GUAM – Fargo Pacific is a case study in the heated contest for task orders among HUBZone and 8 (a) businesses hand-picked by the Navy to help carry out Guam’s military buildup in preparation for the transfer of at least 8,600 U.S. Marines from Okinawa.
While Fargo Pacific successfully won spots on two of the Navy’s coveted multiple award construction contracts (MACC) to help renovate and modernize military shore-based facilities on Guam ahead of the Marines’ realignment, the company says its batting average has been better in the HUBZone category than in the 8 (a).
As one of ten firms selected for the HUBZone MACC, which covers construction projects set aside for businesses in Historically Underutilized Business Zones, Fargo Pacific president Jay S. H. Park said his firm has won four task orders totaling $1 million so far in 2011. However, under the 8 (a) MACC where task order competition has been narrowed to only six firms with that Small Disadvantaged Business designation, the company’s year-to-date score is zero.
Fargo Pacific set a goal to win at least 10% of all HUBZone MACC task orders and since it says the Navy has awarded only 12 in the category so far this year, it’s outperforming that benchmark, batting an average of 33% as of April.
Mr. Park says his company’s performance in the 8 (a) category has been comparatively disappointing, however. Whereas Fargo won four task orders totaling $798,000 after submitting 40 bids in 2010, it has yet to win even one task order from the 19 bids it has tendered already this year. Facing a 10% batting average in 2010 and zero in 2011 against a company goal of winning at least 16% of all 8 (a) work, he says he is “not optimistic” about Fargo’s 8 (a) prospects and that it seems “most of the task orders have been awarded to Chugach.” It’s been difficult to compete price-wise, he added.
Since the 8 (a) MACC was awarded last August, Guam-based Techni-Con, Inc. won the first task order for an $188,141 job to construct and improve the existing Navy Exchange Autoport and Furniture Store parking lot at Naval Base. And NAVFAC says that Alaskan Native corporation Chugach World Services “has received approximately $2.3 million under the 8 (a) MACC for 18 task orders for various repair and maintenance work.”
Six companies were selected to compete for projects totaling a maximum of $100 million over five years under the buildup’s 8 (a) MACC. Task orders range from $1 million to $2 million for each project. Other awardees are DF Joint Venture a partnership between Far East Construction Corp of Florida and tribally run Wisconsin-based Dae Sung Corp; Guam Pacific International formed by Indiana-based Custom Mechanical Systems Corp. and Ohio-based TolTest; and the joint venture GSI-ASI which features Alan Shintani Inc of Hawaii and GreenWave Solutions of Singapore.
The Navy awarded its HUBZone MACC for the buildup in June 2009 to ten companies, of which nine are based in Guam. Projects for this MACC are expected to total $400 million over five years, at maximum, with each task order priced between $1 million and $5 million. Other Guam-based awardees include Ace Builders, AIC International, BME & Sons, Keum Yang Corp, Modern International, Reliable Builders, Serrano Construction and Development Corp and Tumon Corp. Overland Corp is based in Ardmore, Oklahoma.
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