DoD's $38.3M Guam Facility Recovery Contract Awarded to Core Tech-HDCC-Kajima LLC

Contract Overview

Contract Amount: $38,283,380 ($38.3M)

Contractor: Core Tech-Hdcc-Kajima LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-14

End Date: 2024-11-17

Contract Duration: 522 days

Daily Burn Rate: $73.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING AND OTHER FACILITY TYPHOON RECOVERY WITHIN THE COGNIZANCE OF NAVFAC PACIFIC

Place of Performance

Location: TAMUNING, GUAM County, GUAM, 96913

Plain-Language Summary

Department of Defense obligated $38.3 million to CORE TECH-HDCC-KAJIMA LLC for work described as: BUILDING AND OTHER FACILITY TYPHOON RECOVERY WITHIN THE COGNIZANCE OF NAVFAC PACIFIC Key points: 1. Contract focuses on typhoon recovery for facilities, indicating a need for resilience and repair in the region. 2. The award is a delivery order under a larger contract, suggesting potential for follow-on work and broader program scope. 3. Fixed-price contract type aims to control costs, but requires careful monitoring for scope creep or unforeseen issues. 4. The geographic location in Guam highlights the strategic importance and unique logistical challenges of operating in the Pacific. 5. The contract falls under commercial and institutional building construction, a broad category with diverse cost drivers. 6. The award value is substantial, necessitating robust oversight to ensure efficient use of taxpayer funds.

Value Assessment

Rating: fair

The contract value of $38.3 million for typhoon recovery construction in Guam appears significant. Benchmarking against similar large-scale disaster recovery projects is challenging due to unique geographic and logistical factors in Guam. The firm fixed-price structure suggests an attempt to control costs, but the complexity of typhoon recovery could lead to change orders. Further analysis would require detailed cost breakdowns and comparison to similar recovery efforts in other Pacific territories.

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 had the opportunity to submit proposals. The presence of two bids suggests a degree of competition, but the exact number of interested parties and the evaluation process are crucial to understanding the effectiveness of this competition in driving down prices. A limited number of bidders, even in full and open competition, can sometimes indicate market concentration or specialized requirements.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and better value. However, the actual savings depend on the number and quality of bids received.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially other Department of Defense entities requiring facility repairs in Guam. The services delivered include construction and repair work to recover facilities damaged by typhoons. The geographic impact is concentrated in Guam, supporting the restoration of critical infrastructure in a U.S. territory. Workforce implications may include the creation of construction jobs in Guam and potentially the mobilization of specialized labor from elsewhere.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of typhoon damage is underestimated or if unforeseen construction challenges arise in Guam's environment.
Logistical complexities of operating in Guam could increase costs and timelines.
Dependence on a single delivery order for a significant portion of recovery work may limit flexibility if issues arise with the selected contractor.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type provides cost certainty for the government, assuming scope is well-defined.
Focus on typhoon recovery addresses critical infrastructure needs in a vulnerable region.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically addressing disaster recovery. The market for large-scale construction and recovery projects, particularly in strategic locations like Guam, is often specialized. Benchmarking requires comparison to similar post-disaster reconstruction efforts, which can be influenced by unique environmental conditions, material availability, and labor costs specific to island territories.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime contractor is a joint venture, the overall contract value suggests it is likely a large business award. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in Guam or beyond for specialized recovery tasks.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and inspection offices, potentially involving NAVFAC Pacific. Accountability measures are inherent in the firm fixed-price structure, but performance monitoring, quality assurance inspections, and adherence to delivery schedules are critical. Transparency would be enhanced by public reporting of progress and any significant modifications or challenges encountered during the recovery effort.

