Department of the Army awards $12.3M contract for Schofield Barracks motorpool facility, highlighting construction sector activity

Contract Overview

Contract Amount: $12,276,346 ($12.3M)

Contractor: Primatech Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-09-28

End Date: 2010-04-08

Contract Duration: 1,288 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY05 MCA PN 57421 SBCT MOTORPOOL FACILITY (INCREMENT #1); FY06 MCA PN 58942 SBCT MOTORPOOL FACILITY (INCREMENT #2), SCHOFIELD BARRACKS, OAHU, HI

Place of Performance

Location: SCHOFIELD BARRACKS, HONOLULU County, HAWAII, 96857

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $12.3 million to PRIMATECH CONSTRUCTION, INC. for work described as: FY05 MCA PN 57421 SBCT MOTORPOOL FACILITY (INCREMENT #1); FY06 MCA PN 58942 SBCT MOTORPOOL FACILITY (INCREMENT #2), SCHOFIELD BARRACKS, OAHU, HI Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The project involves the construction of a motorpool facility, a common infrastructure need for military bases. 3. The duration of the contract (1288 days) indicates a significant construction timeline. 4. The award value of $12.3 million falls within a typical range for such infrastructure projects. 5. The contract was awarded to PRIMATECH CONSTRUCTION, INC., a participant in the commercial and institutional building construction sector. 6. The project is located in Hawaii, potentially impacting local construction workforce and material sourcing.

Value Assessment

Rating: good

The contract value of $12.3 million for a motorpool facility at Schofield Barracks appears reasonable given the scope and duration. Benchmarking against similar military construction projects would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that cost risks are largely borne by the contractor, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to industry standards for similar facilities, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, certain sources may have been excluded prior to the solicitation. The presence of two bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider selection of qualified contractors, but two bidders can still result in a fair market price if the exclusion of sources was justified and did not unduly limit competition.

Taxpayer Impact: The full and open competition, even with potential source exclusions, aims to ensure that taxpayer funds are used efficiently by encouraging competitive pricing. The level of competition achieved here suggests a reasonable effort to obtain value for money.

Public Impact

Military personnel and equipment at Schofield Barracks will benefit from improved motorpool facilities, enhancing operational readiness. The contract delivers essential infrastructure for vehicle maintenance and storage, supporting the Army's logistical functions. The project's geographic impact is concentrated in Oahu, Hawaii, potentially creating local employment opportunities in the construction sector. The construction activities will likely involve a workforce of skilled tradespeople, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by firm fixed-price contract.
Dependence on the contractor's ability to manage the construction timeline effectively to avoid delays.
Risk of supply chain disruptions for construction materials, particularly in a remote location like Hawaii.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a single contractor streamlines management and accountability.
Project addresses a clear operational need for the military base.

Sector Analysis

The construction sector is a significant component of federal spending, particularly for infrastructure development and maintenance. This contract falls under the Commercial and Institutional Building Construction category, which includes a wide range of projects from office buildings to specialized facilities like motorpools. Federal spending in this area is often driven by the needs of agencies like the Department of Defense for base improvements and operational support. Market size for federal construction is substantial, with numerous firms competing for these contracts.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates 'sb' is false. This suggests that the competition was open to all qualified contractors, including large businesses. While there is no explicit small business set-aside, the prime contractor, PRIMATECH CONSTRUCTION, INC., may engage small businesses as subcontractors. The impact on the small business ecosystem would depend on the subcontracting opportunities created by this project and the extent to which small businesses are able to compete for those roles.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project's contracting officer's representative (COR) within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver the specified facility within the agreed-upon price and timeline. Transparency is generally maintained through contract award databases and public reporting, although detailed project-specific oversight mechanisms are internal to the agency.

