DoD's $29.2M Schofield Barracks upgrade contract awarded to Pacific Design Builders, LLC

Contract Overview

Contract Amount: $29,200,000 ($29.2M)

Contractor: Pacific Design Builders, LLC

Awarding Agency: Department of Defense

Start Date: 2025-11-01

End Date: 2028-10-08

Contract Duration: 1,072 days

Daily Burn Rate: $27.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS IS A DESIGN-BID-BUILD PROJECT FOR BLDG 1580 UPGRADES FOR SPV RAIL, HVAC SYSTEM REPLACEMENT, AND INDUSTRIAL WASTEWATER RELOCATION AT SCHOFIELD BARRACKS, OAHU, HAWAII.

Place of Performance

Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $29.2 million to PACIFIC DESIGN BUILDERS, LLC for work described as: THIS IS A DESIGN-BID-BUILD PROJECT FOR BLDG 1580 UPGRADES FOR SPV RAIL, HVAC SYSTEM REPLACEMENT, AND INDUSTRIAL WASTEWATER RELOCATION AT SCHOFIELD BARRACKS, OAHU, HAWAII. Key points: 1. The contract focuses on critical infrastructure upgrades, including HVAC and wastewater systems, essential for base operations. 2. Awarded as a definitive contract with a firm fixed price, indicating a defined scope and cost structure. 3. The project's duration of approximately 3 years suggests a significant undertaking in terms of project management and execution. 4. The absence of a competitive bidding process raises questions about potential value for money and cost efficiency. 5. This project aligns with broader military infrastructure modernization efforts across various installations. 6. The contract is a sole-source award, limiting opportunities for other contractors and potentially impacting market competition.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific scope. Without competitive bids, it's difficult to assess if the $29.2 million price represents optimal value for the government. The firm fixed-price structure provides cost certainty but doesn't inherently guarantee the lowest possible price. Further analysis would require comparing the scope of work and pricing to similar, competitively awarded infrastructure projects at other military bases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicated by 'NOT AVAILABLE FOR COMPETITION'. As a sole-source award, only one contractor, Pacific Design Builders, LLC, was solicited. This significantly limits the opportunity for price discovery through market forces and may result in higher costs compared to a fully competed contract. The rationale for the sole-source award is not provided in the available data.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution. Without bids from multiple firms, there's a reduced incentive for the awarded contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the U.S. Army and the personnel stationed at Schofield Barracks, Oahu, Hawaii, through improved facility functionality and reliability. The contract will deliver upgrades to Building 1580, including a new HVAC system and relocation of industrial wastewater systems. The geographic impact is localized to Schofield Barracks, Oahu, Hawaii, enhancing the operational capabilities of this specific military installation. Workforce implications may include employment opportunities for construction and skilled trades personnel managed by Pacific Design Builders, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Lack of transparency regarding the justification for a sole-source procurement.
Project duration of nearly three years requires sustained oversight to ensure timely completion and quality.
The specific nature of the upgrades (HVAC, wastewater) requires specialized expertise, and performance must be closely monitored.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The project addresses critical infrastructure needs, enhancing operational readiness at Schofield Barracks.
Awarding to a single entity may streamline project management and execution if the contractor has relevant experience.

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 area often supports essential government operations and infrastructure maintenance. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per system upgrade for similar military or government building projects, factoring in geographic location and complexity. The market for such specialized construction services is competitive, but sole-source awards bypass typical market dynamics.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, there are no subcontracting opportunities mandated through a competitive process. The impact on the small business ecosystem is neutral in terms of direct set-aside benefits, but the absence of competition means small businesses were not afforded a chance to bid on this specific project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely through contracting officers and project managers responsible for Schofield Barracks. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver the specified scope within the agreed price. Transparency is limited due to the sole-source nature; however, contract award details are typically made public. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction (MILCON)
Base Realignment and Closure (BRAC) related infrastructure
Department of Defense Facilities Management
HVAC System Upgrades
Wastewater Infrastructure Projects

Risk Flags

Sole-source award raises concerns about competition and potential value for money.
Lack of justification for sole-source procurement requires further investigation.
Project duration necessitates robust oversight to ensure timely and quality completion.
Potential for higher costs due to absence of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.2 million to PACIFIC DESIGN BUILDERS, LLC. THIS IS A DESIGN-BID-BUILD PROJECT FOR BLDG 1580 UPGRADES FOR SPV RAIL, HVAC SYSTEM REPLACEMENT, AND INDUSTRIAL WASTEWATER RELOCATION AT SCHOFIELD BARRACKS, OAHU, HAWAII.

