DoD awards $16.6M for Schofield Barracks water tank repairs, highlighting infrastructure needs

Contract Overview

Contract Amount: $16,588,244 ($16.6M)

Contractor: Nakasato Contracting LLC

Awarding Agency: Department of Defense

Start Date: 2025-10-15

End Date: 2028-03-25

Contract Duration: 892 days

Daily Burn Rate: $18.6K/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: REPAIR NORTH INSTALLATION WATER TANKS 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 $16.6 million to NAKASATO CONTRACTING LLC for work described as: REPAIR NORTH INSTALLATION WATER TANKS SCHOFIELD BARRACKS, OAHU, HAWAII Key points: 1. Contract focuses on essential infrastructure maintenance, addressing aging water systems. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The fixed-price contract type aims to control costs and manage contractor risk. 4. Performance period spans over four years, indicating a significant scope of work. 5. This award falls under the broader category of facility sustainment and modernization. 6. The contract value is substantial, reflecting the complexity and scale of the repair work.

Value Assessment

Rating: good

The contract value of $16.6 million for water tank repairs appears reasonable given the duration and scope. Benchmarking against similar large-scale infrastructure repair projects for military installations suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, though it places more risk on the contractor. Without specific details on the scope of work (e.g., number of tanks, complexity of repairs), a precise value-for-money assessment is challenging, but the award seems to align with typical infrastructure investment for a base of this size.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific designation implies that while the competition was intended to be broad, certain sources may have been excluded based on predefined criteria, possibly related to specialized capabilities or past performance. The number of bidders is not explicitly stated, but the 'full and open' nature suggests multiple interested parties were likely considered, which generally promotes competitive pricing. The exclusion of sources warrants further investigation to understand the rationale and its potential impact on the breadth of competition.

Taxpayer Impact: The use of full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. However, the specific exclusions could limit the number of potential bidders, potentially impacting the ultimate cost savings.

Public Impact

Service members and their families stationed at Schofield Barracks will benefit from improved water quality and reliability. The contract ensures the continued operational readiness of critical infrastructure at a major Army installation. The geographic impact is localized to Schofield Barracks, Oahu, Hawaii, supporting the local military community. The project will likely involve skilled construction labor, potentially creating short-term employment opportunities in Hawaii. Reliable water systems are fundamental to public health and safety on military installations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite fixed-price contract.
Dependence on contractor's ability to meet stringent quality and safety standards for water systems.
Risk of schedule delays due to weather or logistical challenges in Hawaii.
The exclusion of sources in the competition process could limit the pool of qualified bidders.

Positive Signals

Firm fixed-price contract provides cost certainty and incentivizes contractor efficiency.
Long-term performance period allows for thorough execution of complex repair work.
Focus on essential infrastructure addresses critical needs for base operations and personnel.
Award to a contractor with relevant experience in commercial and institutional building construction.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on commercial and institutional building construction. The market for military base infrastructure repair and maintenance is substantial, driven by the need to sustain aging facilities and ensure operational readiness. Spending in this area is consistent across various branches of the Department of Defense, which regularly procures services for facility upgrades, repairs, and new construction. Comparable spending benchmarks would typically involve other large-scale repair or renovation projects on military installations, often valued in the millions of dollars.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific award. This suggests the contract was not formally designated for small businesses. While there is no explicit small business set-aside, the prime contractor, NAKASATO CONTRACTING LLC, may still engage small businesses as subcontractors. The extent of subcontracting to small businesses will be crucial in determining the overall impact on the small business ecosystem in Hawaii and for this specific project.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Army contracting and project management offices at Schofield Barracks. The firm fixed-price nature of the contract provides a degree of accountability by linking payment to deliverables. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse, with the DoD IG having oversight authority. Regular progress reports and site inspections are standard mechanisms to ensure compliance and performance.

Related Government Programs

Military Base Infrastructure Maintenance
Water System Repair and Rehabilitation
Department of Defense Facilities Sustainment
Army Corps of Engineers Construction Projects
Public Works and Utilities Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Infrastructure repair projects can encounter unforeseen complexities.
Reliance on contractor's adherence to strict quality and safety standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to NAKASATO CONTRACTING LLC. REPAIR NORTH INSTALLATION WATER TANKS SCHOFIELD BARRACKS, OAHU, HAWAII

Who is the contractor on this award?

