Naval Facilities Engineering Command awarded $778.9M for water supply facilities construction, with a 1385-day duration

Contract Overview

Contract Amount: $13,066,553 ($13.1M)

Contractor: Maeda Pacific Corp

Awarding Agency: Department of Defense

Start Date: 2003-09-29

End Date: 2007-07-15

Contract Duration: 1,385 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200312!202573!1700!C2742 !NAVAL FACILITIES ENGINEERING COM!N6274201C1355 !A!N! !N! !20030929!20051008!778906933!778906933!690568365!N!MAEDA PACIFIC CORPORATION !150 HARMON SINK ROAD !TAMUNING !GU!96911!07900!010!66!ANDERSEN AFB !GUAM !GUAM !+000013012000!N!N!000013012000!Y245!WATER SUPPLY FACILITIES !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !221310!A!A!3! ! ! ! ! !99990909!B! ! !A! !A!U!J!1!001!B! !D!N!Z! ! !N!C!N! ! ! !B!C!A!A!000!A!A!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SANTA RITA, GUAM County, GUAM, 96915

Plain-Language Summary

Department of Defense obligated $13.1 million to MAEDA PACIFIC CORP for work described as: 200312!202573!1700!C2742 !NAVAL FACILITIES ENGINEERING COM!N6274201C1355 !A!N! !N! !20030929!20051008!778906933!778906933!690568365!N!MAEDA PACIFIC CORPORATION !150 HARMON SINK ROAD !TAMUNING !GU!96911!07900!010!66!ANDERSEN AFB !GUAM … Key points: 1. Contract value of $778.9M for construction services indicates a significant investment in infrastructure. 2. The contract was awarded on 2003-09-29 and completed on 2007-07-15, spanning over 3.5 years. 3. The primary contractor, Maeda Pacific Corporation, has a substantial contract history with the government. 4. The North American Industry Classification System (NAICS) code 237110 suggests a focus on water and sewer line construction. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. Awarded as a definitive contract, suggesting a long-term agreement for specific services.

Value Assessment

Rating: fair

The total award amount of $778.9 million for water supply facilities construction is substantial. Without specific benchmarks for comparable projects in Guam or similar geographic locations, a precise value-for-money assessment is challenging. However, the duration of the contract (1385 days) and the firm fixed-price nature suggest that the pricing was intended to cover all costs and profit over an extended period. Further analysis would require comparing unit costs for specific construction elements (e.g., per linear foot of pipe laid, per cubic yard of concrete) against industry standards or similar government projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. The absence of specific bidder numbers means we cannot assess the intensity of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers, potentially driving down costs.

Public Impact

The primary beneficiaries are the residents and military personnel stationed at Andersen Air Force Base in Guam, who rely on a stable and functional water supply. The contract delivered essential construction services for water supply facilities, ensuring the integrity and capacity of the base's water infrastructure. The geographic impact is localized to Guam, specifically Andersen Air Force Base, addressing critical infrastructure needs in that region. The project likely involved a significant local workforce, including construction laborers, engineers, and project managers, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm fixed-price structure.
Dependence on a single contractor for a critical infrastructure project over an extended period.
Risk associated with the contractor's ability to manage a large-scale construction project effectively over 3.5 years.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a robust bidding process to secure the best value.
The contract addresses a critical infrastructure need, ensuring operational readiness and quality of life.

Sector Analysis

The construction sector, particularly civil engineering and infrastructure development, is a significant area of federal spending. This contract falls under the construction of water supply and irrigation systems (NAICS 237110). Federal spending in this area often supports military installations, public works, and disaster recovery efforts. Comparable spending benchmarks would typically involve analyzing the cost per unit of similar water infrastructure projects undertaken by government agencies or in the private sector, considering factors like location, complexity, and materials.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. Therefore, it is unlikely that small businesses were specifically targeted for this large-scale construction project. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Without explicit set-aside goals or subcontracting requirements, the direct impact on small businesses is not discernible from this data alone.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Facilities Engineering Command (NAVFAC), which is responsible for planning, designing, and constructing facilities for the Navy and Marine Corps. Accountability measures would include contract milestones, performance reviews, and adherence to the firm fixed-price terms. Transparency is generally facilitated through contract award databases like FPDS, though detailed project-specific oversight reports are not always publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction (MILCON)
Water and Wastewater Treatment Plant Construction
Public Infrastructure Projects
Department of Defense Facilities Management
Naval Facilities Engineering Command Contracts

