DoD's $22.8M Reclaimed Water Conveyance Contract Awarded to Orion Construction Corporation

Contract Overview

Contract Amount: $22,823,054 ($22.8M)

Contractor: Orion Construction Corporation

Awarding Agency: Department of Defense

Start Date: 2014-11-25

End Date: 2023-02-01

Contract Duration: 2,990 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF, RECLAIMED WATER CONVEYANCE, MCBCP, CA

Place of Performance

Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.8 million to ORION CONSTRUCTION CORPORATION for work described as: IGF::OT::IGF, RECLAIMED WATER CONVEYANCE, MCBCP, CA Key points: 1. The contract value of $22.8 million for water and sewer line construction falls within typical ranges for infrastructure projects of this scale. 2. Orion Construction Corporation secured this contract through full and open competition, indicating a competitive bidding process. 3. The project's duration of 2990 days (over 8 years) suggests a long-term infrastructure development, potentially involving significant resource commitment. 4. The firm fixed price contract type aims to control costs, but the extended duration could introduce risks related to material and labor cost fluctuations.

Value Assessment

Rating: good

The contract value of $22.8 million for water and sewer line construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to compete. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is beneficial for taxpayers, as it likely resulted in a more cost-effective outcome compared to non-competitive methods.

Public Impact

Enhances water infrastructure for MCBCP, improving resource management and potentially environmental sustainability. Supports local economy through construction jobs and related services in California. Long-term project ensures sustained infrastructure development and operational capacity for the military base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended project duration (2990 days) increases risk of cost overruns due to inflation and material price volatility.
Firm Fixed Price contract may not fully account for unforeseen site conditions or complex engineering challenges over an 8-year period.
Lack of specific performance metrics or quality assurance details in the provided data.

Positive Signals

Awarded through full and open competition, suggesting fair market pricing.
Focus on essential infrastructure (water conveyance) aligns with critical operational needs.
Project located in California, a region with established construction industry standards and workforce.

Sector Analysis

The construction sector, particularly for infrastructure like water and sewer systems, is capital-intensive and subject to regulatory compliance. Spending benchmarks vary widely based on project complexity, location, and scale. This $22.8M project appears to be a significant investment in essential base infrastructure.

Small Business Impact

The provided data does not indicate whether small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

Oversight would typically involve regular progress reports, site inspections, and quality assurance checks by the Department of the Navy to ensure the project adheres to specifications and timelines. The long duration necessitates consistent monitoring.

Related Government Programs

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

Risk Flags

Extended contract duration increases risk of cost escalation.
Firm Fixed Price contract may not adequately cover unforeseen issues over 8+ years.
Potential for scope creep or change orders over the long project timeline.
Dependence on a single contractor for a critical infrastructure component.
Lack of specific details on sustainability or advanced technology integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.8 million to ORION CONSTRUCTION CORPORATION. IGF::OT::IGF, RECLAIMED WATER CONVEYANCE, MCBCP, CA

Who is the contractor on this award?

The obligated recipient is ORION CONSTRUCTION CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $22.8 million.

What is the period of performance?

Start: 2014-11-25. End: 2023-02-01.

What specific technological innovations or sustainable practices are incorporated into this reclaimed water conveyance system to maximize long-term value and environmental benefit?

The provided data lacks details on specific technological innovations or sustainable practices. Further investigation into the project's technical specifications and environmental impact assessments would be necessary to answer this. Understanding the design choices, material selections, and operational efficiencies planned for the system is crucial for evaluating its long-term value beyond basic functionality and environmental compliance.

How does the Department of the Navy plan to mitigate the risks associated with a firm fixed price contract spanning nearly 3000 days, particularly concerning potential cost escalations?

Mitigation strategies for long-term fixed-price contracts often include robust contingency planning, escalation clauses for specific materials or labor indices, and stringent change order management. The Department of the Navy likely employs detailed risk assessments and contract management protocols to monitor and control costs, potentially through phased payments tied to milestones and regular reviews of market conditions.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of this reclaimed water conveyance project throughout its extended lifecycle?

Key performance indicators for such a project would likely include water flow rates, system uptime/reliability, water quality compliance, leak detection rates, and energy efficiency of pumping systems. Effectiveness would also be measured by the system's ability to meet the base's water demands reliably and cost-effectively over its operational life, alongside adherence to environmental discharge standards.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247309R1609

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2185 LA MIRADA DR, VISTA, CA, 92081

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,823,054

Exercised Options: $22,823,054

Current Obligation: $22,823,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247310D5419

IDV Type: IDC

Timeline