DoD's $36.3M Guam Fire Station Contract Awarded to Core Tech-HDCC-Kajima LLC Under Full and Open Competition
Contract Overview
Contract Amount: $36,285,248 ($36.3M)
Contractor: Core Tech-Hdcc-Kajima LLC
Awarding Agency: Department of Defense
Start Date: 2021-08-26
End Date: 2024-11-26
Contract Duration: 1,188 days
Daily Burn Rate: $30.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: JFY2010 J-008 FIRE STATION
Place of Performance
Location: YIGO, GUAM County, GUAM, 96929
Plain-Language Summary
Department of Defense obligated $36.3 million to CORE TECH-HDCC-KAJIMA LLC for work described as: JFY2010 J-008 FIRE STATION Key points: 1. The contract value of $36.3M for a fire station in Guam is a significant investment in infrastructure. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The project falls under the Commercial and Institutional Building Construction sector, which can be subject to cost overruns and delays. 4. The award was a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Value Assessment
Rating: fair
The contract value of $36.3M for a fire station is substantial. Benchmarking against similar institutional building construction projects of this scale is necessary to fully assess value, but the fixed-price nature provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific impact on price discovery for this particular project requires further analysis of the bids received.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by driving down costs through market forces.
Public Impact
Enhances critical infrastructure for military operations and personnel safety in Guam. Supports local economic activity through construction jobs and related services. Ensures readiness and operational capability by providing essential facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Delays in project completion impacting operational readiness.
- Geographic location in Guam may present logistical challenges and increased costs.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type offers cost predictability.
- Addresses a critical infrastructure need for the Department of Defense.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can be highly variable, influenced by economic conditions, material costs, and project complexity. Benchmarks for similar military infrastructure projects are crucial for evaluation.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further investigation is needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The firm fixed-price contract type provides a degree of accountability for the contractor regarding cost. Monitoring progress and adherence to specifications is key.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost escalation due to material and labor costs.
- Risk of project delays impacting operational readiness.
- Logistical challenges associated with construction in Guam.
- Dependence on contractor's ability to manage complex construction projects.
Tags
commercial-and-institutional-building-co, department-of-defense, gu, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.3 million to CORE TECH-HDCC-KAJIMA LLC. JFY2010 J-008 FIRE STATION
Who is the contractor on this award?
The obligated recipient is CORE TECH-HDCC-KAJIMA 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 $36.3 million.
What is the period of performance?
Start: 2021-08-26. End: 2024-11-26.
What is the estimated cost per square foot for this fire station, and how does it compare to similar facilities in the region or of similar scope?
Without detailed specifications on the size and features of the fire station, a precise cost per square foot cannot be calculated. However, a $36.3 million project for a fire station suggests a significant facility. Benchmarking against other recently constructed fire stations for military or large municipal entities, especially in high-cost areas like Guam, would be necessary to determine if the pricing is competitive.
What are the primary risks associated with constructing a fire station in Guam, and what mitigation strategies are in place?
Key risks include logistical challenges due to Guam's remote location, potential for supply chain disruptions, weather-related delays (typhoons), and the availability of skilled labor. Mitigation strategies likely involve robust project management, pre-ordering materials, contingency planning for weather, and potentially incentivizing local or imported labor.
How effectively will this new fire station enhance the Department of Defense's emergency response capabilities in Guam?
The effectiveness hinges on the station's design, equipment, staffing, and strategic location relative to the facilities it will serve. A modern, well-equipped fire station should significantly improve response times and capabilities compared to older or less capable facilities, thereby enhancing overall safety and operational readiness for DoD assets and personnel in the region.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6274219R1313
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 388 SOUTH MARINE CORPS DRIVE, TAMUNING, GU, 96913
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,285,248
Exercised Options: $36,285,248
Current Obligation: $36,285,248
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6274221D1325
IDV Type: IDC
Timeline
Start Date: 2021-08-26
Current End Date: 2024-11-26
Potential End Date: 2024-11-26 00:00:00
Last Modified: 2024-09-16
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