Navy awards $26.7M contract for power and communication line construction to Helix Electric, Inc

Contract Overview

Contract Amount: $26,708,464 ($26.7M)

Contractor: Helix Electric, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-08-29

End Date: 2022-06-17

Contract Duration: 1,388 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to HELIX ELECTRIC, INC. for work described as: DESIGN AND CONSTRUCTION Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Performance period spans over three years, indicating a significant project duration. 4. The North American Industry Classification System (NAICS) code 237130 points to specialized infrastructure construction. 5. The award was made by the Department of the Navy, a major defense spender. 6. The contractor, Helix Electric, Inc., has secured this significant award, indicating capability.

Value Assessment

Rating: good

The contract value of $26.7 million for power and communication line construction appears reasonable given the project's scope and duration. Without specific benchmarks for similar projects in Hawaii, a direct per-unit cost comparison is difficult. However, the firm fixed-price nature of the contract suggests that the pricing was determined upfront and the contractor bears the risk of cost overruns, which can be a positive indicator of value if the contractor is efficient.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 5 bids indicates a healthy level of competition for this project. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied for the contract, driving down prices.

Public Impact

The primary beneficiaries are the Department of the Navy and its operations in Hawaii, which will receive upgraded power and communication infrastructure. The services delivered include the construction of power and communication lines, essential for military base functionality. The geographic impact is concentrated in Hawaii, supporting military installations in that state. The contract supports the construction workforce, likely employing skilled laborers and technicians in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen site conditions or material price fluctuations.
Dependence on a single contractor for a critical infrastructure project could pose risks if performance issues arise.
The long performance period might lead to challenges in adapting to evolving technological standards in power and communication lines.

Positive Signals

Firm fixed-price contract structure transfers cost risk to the contractor.
Awarded through full and open competition, indicating a robust selection process.
The contractor, Helix Electric, Inc., has secured a significant contract, suggesting demonstrated capability.
The project addresses essential infrastructure needs for military operations in Hawaii.

Sector Analysis

This contract falls within the construction sector, specifically focusing on utility infrastructure. The market for power and communication line construction is specialized, requiring expertise in both electrical engineering and civil works. Comparable spending benchmarks would typically be found within large-scale government infrastructure projects or major utility upgrades. The $26.7 million award is a substantial sum, indicative of a significant project requiring extensive resources and planning.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Helix Electric, Inc., may choose to subcontract portions of the work to small businesses as part of their own business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Navy. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Base Infrastructure Modernization
Defense Communications Network Upgrades
Utility Construction Contracts
Federal Power Grid Projects

Risk Flags

Potential for cost overruns due to fixed-price nature.
Contractor performance risk over a long duration.
Dependency on specific technological standards.
Site-specific challenges in Hawaii.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to HELIX ELECTRIC, INC.. DESIGN AND CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is HELIX ELECTRIC, 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 $26.7 million.

What is the period of performance?

Start: 2018-08-29. End: 2022-06-17.

What is the track record of Helix Electric, Inc. with federal contracts, particularly with the Department of Defense?

A comprehensive review of Helix Electric, Inc.'s federal contract history would require access to detailed contract databases. However, securing a $26.7 million definitive contract from the Department of the Navy suggests a demonstrated capability to handle large-scale projects. Further analysis would involve examining past performance reviews, any history of contract disputes or terminations, and the types of projects previously awarded to the company. Understanding their experience with similar power and communication line construction projects would be crucial in assessing their suitability and reliability for this specific award.

How does the awarded amount of $26.7 million compare to similar power and communication line construction projects awarded by the Navy or other federal agencies?

Benchmarking the $26.7 million award requires identifying comparable projects based on scope, complexity, geographic location, and the specific type of infrastructure being built. Projects involving extensive underground cabling, specialized communication systems, or construction in challenging environments (like Hawaii) would likely command higher prices. Without access to a detailed database of similar projects and their associated costs, a precise comparison is difficult. However, the firm fixed-price nature of this contract suggests that the Navy sought a defined cost for the scope of work, and the competitive bidding process should have yielded a market-driven price.

What are the primary risks associated with a firm fixed-price contract for large-scale construction projects like this?

The primary risk with a firm fixed-price (FFP) contract is that the contractor may incur costs exceeding the agreed-upon price, potentially leading to financial distress or a reduction in quality if the contractor attempts to cut corners. For the government, the risk is that the contractor may have inflated their bid to account for potential risks, leading to a higher initial price than necessary. Unforeseen site conditions, material price volatility, labor shortages, or scope creep (if not managed strictly) can exacerbate these risks. Effective project management, clear contract specifications, and robust oversight are crucial to mitigate these potential downsides.

What is the expected impact of this contract on military operational readiness in Hawaii?

This contract is expected to significantly enhance military operational readiness in Hawaii by upgrading and ensuring the reliability of critical power and communication infrastructure. Modernized systems are less prone to failure, reducing downtime and improving the efficiency of base operations. Reliable power is essential for everything from daily functions to advanced technological systems, while robust communication lines are vital for command and control, data transfer, and inter-service coordination. The successful completion of this project will provide a more resilient and capable infrastructure backbone for the military installations it serves.

How has federal spending on power and communication line construction evolved over the past five years, and does this contract align with trends?

Analyzing federal spending trends on power and communication line construction requires a broad look at various agencies, not just the Department of the Navy. Generally, spending in this area can fluctuate based on infrastructure modernization needs, new base construction or expansion, and national security priorities. Large infrastructure projects often have multi-year funding cycles. This $26.7 million award represents a significant, but likely isolated, investment. To determine if it aligns with trends, one would need to compare its size and scope against the average award size and frequency of similar contracts across the federal government over the past five years.

What are the potential long-term implications of awarding this contract to Helix Electric, Inc. for future infrastructure projects in the region?

The successful execution of this $26.7 million contract by Helix Electric, Inc. could position them favorably for future infrastructure projects in Hawaii and potentially other regions where the Department of Defense operates. A strong performance record on a project of this magnitude can enhance a contractor's reputation and demonstrate their capacity to manage complex, high-value work. This could lead to increased competition for future contracts, potentially driving down prices if Helix Electric becomes a dominant player, or conversely, if their success encourages more competitors to enter the market. It also signifies a potential long-term partner for the Navy's infrastructure needs.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6247818R4035

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6795 FLANDERS DR, SAN DIEGO, CA, 92121

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,708,464

Exercised Options: $26,708,464

Current Obligation: $26,708,464

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline