contract for energy-efficient upgrades. While this structure implies defined deliverables, the specifics of performance metrics and milestones related to energy savings are not detailed here. Further review of the contract's statement of work is necessary to assess these.

What is the track record of Modern International Inc. in completing similar large-scale energy efficiency projects, particularly in remote or overseas locations?

Information on Modern International Inc.'s specific track record for similar projects is not included. Assessing their past performance, especially in challenging environments like Guam, would be crucial for evaluating project execution risk and ensuring successful completion.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4019216R2800

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 452 ROUTE 10, BARRIGADA, GU, 96913

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,432,707

Exercised Options: $8,432,707

Current Obligation: $8,432,707

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4019218D2801

IDV Type: IDC

Timeline

Start Date: 2020-09-04

Current End Date: 2026-04-16

Potential End Date: 2026-04-16 00:00:00

Last Modified: 2026-01-01

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