Navy awards $806M contract for architect-engineering services to Hellmuth, Obata & Kassabaum, Inc

Contract Overview

Contract Amount: $32,101,779 ($32.1M)

Contractor: Hellmuth, Obata & Kassabaum, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-07-11

End Date: 2020-11-20

Contract Duration: 5,611 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200510!600557!1700!N62742!NAV FACILITIES ENGINEERING COMMA!N6274205C0001 !A!N! !N! ! !20050711!20060710!806345203!806345203!006335251!N!HELLMUTH, OBATA & KASSABAUM, I!1 BUSH ST STE 200 !SAN FRANCISCO !CA!94104!63050!003!15!PEARL HARBOR !HONOLULU !HAWAII !+000005850000!N!N!000005850000!C211!ARCHITECT-ENGINEERING SERVICES !C2 !CONSTRUCTION !000 !* !541330!A!B!3! ! ! ! ! !20200930!B! ! !A! !A!U!J!2!003!D! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!Y! !N! ! !1700!N62742!0001! !

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96818

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $32.1 million to HELLMUTH, OBATA & KASSABAUM, INC. for work described as: 200510!600557!1700!N62742!NAV FACILITIES ENGINEERING COMMA!N6274205C0001 !A!N! !N! ! !20050711!20060710!806345203!806345203!006335251!N!HELLMUTH, OBATA & KASSABAUM, I!1 BUSH ST STE 200 !SAN FRANCISCO !CA!94104!63050!003!15!PEARL HARBOR !HONO… Key points: 1. Contract awarded for architect-engineering services, indicating a need for specialized design and planning expertise. 2. The contract duration of over 15 years suggests a long-term requirement for these services. 3. The significant award amount points to a large-scale project or a series of substantial projects. 4. The geographic location of performance in Hawaii suggests a focus on naval facilities in that region. 5. The contract type is a firm-fixed-price definitive contract, which typically offers price certainty. 6. The North American Industry Classification System (NAICS) code 541330 identifies the primary industry as Engineering Services.

Value Assessment

Rating: good

The contract value of $806,345,203 over its extended period appears substantial for architect-engineering services. Benchmarking this against similar large-scale A-E contracts for naval facilities would provide a clearer picture of value for money. The firm-fixed-price nature suggests that the contractor assumed most of the cost risk, which can be beneficial for the government if managed effectively. However, without detailed breakdowns of the services rendered and comparison to industry standards for similar projects, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to yield fair market prices and encourage innovation. The presence of three bids suggests a reasonable level of competition for this significant contract, though the exact number of interested parties and the rigor of the evaluation process would offer further insight into the competitive dynamics.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it promotes a competitive environment, driving down costs and improving the quality of services received.

Public Impact

The primary beneficiaries are the Department of the Navy and its facilities in Hawaii, which will receive architectural and engineering design services. The services delivered will likely encompass planning, design, and potentially oversight for construction or renovation projects at naval installations. The geographic impact is concentrated in Hawaii, supporting military infrastructure development and maintenance in the Pacific region. The contract supports the architecture and engineering industry, potentially creating or sustaining jobs for skilled professionals in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep or increased costs if not managed meticulously.
The large contract value may attract significant scrutiny regarding cost efficiency and performance.
Reliance on a single contractor for over 15 years might limit future opportunities for other firms or innovative solutions.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Firm-fixed-price contract structure provides cost certainty for the government.
The contractor, Hellmuth, Obata & Kassabaum, Inc., is a well-established firm in the architecture and engineering field, implying experience and capability.

Sector Analysis

The architect-engineering services sector is a critical component of the construction and infrastructure development industry. This contract falls under the Engineering Services (NAICS 541330) category. The market for these services is driven by government and private sector investments in new facilities, renovations, and infrastructure upgrades. Large-scale government contracts like this one represent significant portions of the revenue for major A-E firms, often requiring specialized expertise in areas like military base design and compliance.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' being false. There is no explicit information regarding subcontracting plans for small businesses. The large value of this contract might make it challenging for small businesses to participate directly, but they could potentially engage as subcontractors if opportunities arise through the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy's Facilities Engineering Command. Performance reviews, site inspections, and adherence to contract terms would be key oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements, though detailed project-specific oversight information is often internal.

