DoD's $19.5M Marine Corps Base Hawaii Digester Replacement Awarded to SU-MO Builders

Contract Overview

Contract Amount: $19,482,686 ($19.5M)

Contractor: Su-Mo Builders, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-10-23

End Date: 2025-05-20

Contract Duration: 575 days

Daily Burn Rate: $33.9K/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: HI23O1M REPLACE PRIMARY DIGESTER, BUILDING 902A, MARINE CORPS BASE HAWAII, KANEOHE, HAWAII

Place of Performance

Location: M C B H KANEOHE BAY, HONOLULU County, HAWAII, 96863

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $19.5 million to SU-MO BUILDERS, INC. for work described as: HI23O1M REPLACE PRIMARY DIGESTER, BUILDING 902A, MARINE CORPS BASE HAWAII, KANEOHE, HAWAII Key points: 1. The contract focuses on essential infrastructure repair at Marine Corps Base Hawaii. 2. SU-MO Builders, Inc. secured the award, indicating a competitive bidding process. 3. The project addresses a critical need for facility maintenance and operational readiness. 4. Construction sector spending often sees significant federal investment for base infrastructure.

Value Assessment

Rating: good

The award amount of $19.5 million for a primary digester replacement appears reasonable given the scope and location. Benchmarking against similar large-scale institutional building construction projects would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a specific reason for limiting the initial pool but still allowing broad competition. This method aims for competitive pricing while potentially addressing unique project requirements.

Taxpayer Impact: Taxpayer funds are being used for necessary military base infrastructure upgrades, ensuring operational continuity and facility longevity.

Public Impact

Ensures critical wastewater treatment infrastructure at Marine Corps Base Hawaii remains operational. Supports the long-term sustainability and environmental compliance of the military installation. Contributes to the local economy through construction jobs and material procurement in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method could potentially impact price discovery.
Project duration extends over 1.5 years, increasing exposure to potential delays or cost overruns.

Positive Signals

Awarded to a single contractor, indicating clear responsibility.
Firm Fixed Price contract provides cost certainty for the government.
Project addresses a critical infrastructure need.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant area of federal spending for maintaining and upgrading government facilities. Benchmarks for similar projects vary widely based on complexity and location.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large construction project.

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 site inspections and progress reporting, should be in place to ensure quality and adherence to schedule.

Related Government Programs

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

Risk Flags

Limited competition method
Long project duration (575 days)
Potential for unforeseen site conditions
Reliance on a single primary contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to SU-MO BUILDERS, INC.. HI23O1M REPLACE PRIMARY DIGESTER, BUILDING 902A, MARINE CORPS BASE HAWAII, KANEOHE, HAWAII

Who is the contractor on this award?

The obligated recipient is SU-MO BUILDERS, 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 $19.5 million.

What is the period of performance?

Start: 2023-10-23. End: 2025-05-20.

What specific factors led to the 'EXCLUSION OF SOURCES' in the full and open competition, and how did this impact the final price?

The exclusion of sources likely stemmed from specific technical requirements, security clearances, or unique site conditions at Marine Corps Base Hawaii that narrowed the eligible bidder pool. While aiming for competition, this limitation might have reduced the number of potential bidders, potentially influencing the final price compared to unrestricted full and open competition. Further documentation would clarify the exact rationale and its pricing implications.

What are the primary risks associated with a 575-day construction timeline for a critical digester replacement, and what mitigation strategies are in place?

Key risks include weather delays (especially in Hawaii), material supply chain disruptions, unforeseen site conditions, and labor shortages, all of which could extend the timeline and increase costs. Mitigation strategies typically involve detailed project planning, contingency buffers, robust contractor management, regular progress monitoring, and clear communication channels to address issues proactively.

How does the firm fixed price contract structure benefit the government in managing costs for this large infrastructure project?

A firm fixed price (FFP) contract provides the government with the highest degree of cost certainty. The contractor assumes the risk of cost overruns, meaning the government pays the agreed-upon price regardless of the contractor's actual costs. This structure is beneficial for projects with well-defined scopes, like infrastructure replacement, as it simplifies budgeting and financial management for taxpayers.

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

Parent Company: Su-Mo Builders Inc.

Address: 907 BANNISTER ST, HONOLULU, HI, 96819

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,520,042

Exercised Options: $19,520,042

Current Obligation: $19,482,686

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247822D4005

IDV Type: IDC

Timeline