Coast Guard awards $4.9M contract for water and sewer line construction in Michigan

Contract Overview

Contract Amount: $49,850 ($49.9K)

Contractor: East Wind Enterprises, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-03-20

End Date: 2026-04-13

Contract Duration: 24 days

Daily Burn Rate: $2.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: STA TAWAS FIRE MAIN PIPE RUPTURE CASREP

Place of Performance

Location: EAST TAWAS, IOSCO County, MICHIGAN, 48730

State: Michigan Government Spending

Plain-Language Summary

Department of Homeland Security obligated $49,850 to EAST WIND ENTERPRISES, INC. for work described as: STA TAWAS FIRE MAIN PIPE RUPTURE CASREP Key points: 1. Contract awarded to East Wind Enterprises, Inc. for critical infrastructure repair. 2. Project aims to address a fire main pipe rupture, ensuring operational readiness. 3. Fixed-price contract type suggests defined scope and cost certainty. 4. Short performance period indicates a focused, urgent repair effort. 5. Geographic focus on Michigan highlights regional infrastructure needs. 6. Contract falls under Simplified Acquisition Procedures, suggesting a moderate value.

Value Assessment

Rating: good

The contract value of $4.9 million for water and sewer line construction appears reasonable given the scope of repairing a fire main pipe rupture. While specific benchmarks for this exact type of emergency repair are difficult to ascertain without more detailed project specifications, the fixed-price nature of the contract provides cost control. The award to East Wind Enterprises, Inc. will be assessed against their past performance and pricing on similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for streamlined competition for purchases below a certain threshold. While the exact number of bids received is not detailed, SAP generally encourages broad participation. The competition level under SAP is typically sufficient to ensure fair market pricing for contracts of this size.

Taxpayer Impact: The use of SAP for this contract suggests that taxpayers are likely receiving competitive pricing due to the open competition facilitated by the procedure.

Public Impact

The U.S. Coast Guard facility in Michigan will benefit from restored essential services. The contract ensures the repair of critical water and sewer infrastructure. This project supports the operational readiness and safety of the Coast Guard installation. The workforce implications include employment opportunities for construction labor in Michigan.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during repair.
Dependence on contractor's ability to meet the tight deadline.
Ensuring quality of materials and workmanship for long-term durability.

Positive Signals

Fixed-price contract provides cost certainty.
Short performance period indicates urgency and focus.
Award to a single entity streamlines execution.
Project addresses a critical infrastructure need (fire main rupture).

Sector Analysis

This contract falls within the Construction sector, specifically related to utility infrastructure. The market for water and sewer line construction is robust, with numerous firms capable of undertaking such projects. The value of this contract is moderate within the federal contracting landscape, often handled through simplified acquisition procedures to ensure efficiency for essential repairs.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided for this contract. As it was competed under SAP, it's possible that small businesses were encouraged to bid, but no specific set-aside was mandated. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting office, with potential involvement from relevant facility engineers. The fixed-price nature of the contract simplifies some oversight aspects by focusing on delivery and adherence to specifications. Transparency is generally maintained through federal contract databases.

Related Government Programs

Federal Buildings and Facilities Construction
Military Construction
Public Works and Infrastructure

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Contractor's ability to meet the short performance deadline.
Ensuring long-term durability and quality of repair work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $49,850 to EAST WIND ENTERPRISES, INC.. STA TAWAS FIRE MAIN PIPE RUPTURE CASREP

Who is the contractor on this award?

The obligated recipient is EAST WIND ENTERPRISES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $49,850.

What is the period of performance?

Start: 2026-03-20. End: 2026-04-13.

What is the track record of East Wind Enterprises, Inc. with federal contracts, particularly for infrastructure repair?

A review of federal procurement data indicates that East Wind Enterprises, Inc. has a history of receiving federal contracts. To fully assess their track record for this specific project, a deeper dive into their past performance ratings, any prior issues or disputes on similar infrastructure repair contracts, and their experience with the U.S. Coast Guard or Department of Homeland Security would be necessary. Analyzing their successful completion of previous projects of comparable size and complexity would provide further insight into their capability to execute this contract effectively and on time.

How does the awarded amount compare to similar water and sewer line construction contracts?

Comparing the $4.9 million award to similar contracts requires identifying projects with comparable scope, location, and complexity. Contracts for emergency repairs of fire main systems or significant sewer line replacements in similar geographic regions could serve as benchmarks. Without more specific details on the extent of the rupture and the required work, a precise comparison is challenging. However, the contract's value falls within a range typically seen for significant infrastructure repairs at federal facilities, especially when considering the need for specialized services and adherence to stringent government standards.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential unforeseen complications during excavation and repair, which could lead to cost overruns or schedule delays, despite the fixed-price nature. Contractor performance and adherence to quality standards are also risks. Mitigation strategies likely include detailed site assessments prior to work, clear contract specifications, robust quality assurance checks by the Coast Guard, and the contractor's own risk management protocols. The short performance period also implies a risk of schedule slippage if not managed diligently.

How effective is the Simplified Acquisition Procedures (SAP) in ensuring competitive pricing for this type of repair?

Simplified Acquisition Procedures (SAP) are designed to promote competition and efficiency for purchases below certain thresholds, generally considered effective for contracts of this value ($4.9 million). SAP typically involves soliciting quotes from multiple sources, encouraging fair market price discovery. While it streamlines the process compared to full and open competition, the level of competition can vary. For this contract, the Coast Guard likely sought bids from several qualified contractors, aiming to secure competitive pricing while expediting the necessary repairs for critical infrastructure.

What is the historical spending pattern for water and sewer line construction by the U.S. Coast Guard?

Analyzing historical spending patterns for water and sewer line construction by the U.S. Coast Guard would reveal the frequency and average value of such contracts. This specific contract's value of $4.9 million appears to be a significant investment for a single repair project. Understanding past spending trends can help contextualize this award, indicating whether it represents a typical expenditure or an unusually large one, potentially driven by the severity of the fire main rupture or broader infrastructure upgrade initiatives within the Coast Guard.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z03026QCLEV0033

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 BURNT BRIDGE WAY, YORKTOWN, VA, 23692

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

Financial Breakdown

Contract Ceiling: $49,850

Exercised Options: $49,850

Current Obligation: $49,850

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline