DoD's $29.8M Guam Construction Contract for Low Observable/Corrosion Control with Pernix Guam LLC
Contract Overview
Contract Amount: $29,813,573 ($29.8M)
Contractor: Pernix Guam LLC
Awarding Agency: Department of Defense
Start Date: 2016-09-30
End Date: 2021-12-31
Contract Duration: 1,918 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF FY16 MCAF PROJECT P-3028/AJJY133028 LOW OBSERVABLE/CORROSION CONTROL/COMPOSITE REPAIR SHOP, JOINT REGION MARIANAS-ANDERSEN AIR FORCE BASE, GUAM
Place of Performance
Location: HAGATNA, GUAM County, GUAM, 96932
Plain-Language Summary
Department of Defense obligated $29.8 million to PERNIX GUAM LLC for work described as: IGF::OT::IGF FY16 MCAF PROJECT P-3028/AJJY133028 LOW OBSERVABLE/CORROSION CONTROL/COMPOSITE REPAIR SHOP, JOINT REGION MARIANAS-ANDERSEN AIR FORCE BASE, GUAM Key points: 1. The contract awarded to Pernix Guam LLC for $29.8M focuses on specialized construction for low observable and corrosion control. 2. This project falls under the Commercial and Institutional Building Construction sector, with a significant duration of 1918 days. 3. The award was made under a full and open competition, suggesting a competitive bidding process. 4. The contract type is Firm Fixed Price, which transfers risk to the contractor regarding cost overruns.
Value Assessment
Rating: fair
The contract value of $29.8M for a 5-year duration appears within a reasonable range for large-scale construction projects of this nature, especially considering the specialized requirements and remote location.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.
Public Impact
Supports military readiness and infrastructure maintenance at Andersen Air Force Base, Guam. Contributes to the local economy in Guam through construction activities and potential subcontracting. Ensures the longevity and operational effectiveness of critical military assets through specialized repair and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (1918 days) increases risk of cost escalation or scope creep.
- Fixed-price contract may lead to contractor seeking change orders if unforeseen issues arise.
- Remote location (Guam) can add logistical complexities and costs.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Firm Fixed Price contract shifts cost risk to the contractor.
- Project addresses critical infrastructure needs for military operations.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense can vary significantly based on infrastructure modernization needs, base realignments, and operational requirements.
Small Business Impact
The data indicates that small business participation (sb: false) was not a primary consideration or requirement for this specific contract award. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve contract management teams ensuring adherence to terms, quality standards, and delivery schedules.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration.
- Fixed-price contract risk.
- Remote location logistics.
- Potential for change orders.
- Lack of specified small business participation.
Tags
commercial-and-institutional-building-co, department-of-defense, gu, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.8 million to PERNIX GUAM LLC. IGF::OT::IGF FY16 MCAF PROJECT P-3028/AJJY133028 LOW OBSERVABLE/CORROSION CONTROL/COMPOSITE REPAIR SHOP, JOINT REGION MARIANAS-ANDERSEN AIR FORCE BASE, GUAM
Who is the contractor on this award?
The obligated recipient is PERNIX GUAM LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $29.8 million.
What is the period of performance?
Start: 2016-09-30. End: 2021-12-31.
What specific "low observable" and "corrosion control" technologies or materials are being utilized, and how do they compare to industry standards?
The contract details do not specify the exact technologies or materials. However, "low observable" likely refers to materials and coatings designed to reduce radar cross-section for stealth capabilities. Corrosion control is critical in humid, marine environments like Guam. Benchmarking would require detailed technical specifications, but advanced composites and specialized coatings are common in such applications.
What is the potential risk associated with the long contract duration and fixed-price nature in a remote location like Guam?
A long duration (1918 days) on a fixed-price contract in a remote location like Guam presents risks of unforeseen material cost increases, labor shortages, and logistical challenges. The contractor bears the primary financial risk, but could seek change orders for scope changes or unforeseen conditions, potentially increasing costs for the government.
How effectively does this contract contribute to the overall mission readiness and infrastructure resilience of Joint Region Marianas?
This contract is crucial for maintaining and enhancing the operational capabilities of Andersen Air Force Base by addressing critical infrastructure needs related to specialized aircraft maintenance (low observable) and asset protection (corrosion control) in a challenging environment. Its effectiveness hinges on timely completion and quality of work.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6274216R1309
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pernix Group, Inc.
Address: 266D FINEGAYAN ST HARMON INDU, HARMON, GU, 96913
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,813,573
Exercised Options: $29,813,573
Current Obligation: $29,813,573
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-09-30
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2025-03-13
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