DoD Awards $10.36M Contract for Guam Power Line Construction to Core Tech International

Contract Overview

Contract Amount: $10,359,227 ($10.4M)

Contractor: Core Tech International Corporation

Awarding Agency: Department of Defense

Start Date: 2007-04-25

End Date: 2010-03-24

Contract Duration: 1,064 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE BID

Place of Performance

Location: SANTA RITA, GUAM County, GUAM, 96915

Plain-Language Summary

Department of Defense obligated $10.4 million to CORE TECH INTERNATIONAL CORPORATION for work described as: BASE BID Key points: 1. Core Tech International Corporation secured a $10.36 million contract for power and communication line construction. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The project is located in Guam, a strategic location for defense infrastructure. 4. The firm fixed-price contract type suggests a defined scope and cost control. 5. The award value is $10,359,227 with a base bid of $9,736,000.

Value Assessment

Rating: good

The contract's base bid of $9.74 million is slightly lower than the total award of $10.36 million, suggesting potential for additional work or adjustments within the contract's scope. This is a reasonable range for construction projects of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically leads to competitive pricing and ensures the government receives the best value. The presence of multiple bidders likely drove down costs.

Taxpayer Impact: Full and open competition generally maximizes taxpayer value by fostering a competitive environment that encourages lower bids and better service offerings.

Public Impact

Enhances critical power and communication infrastructure in Guam, supporting military operations and local resilience. The project contributes to the economic development of Guam through construction jobs and related services. Ensures reliable utility services for defense installations, crucial for national security. The construction activities may cause temporary disruptions to local services and traffic.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if unforeseen site conditions arise in Guam.
  • Logistical challenges associated with construction in an island territory.
  • Dependence on a single contractor for critical infrastructure.

Positive Signals

  • Awarded under full and open competition, suggesting competitive pricing.
  • Firm fixed-price contract provides cost certainty.
  • Supports strategic defense infrastructure in the Pacific.

Sector Analysis

This contract falls under the Construction and Engineering Services sector, specifically related to utility infrastructure. Spending in this sector is vital for maintaining and upgrading essential facilities for government operations, particularly in strategic locations like Guam.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The award was made by the Department of the Navy, part of the Department of Defense, which has established oversight mechanisms for contract execution. The firm fixed-price nature of the contract also aids in oversight by defining clear deliverables and costs.

Related Government Programs

  • Power and Communication Line and Related Structures Construction
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Geographic location challenges (Guam).
  • Potential for unforeseen site conditions.
  • Dependence on a single contractor.
  • Logistical complexities for materials and personnel.

Tags

power-and-communication-line-and-related, department-of-defense, gu, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.4 million to CORE TECH INTERNATIONAL CORPORATION. BASE BID

Who is the contractor on this award?

The obligated recipient is CORE TECH INTERNATIONAL CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.4 million.

What is the period of performance?

Start: 2007-04-25. End: 2010-03-24.

What is the projected impact of this infrastructure upgrade on the operational readiness of nearby military installations?

The upgrade of power and communication lines is expected to significantly enhance operational readiness by ensuring reliable and robust utility services. This reduces the risk of disruptions caused by aging infrastructure, thereby supporting continuous military operations, communication networks, and the deployment of advanced technologies essential for defense missions in the region.

What are the primary risks associated with performing construction in Guam, and how were they mitigated?

Key risks include logistical challenges due to island location (transportation of materials, equipment, and personnel), potential for extreme weather events (typhoons), and unique environmental considerations. Mitigation likely involved detailed logistical planning, robust supply chain management, adherence to strict building codes for seismic and weather resilience, and potentially specialized environmental impact assessments.

How does the awarded price compare to industry benchmarks for similar power and communication line construction projects?

Without specific benchmark data for Guam, a direct comparison is difficult. However, the $10.36 million award for a 1064-day duration project suggests a cost of approximately $9,737 per day. This rate needs to be evaluated against regional labor costs, material prices, and project complexity to determine its competitiveness.

Industry Classification

NAICS: ConstructionUtility System ConstructionPower and Communication Line and Related Structures Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6274207R1309

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 195 TUN JOSE SALAS STREET, TAMUNING, GU, 98

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $10,359,227

Exercised Options: $10,359,227

Current Obligation: $10,359,227

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2007-04-25

Current End Date: 2010-03-24

Potential End Date: 2010-03-24 00:00:00

Last Modified: 2010-03-23

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