DoD awards $4.3M for Pearl Harbor dry dock caisson design, with a 2030 completion date

Contract Overview

Contract Amount: $4,289,695 ($4.3M)

Contractor: Moffatt & Nichol - Burns & Mcdonnell Hawaii

Awarding Agency: Department of Defense

Start Date: 2026-01-08

End Date: 2030-12-31

Contract Duration: 1,818 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PREPARE A DESIGN-BID-BUILD (DBB) CONSTRUCTION CONTRACT PACKAGE FOR FY28 SPECIAL PROJECT RM21-2135 REPLACE DRY DOCK NO. 2 INTERMEDIATE CAISSON 2I, JOINT BASE PEARL HARBOR-HICKAM, HAWAII

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96813

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $4.3 million to MOFFATT & NICHOL - BURNS & MCDONNELL HAWAII for work described as: PREPARE A DESIGN-BID-BUILD (DBB) CONSTRUCTION CONTRACT PACKAGE FOR FY28 SPECIAL PROJECT RM21-2135 REPLACE DRY DOCK NO. 2 INTERMEDIATE CAISSON 2I, JOINT BASE PEARL HARBOR-HICKAM, HAWAII Key points: 1. The contract focuses on design services, not construction, indicating a phased approach to the dry dock replacement. 2. A firm-fixed-price contract type suggests that cost risks are primarily borne by the contractor. 3. The project duration of approximately 5 years, from design award to completion, aligns with complex infrastructure projects. 4. The award is for a specific component (Intermediate Caisson 2I) of Dry Dock No. 2, implying a larger modernization effort. 5. The geographic location in Hawaii may present logistical challenges and potentially higher labor and material costs.

Value Assessment

Rating: fair

The contract value of $4.3 million for design services appears reasonable for a specialized engineering project of this nature. Benchmarking against similar large-scale naval infrastructure design contracts is difficult without more specific project details. However, the scope appears to be focused on the design phase, which typically represents a smaller portion of the overall project cost compared to construction. The firm-fixed-price nature provides cost certainty for the government, but the ultimate value will depend on the successful execution of the subsequent construction phase.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified firms were able to bid. This competitive process is expected to yield a fair market price and encourage innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best value for its investment.

Public Impact

Naval operations at Joint Base Pearl Harbor-Hickam will benefit from the modernization of critical dry dock infrastructure. The project will ensure the continued maintenance and repair capabilities for naval vessels in the Pacific. The design services will be performed by Moffatt & Nichol - Burns & McDonnell Hawaii, contributing to specialized engineering employment. The geographic impact is localized to Hawaii, specifically Joint Base Pearl Harbor-Hickam, but the operational impact is national for the Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if design issues are not fully resolved before construction.
Logistical complexities in Hawaii could impact project timelines and costs.
Dependence on future construction funding and contract awards for project completion.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm-fixed-price contract provides cost certainty for the design phase.
Experienced contractors selected for specialized engineering services.
Clear project scope focused on a critical infrastructure component.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a critical component of the broader construction and defense industrial base. The market for specialized naval engineering services is competitive, with a mix of large firms and smaller niche providers. The size and complexity of naval infrastructure projects often require significant expertise and resources, making large, established engineering firms frequent awardees. Spending in this sector is driven by military readiness, modernization efforts, and infrastructure maintenance.

Small Business Impact

The contract data indicates that small business participation is not a primary focus for this specific design services award, as indicated by 'sb': false. There is no mention of small business set-asides. However, the prime contractors may engage small businesses for specialized subcontracting roles during the design phase, though this is not explicitly detailed in the provided data. The overall impact on the small business ecosystem for this particular contract appears minimal.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and engineering commands. The firm-fixed-price nature of the contract provides a degree of financial oversight. Transparency is facilitated by the contract award being made under full and open competition. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Base Infrastructure Modernization
Dry Dock and Shipyard Facilities
Department of Defense Capital Investments
Military Construction Projects

Risk Flags

Potential for cost escalation in subsequent construction phases.
Logistical challenges in Hawaii impacting project timeline.
Design completeness and accuracy risk.
Long project duration increases risk of requirement changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.3 million to MOFFATT & NICHOL - BURNS & MCDONNELL HAWAII. PREPARE A DESIGN-BID-BUILD (DBB) CONSTRUCTION CONTRACT PACKAGE FOR FY28 SPECIAL PROJECT RM21-2135 REPLACE DRY DOCK NO. 2 INTERMEDIATE CAISSON 2I, JOINT BASE PEARL HARBOR-HICKAM, HAWAII

Who is the contractor on this award?

