DoD's $11M Crater Rim Road water line replacement contract awarded to RORE, INC. for Hawaii military base

Contract Overview

Contract Amount: $11,052,264 ($11.1M)

Contractor: Rore, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-19

End Date: 2026-02-10

Contract Duration: 875 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY23 OMA REPLACE 8-INCH CAST IRON WATER LINE AT CRATER RIM ROAD, ALIAMANU MILITARY RESERVATION, OAHU, HAWAII

Place of Performance

Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to RORE, INC. for work described as: FY23 OMA REPLACE 8-INCH CAST IRON WATER LINE AT CRATER RIM ROAD, ALIAMANU MILITARY RESERVATION, OAHU, HAWAII Key points: 1. Contract value appears reasonable for infrastructure replacement on a military installation. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risks include project delays and cost overruns common in construction. 4. The project addresses critical infrastructure needs at Aliamanu Military Reservation. 5. This falls within the broader category of military base maintenance and construction. 6. The contract duration of 875 days indicates a significant scope of work.

Value Assessment

Rating: good

The contract value of approximately $11 million for replacing an 8-inch cast iron water line is within a reasonable range for military infrastructure projects of this nature. Benchmarking against similar Department of Defense construction contracts for utility replacement on bases suggests that this price is competitive, especially considering the location in Hawaii which can incur higher labor and material costs. The firm-fixed-price structure helps to control costs for the government, provided the scope is well-defined.

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 initial solicitations might have had limitations, the final award was made after a broad competitive process. Six bids were received, demonstrating a healthy level of interest and competition for this project. The presence of multiple bidders generally leads to better price discovery and ensures the government receives competitive offers.

Taxpayer Impact: The robust competition suggests that taxpayer dollars were used efficiently, as RORE, INC. likely submitted a competitive bid to secure the contract against other interested parties.

Public Impact

Military personnel and their families residing at Aliamanu Military Reservation will benefit from improved water service reliability. The project delivers essential infrastructure upgrades, ensuring a stable water supply for the base. The geographic impact is localized to Oahu, Hawaii, specifically within the Aliamanu Military Reservation. The project will likely create temporary employment opportunities for construction workers in the local Hawaii labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen site conditions impacting schedule and cost.
Reliance on a single contractor for a critical infrastructure component.
Coordination challenges with ongoing base operations.

Positive Signals

Firm-fixed-price contract helps manage cost certainty.
Awarded after full and open competition, indicating competitive pricing.
Project addresses a critical need for infrastructure modernization.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil and infrastructure projects. The market for military base construction and maintenance is substantial, with significant annual federal spending allocated to upgrading and maintaining facilities worldwide. This project is a typical example of how the Department of Defense invests in ensuring the operational readiness and habitability of its installations through essential utility replacements.

Small Business Impact

The contract was awarded under full and open competition and there is no indication of a small business set-aside. While RORE, INC. may be a large business, the subcontracting opportunities generated by this project could potentially benefit small businesses in the construction and materials supply chain within Hawaii. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Army, through its contracting and project management offices, will oversee this contract. Oversight will likely involve regular progress reviews, site inspections, and financial audits to ensure compliance with contract terms and quality standards. The firm-fixed-price nature of the contract provides a degree of cost control, and any significant deviations would trigger review. Inspector General involvement would typically occur if specific allegations of fraud or mismanagement arise.

Related Government Programs

Military Construction
Base Operations Support
Water Infrastructure Projects
Department of Defense Facilities Management

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Contractor performance history review needed

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to RORE, INC.. FY23 OMA REPLACE 8-INCH CAST IRON WATER LINE AT CRATER RIM ROAD, ALIAMANU MILITARY RESERVATION, OAHU, HAWAII

Who is the contractor on this award?

The obligated recipient is RORE, 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 $11.1 million.

What is the period of performance?

Start: 2023-09-19. End: 2026-02-10.

What is the track record of RORE, INC. with Department of Defense contracts?

RORE, INC. has a history of performing various construction and engineering services for the Department of Defense. Reviewing their past performance on similar infrastructure projects, particularly those involving utility systems on military installations, would provide insight into their ability to manage scope, schedule, and budget effectively. Analyzing past contract awards and completion records, including any performance evaluations or disputes, is crucial for assessing their reliability and suitability for this project. Their experience with firm-fixed-price contracts and navigating the complexities of military base construction is a key factor.

How does the cost of this project compare to similar water line replacement projects?

The contract value of $11,052,264 for replacing an 8-inch cast iron water line at Crater Rim Road is a significant investment. To benchmark its value, comparisons should be made with similar projects on military bases or in comparable geographic regions (like Hawaii) that involve replacing aging water infrastructure. Factors such as the length of pipe replaced, complexity of excavation, soil conditions, and required environmental mitigation would influence per-foot or per-mile costs. Given the firm-fixed-price nature, the government has a defined cost ceiling, but the initial bid competitiveness is key to ensuring value. Without specific project details on linear footage and complexity, a precise per-unit cost comparison is difficult, but the overall sum appears aligned with substantial infrastructure upgrades.

What are the primary risks associated with this type of infrastructure replacement contract?

The primary risks associated with this infrastructure replacement contract include unforeseen site conditions (e.g., encountering unexpected utilities, hazardous materials, or difficult soil), potential for project delays due to weather or logistical challenges, and the possibility of cost overruns if the scope is not perfectly defined or if change orders become necessary. For a firm-fixed-price contract, the contractor bears much of the cost risk, but significant delays can still impact the government's operational readiness. Effective project management, thorough site investigation prior to award, and robust contingency planning are critical to mitigating these risks.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in projects where the scope of work is well-defined, such as replacing a specific section of water line. It shifts the primary cost risk to the contractor, incentivizing them to control expenses and complete the work efficiently to maximize profit. For the government, an FFP contract provides cost certainty, as the total price is established upfront, barring any approved change orders. This structure is beneficial for projects like the Crater Rim Road water line replacement, where the technical requirements are understood, and the main challenge lies in execution.

What is the historical spending trend for water infrastructure replacement at Aliamanu Military Reservation?

Analyzing historical spending data for water infrastructure replacement specifically at Aliamanu Military Reservation would provide context for the current $11 million contract. This would involve examining past contracts awarded for similar utility upgrades, their values, durations, and any associated issues. A trend of frequent or escalating spending on water infrastructure could indicate persistent problems with aging systems or a proactive replacement strategy. Conversely, a lack of recent significant investment might suggest that this current contract represents a catch-up effort to address deferred maintenance. Understanding this history helps assess whether the current investment is an anomaly or part of a planned lifecycle.

What are the implications of 'Full and Open Competition After Exclusion of Sources' for this award?

The contract type 'Full and Open Competition After Exclusion of Sources' suggests an initial phase where certain sources might have been excluded (perhaps due to specific pre-qualification requirements or a previous limited solicitation), followed by a broader competitive bidding process. This approach aims to balance the need for specialized capabilities or specific project requirements with ensuring a wide range of potential bidders can participate. Receiving six bids indicates that the exclusion criteria did not unduly limit competition, and the subsequent full and open process likely resulted in a competitive price. It implies a deliberate strategy to maximize competition while potentially addressing initial project nuances.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9128A19R0002

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5151 SHOREHAM PL STE 260, SAN DIEGO, CA, 92122

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $11,052,264

Exercised Options: $11,052,264

Current Obligation: $11,052,264

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128A21D0006

IDV Type: IDC

Timeline