DoD's $60M Bachelor Enlisted Quarters Contract Awarded to ABSHER CONSTRUCTION CO for Marine Corps Base Hawaii

Contract Overview

Contract Amount: $59,971,449 ($60.0M)

Contractor: Absher Construction CO

Awarding Agency: Department of Defense

Start Date: 2016-07-12

End Date: 2019-09-05

Contract Duration: 1,150 days

Daily Burn Rate: $52.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF NAVFAC WORK ORDER NUMBER 1312138, FY16 MCON P-910, BACHELOR ENLISTED QUARTERS AT THE MARINE CORPS BASE HAWAII, KANEOHE BAY, HAWAII

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 $60.0 million to ABSHER CONSTRUCTION CO for work described as: IGF::OT::IGF NAVFAC WORK ORDER NUMBER 1312138, FY16 MCON P-910, BACHELOR ENLISTED QUARTERS AT THE MARINE CORPS BASE HAWAII, KANEOHE BAY, HAWAII Key points: 1. The contract is for new multifamily housing construction, a sector with significant infrastructure needs. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The firm fixed price contract type aims to control costs, but potential risks exist in scope changes. 4. Located in Hawaii, a high-cost construction environment, potentially impacting overall value.

Value Assessment

Rating: fair

The contract value of $59.97 million for new multifamily housing construction appears substantial. Benchmarking against similar projects in Hawaii is crucial to assess if the price reflects fair market value given the location and project scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were allowed to submit proposals. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by securing the best possible price for the construction services.

Public Impact

Enhances quality of life for enlisted personnel at Marine Corps Base Hawaii. Supports military readiness by providing adequate housing infrastructure. Potential for job creation in the local Hawaii construction sector. Addresses long-term housing needs for military families and individuals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise in Hawaii.
Firm fixed price contracts can limit contractor flexibility for necessary design changes.
Long duration of the contract (1150 days) increases exposure to market fluctuations.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed price contract provides cost certainty for the government.
Addresses critical infrastructure needs for military personnel.

Sector Analysis

This contract falls within the construction sector, specifically new multifamily housing. Construction projects, especially in high-cost areas like Hawaii, often represent significant government expenditures. Benchmarks for similar military housing projects would provide further context.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not primary awardees, though they may have participated as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of the Navy (NAVFAC), a component of the Department of Defense. Oversight would typically involve contract administration by NAVFAC to ensure compliance with terms and quality standards.

Related Government Programs

New Multifamily Housing Construction (except For-Sale Builders)
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

High cost per unit ($6.66M) requires justification.
Long contract duration (1150 days) increases risk exposure.
Firm fixed price contract may limit flexibility for necessary changes.
Project located in Hawaii, a high-cost construction environment.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.0 million to ABSHER CONSTRUCTION CO. IGF::OT::IGF NAVFAC WORK ORDER NUMBER 1312138, FY16 MCON P-910, BACHELOR ENLISTED QUARTERS AT THE MARINE CORPS BASE HAWAII, KANEOHE BAY, HAWAII

Who is the contractor on this award?

The obligated recipient is ABSHER CONSTRUCTION CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $60.0 million.

What is the period of performance?

Start: 2016-07-12. End: 2019-09-05.

What is the estimated cost per unit for this Bachelor Enlisted Quarters project, and how does it compare to similar military housing projects?

The total contract value is $59,971,449.06 for 9 units, resulting in an approximate cost per unit of $6,663,494. This figure is exceptionally high and warrants further investigation. It significantly exceeds typical costs for multifamily housing construction, even in high-cost areas like Hawaii, suggesting potential issues with scope, specifications, or an anomaly in the data provided.

What are the primary risks associated with a firm fixed price contract for a project of this duration and complexity in Hawaii?

The primary risks with a firm fixed price contract for this 1150-day project in Hawaii include potential cost overruns if unforeseen site conditions or material price escalations occur beyond the contractor's control. The contractor bears the risk of increased costs, which could lead to quality compromises or contractor default if the fixed price is insufficient. Scope creep is also a risk, as changes can be costly and difficult to manage under this contract type.

How effectively does this contract address the housing needs of enlisted personnel at Marine Corps Base Hawaii, and what is the long-term value?

The contract aims to address critical housing needs by constructing new Bachelor Enlisted Quarters, directly improving the quality of life for service members. The long-term value lies in providing modern, safe, and adequate housing, which supports recruitment, retention, and overall morale. However, the high cost per unit raises questions about the efficiency and ultimate value proposition if costs are disproportionately high compared to the delivered benefit.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6274215R1322

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1001 SHAW RD, PUYALLUP, WA, 98372

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,971,449

Exercised Options: $59,971,449

Current Obligation: $59,971,449

Subaward Activity

Number of Subawards: 41

Total Subaward Amount: $45,559,547

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline