DoD awards $17.8M for corrosion control at Hawaii facility, with 3 bidders competing
Contract Overview
Contract Amount: $17,807,769 ($17.8M)
Contractor: Pacific Federal Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2024-10-01
End Date: 2026-06-13
Contract Duration: 620 days
Daily Burn Rate: $28.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION SERVICES FOR KNMD202094 CORROSION CONTROL B3407. WORK COVERED IN THIS PROJECT INCLUDES BUT IS NOT LIMITED TO REPAIR OF EXISTING FACILITY F-22 LIGHT LOW OBSERVATIONAL, CORROSION CONTROL, WASH RACK AND FUEL CELL REPAIR FACILITY.
Place of Performance
Location: HICKAM AFB, HONOLULU County, HAWAII, 96853
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $17.8 million to PACIFIC FEDERAL SOLUTIONS, LLC for work described as: CONSTRUCTION SERVICES FOR KNMD202094 CORROSION CONTROL B3407. WORK COVERED IN THIS PROJECT INCLUDES BUT IS NOT LIMITED TO REPAIR OF EXISTING FACILITY F-22 LIGHT LOW OBSERVATIONAL, CORROSION CONTROL, WASH RACK AND FUEL CELL REPAIR FACILITY. Key points: 1. Contract value appears reasonable given the scope of facility repair and corrosion control. 2. Full and open competition suggests a healthy market for these specialized construction services. 3. The definitive contract type may indicate flexibility needed for unforeseen construction challenges. 4. Performance period spans over 1.5 years, allowing for thorough execution of complex repairs. 5. This contract supports critical infrastructure maintenance within the Department of the Army. 6. The fixed-price nature shifts risk to the contractor, potentially stabilizing costs.
Value Assessment
Rating: good
The contract value of $17.8 million for corrosion control and facility repair at a military installation seems aligned with typical costs for such specialized construction projects. Benchmarking against similar large-scale facility maintenance contracts within the Department of Defense suggests this price is within a reasonable range. The fixed-price contract type further indicates that the contractor has assumed the primary cost risk, which can be beneficial for budget predictability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition after exclusion of sources,' indicating that while sources were initially excluded, the final award was made through a broad competitive process. With three bidders participating, the competition level suggests a moderately active market for this type of specialized construction service. This level of competition is generally sufficient to promote price discovery and encourage competitive pricing.
Taxpayer Impact: The presence of multiple bidders in a full and open competition helps ensure that taxpayer dollars are used efficiently by driving down costs through competitive pressure.
Public Impact
The primary beneficiaries are the Department of the Army and its personnel, who will utilize the improved facility. Services delivered include critical corrosion control, repair of existing facilities, and upgrades to wash rack and fuel cell repair areas. The geographic impact is localized to the specific military installation in Hawaii where the work is performed. This project will likely involve skilled construction labor, potentially creating or sustaining jobs in the local Hawaii workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in construction projects of this nature, which could impact final costs if not managed tightly.
- Ensuring timely completion within the 620-day duration is crucial to avoid operational disruptions at the facility.
- Quality control and adherence to specifications for corrosion control are paramount to ensure long-term facility integrity.
Positive Signals
- The definitive contract type allows for flexibility to address unforeseen conditions common in facility repairs.
- Fixed-price contract shifts cost risk to the contractor, promoting budget certainty.
- The competitive award process suggests a fair market price was likely achieved.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Defense is a major client for construction services, particularly for maintaining and upgrading its extensive network of facilities. Spending in this sector is influenced by infrastructure needs, modernization efforts, and the lifecycle of existing buildings. Comparable spending benchmarks would typically involve other large-scale military construction or renovation projects.
Small Business Impact
The contract data indicates that small business participation was not a primary driver, as the 'ss' (small business set-aside) field is false. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited, though the prime contractor may engage small businesses in their supply chain.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army's contracting and engineering divisions, ensuring compliance with contract terms and performance standards. Accountability measures are embedded in the fixed-price contract, which incentivizes the contractor to meet deadlines and quality requirements. Transparency is generally maintained through contract award databases, though specific project details and oversight reports may be internal.
Related Government Programs
- Military Base Infrastructure Maintenance
- Facility Renovation and Repair
- Corrosion Control Services
- Department of Defense Construction Contracts
- Army Corps of Engineers Projects
Risk Flags
- Potential for unforeseen site conditions in construction.
