DOD Awards $61.9M for Guam Training Center Construction to Core Tech-HDCC-Kajima LLC
Contract Overview
Contract Amount: $61,941,034 ($61.9M)
Contractor: Core Tech-Hdcc-Kajima LLC
Awarding Agency: Department of Defense
Start Date: 2024-10-02
End Date: 2027-04-14
Contract Duration: 924 days
Daily Burn Rate: $67.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY24, P-760 PDI: TRAINING CENTER, MCB,
Place of Performance
Location: TAMUNING, GUAM County, GUAM, 96913
Plain-Language Summary
Department of Defense obligated $61.9 million to CORE TECH-HDCC-KAJIMA LLC for work described as: FY24, P-760 PDI: TRAINING CENTER, MCB, Key points: 1. Significant investment in military infrastructure in Guam. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk associated with large-scale construction projects, including schedule and cost overruns. 4. Construction sector spending benchmark is relevant for evaluating this award.
Value Assessment
Rating: good
The award amount of $61.9M for a training center appears reasonable given the scope and location. Benchmarking against similar large-scale construction projects for military bases would provide further validation.
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. The use of a delivery order under a larger contract structure indicates a pre-established relationship or framework.
Taxpayer Impact: The use of competitive bidding aims to ensure taxpayer funds are used efficiently for this critical infrastructure project.
Public Impact
Enhances military training capabilities in the Indo-Pacific region. Supports local economy through construction jobs and related services in Guam. Contributes to the long-term strategic presence of the U.S. military in the Pacific.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting readiness.
- Geographic challenges in Guam could increase costs.
- Reliance on a single delivery order for a large project.
Positive Signals
- Awarded through full and open competition.
- Clear project scope for a training facility.
- Long-term strategic investment.
Sector Analysis
This award falls within the Commercial and Institutional Building Construction sector. Large military construction projects often exceed typical commercial benchmarks due to specialized requirements and remote locations.
Small Business Impact
While the prime contractor is a joint venture, the data does not indicate specific subcontracting opportunities for small businesses on this particular delivery order. Further analysis of the joint venture's past performance with small businesses is warranted.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The use of a delivery order under a potentially larger contract may streamline oversight but requires diligence to ensure adherence to original contract terms and scope.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to remote location and logistics.
- Schedule slippage risk common in large construction projects.
- Dependence on the performance of the joint venture partners.
- Unforeseen environmental or geological conditions in Guam.
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 $61.9 million to CORE TECH-HDCC-KAJIMA LLC. FY24, P-760 PDI: TRAINING CENTER, MCB,
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 $61.9 million.
What is the period of performance?
Start: 2024-10-02. End: 2027-04-14.
What is the total value of the parent contract under which this delivery order was issued, and how does this award compare to the overall contract ceiling?
The provided data does not specify the parent contract's total value or ceiling. Understanding this context is crucial for assessing the significance of this $61.9M award within the broader contractual framework and for evaluating potential future task orders or modifications.
Are there any specific performance metrics or milestones tied to this delivery order that could indicate potential risks or value realization?
The data indicates a duration of 924 days and a firm fixed price contract type. While this suggests a defined cost and timeline, specific performance metrics beyond completion date are not detailed. Risks could emerge if unforeseen site conditions or logistical challenges arise in Guam, potentially impacting the schedule and final cost.
How does the cost per square foot or per training station for this facility compare to similar recently constructed military training centers?
Cost per square foot or per training station data is not provided. A comprehensive value assessment would require benchmarking this award against comparable facilities, considering factors like specialized equipment, security requirements, and the higher logistical costs associated with construction in Guam.
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: N6274222R1317
Offers Received: 4
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: $61,941,034
Exercised Options: $61,941,034
Current Obligation: $61,941,034
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
Start Date: 2024-10-02
Current End Date: 2027-04-14
Potential End Date: 2027-04-14 00:00:00
Last Modified: 2025-05-19
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