DoD Awards $29.7M Contract for Water Line Replacement at Military Reservation

Contract Overview

Contract Amount: $29,773,322 ($29.8M)

Contractor: Hawk-Niking, LLC

Awarding Agency: Department of Defense

Start Date: 2023-10-15

End Date: 2026-06-19

Contract Duration: 978 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY23 OMA REPLACE 16-INCH TRANSITE WATER LINE AT BOUGAINVILLE, ALIAMANU MILITARY RESERVATION

Place of Performance

Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $29.8 million to HAWK-NIKING, LLC for work described as: FY23 OMA REPLACE 16-INCH TRANSITE WATER LINE AT BOUGAINVILLE, ALIAMANU MILITARY RESERVATION Key points: 1. Significant investment in critical infrastructure for military personnel. 2. Competition method suggests potential for good value, but specific pricing needs review. 3. Risk of project delays or cost overruns inherent in large construction projects. 4. Construction sector is experiencing material cost volatility.

Value Assessment

Rating: good

The contract value of $29.7M for water line construction appears reasonable given the scope and duration. Benchmarking against similar large-scale infrastructure projects would provide a more definitive assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades, ensuring operational readiness and quality of life for service members.

Public Impact

Ensures reliable water and sewer services for residents at the military installation. Supports military readiness by maintaining essential infrastructure. Creates construction jobs and economic activity in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may have reduced price competitiveness.
  • Construction projects are susceptible to unforeseen site conditions and material cost fluctuations.
  • Long project duration increases exposure to economic and environmental risks.

Positive Signals

  • Addresses critical infrastructure needs.
  • Firm Fixed Price contract provides cost certainty.
  • Awarded to a single contractor, potentially streamlining execution.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil infrastructure. Spending benchmarks for similar military infrastructure projects vary widely based on location, complexity, and scale.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting goals for small businesses in the provided data.

Oversight & Accountability

The Department of the Army is responsible for oversight. Contract clauses and performance monitoring will be crucial to ensure timely completion and adherence to quality standards.

Related Government Programs

  • Water and Sewer Line and Related Structures Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Limited competition.
  • Potential for cost overruns due to project duration.
  • Reliance on a single contractor.
  • Vulnerability to construction material price volatility.
  • Unforeseen site conditions.

Tags

water-and-sewer-line-and-related-structu, department-of-defense, hi, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.8 million to HAWK-NIKING, LLC. FY23 OMA REPLACE 16-INCH TRANSITE WATER LINE AT BOUGAINVILLE, ALIAMANU MILITARY RESERVATION

Who is the contractor on this award?

The obligated recipient is HAWK-NIKING, 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 $29.8 million.

What is the period of performance?

Start: 2023-10-15. End: 2026-06-19.

What is the specific justification for excluding other sources in the competition?

The data states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was intended to be broad, certain sources were initially excluded. A detailed review of the solicitation and award documents would be necessary to understand the precise reasons for this exclusion and its potential impact on the final price.

What are the key performance indicators and risk mitigation strategies for this project?

Specific KPIs and risk mitigation strategies are not detailed in the provided summary. However, for a project of this scale and duration, typical KPIs would include schedule adherence, quality control, and budget management. Risk mitigation would likely involve contingency planning for material cost increases, labor availability, and unforeseen site conditions.

How does the firm fixed price contract protect taxpayers against cost overruns?

A Firm Fixed Price (FFP) contract shifts the majority of the cost risk to the contractor. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. While FFP provides cost certainty for the government, it can lead to higher initial bid prices as contractors factor in potential risks.

Industry Classification

NAICS: ConstructionUtility System ConstructionWater and Sewer Line and Related Structures Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9128A23R0022

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hawk-Niking LLC

Address: 235 KELLOG ST, WAHIAWA, HI, 96786

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $29,773,322

Exercised Options: $29,773,322

Current Obligation: $29,773,322

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-10-15

Current End Date: 2026-06-19

Potential End Date: 2026-06-19 00:00:00

Last Modified: 2025-07-30

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