Department of the Navy awards $15M contract for wastewater infrastructure upgrades at Apra Harbor, Guam

Contract Overview

Contract Amount: $14,964,352 ($15.0M)

Contractor: Core Tech International Corporation

Awarding Agency: Department of Defense

Start Date: 2009-08-25

End Date: 2012-02-17

Contract Duration: 906 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION TO REPLACE AND REHABILITATE SEWER LIFT STATIONS AND SEWER PIPELINES IN THE COLLECTION SYSTEM OF THE APRA HARBOR WASTEWATER TREATMENT PLANT (AHWWTP). ANTIQUATED SEWAGE LIFT STATIONS (SLS) SHALL BE REPLACED WITH NEW FACILITIES THAT FACILITATE OPERATIONS AND MAINTENANCE ACTIVITIES. UPGRADE FACILITIES TO PROVIDE INCREASED CAPACITY AND SYSTEM RELIABILITY. PUMP STATION CONTROLS AND EMERGENCY GENERATORS SHALL BE PLACED IN STRUCTURES HARDENED FOR TYPHOONS. ADD SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA) SYSTEM THAT FEEDS BACK TO THE BASE SYSTEM AT THE APRA HARBOR WASTEWATER TREATMENT PLANT TO ALL STATIONS. SUSTAINABLE DESIGN PRINCIPLES WILL BE INTEGRATED INTO THE DESIGN, DEVELOPMENT, AND CONSTRUCTION OF THE UTILITY PLANT BUILDING IN ACCORDANCE WITH EXECUTIVE ORDER 13123 AND OTHER DIRECTIVES. ANTI-TERRORISM FORCE PROTECTION MEASURES ARE NOT REQUIRED FOR THE PROJECT BECAUSE THE STRUCTURES ARE CLASSIFIED AS UNINHABITED.

Place of Performance

Location: SANTA RITA, GUAM County, GUAM, 96915

Plain-Language Summary

Department of Defense obligated $15.0 million to CORE TECH INTERNATIONAL CORPORATION for work described as: DESIGN AND CONSTRUCTION TO REPLACE AND REHABILITATE SEWER LIFT STATIONS AND SEWER PIPELINES IN THE COLLECTION SYSTEM OF THE APRA HARBOR WASTEWATER TREATMENT PLANT (AHWWTP). ANTIQUATED SEWAGE LIFT STATIONS (SLS) SHALL BE REPLACED WITH NEW FACILITIES THAT FACILITATE OPERATIONS AND… Key points: 1. Contract focuses on critical wastewater infrastructure, including lift station replacement and pipeline rehabilitation. 2. Project aims to enhance operational efficiency, increase system capacity, and improve reliability. 3. Emphasis on hardening facilities against typhoons and integrating advanced SCADA systems for better monitoring. 4. Sustainable design principles are incorporated, aligning with federal environmental mandates. 5. The contract was awarded to Core Tech International Corporation, a firm with experience in construction. 6. The project duration is 906 days, indicating a significant undertaking in infrastructure development.

Value Assessment

Rating: good

The contract value of approximately $15 million for wastewater infrastructure upgrades appears reasonable given the scope of work, which includes replacing antiquated lift stations, rehabilitating sewer pipelines, and hardening facilities against typhoons. Benchmarking against similar large-scale municipal or federal wastewater projects would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract suggests that cost overruns are primarily the contractor's responsibility, which can be a positive indicator for cost control.

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 were likely solicited. This competitive process is generally expected to yield fair market pricing and encourage efficiency from the winning contractor. The presence of multiple bidders suggests a healthy market for this type of specialized construction service.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through competitive bidding, ensuring the government receives the best value for its investment in critical infrastructure.

Public Impact

Residents and businesses in the vicinity of Apra Harbor, Guam, will benefit from improved wastewater management and reduced risk of system failures. The project delivers essential services by upgrading and rehabilitating the collection system of the Apra Harbor Wastewater Treatment Plant. The geographic impact is localized to Guam, specifically the Apra Harbor area, supporting critical military and civilian infrastructure. The construction activities will likely create temporary employment opportunities for skilled labor in the Guam region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays due to the remote island location and logistical challenges.
Ensuring long-term durability and performance of hardened facilities against extreme weather events.
Integration of SCADA systems requires robust cybersecurity measures to prevent breaches.

Positive Signals

Focus on sustainable design principles demonstrates a commitment to environmental stewardship.
Upgrading to modern lift stations and pipelines will improve operational efficiency and reduce maintenance burdens.
Hardening facilities against typhoons enhances resilience and ensures continuity of essential services during natural disasters.

Sector Analysis

This contract falls within the construction sector, specifically water and sewer line and related structures construction. The market for such specialized infrastructure projects is often characterized by a limited number of highly qualified firms capable of undertaking complex, large-scale projects, particularly in remote or challenging environments like Guam. Federal spending in this area is crucial for maintaining and upgrading aging public infrastructure.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-asides. While the prime contractor is Core Tech International Corporation, there may be opportunities for small businesses to participate as subcontractors, particularly in specialized trades or material supply, depending on the contractor's subcontracting plan.

