Coast Guard waterfront construction contract awarded to Gilbane Federal for $37.2M, supporting critical infrastructure

Contract Overview

Contract Amount: $37,202,324 ($37.2M)

Contractor: Gilbane Federal

Awarding Agency: Department of Homeland Security

Start Date: 2020-10-15

End Date: 2026-03-31

Contract Duration: 1,993 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT THE UNITED STATES COAST GUARD (USCG) THROUGH THE PROVISION OF DESIGN-BUILD CONSTRUCTION SERVICES FOR LALB OPC WATERFRONT CONSTRUCTION.

Place of Performance

Location: SAN PEDRO, LOS ANGELES County, CALIFORNIA, 90731

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37.2 million to GILBANE FEDERAL for work described as: THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT THE UNITED STATES COAST GUARD (USCG) THROUGH THE PROVISION OF DESIGN-BUILD CONSTRUCTION SERVICES FOR LALB OPC WATERFRONT CONSTRUCTION. Key points: 1. Contract focuses on design-build services for waterfront facilities, indicating a need for specialized construction expertise. 2. The firm-fixed-price structure aims to control costs, but potential for change orders exists in long-term construction projects. 3. Awarded under full and open competition, suggesting a robust market for these services. 4. The contract duration extends over several years, implying a significant, multi-phase construction effort. 5. This project supports the U.S. Coast Guard's operational readiness by upgrading essential waterfront infrastructure.

Value Assessment

Rating: good

The contract value of $37.2 million for design-build waterfront construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale federal construction projects suggests that costs are within expected ranges. The firm-fixed-price contract type helps to establish a clear ceiling for expenditures, although the potential for scope creep or unforeseen site conditions in construction can impact the final cost. Further analysis would require detailed breakdowns of design and construction components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment, which generally leads to better pricing and value for the government. The specific details of the bidding process, including the evaluation criteria and the number of proposals received, would provide a more complete picture of the competition's effectiveness.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring the government receives the best possible value for its investment.

Public Impact

The United States Coast Guard benefits from upgraded waterfront facilities, enhancing operational capabilities and safety. Construction services delivered will include design and build aspects for critical port and harbor infrastructure. The geographic impact is concentrated in California, where the waterfront construction will take place. The project will likely create jobs in the construction sector, including skilled trades and project management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term construction projects can be susceptible to cost overruns due to unforeseen site conditions or material price fluctuations.
The complexity of design-build projects requires robust oversight to ensure quality and adherence to specifications.
Reliance on a single awardee for a multi-year project could pose risks if contractor performance degrades.

Positive Signals

Awarded under full and open competition, indicating a healthy market and potential for competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government, assuming scope is well-defined.
The project supports critical national infrastructure for the U.S. Coast Guard, aligning with strategic priorities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on specialized waterfront facilities. The federal government is a significant consumer of construction services, with spending often driven by infrastructure upgrades, military base improvements, and agency facility modernization. Comparable spending benchmarks would typically be derived from other large-scale design-build projects for government entities, considering factors like location, complexity, and specific building types.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Gilbane Federal, may engage small businesses as subcontractors. The extent of subcontracting to small businesses will be a key factor in assessing the impact on the small business ecosystem. Federal regulations often encourage or mandate subcontracting goals for prime contractors on large projects.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting office, with potential involvement from the Department of Homeland Security's Office of Inspector General. Accountability measures will be embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally maintained through contract award databases and public reporting, though specific project details might be sensitive.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Contracts
Army Corps of Engineers Civil Works Projects
General Services Administration (GSA) Public Buildings Service Construction

Risk Flags

Potential for cost overruns in long-term construction projects.
Complexity of design-build delivery requires diligent oversight.
Environmental and site-specific risks inherent in waterfront construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.2 million to GILBANE FEDERAL. THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT THE UNITED STATES COAST GUARD (USCG) THROUGH THE PROVISION OF DESIGN-BUILD CONSTRUCTION SERVICES FOR LALB OPC WATERFRONT CONSTRUCTION.

Who is the contractor on this award?

The obligated recipient is GILBANE FEDERAL.

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 $37.2 million.

What is the period of performance?

Start: 2020-10-15. End: 2026-03-31.

What is the historical performance record of Gilbane Federal with the U.S. Coast Guard or Department of Homeland Security?

