Naval Facilities Engineering Command awards $196M for Hawaii family housing construction to KD Construction, Inc
Contract Overview
Contract Amount: $20,291,415 ($20.3M)
Contractor: KD Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-08-06
End Date: 2007-11-05
Contract Duration: 1,186 days
Daily Burn Rate: $17.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 200411!002581!1700!C2742 !NAVAL FACILITIES ENGINEERING COM!N6274203C1311 !A!N! !N! ! !20040806!20060809!196142285!196142285!196142285!N!KD CONSTRUCTION, INC !1015 PAAPU STREET !HONOLULU !HI!96819!28400!003!15!KANEOHE BAY MCAS !HONOLULU !HAWAII !+000019230000!N!N!000019230000!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !* !236116!A!B!3! ! ! ! ! !99990909!B! ! !A! !A!Y!J!2!002!B! !D!N!Z! ! !N!A!N!N!B!B! ! !A!A!00 !A!B!Y!U!N! ! ! ! !0001! !
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 $20.3 million to KD CONSTRUCTION, INC. for work described as: 200411!002581!1700!C2742 !NAVAL FACILITIES ENGINEERING COM!N6274203C1311 !A!N! !N! ! !20040806!20060809!196142285!196142285!196142285!N!KD CONSTRUCTION, INC !1015 PAAPU STREET !HONOLULU !HI!96819!28400!003!15!KANEOHE BAY MCAS !HONO… Key points: 1. The contract value of $196.1 million is substantial, indicating a significant project scope. 2. KD Construction, Inc. secured this large contract, suggesting strong capabilities or competitive positioning. 3. The project involves family housing facilities, a critical area for military personnel welfare. 4. Construction sector spending can be cyclical; this award reflects activity in that segment.
Value Assessment
Rating: good
The contract value of $196,142,285 is a significant investment. Benchmarking against similar large-scale military housing construction projects would be necessary for a precise value assessment, but the scale suggests a substantial undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the construction services rendered.
Public Impact
Improved housing for military families stationed in Hawaii, enhancing quality of life. Job creation in the construction sector within Hawaii. Potential for long-term infrastructure development at MCAS Kaneohe Bay.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Dependence on a single contractor for a significant project.
Positive Signals
- Awarded through full and open competition.
- Addresses critical military family housing needs.
Sector Analysis
This contract falls within the construction sector, specifically for new multifamily housing. The Department of Defense is a major client for construction services, with significant spending allocated to infrastructure and facilities.
Small Business Impact
While the award went to KD Construction, Inc., analysis of subcontracting opportunities for small businesses was not detailed in the provided data. Larger prime contracts often include provisions for small business participation.
Oversight & Accountability
The award was managed by the Naval Facilities Engineering Command, a dedicated entity for managing such projects. Oversight would typically involve contract performance monitoring and quality assurance to ensure successful project completion.
Related Government Programs
- New Multifamily Housing Construction (except For-Sale Builders)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Large contract value increases potential for cost overruns.
- Project duration of over three years presents schedule risk.
- Dependence on a single contractor for critical infrastructure.
- Geographic location in Hawaii may introduce logistical challenges.
Tags
new-multifamily-housing-construction-exc, department-of-defense, hi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.3 million to KD CONSTRUCTION, INC.. 200411!002581!1700!C2742 !NAVAL FACILITIES ENGINEERING COM!N6274203C1311 !A!N! !N! ! !20040806!20060809!196142285!196142285!196142285!N!KD CONSTRUCTION, INC !1015 PAAPU STREET !HONOLULU !HI!96819!28400!003!15!KANEOHE BAY MCAS !HONOLULU !HAWAII !+000019230000!N!N!000019230000!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !* !236116!A!B!3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is KD CONSTRUCTION, 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 $20.3 million.
What is the period of performance?
Start: 2004-08-06. End: 2007-11-05.
What is the projected timeline for project completion and what are the key milestones?
The contract duration is 1186 days, spanning from August 6, 2004, to November 5, 2007. Key milestones would likely include site preparation, foundation work, structural completion, interior finishing, and final inspections. Specific details on these milestones would be found in the contract's statement of work.
Are there any performance bonds or guarantees in place to mitigate construction risks?
While not explicitly stated in the provided data, large federal construction contracts typically require performance and payment bonds. These bonds protect the government against contractor default and ensure timely payment to subcontractors and suppliers, thereby mitigating financial risks.
How does the final awarded price compare to the initial estimated cost for this housing project?
The provided data shows the awarded amount ($196,142,285) but does not include the initial estimated cost. A comparison would require access to the original solicitation documents or budget estimates to determine if the final price was within expectations or if significant negotiation occurred.
Industry Classification
NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 1015 PAAPU STREET, HONOLULU, HI, 01
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $23,868
Exercised Options: $23,868
Current Obligation: $20,291,415
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-08-06
Current End Date: 2007-11-05
Potential End Date: 2007-11-05 00:00:00
Last Modified: 2008-04-11
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)