DoD awards $29.9M contract for Reroofing Machine Shop at JBPHH, Hawaii

Contract Overview

Contract Amount: $29,900,000 ($29.9M)

Contractor: Insight Pacific, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-08

End Date: 2026-08-02

Contract Duration: 1,059 days

Daily Burn Rate: $28.2K/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: RM16-1467 WR152380 REROOF MACHINE SHOP BLDG 67/67A, SIOP, JBPHH, HI

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to INSIGHT PACIFIC, LLC for work described as: RM16-1467 WR152380 REROOF MACHINE SHOP BLDG 67/67A, SIOP, JBPHH, HI Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is firm-fixed-price, which shifts cost risk to the contractor. 4. Project duration of nearly three years indicates a substantial scope of work. 5. The awardee, INSIGHT PACIFIC, LLC, is a relatively new entity in federal contracting. 6. The project is located in Hawaii, a region with potentially higher construction costs.

Value Assessment

Rating: good

The contract value of $29.9 million for reroofing a machine shop building at JBPHH, Hawaii, seems within a reasonable range for a project of this scale and complexity, especially considering the location. While specific benchmarks for reroofing large institutional buildings in Hawaii are not readily available, the firm-fixed-price structure suggests that the government has secured a defined cost. Further analysis would involve comparing this cost to similar large-scale roofing projects on military installations or comparable commercial buildings in the region to ascertain true value for money.

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,' indicating that while the competition was broad, there might have been specific reasons for excluding certain sources initially. However, the 'full and open' designation implies that all responsible prospective contractors were permitted to submit offers. The presence of 3 bidders suggests a moderate level of competition, which is generally positive for price discovery. The specific exclusion of sources warrants further investigation to understand its impact on the final price and overall competition.

Taxpayer Impact: The use of full and open competition, despite potential source exclusions, is beneficial for taxpayers as it aims to solicit the best possible pricing and technical solutions from a wide range of qualified contractors.

Public Impact

The primary beneficiaries are the Department of Defense and the personnel stationed at Joint Base Pearl Harbor-Hickam (JBPHH), Hawaii, who will have a functional and safe machine shop. The contract delivers essential infrastructure maintenance services, specifically the reroofing of Building 67/67A, ensuring the longevity and operational capability of the facility. The geographic impact is localized to JBPHH, Hawaii, supporting the base's operational readiness. The project will likely involve a workforce of construction laborers, roofers, project managers, and support staff, contributing to local employment in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The awardee, INSIGHT PACIFIC, LLC, has a limited federal contracting history, raising questions about their experience with large-scale DoD projects.
The 'Exclusion of Sources' clause in the competition type requires further scrutiny to ensure it did not unduly limit competition or inflate costs.
The project duration of 1059 days (nearly 3 years) is lengthy for a reroofing project and may indicate unforeseen complexities or potential for delays.

Positive Signals

The contract was awarded using full and open competition, indicating an effort to maximize the pool of potential bidders.
The firm-fixed-price contract type transfers cost overrun risk to the contractor, providing budget certainty for the government.
The project addresses critical infrastructure maintenance, ensuring the continued operational capability of a key military facility.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on infrastructure maintenance for a government facility. The construction sector, particularly for large-scale projects like this, is influenced by material costs, labor availability, and regulatory requirements. Federal construction spending often involves complex procurement processes and adherence to specific government standards. Comparable spending benchmarks for large-scale roofing projects on military bases can vary significantly based on location, building type, and specific requirements.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, INSIGHT PACIFIC, LLC, is not explicitly identified as a small business in the provided data. Therefore, there are no direct small business set-aside implications. However, the prime contractor may engage small businesses as subcontractors to fulfill portions of the work, which could provide subcontracting opportunities within the local Hawaii construction ecosystem.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Navy, likely through contracting officers and project managers responsible for ensuring adherence to contract terms, specifications, and quality standards. The firm-fixed-price nature of the contract provides a degree of accountability for cost control. Transparency may be enhanced through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Infrastructure Maintenance
Department of Defense Construction Contracts
Commercial Building Reroofing Projects
Federal Facilities Management
Hawaii Construction Market

Risk Flags

Limited Contractor Experience
Potential Competition Limitation
Extended Project Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to INSIGHT PACIFIC, LLC. RM16-1467 WR152380 REROOF MACHINE SHOP BLDG 67/67A, SIOP, JBPHH, HI

Who is the contractor on this award?

