NASA bridge replacement project awarded for $70.6M, aiming to improve critical infrastructure at Wallops Island

Contract Overview

Contract Amount: $70,581,745 ($70.6M)

Contractor: Kokosing Construction Company, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-07-18

End Date: 2029-07-31

Contract Duration: 1,839 days

Daily Burn Rate: $38.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NASA WALLOPS ISLAND CAUSEWAY BRIDGE OVER CAT CREEK, PROJECT NO. VA ST NASA 1(9) - THIS PROJECT CONSISTS OF THE DESIGN AND REPLACEMENT OF THE EXISTING WALLOPS ISLAND CAUSEWAY BRIDGE OVER CAT CREEK, IN ACCOMACK COUNTY, VIRGINIA. THIS STRUCTURE IS OWNE

Place of Performance

Location: ACCOMAC, ACCOMACK County, VIRGINIA, 23301

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $70.6 million to KOKOSING CONSTRUCTION COMPANY, INC. for work described as: NASA WALLOPS ISLAND CAUSEWAY BRIDGE OVER CAT CREEK, PROJECT NO. VA ST NASA 1(9) - THIS PROJECT CONSISTS OF THE DESIGN AND REPLACEMENT OF THE EXISTING WALLOPS ISLAND CAUSEWAY BRIDGE OVER CAT CREEK, IN ACCOMACK COUNTY, VIRGINIA. THIS STRUCTURE IS OWNE Key points: 1. The contract's value of $70.6 million represents a significant investment in essential infrastructure for NASA's Wallops Flight Facility. 2. Competition dynamics appear robust with 3 bidders vying for this project, suggesting a healthy market for bridge construction services. 3. The firm-fixed-price contract type indicates that the contractor assumes most of the cost risk, which can be beneficial for the government. 4. The project's duration of over 5 years suggests a complex undertaking requiring substantial planning and execution. 5. This contract is positioned within the broader transportation and infrastructure sector, crucial for supporting federal agency operations. 6. The absence of small business set-aside flags suggests the primary awardee is likely a larger entity, with subcontracting opportunities to be monitored.

Value Assessment

Rating: good

The awarded amount of $70.6 million for the Wallops Island Causeway Bridge replacement appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar bridge construction projects managed by the Department of Transportation or other federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs for the government, assuming the initial bid was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with three bids received. This level of competition is generally positive, indicating that multiple capable contractors were interested and able to bid on the project. The presence of multiple bidders typically leads to more competitive pricing and a greater likelihood of selecting the best value proposal for the government.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation among bidders.

Public Impact

The primary beneficiaries are NASA, which relies on the bridge for access to critical facilities at Wallops Island. The project will deliver the design and replacement of a vital causeway bridge, ensuring continued operational access. The geographic impact is localized to Accomack County, Virginia, specifically affecting access to Wallops Island. The project will likely create jobs in the construction sector, benefiting the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (over 5 years) could introduce risks related to material cost escalation or unforeseen site conditions.
Dependence on a single prime contractor for a critical infrastructure project necessitates robust oversight to ensure timely completion and quality.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Full and open competition suggests a competitive bidding process, potentially leading to better pricing.
The project addresses a critical infrastructure need, ensuring the continued operation of a vital federal facility.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the broader construction industry. Federal spending in this area is crucial for maintaining and upgrading national infrastructure. Comparable projects often involve substantial investments, with costs varying widely based on size, complexity, and location. The market for large-scale bridge construction is typically dominated by established firms with specialized expertise and bonding capacity.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor, KOKOSING CONSTRUCTION COMPANY, INC., is likely a larger entity. This suggests that subcontracting opportunities may be available for small businesses, particularly in specialized trades or material supply. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of qualified small business subcontractors in the region.

Oversight & Accountability

Oversight will likely be managed by the Federal Highway Administration (FHWA) in conjunction with NASA. The firm-fixed-price contract type provides a degree of cost control. Transparency will be maintained through contract reporting mechanisms. The Inspector General's office for the Department of Transportation may have jurisdiction for audits and investigations related to potential fraud or mismanagement.

Related Government Programs

Federal Highway Administration Bridge Program
NASA Infrastructure Modernization Projects
Department of Transportation Capital Improvement Projects
Military Base Access and Infrastructure Projects

Risk Flags

Potential for cost escalation due to long project duration.
Risk of unforeseen site conditions impacting schedule and budget.
Dependency on prime contractor performance for critical infrastructure.
Need for robust quality assurance over an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $70.6 million to KOKOSING CONSTRUCTION COMPANY, INC.. NASA WALLOPS ISLAND CAUSEWAY BRIDGE OVER CAT CREEK, PROJECT NO. VA ST NASA 1(9) - THIS PROJECT CONSISTS OF THE DESIGN AND REPLACEMENT OF THE EXISTING WALLOPS ISLAND CAUSEWAY BRIDGE OVER CAT CREEK, IN ACCOMACK COUNTY, VIRGINIA. THIS STRUCTURE IS OWNE

Who is the contractor on this award?