The obligated recipient is MOFFATT & NICHOL - BURNS & MCDONNELL HAWAII.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

Start: 2026-01-08. End: 2030-12-31.

What is the track record of Moffatt & Nichol - Burns & McDonnell Hawaii with similar large-scale naval infrastructure design projects?

Moffatt & Nichol and Burns & McDonnell are both established engineering firms with extensive experience in large-scale infrastructure projects, including those for the Department of Defense and naval facilities. Moffatt & Nichol has a strong portfolio in port and marine engineering, which is directly relevant to dry dock design. Burns & McDonnell also has significant experience in federal projects, including design and construction management for military installations. While the specific joint venture's track record on identical projects isn't detailed here, the individual firms' histories suggest a strong capability to execute this type of specialized design work. Further analysis would involve reviewing their past performance evaluations and any past issues on similar DoD contracts.

How does the $4.3 million design contract value compare to the estimated total cost of replacing Dry Dock No. 2?

The provided data only includes the value of the design contract ($4.3 million) and its estimated completion date (December 2030). The total estimated cost for the entire project, including construction, is not available. Typically, design services represent a fraction of the total construction cost, often ranging from 5% to 15% depending on project complexity and delivery method. If this $4.3 million represents, for example, 10% of the total project cost, the full replacement could be in the range of $43 million. However, without the overall project budget or construction cost estimates, a definitive comparison cannot be made. This figure is solely for the design phase.

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

The primary risks for this design contract include potential scope creep, inadequate or incomplete design leading to issues in the subsequent construction phase, and contractor performance issues. The firm-fixed-price (FFP) contract structure mitigates financial risk for the government by establishing a set price for the design services. However, it places more cost risk on the contractor. Mitigation for design completeness and quality relies on the government's technical oversight, review processes, and the contractors' own quality control measures. The long duration (design award in 2026 to project completion in 2030) also presents a risk of design obsolescence or the need for significant revisions if requirements change or technology advances rapidly, though this is less common for core infrastructure like dry docks.

What is the historical spending pattern for dry dock maintenance and replacement at Joint Base Pearl Harbor-Hickam?

Historical spending data for dry dock maintenance and replacement at Joint Base Pearl Harbor-Hickam is not provided in the current data set. To assess historical patterns, one would need to access federal procurement databases (like FPDS or USASpending) and filter for contracts awarded to the Department of the Navy or Department of Defense at this specific installation, focusing on keywords related to 'dry dock,' 'maintenance,' 'repair,' and 'replacement.' Analyzing past contract values, durations, and the frequency of such awards would reveal spending trends. This information is crucial for understanding the lifecycle costs and investment priorities for critical naval infrastructure at this base.

How does the 'Delivery Order' contract type (awarded under a larger IDIQ or similar vehicle) impact oversight and competition?

The provided data lists 'AW': 'DELIVERY ORDER', which implies this contract was awarded under a larger indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award vehicle. This means the initial competition likely occurred when the parent IDIQ contract was awarded. Subsequent delivery orders, like this one, are typically competed among the awardees of the parent contract, or sometimes awarded sole-source if the parent contract allows. If this was competed among multiple IDIQ holders, it still represents a form of competition, but potentially less broad than a standalone full-and-open competition for a single project. Oversight is managed at both the IDIQ level and for each individual delivery order. The 'FULL AND OPEN COMPETITION' designation likely refers to the initial award of the parent IDIQ vehicle.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1132 BISHOP ST STE 1595, HONOLULU, HI, 96813

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,289,695

Exercised Options: $4,289,695

Current Obligation: $4,289,695

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6247820D5035

IDV Type: IDC

Timeline