Coast Guard awards $9.87M for Kodiak base utility and paving repairs to Weldin Construction LLC

Contract Overview

Contract Amount: $9,866,076 ($9.9M)

Contractor: Weldin Construction LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-01-27

End Date: 2026-06-30

Contract Duration: 1,250 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR UTILITIES AND PAVING ON STORIS BLDG. 518 TO BLDG. 549, BASE KODIAK, AK

Place of Performance

Location: KODIAK, KODIAK ISLAND County, ALASKA, 99619

State: Alaska Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.9 million to WELDIN CONSTRUCTION LLC for work described as: REPAIR UTILITIES AND PAVING ON STORIS BLDG. 518 TO BLDG. 549, BASE KODIAK, AK Key points: 1. Contract value represents a significant investment in critical infrastructure at Base Kodiak. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictability. 4. Project duration extends over three years, indicating a substantial scope of work. 5. The contractor, Weldin Construction LLC, has a track record that warrants review for performance history. 6. Geographic focus on Alaska highlights the unique logistical and environmental challenges of the region.

Value Assessment

Rating: good

The contract value of $9.87 million for utility and paving repairs appears reasonable given the scope and duration. Benchmarking against similar large-scale construction and repair projects for federal facilities in remote or challenging environments like Alaska would provide further context. The firm fixed-price structure suggests an effort to manage cost overruns, but the final value will depend on the contractor's execution and any potential change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which typically means that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specific project. While not a large number of bidders, it indicates that the opportunity was advertised broadly enough to attract at least some interest from qualified contractors.

Taxpayer Impact: The competitive nature of the bidding process, even with two bidders, likely helped ensure a more reasonable price for taxpayers compared to a sole-source award. It provides a basis for price discovery in the market for these types of specialized construction services in Alaska.

Public Impact

The primary beneficiaries are the U.S. Coast Guard personnel and operations at Base Kodiak, Alaska, who will have improved and reliable utility and paving infrastructure. The services delivered include essential repairs and upgrades to buildings 518 and 549, focusing on utilities and paving. The geographic impact is localized to Base Kodiak, Alaska, a critical operational hub for the Coast Guard in the region. Workforce implications include the potential for local job creation and economic activity in Alaska through the contractor's employment and procurement of local resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise in Alaska's challenging environment.
Dependence on a single contractor for a multi-year, critical infrastructure project.
Logistical complexities of construction in a remote Alaskan location could impact timelines and costs.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a fair market price was sought.
Project addresses essential infrastructure needs, ensuring operational readiness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on repairs and utilities. The market for federal construction contracts in Alaska is often characterized by unique logistical challenges and higher costs due to its remote location and climate. Comparable spending benchmarks would involve looking at other large-scale infrastructure repair projects awarded by federal agencies in similar geographic areas, considering the specific types of construction involved (e.g., utility upgrades, paving).

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration or requirement for this specific contract award. There is no indication of a small business set-aside or subcontracting plan being mandated. This suggests that the prime contractor, Weldin Construction LLC, is likely a larger entity capable of handling the full scope of work, and the contract was awarded based on best value or lowest price technically acceptable without specific small business goals.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting office and project managers responsible for Base Kodiak. Accountability measures are embedded in the firm fixed-price contract, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, allowing for review of contract details and performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Base Operations Support Contracts
Federal Building and Facility Maintenance
Infrastructure Improvement Projects
Military Construction Projects

Risk Flags

Potential for cost escalation due to remote location and climate.
Contract duration may exceed typical project cycles, increasing risk exposure.
Limited competition (2 bidders) could indicate market constraints or specialized requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.9 million to WELDIN CONSTRUCTION LLC. REPAIR UTILITIES AND PAVING ON STORIS BLDG. 518 TO BLDG. 549, BASE KODIAK, AK

Who is the contractor on this award?

The obligated recipient is WELDIN CONSTRUCTION LLC.

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 $9.9 million.

What is the period of performance?

Start: 2023-01-27. End: 2026-06-30.

What is Weldin Construction LLC's past performance record with federal contracts, particularly for similar infrastructure repair projects?

A thorough review of Weldin Construction LLC's past performance is crucial. This would involve examining their track record on previous federal contracts, specifically looking for projects involving utility repairs, paving, and building construction in challenging environments. Key metrics to assess include on-time delivery, adherence to budget, quality of work, and any history of disputes or contract terminations. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable in understanding their reliability and capability to successfully execute this $9.87 million project for the U.S. Coast Guard.

How does the awarded price of $9.87 million compare to similar construction projects for federal facilities in Alaska or other remote regions?

Benchmarking this $9.87 million award against similar projects is essential for value assessment. This requires identifying comparable federal contracts for utility and paving repairs on military bases or remote federal installations in Alaska or other geographically challenging areas. Factors to consider include the scope of work (square footage, type of utilities, complexity of paving), contract duration, and the specific economic conditions of the region at the time of award. Without direct comparable data, it's difficult to definitively state if the price is high or low, but the firm fixed-price nature suggests an attempt to lock in costs.

What are the primary risks associated with executing a large-scale construction project like this in Kodiak, Alaska?

Executing this project in Kodiak, Alaska, presents several significant risks. The remote location poses logistical challenges for material delivery, equipment transport, and workforce mobilization, potentially leading to delays and increased costs. Alaska's harsh weather conditions, including extreme cold, snow, and limited daylight hours during winter, can severely impact construction schedules and require specialized techniques. Furthermore, unforeseen subsurface conditions (permafrost, unstable soil) could necessitate design changes or more extensive work than initially planned. Environmental regulations specific to Alaska also add a layer of complexity.

What is the expected impact of these repairs on the operational readiness and safety of Base Kodiak?

The repairs to buildings 518 and 549, focusing on utilities and paving, are expected to significantly enhance the operational readiness and safety of Base Kodiak. Reliable utility systems (water, power, sewage) are fundamental for the daily functioning of any military installation, directly impacting personnel welfare and mission execution. Improved paving ensures safe and efficient movement of vehicles and personnel across the base, reducing risks of accidents and wear on equipment. Addressing these infrastructure needs prevents potential failures that could disrupt critical Coast Guard operations in the region.

How has federal spending on building construction and utility repair in Alaska trended over the past five years, and does this award align with those trends?

Analyzing federal spending trends on building construction and utility repair in Alaska over the past five years would provide context for this $9.87 million award. This would involve examining historical contract data for similar projects awarded by various federal agencies operating in Alaska. Trends might indicate an increase or decrease in demand, shifts in average contract values, or changes in the types of projects being prioritized. If spending has been consistently high due to aging infrastructure or strategic importance of Alaskan bases, this award would align with those trends. Conversely, a downward trend might warrant closer scrutiny of the necessity and pricing of this specific contract.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 561 E STEEL LOOP, PALMER, AK, 99645

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,902,157

Exercised Options: $9,866,076

Current Obligation: $9,866,076

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08718DPJT24500

IDV Type: IDC

Timeline