Navy awards $5.27M contract for waterfront building repairs, including roofing and grounding

Contract Overview

Contract Amount: $5,267,747 ($5.3M)

Contractor: Hako Plumbing, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-23

End Date: 2025-08-04

Contract Duration: 712 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: X015 WATERFRONT B77 REROOFING, LIGHTNING PROTECTION AND GROUNDING

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to HAKO PLUMBING, INC. for work described as: X015 WATERFRONT B77 REROOFING, LIGHTNING PROTECTION AND GROUNDING Key points: 1. Contract value appears reasonable for specialized building envelope and electrical protection services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price delivery order, indicating defined scope and cost. 4. Performance is located in Hawaii, a region with specific construction cost considerations. 5. The North American Industry Classification System (NAICS) code points to commercial building construction. 6. The contractor, HAKO PLUMBING, INC., has secured this award from the Department of the Navy.

Value Assessment

Rating: good

The contract value of $5.27 million for reroofing, lightning protection, and grounding services for a waterfront facility seems within a reasonable range for specialized construction work. Benchmarking against similar projects is challenging without more specific details on the facility's size, age, and the extent of the work. However, the firm-fixed-price nature of the contract suggests that the contractor has assessed the risks and costs associated with the project. The award to HAKO PLUMBING, INC. by the Department of the Navy indicates a level of trust and prior assessment of their capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the initial solicitation might have had some exclusions, the final award was made after a broad competitive process. The presence of 3 bidders suggests a moderate level of competition. This approach aims to ensure that the government receives the best value by considering multiple qualified offerors, even if certain initial restrictions were in place.

Taxpayer Impact: The use of full and open competition, even with prior exclusions, generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider selection of qualified contractors.

Public Impact

Naval operations at the waterfront facility will benefit from improved infrastructure and protection against lightning strikes. The project delivers essential building maintenance and safety upgrades, ensuring the longevity of the structure. Geographic impact is concentrated in Hawaii, supporting local infrastructure resilience. The contract supports the construction workforce in Hawaii through employment opportunities during the project duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise during reroofing.
Dependence on a single contractor for specialized services could limit future options.
Weather-related delays in Hawaii could impact the project timeline and potentially costs.
Ensuring compliance with stringent Navy specifications for waterfront facilities requires careful oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Use of full and open competition suggests a robust vetting of potential bidders.
The contract addresses critical infrastructure needs, enhancing facility safety and operational continuity.
The contractor has a track record with the Department of the Navy, implying familiarity with their requirements.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, specifically focusing on repairs and upgrades. The market for such services is substantial, driven by the ongoing need for maintenance and modernization of federal facilities. The $5.27 million award is a significant but not exceptionally large contract within this sector. Comparable spending benchmarks would depend on the specific type and scale of the building, but this award appears to align with projects involving significant structural repairs and specialized systems like lightning protection.

Small Business Impact

The contract was awarded under 'Full and Open Competition After Exclusion of Sources' and the data indicates the small business flag is false (sb:false), suggesting it was not specifically set aside for small businesses. There is no explicit mention of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem through this specific contract appears limited, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and facilities management divisions. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is facilitated through federal contract databases where such awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Maintenance
Naval Infrastructure Modernization
Federal Building Envelope Repair
Lightning Protection Systems Installation
Commercial Roofing Contracts

Risk Flags

Potential for unforeseen structural issues during renovation.
Weather-related delays impacting project schedule.
Compliance with stringent military specifications.
Ensuring long-term effectiveness of specialized systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to HAKO PLUMBING, INC.. X015 WATERFRONT B77 REROOFING, LIGHTNING PROTECTION AND GROUNDING

Who is the contractor on this award?

The obligated recipient is HAKO PLUMBING, 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 $5.3 million.

What is the period of performance?

Start: 2023-08-23. End: 2025-08-04.

What is HAKO PLUMBING, INC.'s track record with the Department of the Navy and similar federal agencies?

Assessing HAKO PLUMBING, INC.'s track record requires a deeper dive into federal procurement databases like SAM.gov or FPDS. While this specific award indicates they are a current contractor with the Department of the Navy, their history with this agency and others would reveal the volume, value, and types of contracts previously awarded. A review would look for past performance evaluations, any instances of contract disputes, or significant deviations from contract terms. Understanding their experience with similar projects, particularly large-scale construction and specialized systems like roofing and grounding in potentially harsh environments (like waterfronts), is crucial for evaluating their capability to successfully execute this current contract.

How does the $5.27 million contract value compare to similar waterfront facility reroofing and grounding projects?

Benchmarking the $5.27 million contract value requires comparing it against projects with similar scope, scale, and location. Factors influencing cost include the size of the building, the type of roofing material specified, the complexity of the lightning protection system, and the specific environmental conditions of a waterfront facility (e.g., corrosion resistance requirements). Without detailed project specifications, a direct comparison is difficult. However, for a significant reroofing project combined with a comprehensive lightning protection system on a substantial facility, $5.27 million appears to be within a plausible range, especially considering potential premium costs associated with specialized construction in Hawaii and the stringent requirements of a naval installation. Further analysis would involve examining the cost per square foot for roofing and per linear foot for grounding components.

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

The primary risks for this contract include potential unforeseen structural issues discovered during the reroofing process, which could increase costs and extend the timeline. Environmental factors, such as severe weather in Hawaii, could also cause delays. Ensuring the effectiveness and longevity of the lightning protection and grounding system requires specialized expertise and adherence to strict technical specifications. Mitigation strategies likely include the firm-fixed-price contract type, which shifts cost overrun risk to the contractor, detailed site inspections prior to work commencement, robust project management by the Navy, and potentially performance bonds. The contractor's experience and the competitive bidding process also serve as risk mitigation factors.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for taxpayers on this contract?

The 'Full and Open Competition After Exclusion of Sources' approach aims to balance broad competition with specific needs. By excluding certain sources initially, the agency might be targeting specific capabilities or socioeconomic goals. However, opening it to full and open competition thereafter allows a wider pool of qualified bidders to compete. This method can be effective if the initial exclusions were justified and did not unduly limit competition. The fact that three bidders participated suggests a reasonable level of competition was achieved. For taxpayers, this approach is generally beneficial as it seeks the best value through competition, provided the exclusions were not overly restrictive and the final competition yielded competitive pricing and a qualified contractor.

What is the historical spending pattern for similar building construction and repair contracts by the Department of the Navy in Hawaii?

Analyzing historical spending patterns for similar contracts by the Department of the Navy in Hawaii would provide context for the $5.27 million award. This involves examining past contracts for building construction, repair, roofing, and electrical systems within the Navy's Hawaii installations. Key metrics to review would include the average contract value, the number of bidders per solicitation, the types of contractors awarded (large vs. small business), and the duration of similar projects. Understanding these patterns can help determine if this contract represents a typical investment, an outlier in terms of cost or scope, or if spending in this category has been increasing or decreasing over time, potentially indicating market trends or shifts in infrastructure priorities.

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: N6247817R4034

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 958 AKEPO LN, HONOLULU, HI, 96817

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: $5,267,747

Exercised Options: $5,267,747

Current Obligation: $5,267,747

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247820D4036

IDV Type: IDC

Timeline