A review of federal procurement data indicates that Gilbane Federal has a history of receiving contracts from various federal agencies, including the Department of Defense and the General Services Administration. Specific performance details with the U.S. Coast Guard or Department of Homeland Security would require a deeper dive into contract performance reports (CPARS) and any documented issues or commendations. Generally, large federal contractors have a portfolio of projects, and their track record is assessed on a contract-by-contract basis. Without access to specific CPARS data for Gilbane Federal's prior work with the USCG, a definitive assessment of their performance record with this specific agency cannot be provided here. However, their continued ability to win significant federal contracts suggests a generally satisfactory performance history.

How does the awarded price of $37.2 million compare to similar waterfront construction projects?

Benchmarking the $37.2 million award for this design-build waterfront construction project requires comparing it to similar projects in terms of scope, complexity, location, and duration. Waterfront construction is inherently complex due to environmental factors, specialized engineering requirements, and potential logistical challenges. Projects involving design-build delivery for critical infrastructure, such as piers, docks, or specialized port facilities, often command higher price points than standard building construction. Without specific details on the exact scope of work (e.g., square footage of buildings, length of quay walls, depth of dredging), a precise comparison is difficult. However, for a multi-year, comprehensive design-build effort for a major federal agency like the Coast Guard, a value in the tens of millions of dollars is not unusual. Further analysis would involve examining the cost per square foot or cost per linear foot of waterfront developed, adjusted for regional construction cost indices.

What are the primary risks associated with this design-build waterfront construction contract?

The primary risks associated with this design-build waterfront construction contract include: 1. **Scope Creep:** In design-build projects, changes to the initial design or unforeseen requirements during construction can lead to increased costs and schedule delays. 2. **Environmental Factors:** Waterfront construction is exposed to weather, tides, and potential environmental hazards, which can impact timelines and necessitate specialized mitigation strategies. 3. **Material and Labor Costs:** The extended duration of the contract (ending March 2026) exposes it to fluctuations in the cost of construction materials and skilled labor. 4. **Site Conditions:** Unforeseen subsurface conditions or existing infrastructure issues at the waterfront site could lead to significant cost increases and schedule impacts. 5. **Contractor Performance:** While Gilbane Federal is an established contractor, any degradation in performance, quality control, or project management could jeopardize project success. 6. **Regulatory Compliance:** Adhering to stringent environmental, safety, and building codes for waterfront facilities adds complexity and potential for delays if not managed proactively.

What is the expected impact of this contract on the U.S. Coast Guard's operational capabilities?

This contract is expected to significantly enhance the U.S. Coast Guard's operational capabilities by providing modern, reliable, and potentially expanded waterfront facilities. These facilities are crucial for the berthing, maintenance, and deployment of Coast Guard vessels, aircraft, and personnel. Upgraded infrastructure can lead to improved operational readiness, reduced downtime for maintenance, and enhanced safety for crews and equipment. Specifically, the "LALB OPC Waterfront Construction" suggests support for Offshore Patrol Cutters (OPC), which are a key component of the Coast Guard's future fleet. Improved waterfront infrastructure is essential to effectively support these new, larger vessels, enabling the Coast Guard to maintain its presence and execute its missions more effectively in areas like maritime security, drug interdiction, and search and rescue.

How has federal spending on waterfront construction evolved over the past five years?

Federal spending on waterfront construction has generally remained robust, driven by the need to modernize aging military and civilian port infrastructure, enhance national security, and support economic activity. Agencies such as the Department of Defense (through NAVFAC and the Army Corps of Engineers), the Department of Homeland Security (including the Coast Guard), and the Department of Transportation consistently allocate significant funds to these types of projects. Factors influencing this spending include geopolitical considerations, the lifecycle of existing facilities, and the introduction of new maritime assets requiring updated support infrastructure. While specific aggregate spending figures for 'waterfront construction' can be challenging to isolate due to varied categorization, the consistent awarding of large-scale contracts like this one indicates sustained federal investment in this critical sector. Trends may also reflect a shift towards more sustainable and resilient infrastructure designs in response to climate change and increased storm activity.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: 70Z05020ROPCLA1

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1655 GRANT ST 12TH FL, CONCORD, CA, 94520

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,202,324

Exercised Options: $37,202,324

Current Obligation: $37,202,324

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z04718DGILBAN00

IDV Type: IDC

Timeline