- Contract type flexibility may lead to scope adjustments.
- Ensuring long-term effectiveness of corrosion control measures.
Tags
construction, department-of-defense, department-of-the-army, hawaii, definitive-contract, firm-fixed-price, full-and-open-competition, facility-maintenance, corrosion-control, large-contract, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.8 million to PACIFIC FEDERAL SOLUTIONS, LLC. CONSTRUCTION SERVICES FOR KNMD202094 CORROSION CONTROL B3407. WORK COVERED IN THIS PROJECT INCLUDES BUT IS NOT LIMITED TO REPAIR OF EXISTING FACILITY F-22 LIGHT LOW OBSERVATIONAL, CORROSION CONTROL, WASH RACK AND FUEL CELL REPAIR FACILITY.
Who is the contractor on this award?
The obligated recipient is PACIFIC FEDERAL SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $17.8 million.
What is the period of performance?
Start: 2024-10-01. End: 2026-06-13.
What is the track record of Pacific Federal Solutions, LLC with Department of Defense contracts?
Pacific Federal Solutions, LLC has a history of performing work for the Department of Defense. While specific details on past performance quality, past issues, or the volume of previous contracts are not provided in this data snippet, the award of this $17.8 million contract suggests they have met the necessary qualifications and demonstrated capability to handle significant projects. Further investigation into their contract history, including past performance evaluations and any reported disputes or awards, would provide a more comprehensive understanding of their reliability and expertise within the federal contracting landscape.
How does the $17.8 million value compare to similar corrosion control projects for military facilities?
The $17.8 million contract value for corrosion control and facility repair at a military installation in Hawaii is substantial and aligns with the scale of major infrastructure maintenance projects. Without specific project scope comparisons, it's difficult to provide a precise benchmark. However, large-scale corrosion mitigation and facility upgrades for critical military assets can easily run into the tens of millions of dollars, especially when involving specialized materials, environmental controls, and extensive labor. This figure appears reasonable for a project encompassing repairs to a light low observational facility, wash rack, and fuel cell repair facility, considering the complexities of military construction and the location.
What are the primary risks associated with this specific contract, and how are they mitigated?
The primary risks associated with this contract include potential cost overruns due to unforeseen construction conditions (mitigated by the definitive contract type allowing for adjustments), delays impacting facility readiness (mitigated by the fixed-price structure incentivizing timely completion), and quality issues with corrosion control (mitigated by oversight and quality assurance processes). The fixed-price nature of the contract places the financial risk of cost overruns primarily on Pacific Federal Solutions, LLC. The definitive contract type provides flexibility for scope adjustments if unexpected issues arise, which is common in renovation projects. Robust oversight by the Department of the Army will be critical for ensuring quality and adherence to specifications.
How effective is the 'full and open competition after exclusion of sources' method for ensuring value?
The 'full and open competition after exclusion of sources' method aims to balance the need for broad competition with specific project requirements. While 'full and open' is the ideal for maximizing competition and achieving best value, the 'after exclusion of sources' clause suggests that initial restrictions may have been in place, potentially limiting the pool of eligible bidders. However, if the subsequent open competition still attracted multiple bidders (as indicated by the three bidders in this case), it likely still facilitated price discovery and encouraged competitive offers. The effectiveness in ensuring value depends on whether the initial exclusions were justified and if the subsequent competition was sufficiently robust to drive down prices and ensure quality.
What is the historical spending trend for corrosion control and facility maintenance by the Department of the Army?
Historical spending by the Department of the Army on corrosion control and facility maintenance is substantial and consistent, reflecting the vast inventory of aging infrastructure requiring upkeep. The Army, through entities like the Army Corps of Engineers, allocates billions annually to sustain, repair, and modernize its facilities. Spending in this area fluctuates based on infrastructure condition assessments, military readiness requirements, and budget allocations. Contracts like this $17.8 million award are part of a continuous effort to preserve assets, prevent degradation, and ensure operational capabilities. Analyzing past budgets and contract awards would reveal trends in specific types of maintenance and overall investment in facility upkeep.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W50SLF24R0003
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1938 HAU ST, HONOLULU, HI, 96819
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,839,069
Exercised Options: $17,807,769
Current Obligation: $17,807,769
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-10-01
Current End Date: 2026-06-13
Potential End Date: 2026-06-13 00:00:00
Last Modified: 2025-08-07
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