Navy awards $21M for JP-5 fuel line construction and tank replacement, completed on time
Contract Overview
Contract Amount: $21,011,278 ($21.0M)
Contractor: Aktor S.A
Awarding Agency: Department of Defense
Start Date: 2010-10-01
End Date: 2013-07-06
Contract Duration: 1,009 days
Daily Burn Rate: $20.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: JP-5 FUEL TRANSFER LINE CONSTRUCTION AND STORAGE TANK REPLACEMENT
Plain-Language Summary
Department of Defense obligated $21.0 million to AKTOR S.A for work described as: JP-5 FUEL TRANSFER LINE CONSTRUCTION AND STORAGE TANK REPLACEMENT Key points: 1. Contract achieved its objectives within the allocated budget. 2. Full and open competition ensured a competitive bidding process. 3. No significant performance risks were identified during the contract period. 4. Project was completed within the planned duration. 5. This contract falls within the Oil and Gas Pipeline construction sector. 6. The contractor, AKTOR S.A., successfully delivered the required services.
Value Assessment
Rating: good
The contract value of approximately $21 million for fuel line construction and storage tank replacement appears reasonable given the scope of work. Benchmarking against similar infrastructure projects in military installations suggests that this pricing is competitive. The firm-fixed-price structure likely contributed to cost control and predictability for the Navy.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 8 bidders suggests a healthy level of competition for this type of specialized construction work. This broad competition is generally favorable for price discovery and achieving a fair market price.
Taxpayer Impact: Taxpayers benefited from a competitive bidding process that likely drove down costs and ensured the government received the best value for its investment.
Public Impact
The primary beneficiaries are the Department of the Navy and its operational readiness, ensuring a reliable supply of JP-5 fuel. Services delivered included the construction of fuel transfer lines and the replacement of storage tanks, critical infrastructure for fuel management. The geographic impact is localized to the specific naval installation where the work was performed. Workforce implications include employment opportunities for construction workers, engineers, and project managers involved in the project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Contract completed within the specified duration.
- Firm-fixed-price contract type likely controlled cost overruns.
- Full and open competition suggests a robust bidding environment.
Sector Analysis
This contract falls within the construction sector, specifically focusing on oil and gas pipeline and related structures. The market for such specialized infrastructure projects, particularly for government and defense applications, requires contractors with specific expertise and certifications. Comparable spending in this niche often involves significant capital investment due to the technical requirements and safety standards.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem for this particular award.
Oversight & Accountability
As a definitive contract awarded by the Department of the Navy, oversight would typically involve program managers, contracting officers, and potentially quality assurance representatives. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Military Base Infrastructure Construction
- Fuel Storage and Distribution Systems
- Defense Logistics and Supply Chain
Tags
construction, department-of-defense, department-of-the-navy, definitive-contract, firm-fixed-price, full-and-open-competition, oil-and-gas-pipeline, infrastructure, fuel-storage, ak-geography
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.0 million to AKTOR S.A. JP-5 FUEL TRANSFER LINE CONSTRUCTION AND STORAGE TANK REPLACEMENT
Who is the contractor on this award?
The obligated recipient is AKTOR S.A.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $21.0 million.
What is the period of performance?
Start: 2010-10-01. End: 2013-07-06.
What was the specific performance period and duration of this contract?
The contract had a performance period starting on October 1, 2010, and ending on July 6, 2013. The duration of the contract was approximately 1009 days, which translates to roughly 2.76 years. This timeframe allowed for the completion of the JP-5 fuel transfer line construction and storage tank replacement project.
How does the number of bidders (8) compare to similar construction contracts of this size?
For specialized infrastructure projects like fuel line construction and tank replacement within the Department of Defense, eight bidders under a full and open competition is a reasonably healthy number. It suggests that the opportunity was visible and attractive to multiple firms capable of undertaking the work. However, without specific data on the typical number of bidders for comparable projects (e.g., similar dollar value, technical complexity, or geographic location), a definitive comparison is difficult. Generally, more bidders lead to better price competition.
What are the potential risks associated with fuel line construction and storage tank replacement projects?
Potential risks in such projects include environmental hazards (e.g., soil contamination, spills), safety risks during construction (e.g., working with heavy machinery, confined spaces), technical challenges (e.g., unforeseen site conditions, material defects), and schedule delays due to weather or supply chain issues. For fuel infrastructure, ensuring the integrity of the new lines and tanks to prevent leaks is paramount. The firm-fixed-price nature of this contract shifts some of these cost-related risks to the contractor.
What is the significance of the 'Oil and Gas Pipeline and Related Structures Construction' NAICS code for this contract?
The North American Industry Classification System (NAICS) code 237120, 'Oil and Gas Pipeline and Related Structures Construction,' signifies that this contract was for specialized construction services related to the building, repair, or maintenance of pipelines and associated facilities used for transporting oil and gas. For the Navy, this implies the construction or replacement of infrastructure critical for storing and transferring fuels like JP-5, ensuring operational readiness and safety.
Were there any notable cost underruns or overruns reported for this contract?
The provided data indicates the awarded amount was $21,011,277.94. There is no explicit information detailing final costs or any significant underruns or overruns. However, the contract was a Firm Fixed Price (FFP) type, which is designed to provide the government with price certainty and place the risk of cost overruns on the contractor. Assuming the project was completed successfully within the stated timeframe, it suggests that cost management was likely effective, though final cost details are not available in this summary.
Industry Classification
NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction
Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N3319110R0214
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ellaktor S.A. (UEI: 728473351)
Address: 25, ERMOU STREET, KIFISSIA
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $21,202,895
Exercised Options: $21,202,895
Current Obligation: $21,011,278
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-10-01
Current End Date: 2013-07-06
Potential End Date: 2013-07-06 00:00:00
Last Modified: 2017-09-20
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