Related Government Programs

NAVFAC Pacific Construction Contracts
Department of Defense Disaster Recovery Efforts
Guam Infrastructure Projects
Typhoon Relief Funding

Risk Flags

Potential for scope creep in disaster recovery.
Logistical challenges in Guam.
Dependence on fixed-price for complex recovery.
Limited competition data available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.3 million to CORE TECH-HDCC-KAJIMA LLC. BUILDING AND OTHER FACILITY TYPHOON RECOVERY WITHIN THE COGNIZANCE OF NAVFAC PACIFIC

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 $38.3 million.

What is the period of performance?

Start: 2023-06-14. End: 2024-11-17.

What is the track record of CORE TECH-HDCC-KAJIMA LLC in handling large-scale disaster recovery construction projects, particularly in overseas or remote locations?

Information regarding the specific track record of the joint venture CORE TECH-HDCC-KAJIMA LLC in large-scale disaster recovery is not readily available in this data snippet. A comprehensive assessment would require reviewing past performance evaluations, project portfolios, and client references for each entity within the joint venture, especially concerning their experience with typhoon recovery and operations in geographically challenging areas like Guam. Understanding their history with similar firm fixed-price contracts and their ability to manage complex logistics and unforeseen issues is crucial for evaluating their suitability and potential risks associated with this award.

How does the awarded amount of $38.3 million compare to the estimated costs for similar typhoon recovery projects in other Pacific island nations or U.S. territories?

Direct comparison of the $38.3 million award to similar typhoon recovery projects is difficult without specific project details and cost breakdowns. Factors such as the scale of damage, types of facilities affected, local labor costs, material availability, and logistical challenges unique to Guam significantly influence project costs. Generally, construction in remote island locations tends to be more expensive than in mainland U.S. due to transportation costs for materials and personnel, and potentially limited local resources. A detailed benchmark would require analyzing the scope of work, duration, and specific recovery needs against comparable projects, adjusting for these regional economic and logistical variables.

What are the primary risks associated with a firm fixed-price contract for typhoon recovery in Guam, and what mitigation strategies are in place?

The primary risks with a firm fixed-price contract for typhoon recovery in Guam include potential cost overruns if the full extent of damage is not accurately assessed initially, leading to costly change orders. Unforeseen site conditions, material shortages, or logistical delays unique to island environments can also strain the fixed price. Mitigation strategies typically involve thorough initial assessments, robust contingency planning, clear contract language defining scope and exclusions, and strong government oversight to manage any necessary modifications effectively. The contractor bears the risk of cost overruns, incentivizing efficient execution, but the government must ensure the initial scope is comprehensive to avoid disputes.

What is the expected timeline for completing the typhoon recovery work under this contract, and how does it align with the urgency of restoring critical facilities?

The contract has a duration of 522 days, which translates to approximately 17 months, from the award date of June 14, 2023, to the estimated completion date of November 17, 2024. This timeline suggests a significant recovery effort is anticipated. The urgency of restoring critical facilities post-typhoon is high, and the alignment depends on the specific types of facilities being repaired and their operational importance. While 17 months allows for substantial work, the government will likely monitor progress closely to ensure timely restoration of essential services and infrastructure, especially given the strategic importance of facilities in Guam.

How does this $38.3 million award fit into the broader context of Department of Defense spending on facility maintenance and recovery in the Pacific region?

This $38.3 million award represents a significant, albeit specific, component of the Department of Defense's overall spending on facility maintenance and recovery in the Pacific. The DoD maintains a substantial real property footprint across numerous bases and installations in the region, necessitating continuous investment in upkeep and resilience against natural disasters like typhoons. While this single contract addresses a particular recovery need in Guam, it is part of a larger, ongoing commitment to ensuring operational readiness and infrastructure integrity in a strategically vital area. Annual spending on facilities in the Pacific likely runs into hundreds of millions or even billions, encompassing routine maintenance, upgrades, new construction, and emergency repairs.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6274222R1317

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 388 S MARINE CORPS DR, 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: $38,283,380

Exercised Options: $38,283,380

Current Obligation: $38,283,380

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6274223D1321

IDV Type: IDC

Timeline