The obligated recipient is INSIGHT PACIFIC, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.9 million.

What is the period of performance?

Start: 2023-09-08. End: 2026-08-02.

What is the track record of INSIGHT PACIFIC, LLC with federal contracts, particularly large-scale construction projects?

Based on the provided data, INSIGHT PACIFIC, LLC is the awardee of this $29.9 million contract. However, the data does not provide extensive details on their prior federal contracting history. A deeper dive into federal procurement databases would be necessary to ascertain the number and value of previous contracts awarded to this entity, their performance ratings on those contracts, and their experience with similar types of construction projects, especially those for the Department of Defense. The relative newness or limited scope of their federal contract history could be a factor in assessing project risk.

How does the $29.9 million contract value compare to similar reroofing projects for large institutional buildings, especially on military bases in Hawaii?

Benchmarking the $29.9 million contract value requires comparing it to similar large-scale reroofing projects. Factors such as the square footage of the building, the type of roofing materials specified, the complexity of the existing structure, and prevailing labor and material costs in Hawaii significantly influence project costs. Given Hawaii's higher cost of living and doing business, construction costs are generally elevated compared to the continental U.S. Without specific data on comparable projects (e.g., square footage, materials, specific base), it is difficult to definitively state if this contract represents excellent or questionable value. However, the firm-fixed-price nature suggests a defined cost ceiling.

What are the potential risks associated with a firm-fixed-price contract for a project of this duration and scope?

While firm-fixed-price (FFP) contracts are generally favored for cost certainty, they carry inherent risks, especially for long-duration projects like this nearly three-year reroofing effort. The primary risk for the government is that the contractor may cut corners on quality to maximize profit if unforeseen issues arise or if initial cost estimates were too low. Conversely, the contractor bears the risk of cost overruns due to material price increases, labor shortages, or unexpected site conditions. For the government, risks include potential disputes over scope changes, latent defects, or contractor performance issues that could lead to delays or require costly remedies, despite the FFP structure.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for the effectiveness of the bidding process?

This designation suggests a nuanced approach to competition. 'Full and Open Competition' is the preferred method, aiming to solicit offers from all responsible sources. However, the 'After Exclusion of Sources' qualifier indicates that certain potential bidders were initially excluded, possibly due to specific requirements, past performance issues, or other pre-determined criteria. While the intent is to ensure qualified bidders, the exclusion of sources could potentially limit the breadth of competition and, consequently, the range of pricing and innovation presented. The number of bidders (3) suggests moderate competition, but understanding the rationale behind the source exclusion is key to assessing its impact on price discovery and overall value.

What are the implications of the project's location in Hawaii on its cost and execution?

Locating this reroofing project on Joint Base Pearl Harbor-Hickam in Hawaii introduces several implications. Hawaii's geographic isolation means higher costs for transporting materials and equipment to the island. Labor costs are also typically higher due to the higher cost of living. Furthermore, construction projects on military bases often involve stringent security protocols, environmental regulations, and coordination with base operations, which can add complexity and time to the project schedule. These factors collectively contribute to a higher overall project cost compared to similar projects on the mainland U.S.

How does the project duration of 1059 days (approx. 2.9 years) align with typical reroofing projects of this scale?

A duration of nearly three years for a reroofing project, even for a large machine shop building, appears lengthy. Typical large-scale commercial or industrial reroofing projects might range from several months to a year or slightly more, depending on size, complexity, and weather. The extended duration here could suggest significant complexities beyond a standard reroof, such as structural repairs, integration with other base infrastructure projects, extensive asbestos abatement, or phased work to maintain building operations. Alternatively, it could indicate a conservative schedule or potential risks related to contractor capacity or site conditions that necessitate a longer timeline.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2749 SATURN ST, BREA, CA, 92821

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,900,000

Exercised Options: $29,900,000

Current Obligation: $29,900,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247822D4004

IDV Type: IDC

Timeline