Related Government Programs

Naval Facilities Engineering Command Contracts
Department of Defense Architect-Engineering Services
Military Construction Projects
Infrastructure Design Services
Federal Design and Engineering Contracts

Risk Flags

Long contract duration
Large contract value
Potential for scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.1 million to HELLMUTH, OBATA & KASSABAUM, INC.. 200510!600557!1700!N62742!NAV FACILITIES ENGINEERING COMMA!N6274205C0001 !A!N! !N! ! !20050711!20060710!806345203!806345203!006335251!N!HELLMUTH, OBATA & KASSABAUM, I!1 BUSH ST STE 200 !SAN FRANCISCO !CA!94104!63050!003!15!PEARL HARBOR !HONOLULU !HAWAII !+000005850000!N!N!000005850000!C211!ARCHITECT-ENGINEERING SERVICES !C2 !CONSTRUCTION !000 !* !541330!A!B!3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is HELLMUTH, OBATA & KASSABAUM, 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 $32.1 million.

What is the period of performance?

Start: 2005-07-11. End: 2020-11-20.

What is the historical spending pattern for architect-engineering services by the Department of the Navy in Hawaii?

Analyzing historical spending for architect-engineering services by the Department of the Navy in Hawaii would involve reviewing contract awards over several fiscal years. This would help establish a baseline for typical contract values, durations, and the types of services procured. For instance, understanding if similar large-scale contracts have been awarded frequently or if this is an outlier would provide context. It would also reveal trends in competition levels and the primary contractors involved. Without specific historical data for this region and service type, it's difficult to definitively state the pattern, but such analysis would be crucial for assessing the current contract's alignment with past procurement strategies and budget allocations.

How does the per-unit cost or scope of services in this contract compare to similar architect-engineering contracts for naval facilities?

A direct comparison of per-unit costs for architect-engineering services in this contract to similar naval facility contracts is challenging without detailed scope breakdowns. 'Per-unit cost' is not explicitly provided, and the total award value covers a broad range of potential services over a long period. To benchmark effectively, one would need to identify comparable contracts based on project type (e.g., barracks, airfields, port facilities), geographic location, and complexity. Then, metrics like cost per square foot designed, or cost as a percentage of estimated construction value, could be calculated and compared. The firm-fixed-price nature suggests the contractor has priced the entire scope, making direct unit cost comparisons difficult unless specific deliverables are itemized and priced.

What is the track record of Hellmuth, Obata & Kassabaum, Inc. with large federal architect-engineering contracts, particularly with the Department of Defense?

Hellmuth, Obata & Kassabaum, Inc. (HOK) has a significant track record with large federal contracts, including those with the Department of Defense. As a prominent global design, architecture, engineering, and planning firm, HOK has been involved in numerous high-profile projects for various government agencies. Their portfolio often includes complex facilities, such as airports, healthcare centers, and military installations. Reviewing their past performance on similar-sized DoD contracts would reveal their ability to manage scope, budget, and timelines effectively. Data from contract databases like FPDS or SAM.gov would show their award history, past performance ratings, and any significant issues encountered on previous federal projects, providing insight into their reliability and expertise.

What are the potential risks associated with a single architect-engineering contract spanning over 15 years for naval facilities?

A contract duration exceeding 15 years presents several potential risks. Firstly, the long timeframe increases the likelihood of unforeseen changes in technology, building codes, environmental regulations, or military requirements, which could necessitate costly contract modifications. Secondly, maintaining consistent quality and oversight over such an extended period can be challenging for the government. Thirdly, the contractor might face challenges in retaining key personnel or adapting to evolving project needs. Lastly, there's a risk of vendor lock-in, potentially limiting the government's ability to leverage new innovations or competitive pricing from other firms that might emerge over the contract's life. Effective contract management and clear change order clauses are crucial to mitigate these risks.

How does the competition level (3 bidders) for this $806M contract impact price discovery and taxpayer value?

Having three bidders for an $806 million contract generally indicates a moderate level of competition. While more bidders could theoretically drive prices lower, three offers suggest that the market for these specialized architect-engineering services is not overly concentrated, nor is it so niche that only one or two firms can compete. This level of competition is usually sufficient for reasonable price discovery, allowing the Department of the Navy to select a proposal that offers good value. However, the true impact on taxpayer value depends on the thoroughness of the evaluation process and whether the government effectively negotiated the best possible terms. A limited number of bidders, especially if they are all large, established firms, might also suggest less aggressive pricing than in a more crowded marketplace.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: HOK Group, Inc.

Address: 1 BUSH ST STE 200, SAN FRANCISCO, CA, 94104

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $32,101,779

Exercised Options: $32,101,779

Current Obligation: $32,101,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline