DoD's $28.6M Guam Naval Base HQ Contract Awarded to ConTrack Watts Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $28,656,582 ($28.7M)
Contractor: Contrack Watts Inc
Awarding Agency: Department of Defense
Start Date: 2017-09-18
End Date: 2022-09-30
Contract Duration: 1,838 days
Daily Burn Rate: $15.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF NAVFAC WORK ORDER NUMBER 855728, JFY10 PROJECT J-007 WATERFRONT HEADQUARTERS BUILDING APRA HARBOR, NAVAL BASE GUAM
Place of Performance
Location: AGAT, GUAM County, GUAM, 96928
Plain-Language Summary
Department of Defense obligated $28.7 million to CONTRACK WATTS INC for work described as: IGF::OT::IGF NAVFAC WORK ORDER NUMBER 855728, JFY10 PROJECT J-007 WATERFRONT HEADQUARTERS BUILDING APRA HARBOR, NAVAL BASE GUAM Key points: 1. The contract value of $28.6M for a waterfront headquarters building on Guam is significant for the region. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The project duration of 1838 days (over 5 years) indicates a long-term commitment and potential for cost escalation. 4. The absence of small business participation is noted, which could be a missed opportunity for local economic development.
Value Assessment
Rating: fair
The contract value of $28.6M for a large construction project appears within a reasonable range for major infrastructure development in a remote location like Guam. Benchmarking against similar large-scale government building projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and promotes price discovery. The definitive contract type suggests a single award after the competitive process.
Taxpayer Impact: Full and open competition generally aims to secure the best value for taxpayers by fostering a competitive environment. However, the long duration and potential for unforeseen costs could impact the final taxpayer burden.
Public Impact
Construction of a new headquarters building on Naval Base Guam will modernize facilities and support naval operations. The project's long duration may lead to temporary employment opportunities in Guam during its execution. Infrastructure improvements on military bases are crucial for national security and operational readiness. The project's location in Guam highlights the strategic importance of the Indo-Pacific region for the U.S.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (over 5 years) increases risk of cost overruns and scope creep.
- No small business participation noted, potentially limiting local economic benefit.
- Remote location (Guam) can lead to higher logistical costs and supply chain challenges.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- Firm Fixed Price contract type helps control costs if scope is well-defined.
- Project addresses critical infrastructure needs for the Navy in a strategic location.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense is substantial, often driven by infrastructure modernization and base development needs, particularly in strategic overseas locations like Guam.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as 'sb' is false. This suggests that the prime contractor did not subcontract to small businesses or that the contract was too large or specialized for typical small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions. The long duration necessitates ongoing monitoring to ensure adherence to schedule, budget, and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration increases risk.
- Potential for cost overruns due to remote location and logistics.
- Lack of small business participation.
- Complexity of waterfront construction.
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 $28.7 million to CONTRACK WATTS INC. IGF::OT::IGF NAVFAC WORK ORDER NUMBER 855728, JFY10 PROJECT J-007 WATERFRONT HEADQUARTERS BUILDING APRA HARBOR, NAVAL BASE GUAM
Who is the contractor on this award?
The obligated recipient is CONTRACK WATTS 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 $28.7 million.
What is the period of performance?
Start: 2017-09-18. End: 2022-09-30.
What was the basis for the $28.6M cost estimate, and how does it compare to similar construction projects in Guam or other Pacific territories?
Determining the basis for the $28.6M cost estimate requires access to the contract's detailed pricing documentation and justification. Benchmarking against similar projects in Guam or other Pacific territories is crucial for assessing value. Factors like material transport, labor costs, and local regulations significantly influence construction expenses in these regions, making direct comparisons challenging without specific project details.
What specific risks were identified during the bidding process that might have led to the long duration and potential for cost increases?
Specific risks identified during the bidding process could include unforeseen geological conditions, complex logistical challenges in delivering materials to Guam, potential labor shortages, and the need for specialized construction techniques for waterfront facilities. The long duration (1838 days) suggests these risks were significant enough to warrant extended timelines, which inherently increases the potential for cost escalation due to inflation, changing requirements, or extended overhead.
How will the effectiveness of the new headquarters building be measured post-construction, and what are the key performance indicators?
The effectiveness of the new headquarters building will likely be measured by its ability to support the intended naval operations, provide a secure and functional workspace, and meet energy efficiency and sustainability standards. Key performance indicators could include operational uptime, user satisfaction surveys, maintenance costs, and compliance with environmental regulations. Post-occupancy evaluations would assess how well the facility meets its design objectives and supports the mission.
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: N6274217R1321
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: OCI Overseas Holding Limited
Address: 6862 ELM STREET, 5TH FLOOR, MC LEAN, VA, 22101
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $28,656,582
Exercised Options: $28,656,582
Current Obligation: $28,656,582
Actual Outlays: $168,977
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-09-18
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2023-07-25
More Contracts from Contrack Watts Inc
- O&M Services Afghanistan — $239.8M (Department of Defense)
- Milcon P859 DBB CVN 78 Aircraft Carrier Electrical Upgrade for Various Substation Locations Within Naval Base Kitsap-Bremerton, WA — $150.6M (Department of Defense)
- Federal Contract — $120.8M (Department of Defense)
- TAS::97 0100::TAS 200511!500859!2100!w912er!transatlantic Program Center !w912er04d0003 !A!N! !N!0010 ! !20050804!20060501!154591549!154591549!154591549!n!contrack International Inc !1001 19TH ST N STE 1220 !arlington !VA!22209!00000! !AF!* !* !afghanista!+000066817583!n!n!000000000000!y199!other Miscellaneous Buildings !C2 !construction !000 !* !236220!E! !5!B!S! ! ! !20200930!B! ! !A! !a!u!j!2!060!b! !Z!N!A! ! !N!M!N! ! ! ! ! !a!a!000!a!b!n! ! ! !Y! ! !0001! ! — $71.0M (Department of Defense)
- TAS::21 2020::TAS 200412!001068!2100!w912er!transatlantic Program Center !w912er04d0003 !A!N! !N!0004 ! !20040730!20040729!154591549!154591549!154591549!n!contrack International Inc !1001 19TH ST N STE 1220 !arlington !VA!22209!00000! !AF!* !* !afghanista!+000050506264!n!n!000000000000!y199!other Miscellaneous Buildings !C2 !construction !000 !* !236220!E! !5!B!S! ! ! !99990909!B! ! !A! !a!u!j!2!060!b! !Z!N!A! ! !N!M!N! ! ! ! ! !A!A!00 !A!B!N! ! ! !Y! ! !0001! ! — $70.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)