DoD Awards $15.2M for Unaccompanied Housing Modernization in Guam

Contract Overview

Contract Amount: $15,255,000 ($15.3M)

Contractor: Fargo Pacific Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-03

End Date: 2027-09-03

Contract Duration: 730 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS IS A HUBZONE DBMACC PROJECT TO REPAIR AND MODERNIZE EXISTING UNACCOMPANIED HOUSING BLDG. 6 IN ACCORDANCE WITH FACILITIES CRITERIA FC 4-721-10N NAVY AND MARINE CORPS UNACCOMPANIED HOUSING. DESIGN TO PROVIDE 16 1+1 STYLE UH TO ACCOMMODATE 32 BEDS.

Place of Performance

Location: SANTA RITA, GUAM County, GUAM, 96915

Plain-Language Summary

Department of Defense obligated $15.3 million to FARGO PACIFIC INC. for work described as: THIS IS A HUBZONE DBMACC PROJECT TO REPAIR AND MODERNIZE EXISTING UNACCOMPANIED HOUSING BLDG. 6 IN ACCORDANCE WITH FACILITIES CRITERIA FC 4-721-10N NAVY AND MARINE CORPS UNACCOMPANIED HOUSING. DESIGN TO PROVIDE 16 1+1 STYLE UH TO ACCOMMODATE 32 BEDS. Key points: 1. Project aims to modernize existing housing for 32 beds, enhancing living conditions. 2. Fargo Pacific Inc. secured the contract through full and open competition. 3. The contract is a Firm Fixed Price delivery order, indicating clear cost expectations. 4. This project falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $15.2M for modernizing 16 units (32 beds) appears reasonable given the scope. Benchmarking against similar military housing renovation projects 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,' suggesting a competitive bidding process that aimed for the best value. This method generally leads to more favorable pricing for the government.

Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for necessary facility upgrades.

Public Impact

Improved living conditions for 32 service members stationed in Guam. Modernization of aging infrastructure, potentially reducing long-term maintenance costs. Supports the Department of the Navy's commitment to providing adequate housing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise during modernization.
Dependence on a single contractor for project completion.
Geographic location in Guam may introduce logistical challenges and increased costs.

Positive Signals

Clear project scope and fixed-price contract structure.
Competitive bidding process likely secured a fair market price.
Focus on modernizing essential service member housing.

Sector Analysis

This project is within the Commercial and Institutional Building Construction sector, specifically focused on military housing. Spending in this sector can vary significantly based on infrastructure needs and modernization cycles.

Small Business Impact

The contract was awarded to Fargo Pacific Inc. The data does not indicate if this is a small business or if small business subcontracting was a requirement or achievement.

Oversight & Accountability

The award was made by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for contract execution and financial management.

Related Government Programs

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

Risk Flags

Contract duration exceeds 2 years, increasing exposure to market fluctuations.
Project involves modernization of existing structures, which can uncover unforeseen issues.
Sole contractor identified (Fargo Pacific Inc.) for the delivery order.
Geographic location may present logistical and supply chain challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.3 million to FARGO PACIFIC INC.. THIS IS A HUBZONE DBMACC PROJECT TO REPAIR AND MODERNIZE EXISTING UNACCOMPANIED HOUSING BLDG. 6 IN ACCORDANCE WITH FACILITIES CRITERIA FC 4-721-10N NAVY AND MARINE CORPS UNACCOMPANIED HOUSING. DESIGN TO PROVIDE 16 1+1 STYLE UH TO ACCOMMODATE 32 BEDS.

Who is the contractor on this award?

The obligated recipient is FARGO PACIFIC 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 $15.3 million.

What is the period of performance?

Start: 2025-09-03. End: 2027-09-03.

What is the estimated cost per bed for this modernization project?

The project aims to accommodate 32 beds with a total contract value of $15,255,000. This equates to approximately $476,718 per bed. This figure should be compared against industry benchmarks for similar housing unit renovations, considering the specific requirements of military standards and the remote location.

Are there any specific risk mitigation strategies in place for potential construction delays or cost overruns?

While the contract is firm fixed price, which shifts some risk to the contractor, the government should monitor progress closely. Mitigation strategies might include performance bonds, liquidated damages clauses for delays, and regular progress reviews to identify and address potential issues proactively before they escalate.

How does the modernization of this facility align with broader Navy housing improvement goals?

This project directly supports the Navy's goal of providing safe, adequate, and modern living spaces for its personnel. Modernizing unaccompanied housing is crucial for recruitment, retention, and overall morale, reflecting a commitment to the well-being of service members.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 124 SERENU AVE, TAMUNING, 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, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,255,000

Exercised Options: $15,255,000

Current Obligation: $15,255,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4019222D2704

IDV Type: IDC

Timeline