The obligated recipient is KOKOSING CONSTRUCTION COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $70.6 million.

What is the period of performance?

Start: 2024-07-18. End: 2029-07-31.

What is the track record of KOKOSING CONSTRUCTION COMPANY, INC. on similar federal infrastructure projects?

KOKOSING CONSTRUCTION COMPANY, INC. has a history of performing large-scale civil engineering and construction projects. While specific details on past NASA projects are not immediately available in this data, their experience typically includes bridge construction, road work, and other heavy civil infrastructure. A deeper dive into their contract performance history with federal agencies, particularly the Department of Transportation and Army Corps of Engineers, would reveal their success rates, any past performance issues, and their capacity to handle complex projects of this magnitude. Examining past project close-out reports and any dispute resolutions would provide further insight into their reliability and quality of work.

How does the awarded price compare to similar bridge replacement projects in Virginia or the Mid-Atlantic region?

The awarded price of $70.6 million for the Wallops Island Causeway Bridge replacement needs to be benchmarked against similar projects in the region. Factors such as bridge length, width, load capacity, foundation requirements, and the complexity of the approach roads significantly influence cost. Projects involving extensive marine construction or challenging environmental conditions typically command higher prices. A comparative analysis with recently completed or ongoing bridge projects managed by the Virginia Department of Transportation or other federal entities in similar geographic and geological settings would help determine if this contract represents good value for money. Without specific comparable project data, it is difficult to definitively assess the pricing's competitiveness.

What are the primary risks associated with the long duration of this contract (over 5 years)?

The extended duration of this contract presents several potential risks. Firstly, there is a significant risk of material cost escalation over the five-year period, which could impact the contractor's profitability if not adequately managed within the firm-fixed-price structure. Secondly, unforeseen site conditions, such as unexpected geological challenges or environmental discoveries, could lead to delays and increased costs, potentially requiring contract modifications. Thirdly, the long timeline increases the possibility of regulatory changes or evolving design standards that might necessitate project adjustments. Finally, maintaining consistent project oversight and quality control over such an extended period requires sustained effort and resources from both the contractor and the contracting agency.

How effective are firm-fixed-price contracts in managing costs for large infrastructure projects like this bridge replacement?

Firm-fixed-price (FFP) contracts are generally considered effective for managing costs on large infrastructure projects when the scope of work is well-defined and risks are understood. In an FFP contract, the contractor assumes the majority of the financial risk, agreeing to a set price regardless of their actual costs. This incentivizes the contractor to control expenses and manage the project efficiently. For a bridge replacement project where the design is established, FFP can provide cost certainty for the government. However, if unforeseen issues arise that significantly alter the scope, contract modifications can occur, potentially increasing the overall cost. The success of FFP hinges on thorough initial planning and accurate cost estimation by the bidders.

What is the historical spending trend for bridge construction and repair by the Department of Transportation and NASA?

Historical spending data for bridge construction and repair by the Department of Transportation (DOT) and NASA reveals a consistent and significant investment in infrastructure. The DOT, through its various agencies like the Federal Highway Administration, allocates billions annually to maintain and upgrade the nation's bridges. NASA, while primarily focused on space exploration, also invests in maintaining its unique ground facilities, including access infrastructure like bridges at its various centers. Spending trends are often influenced by infrastructure needs assessments, federal funding allocations, and specific modernization initiatives. While this specific $70.6 million contract is a single data point, it aligns with the broader federal commitment to ensuring the safety and functionality of critical transportation assets.

What are the potential implications of this contract on the local workforce and economy in Accomack County, Virginia?

This significant infrastructure project is expected to have a positive impact on the local workforce and economy in Accomack County, Virginia. The construction phase will likely create numerous direct jobs for skilled laborers, engineers, project managers, and support staff. Furthermore, indirect economic benefits will arise from increased demand for local services, such as accommodation, food, and supplies for the construction crews and the prime contractor. The project's duration suggests a sustained period of economic activity. The long-term benefit includes the provision of a more resilient and reliable piece of infrastructure, supporting NASA's operations and potentially enhancing local transportation networks.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: 693C7323R000023

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6235 WESTERVILLE RD, WESTERVILLE, OH, 43081

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

Financial Breakdown

Contract Ceiling: $70,581,745

Exercised Options: $70,581,745

Current Obligation: $70,581,745

Actual Outlays: $24,806,048

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline