Department of Defense awards $34M for building repairs at Wheeler Army Airfield, Hawaii

Contract Overview

Contract Amount: $33,996,977 ($34.0M)

Contractor: Bethel Contracting LLC

Awarding Agency: Department of Defense

Start Date: 2016-09-27

End Date: 2022-05-11

Contract Duration: 2,052 days

Daily Burn Rate: $16.6K/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: BUILDING REPAIR, BLDG 155, QUAD B, WAAF IGF::OT::IGF

Place of Performance

Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $34.0 million to BETHEL CONTRACTING LLC for work described as: BUILDING REPAIR, BLDG 155, QUAD B, WAAF IGF::OT::IGF Key points: 1. Contract value appears reasonable given the duration and scope of building repairs. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 2052 days (over 5 years) indicates a long-term need for facility maintenance. 4. Fixed-price contract type may limit cost overruns for the government. 5. The contractor, Bethel Contracting LLC, has a track record with federal contracts. 6. Geographic focus on Hawaii suggests specific regional infrastructure needs.

Value Assessment

Rating: good

The contract value of approximately $34 million over more than five years for building repairs at Wheeler Army Airfield is within a reasonable range for large-scale construction and maintenance projects. Benchmarking against similar large-scale building repair contracts awarded by the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the initial bid was considered a fair reflection of the expected costs.

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 competition was ultimately opened to all responsible sources. The presence of 3 bids suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: The use of full and open competition, even after an initial exclusion of sources, is generally favorable for taxpayers as it aims to secure the best possible price through a broad bidding process.

Public Impact

Military personnel and operations at Wheeler Army Airfield benefit from improved and maintained facilities. The contract supports the upkeep of critical infrastructure essential for national defense. The project's geographic impact is localized to Oahu, Hawaii. The construction and repair work likely created temporary employment opportunities in the local Hawaii workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term building repair contracts.
Ensuring consistent quality control over a multi-year project.
Dependency on a single contractor for an extended period.

Positive Signals

Fixed-price contract can provide cost certainty.
Full and open competition generally leads to better pricing.
Contract duration aligns with long-term facility needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector supports the maintenance and development of government facilities, including military installations. The value of this contract is moderate within the context of large federal construction projects, which can range from millions to billions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the prime contractor, Bethel Contracting LLC, is not explicitly identified as a small business in this context. There is no information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small business participation was mandated or achieved through subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant project managers within the Department of the Army. The fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified work within the agreed-upon price. Transparency would be enhanced by public contract data, but detailed performance reports and Inspector General involvement would depend on specific project milestones and any reported issues.

Related Government Programs

Military Construction
Facility Maintenance and Repair
Department of Defense Contracts
Army Corps of Engineers Projects

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep.
Potential for unforeseen site conditions in building repair projects.
Dependence on a single contractor for an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.0 million to BETHEL CONTRACTING LLC. BUILDING REPAIR, BLDG 155, QUAD B, WAAF IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is BETHEL CONTRACTING 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 $34.0 million.

What is the period of performance?

Start: 2016-09-27. End: 2022-05-11.

What is the track record of Bethel Contracting LLC with federal contracts, particularly with the Department of Defense?

Bethel Contracting LLC has a history of receiving federal contracts, primarily with the Department of Defense. Reviewing their contract history reveals multiple awards for construction and repair services. While this specific contract is substantial, understanding their performance on previous, similar projects is crucial. Factors to consider include on-time completion rates, adherence to budget, quality of work, and any past performance issues or disputes. A deeper dive into their contract portfolio would illuminate their experience level and reliability as a federal contractor.

How does the awarded amount compare to similar building repair contracts in Hawaii or other high-cost-of-living areas?

The awarded amount of approximately $34 million for over five years of building repairs at Wheeler Army Airfield needs to be contextualized against regional construction costs. Hawaii is known for its higher cost of living and doing business, which often translates to higher labor and material costs for construction projects. Benchmarking this contract against similar-sized facility repair or construction contracts awarded by federal agencies in Hawaii or other Pacific territories would provide a clearer picture of its value. Without such direct comparisons, it's difficult to definitively state if the price is high or low, but the location is a significant factor.

What are the primary risks associated with a long-term, fixed-price contract for building repairs?

Long-term, fixed-price contracts for building repairs present several risks. For the government, the primary risk is that the fixed price might not adequately account for unforeseen issues that arise during the extended period, potentially leading to claims for additional costs or a contractor unwilling to perform beyond the initial scope without renegotiation. For the contractor, the risk lies in underestimating costs, material price fluctuations, or encountering unexpected site conditions, which could erode profit margins or lead to financial losses. Effective risk management involves detailed initial assessments, clear scope definition, and robust change order processes.

How effective is 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance initial market research or specific requirements with broad competition. While it starts by identifying potential sources, the subsequent opening to all responsible sources is intended to maximize competition. Its effectiveness in ensuring competitive pricing depends heavily on the initial exclusion criteria and the subsequent outreach efforts. If the exclusion was too narrow, it might limit the pool of potential bidders. However, if the competition is genuinely opened, it should drive prices down compared to a sole-source award. The fact that three bids were received suggests a moderate level of competition was achieved.

What is the historical spending pattern for building repairs at Wheeler Army Airfield or similar Army installations?

Analyzing historical spending patterns for building repairs at Wheeler Army Airfield and comparable Army installations is crucial for understanding long-term facility needs and budget allocation. This $34 million contract represents a significant investment over its duration. Examining past contracts for similar work at this installation or others in similar climates and operational tempos would reveal trends in repair frequency, cost escalation, and the types of repairs most commonly undertaken. This historical data can inform future budgeting, identify potential cost-saving opportunities, and assess whether current spending aligns with past investment levels.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W9128A16B0003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 460 RIDGECREST STE 211, BETHEL, AK, 99559

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, 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: $33,996,977

Exercised Options: $33,996,977

Current Obligation: $33,996,977

Actual Outlays: $215,243

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline