DoD's $16.18M Tactical Equipment Maintenance Facility in Hawaii awarded to LEDCOR CONSTRUCTION HAWAII LLC
Contract Overview
Contract Amount: $16,188,112 ($16.2M)
Contractor: Ledcor Construction Hawaii LLC
Awarding Agency: Department of Defense
Start Date: 2010-09-17
End Date: 2013-05-15
Contract Duration: 971 days
Daily Burn Rate: $16.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 18
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY10 MCA PN55281 TACTICAL EQUIPMENT MAINTENANCE FACILITY, OAHU, HI
Place of Performance
Location: SCHOFIELD BARRACKS, HONOLULU County, HAWAII, 96857, UNITED STATES OF AMERICA
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $16.2 million to LEDCOR CONSTRUCTION HAWAII LLC for work described as: FY10 MCA PN55281 TACTICAL EQUIPMENT MAINTENANCE FACILITY, OAHU, HI Key points: 1. Contract value of $16.18 million for a tactical equipment maintenance facility. 2. Awarded to LEDCOR CONSTRUCTION HAWAII LLC, a single contractor. 3. The contract was awarded under full and open competition. 4. The project duration was 971 days, spanning from September 2010 to May 2013. 5. The facility is located in Oahu, Hawaii. 6. The North American Industry Classification System (NAICS) code is 236220 for Commercial and Institutional Building Construction.
Value Assessment
Rating: fair
The contract value of $16.18 million for a tactical equipment maintenance facility appears to be within a reasonable range for a construction project of this nature. However, without specific details on the facility's size, scope, and complexity, a precise value-for-money assessment is challenging. Benchmarking against similar military construction projects in Hawaii or other high-cost areas would provide better context. The firm fixed-price contract type suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator for the government if the price was competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 18 bids were received, suggesting a healthy level of competition for this project. A higher number of bids generally leads to better price discovery and potentially lower costs for the government, as contractors are incentivized to offer competitive pricing to win the contract.
Taxpayer Impact: The full and open competition with 18 bids is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award, maximizing the value of federal funds.
Public Impact
The primary beneficiaries are the U.S. Army personnel and units stationed in Oahu, Hawaii, who will utilize the new maintenance facility. The facility will provide essential services for the maintenance and repair of tactical equipment, ensuring operational readiness. The geographic impact is concentrated in Oahu, Hawaii, supporting military operations in the Pacific region. The project likely involved a significant local workforce during the construction phase, contributing to the regional economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown makes it difficult to assess value for money comprehensively.
- No information provided on potential cost savings or efficiencies achieved through contractor performance.
- The duration of the contract (971 days) is substantial, increasing the potential for unforeseen issues or delays.
Positive Signals
- Awarded under full and open competition with a significant number of bids (18), indicating a competitive bidding process.
- Firm fixed-price contract type shifts cost overrun risk to the contractor.
- The project addresses a clear need for tactical equipment maintenance infrastructure for the Department of Defense.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically for government facilities. The construction market for military installations is a specialized segment, often characterized by stringent requirements, security protocols, and specific building codes. While the total value of federal construction spending is in the billions annually, projects like this represent a critical component of maintaining and upgrading military infrastructure to support operational readiness. Comparable benchmarks would involve other large-scale construction projects for federal agencies, particularly within the Department of Defense.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (sb: false) and there is no information on subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor, LEDCOR CONSTRUCTION HAWAII LLC, voluntarily engaged small businesses as subcontractors. Further investigation into subcontracting reports would be needed to determine any indirect benefits to small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers or a designated contracting officer within the Department of Defense. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the facility as specified. Transparency is generally facilitated through contract award databases like FPDS, which provide basic information on contract value, duration, and parties involved. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Military Construction Projects
- Tactical Equipment Maintenance Facilities
- Department of Defense Construction Contracts
- Army Facilities Management
Risk Flags
- Potential for cost overruns if scope significantly deviates from initial estimates, despite firm fixed-price.
- Risk of construction delays due to weather, supply chain issues, or unforeseen site conditions.
- Ensuring compliance with stringent military construction standards and security requirements.
- Adequate oversight needed to ensure quality of construction and adherence to specifications.
Tags
construction, department-of-defense, department-of-the-army, oahu, hawaii, firm-fixed-price, full-and-open-competition, large-contract, facility-construction, tactical-equipment-maintenance
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.2 million to LEDCOR CONSTRUCTION HAWAII LLC. FY10 MCA PN55281 TACTICAL EQUIPMENT MAINTENANCE FACILITY, OAHU, HI
Who is the contractor on this award?
The obligated recipient is LEDCOR CONSTRUCTION HAWAII 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 $16.2 million.
What is the period of performance?
Start: 2010-09-17. End: 2013-05-15.
What is the specific scope of work and detailed specifications for the Tactical Equipment Maintenance Facility?
The provided data does not include the specific scope of work or detailed specifications for the Tactical Equipment Maintenance Facility. Generally, such facilities are designed to house personnel and equipment for the repair, maintenance, and servicing of various tactical vehicles and equipment. This can include workshops, storage areas, administrative offices, and specialized bays for different types of equipment. Detailed specifications would outline the building's size, materials, environmental controls, security features, utility requirements, and compliance with military construction standards (e.g., UFCs - Unified Facilities Criteria). Without these details, a thorough assessment of the contract's value and suitability is limited.
How does the awarded price of $16.18 million compare to similar tactical equipment maintenance facilities constructed by the DoD?
Direct comparison of the $16.18 million award to similar tactical equipment maintenance facilities is challenging without access to a comprehensive database of comparable projects with detailed cost breakdowns and scope. Factors such as geographic location (Hawaii has higher construction costs), facility size, specific equipment maintenance capabilities required, and the year of construction significantly influence project costs. However, given the firm fixed-price nature and the number of bids received (18), it suggests a competitive process. To provide a robust benchmark, one would need to analyze projects with similar square footage, functional requirements, and construction timelines in comparable economic regions. Anecdotally, large-scale military construction projects can range from tens to hundreds of millions of dollars, making this project appear moderate in scale.
What are the key performance indicators (KPIs) used to evaluate LEDCOR CONSTRUCTION HAWAII LLC's performance on this contract?
The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate LEDCOR CONSTRUCTION HAWAII LLC's performance. For construction contracts, typical KPIs often include adherence to schedule (on-time completion), quality of workmanship (meeting specifications and standards), safety compliance (incident rates), budget adherence (though less critical for firm fixed-price unless change orders occur), and responsiveness to site conditions or issues. Contract close-out documentation and performance evaluations (e.g., CPARS - Contractor Performance Assessment Reporting System) would normally contain this information, but it is not available in the provided dataset.
What is the historical spending pattern for tactical equipment maintenance facilities by the Department of the Army?
The provided data focuses on a single contract award and does not offer historical spending patterns for tactical equipment maintenance facilities by the Department of the Army. To analyze historical spending, one would need to query federal procurement databases (like FPDS or SAM.gov) for similar contracts over multiple fiscal years, filtering by agency (Department of the Army), product/service code (related to construction and facility maintenance), and contract type. This would reveal trends in contract values, number of awards, average contract duration, and the prevalence of different contracting methods (e.g., full and open vs. set-asides) over time.
Are there any known risks associated with LEDCOR CONSTRUCTION HAWAII LLC as a contractor for this type of project?
The provided data does not contain information regarding specific risks associated with LEDCOR CONSTRUCTION HAWAII LLC as a contractor for this project. A comprehensive risk assessment would typically involve reviewing the contractor's past performance records (e.g., CPARS), financial stability, litigation history, and any history of defaults or performance issues on similar government contracts. Without access to these performance and background checks, it is impossible to identify any contractor-specific risks beyond general construction project risks.
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: SEALED BID
Solicitation ID: W9128A10B0003
Offers Received: 18
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1003 BISHOP ST STE 1250, HONOLULU, HI, 96813
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,188,112
Exercised Options: $16,188,112
Current Obligation: $16,188,112
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $7,745,874
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-17
Current End Date: 2013-05-15
Potential End Date: 2013-05-15 00:00:00
Last Modified: 2015-03-25
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