Oversight & Accountability

The contract is a firm-fixed-price definitive contract, which typically has defined oversight mechanisms to ensure compliance with specifications and timelines. The Department of the Navy, as the awarding agency, would be responsible for monitoring progress and performance. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Military Base Infrastructure Modernization
Wastewater Treatment Facility Upgrades
Federal Public Works Projects
Environmental Infrastructure Improvement Programs

Risk Flags

Geographic isolation of Guam may lead to logistical challenges and increased costs for materials and specialized labor.
Potential for weather-related delays, despite hardening measures, due to the typhoon-prone region.
Ensuring long-term effectiveness and maintenance of typhoon-hardened structures and SCADA systems.
Availability of skilled local workforce for specialized construction and technical integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to CORE TECH INTERNATIONAL CORPORATION. DESIGN AND CONSTRUCTION TO REPLACE AND REHABILITATE SEWER LIFT STATIONS AND SEWER PIPELINES IN THE COLLECTION SYSTEM OF THE APRA HARBOR WASTEWATER TREATMENT PLANT (AHWWTP). ANTIQUATED SEWAGE LIFT STATIONS (SLS) SHALL BE REPLACED WITH NEW FACILITIES THAT FACILITATE OPERATIONS AND MAINTENANCE ACTIVITIES. UPGRADE FACILITIES TO PROVIDE INCREASED CAPACITY AND SYSTEM RELIABILITY. PUMP STATION CONTROLS AND EMERGENCY GENERATORS SHALL BE PLACED IN STRUCTURES HARDENED FOR TYPHOONS. ADD SUPERVISORY CON

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 $15.0 million.

What is the period of performance?

Start: 2009-08-25. End: 2012-02-17.

What is the track record of Core Tech International Corporation in executing similar large-scale federal construction projects, particularly in challenging environments?

Core Tech International Corporation has a history of performing construction services for federal agencies, including the Department of Defense. Their experience often includes projects in remote or overseas locations, which aligns with the nature of this contract in Guam. A detailed review of their past performance, including project complexity, adherence to schedule and budget, and client satisfaction ratings from sources like the Federal Procurement Data System (FPDS) or CPARS (Contractor Performance Assessment Reporting System), would be necessary to fully assess their capability for this specific wastewater infrastructure project. Their portfolio likely includes a range of construction types, and it's important to verify specific experience with wastewater systems, lift stations, and pipeline rehabilitation.

How does the awarded amount of $14.96 million compare to the estimated cost or budget for this wastewater infrastructure project?

Without access to the government's initial cost estimate or budget allocation for this project, a direct comparison is difficult. However, the fact that it was awarded under full and open competition suggests that the bids received were considered competitive and within a reasonable range of the government's expectations. If the awarded amount is significantly lower than industry benchmarks for similar projects, it could indicate strong competition or efficient bidding. Conversely, if it aligns closely with or exceeds initial estimates, further scrutiny of the scope and pricing might be warranted. Publicly available data on similar wastewater infrastructure projects in comparable geographic locations could serve as a benchmark.

What are the primary risks associated with the construction and long-term performance of these upgraded wastewater facilities, especially considering the typhoon hardening requirement?

Primary risks include potential construction delays due to logistical challenges inherent in island-based projects, such as material transport and specialized labor availability. Weather-related disruptions, even with hardening, remain a concern. For long-term performance, the effectiveness of the typhoon hardening measures in extreme weather events is a key risk; ensuring the structural integrity and operational continuity of lift stations and pipelines under such conditions is paramount. Furthermore, the successful integration and ongoing maintenance of the SCADA system present technological risks, including cybersecurity vulnerabilities and the need for skilled personnel. Ensuring the sustainability of the chosen design principles throughout the project lifecycle is also a consideration.

What is the expected impact of this contract on the local economy and workforce in Guam?

This contract is expected to have a positive impact on the local economy in Guam by creating temporary employment opportunities for construction workers, engineers, and support staff. The demand for local materials and services could also stimulate economic activity. The project's duration of over 900 days suggests a sustained period of job creation. Additionally, the upgrade of critical wastewater infrastructure contributes to the overall resilience and public health of the island, which indirectly benefits residents and businesses by ensuring reliable essential services and potentially reducing future environmental risks associated with system failures.

How does this contract fit into the broader context of the Department of the Navy's infrastructure investments and modernization efforts in the Pacific region?

This contract is indicative of the Department of the Navy's ongoing commitment to modernizing and maintaining its infrastructure, particularly in the strategically important Pacific region. Investments in essential utilities like wastewater treatment are critical for supporting operational readiness and quality of life for service members and their families stationed at naval facilities. Upgrading aging systems, enhancing resilience against natural disasters like typhoons, and incorporating sustainable design principles are likely part of a larger, long-term strategy to ensure the Navy's installations in Guam and surrounding areas are robust, efficient, and environmentally compliant.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6274209R1306

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 MARINER AVENUE, TIYAN, BARRIGADA, GU, 96913

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,964,352

Exercised Options: $14,964,352

Current Obligation: $14,964,352

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline