DHS Awards $131M Kodiak OPC FRC Phase II Construction Contract to Gilbane Federal

Contract Overview

Contract Amount: $131,262,825 ($131.3M)

Contractor: Gilbane Federal

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-08

End Date: 2027-09-09

Contract Duration: 1,462 days

Daily Burn Rate: $89.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION KODIAK OPC FRC PHASE II

Place of Performance

Location: KODIAK, KODIAK ISLAND County, ALASKA, 99615

State: Alaska Government Spending

Plain-Language Summary

Department of Homeland Security obligated $131.3 million to GILBANE FEDERAL for work described as: DESIGN AND CONSTRUCTION KODIAK OPC FRC PHASE II Key points: 1. Significant investment in critical infrastructure for the U.S. Coast Guard. 2. Full and open competition suggests potential for competitive pricing. 3. Long duration (1462 days) may introduce cost escalation risks. 4. Construction sector is subject to material and labor cost fluctuations.

Value Assessment

Rating: good

The contract value of $131.26M for a multi-year construction project appears reasonable given the scope. Benchmarking against similar large-scale federal construction 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, indicating a robust price discovery process. This method generally leads to more competitive pricing compared to sole-source or limited solicitations.

Taxpayer Impact: Taxpayer funds are being utilized for a significant infrastructure project, with competition aiming to ensure value for money.

Public Impact

Enhances U.S. Coast Guard operational capabilities in Alaska. Supports local economy through construction jobs and related services. Long-term asset for national security and maritime safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to long project duration.
Reliance on specific materials and labor availability.
Scope creep risks in large construction projects.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract type limits cost uncertainty.
Strategic investment in critical infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector is substantial, driven by infrastructure needs across various agencies. Benchmarks vary widely based on project type and location.

Small Business Impact

While the primary awardee is Gilbane Federal, opportunities for small businesses may exist as subcontractors for specialized services or material supply. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The U.S. Coast Guard is responsible for oversight of this project. Robust project management and regular reporting will be crucial to ensure adherence to schedule, budget, and quality standards.

Related Government Programs

Commercial and Institutional Building Construction
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Long project duration increases risk of cost escalation.
Potential for unforeseen site conditions in remote Alaska.
Dependence on specialized labor and materials.
Contract awarded as Delivery Order, implying a larger IDIQ or similar vehicle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $131.3 million to GILBANE FEDERAL. DESIGN AND CONSTRUCTION KODIAK OPC FRC PHASE II

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 $131.3 million.

What is the period of performance?

Start: 2023-09-08. End: 2027-09-09.

What are the key performance indicators (KPIs) for this construction project, and how will they be monitored?

Key performance indicators likely include adherence to the project schedule, budget compliance, quality of construction, and safety metrics. The U.S. Coast Guard's contracting officer's representative (COR) and project managers will be responsible for monitoring these KPIs through regular site inspections, progress reports, and milestone reviews. Performance data will inform payment schedules and potential contract modifications.

What are the primary risks associated with the long project duration, and what mitigation strategies are in place?

The primary risks of a 1462-day duration include potential escalation of material and labor costs, unforeseen site conditions, and potential delays due to weather or supply chain disruptions. Mitigation strategies may include contingency planning within the budget, robust contract clauses addressing escalation, proactive supply chain management, and detailed scheduling with buffer times.

How does the firm fixed price contract type impact the government's exposure to cost overruns?

A firm fixed price (FFP) contract shifts the majority of cost risk to the contractor. The government agrees to pay a set price regardless of the contractor's actual costs. This provides budget certainty for the government but requires the contractor to absorb any cost overruns, incentivizing them to manage costs efficiently.

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

Offers Received: 5

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: $131,262,825

Exercised Options: $131,262,825

Current Obligation: $131,262,825

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $112,864,486

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