The obligated recipient is NAKASATO 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 $16.6 million.

What is the period of performance?

Start: 2025-10-15. End: 2028-03-25.

What is the specific scope of work for the water tank repairs at Schofield Barracks?

The provided data does not detail the specific scope of work beyond 'REPAIR NORTH INSTALLATION WATER TANKS'. This likely includes inspection, repair, and potentially replacement of components for multiple water tanks serving the north installation area of Schofield Barracks. The scope could encompass structural repairs, lining or coating applications, valve replacements, leak detection and sealing, and ensuring compliance with current water quality and safety standards. A more detailed understanding would require reviewing the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which would outline the exact number of tanks, the type of repairs needed, and the specific performance requirements.

How does the $16.6 million award compare to historical spending on similar infrastructure projects at Schofield Barracks or other Army installations?

The $16.6 million award for water tank repairs is a significant investment, typical for major infrastructure projects on large military installations. Historical spending data for Schofield Barracks or similar Army posts would reveal patterns in facility maintenance and upgrades. For instance, large-scale projects like HVAC system overhauls, barracks renovations, or road construction often fall within this multi-million dollar range. Without specific historical data for Schofield Barracks' water systems, it's difficult to provide a precise comparison. However, the Department of Defense consistently allocates substantial funds towards maintaining and modernizing its vast infrastructure, making this award appear consistent with the scale of needs at a major installation.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

Key performance indicators for this contract would likely focus on the successful completion of repairs according to specifications, adherence to schedule, and maintenance of water quality standards. Specific metrics could include: timely completion of repair milestones, successful hydrostatic testing of repaired tanks, absence of leaks post-repair, compliance with environmental and safety regulations during the work, and achievement of specified water potability standards. The firm fixed-price nature incentivizes meeting these requirements within budget. The government will likely conduct regular inspections and performance reviews to ensure these KPIs are met throughout the contract duration.

What is the track record of NAKASATO CONTRACTING LLC in performing similar large-scale construction and repair contracts for the federal government?

NAKASATO CONTRACTING LLC has been awarded this contract, indicating they possess the necessary qualifications and experience for this type of work. To assess their track record, one would typically examine their past performance ratings on federal contracts, particularly those involving infrastructure repair, water systems, or commercial/institutional building construction. Federal procurement databases often contain past performance information, though it may not always be publicly detailed. Their ability to secure a $16.6 million firm fixed-price contract suggests a history of successful project execution and financial stability, likely including prior work with the Department of Defense or other government agencies.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method for this contract?

The 'Full and Open Competition After Exclusion of Sources' method, while aiming for broad competition, introduces specific risks. The 'exclusion of sources' implies that certain potential bidders were deemed ineligible based on criteria set by the agency. This could limit the number of qualified bidders, potentially reducing the overall competitiveness and potentially leading to higher prices than if all capable sources were allowed to compete. The risk lies in whether the exclusion criteria were justified, necessary, and fairly applied. If the exclusions were too broad or improperly defined, it could inadvertently stifle competition and prevent the government from obtaining the best possible value. Transparency regarding the reasons for exclusion is key to assessing this risk.

How does this contract contribute to the overall readiness and operational capability of Schofield Barracks?

This contract is critical for maintaining the operational readiness and capability of Schofield Barracks by ensuring a reliable and safe water supply. Aging water infrastructure can lead to disruptions in essential services, impacting everything from daily operations and training to the health and well-being of personnel and their families. By repairing or replacing aging water tanks, the contract directly addresses a fundamental utility requirement. This prevents potential service interruptions, ensures water quality meets health standards, and supports the base's ability to function effectively and sustain its mission-critical activities without degradation due to infrastructure failure.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1015 PAAPU ST, HONOLULU, HI, 96819

Business Categories: Asian Pacific American Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $16,588,244

Exercised Options: $16,588,244

Current Obligation: $16,588,244

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128A21D0004

IDV Type: IDC

Timeline