DoD awards $9.38M contract for forge and heat treat shop design in Hawaii

Contract Overview

Contract Amount: $9,381,046 ($9.4M)

Contractor: WSM Pacific Siop, a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2026-11-12

Contract Duration: 776 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SIOP - DESIGN FOR FORGE AND HEAT TREAT SHOP

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96813

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $9.4 million to WSM PACIFIC SIOP, A JOINT VENTURE for work described as: SIOP - DESIGN FOR FORGE AND HEAT TREAT SHOP Key points: 1. Contract awarded for specialized industrial facility design. 2. Competition level indicates potential for fair market pricing. 3. Fixed-price contract type mitigates cost overrun risks. 4. Project duration spans over two years, suggesting a complex scope. 5. Geographic focus on Hawaii may present logistical considerations. 6. Engineering services are critical for industrial facility development.

Value Assessment

Rating: good

The contract value of $9.38 million for engineering design services appears reasonable given the specialized nature of a forge and heat treat shop. Benchmarking against similar large-scale industrial facility design projects would provide a more precise assessment, but the fixed-price nature suggests an effort to control costs upfront. The award to a joint venture indicates a capacity to handle complex engineering tasks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified firms were able to bid. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The specific number of bidders is not provided, but the process itself implies a robust selection environment.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The Department of the Navy benefits from the design of a critical industrial facility. This contract supports the development of specialized manufacturing capabilities. The project's geographic impact is focused on Hawaii, potentially supporting local economic activity. The design services will likely involve a workforce of engineers and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the project's multi-year duration and specialized nature.
Logistical challenges associated with construction and material sourcing in Hawaii.
Ensuring the design meets evolving technological standards for forge and heat treat operations.

Positive Signals

Fixed-price contract structure provides cost certainty.
Award to a joint venture suggests strong technical capabilities.
Full and open competition promotes competitive pricing.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting industrial facility development. The market for designing specialized manufacturing facilities like forge and heat treat shops is niche, often involving firms with deep expertise in materials science and industrial processes. Comparable spending would involve other large-scale industrial construction or renovation projects, though the design phase is a smaller component of the overall lifecycle cost.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is a joint venture, it is unclear if small businesses are involved as subcontractors. Further analysis would be needed to determine subcontracting opportunities for small businesses within this project.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms. As a fixed-price contract, cost-related oversight may be less intensive than cost-plus contracts. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Industrial Facility Design Contracts
Department of Defense Construction Projects
Manufacturing Support Services

Risk Flags

Potential for schedule slippage
Logistical challenges in Hawaii
Technical obsolescence risk in design

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.4 million to WSM PACIFIC SIOP, A JOINT VENTURE. SIOP - DESIGN FOR FORGE AND HEAT TREAT SHOP

Who is the contractor on this award?

The obligated recipient is WSM PACIFIC SIOP, A JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.4 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-11-12.

What is the track record of WSM PACIFIC SIOP, A JOINT VENTURE, in delivering similar engineering design projects for the Department of Defense?

Information regarding the specific track record of 'WSM PACIFIC SIOP, A JOINT VENTURE' for similar projects is not detailed in the provided data. As a joint venture, its performance would be a composite of its member companies' capabilities and past experiences. A thorough review would require examining past performance evaluations, contract history, and any reported issues or successes on previous DoD or similar industrial design contracts undertaken by the constituent entities or the joint venture itself. This would help assess their capacity to manage the complexity and technical requirements of designing a forge and heat treat shop.

How does the $9.38 million contract value compare to similar forge and heat treat shop design projects?

Benchmarking the $9.38 million contract value requires comparison with similar projects. The complexity, size, and specific technological requirements of a forge and heat treat shop can vary significantly, impacting design costs. Without data on comparable projects (e.g., square footage, specific equipment to be housed, environmental controls, location-specific factors like seismic or wind loads), a precise comparison is difficult. However, for large-scale industrial facilities, this value represents a significant investment in the design phase, suggesting a substantial and complex facility is planned. Further research into industry cost data for specialized industrial engineering services would be necessary for a robust benchmark.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential schedule delays due to the project's multi-year duration and the specialized nature of the facility, logistical challenges in Hawaii, and ensuring the design meets evolving technological standards. Mitigation strategies are partly addressed by the firm fixed-price contract type, which shifts cost overrun risk to the contractor. The award to a joint venture suggests a capacity to handle complexity. However, specific risk mitigation plans for schedule, logistics, and technical obsolescence would typically be detailed within the contract itself and managed through ongoing oversight and communication between the Navy and the contractor.

What is the expected effectiveness of the designed forge and heat treat shop in supporting naval operations?

The effectiveness of the designed facility will depend on how well the engineering design meets the specific operational requirements of the Department of the Navy. A well-designed forge and heat treat shop is crucial for manufacturing, repairing, and maintaining critical metal components used in naval vessels and equipment. Its effectiveness will be measured by its ability to produce components to required specifications, its operational efficiency, its reliability, and its capacity to support the Navy's readiness and modernization goals. The success of the design will be validated during the construction and commissioning phases of the facility.

What are the historical spending patterns for engineering services related to industrial facilities by the Department of the Navy?

Historical spending patterns for engineering services related to industrial facilities by the Department of the Navy are likely substantial, given the extensive infrastructure required to support naval operations globally. This includes design, renovation, and new construction of various industrial plants, maintenance depots, and specialized manufacturing facilities. While specific aggregate data for 'forge and heat treat shop design' is not readily available, the Navy consistently invests in its shore infrastructure and industrial base. Analyzing past contracts awarded by Naval Facilities Engineering Command (NAVFAC) and other relevant commands for similar types of industrial facility projects would reveal trends in contract values, types of services procured, and dominant contractors in this specialized engineering domain.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1001 BISHOP ST STE 2400, HONOLULU, HI, 96813

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $9,381,046

Exercised Options: $9,381,046

Current Obligation: $9,381,046

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6274221D0001

IDV Type: IDC

Timeline