NOAA Awards $24.6M Firm Fixed Price Contract for Fairweather Homeport Recapitalization in Alaska
Contract Overview
Contract Amount: $24,593,534 ($24.6M)
Contractor: Ahtna Infrastructure & Technologies LLC
Awarding Agency: Department of Commerce
Start Date: 2021-04-06
End Date: 2026-04-14
Contract Duration: 1,834 days
Daily Burn Rate: $13.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FAIRWEATHER HOMEPORT RECAPITALIZATION KETCHIKAN, AK
Place of Performance
Location: KETCHIKAN, KETCHIKAN GATEWAY County, ALASKA, 99901
State: Alaska Government Spending
Plain-Language Summary
Department of Commerce obligated $24.6 million to AHTNA INFRASTRUCTURE & TECHNOLOGIES LLC for work described as: FAIRWEATHER HOMEPORT RECAPITALIZATION KETCHIKAN, AK Key points: 1. Contract awarded to AHTNA INFRASTRUCTURE & TECHNOLOGIES LLC for building construction. 2. Significant investment in critical infrastructure for NOAA's operations in Alaska. 3. Potential for cost overruns due to fixed-price contract and long duration. 4. Construction sector faces inherent risks related to material costs and labor availability.
Value Assessment
Rating: fair
The contract value of $24.6 million for a 5-year duration appears reasonable for a recapitalization project of this nature. However, without specific details on the scope of work and comparable projects, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited source selection. This limits price discovery and may result in a higher price than if full and open competition were pursued.
Taxpayer Impact: Taxpayer funds are being used for this project. The lack of competition raises concerns about whether the best possible price was achieved.
Public Impact
Enhances NOAA's operational capabilities in a strategic Alaskan location. Supports local economy through construction jobs and related services. Ensures the long-term viability of essential maritime infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Long contract duration increases exposure to market volatility.
- Fixed-price contract offers limited flexibility for unforeseen issues.
Positive Signals
- Investment in critical infrastructure.
- Supports regional economic development.
- Firm fixed price provides cost certainty if managed effectively.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can fluctuate based on government infrastructure needs and economic conditions. Benchmarks are difficult without specific project details.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities exist within this award.
Oversight & Accountability
Oversight will be crucial to ensure the project stays within budget and on schedule, especially given the fixed-price nature and limited competition. The Department of Commerce and NOAA are responsible for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Limited competition
- Potential for cost overruns
- Long contract duration
- Geographic challenges in Alaska
Tags
commercial-and-institutional-building-co, department-of-commerce, ak, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $24.6 million to AHTNA INFRASTRUCTURE & TECHNOLOGIES LLC. FAIRWEATHER HOMEPORT RECAPITALIZATION KETCHIKAN, AK
Who is the contractor on this award?
The obligated recipient is AHTNA INFRASTRUCTURE & TECHNOLOGIES LLC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $24.6 million.
What is the period of performance?
Start: 2021-04-06. End: 2026-04-14.
What specific factors led to the 'not available for competition' determination, and were alternatives explored?
The determination for limited competition needs further investigation. Typically, this occurs when only one source can meet the requirement due to unique capabilities, urgency, or specific circumstances. Exploring alternatives ensures the government isn't unnecessarily limiting competition, which could impact price and innovation.
How will potential cost increases due to material and labor volatility be managed under the firm fixed-price contract?
Managing cost volatility under a firm fixed-price contract requires robust contract management and risk mitigation strategies. This includes detailed cost tracking, proactive supplier engagement, and potentially contingency planning within the awarded price. The contractor bears the primary risk of cost overruns.
What are the key performance indicators (KPIs) for this recapitalization project, and how will success be measured?
Success will likely be measured by the project's completion within the defined scope, on schedule, and within the firm fixed price. Key performance indicators could include adherence to quality standards, functional readiness of the homeport facilities, and minimal disruption to NOAA's ongoing operations during construction.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: NAAJ57322000437
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 110 W 38TH AVE STE 200M, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,962,392
Exercised Options: $24,593,534
Current Obligation: $24,593,534
Actual Outlays: $6,272,653
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-04-06
Current End Date: 2026-04-14
Potential End Date: 2026-04-14 00:00:00
Last Modified: 2025-09-22
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