Coast Guard Awards $2.66M Construction Contract for Valdez Facility Upgrade

Contract Overview

Contract Amount: $2,664,810 ($2.7M)

Contractor: KLR Northern JV

Awarding Agency: Department of Homeland Security

Start Date: 2025-02-19

End Date: 2026-06-30

Contract Duration: 496 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE UST WITH AST AT MSU VALDEZ, AK

Place of Performance

Location: VALDEZ, CHUGACH County, ALASKA, 99686

State: Alaska Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.7 million to KLR NORTHERN JV for work described as: REPLACE UST WITH AST AT MSU VALDEZ, AK Key points: 1. Contract awarded to KLR Northern JV for facility renovation. 2. Full and open competition was utilized after source exclusion. 3. Project duration is 496 days, ending June 2026. 4. The contract is firm fixed price, indicating clear cost expectations.

Value Assessment

Rating: good

The award amount of $2,664,810 appears reasonable for a construction project of this scope and duration. Benchmarking against similar commercial and institutional building construction contracts in Alaska would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive bidding process. This method generally promotes price discovery and ensures fair market value is obtained.

Taxpayer Impact: The use of competitive bidding aims to secure the best value for taxpayer funds on this infrastructure project.

Public Impact

Enhances critical Coast Guard infrastructure in Valdez, Alaska. Supports operational readiness and safety for personnel. Potential for local economic impact through construction activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise.
Dependence on a single contractor for project completion.

Positive Signals

Clear contract type (firm fixed price) limits cost uncertainty.
Competitive award process suggests fair pricing.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector is influenced by infrastructure needs, government facility maintenance, and economic conditions. Benchmarks for similar projects vary widely based on location, size, and complexity.

Small Business Impact

The data indicates the awardee is KLR Northern JV. Further analysis would be needed to determine the extent of small business participation within this joint venture or as subcontractors.

Oversight & Accountability

The Department of Homeland Security, specifically the U.S. Coast Guard, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure compliance and performance.

Related Government Programs

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

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Dependence on a single contractor for project delivery.
Limited information on small business subcontracting participation.
Geographic remoteness of Valdez may introduce logistical challenges and higher costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.7 million to KLR NORTHERN JV. REPLACE UST WITH AST AT MSU VALDEZ, AK

Who is the contractor on this award?

The obligated recipient is KLR NORTHERN JV.

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 $2.7 million.

What is the period of performance?

Start: 2025-02-19. End: 2026-06-30.

What specific improvements are included in the 'REPLACE UST AT MSU VALDEZ, AK' scope of work, and how do they align with the Coast Guard's operational needs?

The scope of work likely involves replacing underground storage tanks (UST) and potentially associated infrastructure at the Marine Safety Unit (MSU) in Valdez, Alaska. This is crucial for environmental compliance, preventing soil and groundwater contamination, and ensuring the safe storage and dispensing of fuels necessary for Coast Guard operations. Upgraded systems can also improve efficiency and reduce maintenance needs.

What were the reasons for excluding specific sources prior to the full and open competition, and did this exclusion impact the final price?

The exclusion of sources typically occurs when specific capabilities, past performance, or unique requirements necessitate a narrowed initial pool. The reasons could range from specialized equipment needs to security clearances. While intended to streamline the process, such exclusions can sometimes limit competition, potentially impacting price discovery. However, the subsequent 'full and open' phase suggests a broad competitive field was ultimately considered.

How does the $2.66 million contract value compare to similar facility upgrades or environmental remediation projects undertaken by the Coast Guard or other federal agencies in Alaska?

Benchmarking this $2.66 million contract against similar projects in Alaska is essential for a comprehensive value assessment. Factors like remote location, logistical challenges, and local labor costs significantly influence construction prices in Alaska. Comparing it to projects of similar scale (e.g., tank replacements, building renovations) at other federal installations in the state would reveal if this award represents a competitive and cost-effective outcome for the taxpayer.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2600 RAILROAD AVE, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,664,810

Exercised Options: $2,664,810

Current Obligation: $2,664,810

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 70Z08724DJUNE0003

IDV Type: IDC

Timeline