Related Government Programs

Military Construction, Army
Facilities Sustainment, Restoration, and Modernization
Department of Defense Construction Contracts
Schofield Barracks Infrastructure Projects

Risk Flags

Potential for cost growth if scope changes
Schedule delay risks
Contractor performance uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to PRIMATECH CONSTRUCTION, INC.. FY05 MCA PN 57421 SBCT MOTORPOOL FACILITY (INCREMENT #1); FY06 MCA PN 58942 SBCT MOTORPOOL FACILITY (INCREMENT #2), SCHOFIELD BARRACKS, OAHU, HI

Who is the contractor on this award?

The obligated recipient is PRIMATECH CONSTRUCTION, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2006-09-28. End: 2010-04-08.

What is the track record of PRIMATECH CONSTRUCTION, INC. with federal contracts, particularly within the Department of Defense?

Assessing the track record of PRIMATECH CONSTRUCTION, INC. requires a review of their past federal contract awards, performance evaluations, and any history of disputes or contract modifications. While this specific contract award indicates they were selected for a significant construction project, a deeper dive into their portfolio would reveal their experience with similar projects, their on-time and on-budget performance, and their overall reputation with government agencies. Information from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be crucial for a comprehensive understanding of their capabilities and reliability as a federal contractor.

How does the awarded amount of $12.3 million compare to the estimated cost or industry benchmarks for similar motorpool facilities?

The awarded amount of $12.3 million for the SBCT Motorpool Facility at Schofield Barracks needs to be benchmarked against similar projects to assess value for money. Factors such as facility size (square footage), specific features (e.g., vehicle lifts, specialized repair bays), location (Hawaii's higher construction costs), and the complexity of site preparation significantly influence project costs. Without access to the government's cost estimates or data on comparable facilities built by other agencies or in the private sector, it is difficult to definitively state if this represents excellent or questionable value. However, the firm fixed-price nature suggests the government sought to cap its exposure.

What are the primary risks associated with this specific construction contract, and how are they being managed?

The primary risks for this construction contract include potential cost overruns due to unforeseen site conditions, delays in the construction schedule, and quality control issues. Given the firm fixed-price (FFP) contract type, the financial risk of cost overruns largely rests with PRIMATECH CONSTRUCTION, INC., provided the scope of work remains unchanged. Schedule delays could still impact operational readiness. Risk management is typically handled through robust project oversight by the Army Corps of Engineers or the contracting officer's representative, adherence to construction quality standards, and potentially performance bonds. The contract's duration (1288 days) also presents a longer window for potential risks to materialize.

What is the historical spending pattern for motorpool facilities or similar construction projects at Schofield Barracks or within the Department of the Army?

Analyzing historical spending patterns for motorpool facilities at Schofield Barracks and across the Department of the Army provides context for the $12.3 million award. This involves examining past contracts for similar infrastructure, noting their values, durations, and the number of bidders. Significant fluctuations or consistent high spending in this category might indicate ongoing infrastructure needs or potential areas for cost-saving initiatives. Understanding the historical budget allocation for such projects helps in evaluating whether the current contract represents a typical investment or an outlier, and whether spending aligns with modernization or expansion efforts.

How effective was the 'full and open competition after exclusion of sources' in achieving competitive pricing for this contract?

The effectiveness of 'full and open competition after exclusion of sources' in achieving competitive pricing for this $12.3 million contract is suggested by the fact that two bids were received. While 'full and open' implies broad solicitation, the 'exclusion of sources' clause indicates specific pre-qualification or limitations were applied. The presence of two bidders suggests that the exclusion criteria did not unduly restrict the pool of potential offerors to the point of eliminating meaningful competition. However, a more robust competition typically involves a larger number of bidders, which often drives prices down further. The final price achieved would need to be compared against independent cost estimates or market rates to fully gauge its competitiveness.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9128A06R0009

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 496 KANOELEHUA AVE, HILO, HI, 02

Business Categories: Asian Pacific American Owned Business, Category Business, Emerging Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $12,276,346

Exercised Options: $12,276,346

Current Obligation: $12,276,346

Contract Characteristics

Cost or Pricing Data: NO

Timeline