Who is the contractor on this award?

The obligated recipient is PACIFIC DESIGN BUILDERS, 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 $29.2 million.

What is the period of performance?

Start: 2025-11-01. End: 2028-10-08.

What is the specific justification for this contract being awarded on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION' and is a 'sole-source' award. However, the specific justification or rationale for why this particular contract was not competed is not detailed in the data. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without further information from the awarding agency (Department of the Army), the precise reason remains unknown. This lack of transparency is a common concern with sole-source procurements.

How does the $29.2 million price compare to similar building upgrade projects at other military installations?

Direct comparison of the $29.2 million price is difficult without detailed scope, size, and location-specific cost data for similar projects. However, large-scale infrastructure upgrades at military bases can range widely. Factors influencing cost include the complexity of the HVAC and wastewater systems, the size of Building 1580, and local labor and material costs in Hawaii, which are generally higher than the continental U.S. The absence of competitive bids makes it impossible to determine if this price represents optimal value. A thorough benchmark analysis would require comparing the contract's specific deliverables (e.g., square footage, system capacity, specific upgrade requirements) against other competitively procured projects of similar scale and complexity.

What are the potential risks associated with a sole-source award for this type of project?

The primary risk associated with a sole-source award is the potential for reduced value for money due to the lack of price competition. Without multiple bidders vying for the contract, the awarded contractor may have less incentive to offer the lowest possible price. Other risks include a potential lack of innovation if alternative solutions were not explored, and the perception of unfairness or favoritism, even if the award is technically compliant with regulations. Furthermore, if Pacific Design Builders, LLC, lacks sufficient experience or capacity, project delays or cost overruns could occur, though the firm fixed-price nature offers some protection against cost escalation for the government.

What is the track record of Pacific Design Builders, LLC, in executing similar government contracts?

The provided data does not include information on the track record or past performance of Pacific Design Builders, LLC. To assess this risk, one would need to examine the company's history with federal contracts, including their performance ratings, any past disputes or contract terminations, and their experience with projects of similar size, scope, and complexity (e.g., HVAC and wastewater relocation in institutional buildings). A review of contract databases and performance assessment systems would be necessary to evaluate their reliability and capability.

How will the performance of Pacific Design Builders, LLC, be monitored throughout the project lifecycle?

Performance monitoring will likely be conducted by the Department of the Army's contracting officer and potentially a designated project manager or contracting officer's representative (COR). Given the firm fixed-price nature, monitoring will focus on adherence to the contract's scope of work, quality standards, schedule milestones, and safety regulations. Regular site inspections, progress reports from the contractor, and potentially third-party quality assurance reviews would be employed. The contract's duration of nearly three years necessitates ongoing, diligent oversight to ensure successful project completion.

What is the historical spending pattern for building upgrades at Schofield Barracks or similar Army facilities?

The provided data does not contain historical spending patterns for building upgrades at Schofield Barracks or similar Army facilities. Analyzing historical spending would involve reviewing past contracts for infrastructure maintenance, repair, and renovation at this installation and comparable ones. This would help establish a baseline for costs, identify trends in project types and frequencies, and assess whether the current $29.2 million contract aligns with or deviates from historical investment levels. Such analysis is crucial for long-term budget planning and identifying potential anomalies in spending.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9128A25RA008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 195 TUN JOSE SALAS ST STE B, TAMUNING, GU, 96913

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native Hawaiian Organization Owned Firm, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,200,000

Exercised Options: $29,200,000

Current Obligation: $29,200,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline