DoD Awards $17.5M Contract for Hawaii Water Transmission Line Replacement

Contract Overview

Contract Amount: $17,525,044 ($17.5M)

Contractor: Glen Mar-Hensel Phelps

Awarding Agency: Department of Defense

Start Date: 2023-03-13

End Date: 2025-06-01

Contract Duration: 811 days

Daily Burn Rate: $21.6K/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: RM19-0699 WR921172 REPLACE 24-IN WATER TRANSMISSION LINE, HOSPITAL POINT TO HICKAM, SIOP, JBPHH, HI

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $17.5 million to GLEN MAR-HENSEL PHELPS for work described as: RM19-0699 WR921172 REPLACE 24-IN WATER TRANSMISSION LINE, HOSPITAL POINT TO HICKAM, SIOP, JBPHH, HI Key points: 1. The contract value of $17.5 million addresses a critical infrastructure need for water transmission. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The project carries risks related to construction timelines and potential unforeseen site conditions. 4. The sector is Commercial and Institutional Building Construction, vital for supporting military installations.

Value Assessment

Rating: good

The contract value of $17.5 million appears reasonable for a large-scale infrastructure project of this nature, involving significant civil engineering and construction.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while initial sources might have been limited, the final competition was broad, likely leading to competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades, ensuring reliable water supply to a military installation.

Public Impact

Ensures reliable water supply to Joint Base Pearl Harbor-Hickam. Supports critical military operations by maintaining essential infrastructure. Invests in aging infrastructure to prevent service disruptions and costly emergency repairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Unforeseen ground conditions could increase costs.
Reliance on a single awardee for a critical project.

Positive Signals

Addresses a critical infrastructure need.
Utilizes a competitive bidding process.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which is essential for maintaining and upgrading facilities at military bases. Spending benchmarks for similar projects vary widely based on scope and location, but this value is consistent with significant infrastructure work.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as the awardee is GLEN MAR-HENSEL PHELPS. Further analysis would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including progress monitoring and quality assurance, should be in place.

Related Government Programs

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

Risk Flags

Project duration of 811 days (over 2 years) increases exposure to potential delays.
Firm Fixed Price contract, while good for cost certainty, can limit flexibility if unforeseen issues arise.
Awardee is a joint venture, requiring assessment of the capabilities and financial stability of both entities.
Geographic location in Hawaii may present logistical challenges and higher material/labor costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.5 million to GLEN MAR-HENSEL PHELPS. RM19-0699 WR921172 REPLACE 24-IN WATER TRANSMISSION LINE, HOSPITAL POINT TO HICKAM, SIOP, JBPHH, HI

Who is the contractor on this award?

The obligated recipient is GLEN MAR-HENSEL PHELPS.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.5 million.

What is the period of performance?

Start: 2023-03-13. End: 2025-06-01.

What is the projected impact of this water line replacement on the daily operations and water quality at JBPHH?

The replacement is expected to significantly improve the reliability and potentially the quality of the water supply to JBPHH, reducing the risk of service interruptions and ensuring consistent delivery. This directly supports the daily operations of the base by safeguarding a fundamental utility. The project aims to mitigate future failures of the aging infrastructure.

What are the primary risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method for this project?

While this method aims for broad competition, the 'exclusion of sources' aspect could limit the initial pool of bidders. The primary risk is that this exclusion might have inadvertently removed potentially competitive firms, or that the remaining pool, though open, might not have yielded the absolute lowest price achievable. However, it often balances competition with specific project needs.

How does the $17.5 million cost compare to similar water transmission line replacement projects in comparable geographic or operational contexts?

Benchmarking this cost requires detailed comparison with projects of similar scale (24-inch diameter line, significant distance) and complexity (underground, potentially in developed areas). Factors like local labor costs, material prices in Hawaii, and specific site challenges (e.g., soil conditions, environmental regulations) heavily influence project costs. Without specific comparable data, it's difficult to definitively assess cost-effectiveness.

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

Solicitation ID: N6247818R4037

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Glen/Mar Construction, Inc.

Address: 15800 SE 135TH AVE, CLACKAMAS, OR, 97015

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Joint Venture Women Owned Small Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $17,525,044

Exercised Options: $17,525,044

Current Obligation: $17,525,044

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247822D4003

IDV Type: IDC

Timeline