Risk Flags

Large contract value may indicate complexity and potential for cost overruns.
Long contract duration increases exposure to changing economic conditions and potential scope creep.
Firm Fixed Price shifts risk to contractor, but requires careful monitoring of performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to MAEDA PACIFIC CORP. 200312!202573!1700!C2742 !NAVAL FACILITIES ENGINEERING COM!N6274201C1355 !A!N! !N! !20030929!20051008!778906933!778906933!690568365!N!MAEDA PACIFIC CORPORATION !150 HARMON SINK ROAD !TAMUNING !GU!96911!07900!010!66!ANDERSEN AFB !GUAM !GUAM !+000013012000!N!N!000013012000!Y245!WATER SUPPLY FACILITIES !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !221310!A!A!3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is MAEDA PACIFIC CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2003-09-29. End: 2007-07-15.

What was the specific scope of work for the water supply facilities construction at Andersen Air Force Base?

The scope of work for this contract (N6274201C1355) primarily involved the construction of water supply facilities. While the specific details are not fully elaborated in the provided data, the NAICS code 237110 (Water and Sewer Line and Related Structures Construction) suggests activities such as the installation, repair, and construction of water mains, pipelines, pumping stations, and potentially related treatment or storage facilities. Given the location at a major Air Force base, the project likely aimed to ensure a reliable, high-capacity, and potentially upgraded water distribution system to meet the operational and living needs of the installation.

How does the $778.9 million contract value compare to other similar water infrastructure projects awarded by the Department of Defense?

Comparing the $778.9 million contract value requires access to a broader dataset of similar projects. However, for a large-scale infrastructure project like water supply facilities at a major military installation, this value is substantial, reflecting the complexity, scale, and duration of the work. Federal spending on military construction (MILCON) projects can range widely, but projects involving critical utilities like water systems often represent significant investments. Without specific comparable projects in Guam or other Pacific installations, it's difficult to benchmark precisely, but the amount suggests a high-priority, extensive undertaking.

What were the key performance indicators (KPIs) or milestones for this contract?

The provided data does not explicitly list the key performance indicators (KPIs) or specific milestones for this contract. However, for a construction project of this magnitude and duration (1385 days), typical KPIs would likely include adherence to project schedules, quality of construction meeting specified standards (e.g., engineering codes, material specifications), safety compliance on site, and timely completion of defined phases or work packages. The firm fixed-price nature implies that meeting these performance expectations within the agreed budget was paramount.

What is the track record of Maeda Pacific Corporation in handling large federal construction contracts?

Maeda Pacific Corporation has a history of engaging in large federal construction contracts, particularly in the Pacific region. Their involvement in this $778.9 million water supply facilities project for the Naval Facilities Engineering Command indicates their capacity to manage significant infrastructure undertakings. While this specific contract was completed in 2007, their continued presence in government contracting suggests a sustained ability to secure and execute projects. A deeper analysis would involve reviewing their performance on other contracts, including any past issues or commendations, to fully assess their track record.

Were there any significant cost variances or change orders associated with this contract?

The provided data does not contain information regarding cost variances or change orders for this contract. As a firm fixed-price contract, the intention is to minimize variances by locking in the price upfront. However, large, long-term construction projects often encounter unforeseen conditions that may necessitate change orders, potentially increasing the total cost. Without access to the contract's detailed financial history or modification logs, it is impossible to determine if significant variances or change orders occurred.

What is the historical spending trend for water supply facility construction at Andersen Air Force Base?

The provided data only details a single contract (N6274201C1355) awarded in 2003 for water supply facilities construction at Andersen Air Force Base. It does not provide historical spending trends for this specific type of facility at this location. To establish a trend, one would need to analyze contract awards over multiple years, identifying all contracts related to water supply infrastructure, their values, and durations. This single data point suggests a significant investment occurred around the early 2000s but does not offer a broader historical perspective.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Maeda Road Construction CO.,Ltd. (UEI: 690568365)

Address: 150 HARMON SINK ROAD, TAMUNING, GU, 96911

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline