DoD awards $37.5M for seawall repair at US Naval Academy, raising value-for-money questions

Contract Overview

Contract Amount: $37,528,700 ($37.5M)

Contractor: Cianbro Corporation

Awarding Agency: Department of Defense

Start Date: 2022-09-16

End Date: 2024-12-31

Contract Duration: 837 days

Daily Burn Rate: $44.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SEAWALL REPAIR FARRAGUT FIELD & SANTEE BASIN, USNA, MD

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21402

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $37.5 million to CIANBRO CORPORATION for work described as: SEAWALL REPAIR FARRAGUT FIELD & SANTEE BASIN, USNA, MD Key points: 1. The contract's value appears high relative to the scope of heavy civil engineering construction. 2. Limited public data makes direct comparison to similar projects challenging. 3. The fixed-price contract type shifts risk to the contractor, but oversight is crucial. 4. Performance context is limited, with the contract spanning over two years. 5. This contract falls within the broader 'Other Heavy and Civil Engineering Construction' sector. 6. The award was made under full and open competition, suggesting a competitive market.

Value Assessment

Rating: fair

The $37.5 million award for seawall repair at the U.S. Naval Academy is substantial. Without detailed project specifications and comparable bids, it's difficult to definitively benchmark value. However, the scale of the award suggests a significant undertaking. Comparing this to other large-scale coastal defense or civil engineering projects, particularly those involving specialized marine construction, would be necessary for a more precise assessment of cost-effectiveness. The firm fixed-price nature indicates an expectation of defined costs, but the overall price point warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, indicating that multiple bidders were likely solicited. The presence of four bids suggests a reasonable level of competition for this type of specialized construction. A competitive bidding process generally helps to ensure that the government receives fair market prices. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes competitive pricing and can lead to cost savings compared to sole-source or limited competition awards.

Public Impact

The U.S. Naval Academy in Annapolis, Maryland, will benefit from improved and resilient seawall infrastructure. This project directly supports the operational readiness and safety of a key military installation. The geographic impact is localized to the Naval Academy campus in Maryland. The contract is expected to create or sustain jobs in the heavy civil engineering and construction sectors within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Ensuring contractor performance meets stringent military infrastructure standards.
Long duration of the contract (over 2 years) increases exposure to market fluctuations.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed-price contract shifts cost risk to the contractor.
Contract duration aligns with the complexity of large-scale civil engineering projects.

Sector Analysis

This contract falls under the 'Other Heavy and Civil Engineering Construction' sector, which includes a wide range of infrastructure projects. The market for such services is often characterized by large, specialized firms capable of undertaking complex projects. Spending in this sector is driven by government infrastructure needs, including military base improvements, transportation networks, and environmental protection projects. Comparable spending benchmarks would typically involve analyzing other large-scale construction contracts for federal facilities or critical infrastructure.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. This suggests that the primary award went to a large prime contractor. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks out small business subcontractors for specialized services or supplies, which is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver the specified work within the agreed-upon price. Transparency is facilitated by the contract award being publicly available, though detailed project oversight reports or inspector general involvement are not specified in the provided data.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Infrastructure Projects
Coastal Defense and Repair Projects
Heavy Civil Engineering Construction Contracts

Risk Flags

Potential for cost escalation due to long contract duration.
Scope definition and unforeseen site conditions.
Contractor performance and quality assurance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.5 million to CIANBRO CORPORATION. SEAWALL REPAIR FARRAGUT FIELD & SANTEE BASIN, USNA, MD

Who is the contractor on this award?

The obligated recipient is CIANBRO CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $37.5 million.

What is the period of performance?

Start: 2022-09-16. End: 2024-12-31.

What is the specific scope of work for the seawall repair, and what are the key performance metrics?

The provided data indicates the contract is for 'SEAWALL REPAIR FARRAGUT FIELD & SANTEE BASIN, USNA, MD'. However, detailed specifications regarding the exact scope of work, materials to be used, engineering requirements, and specific performance metrics are not included in this summary. Typically, such contracts would involve detailed engineering plans, site assessments, and requirements for durability, resistance to environmental factors (like erosion and storm surge), and compliance with naval standards. Key performance metrics would likely include adherence to schedule, quality of construction, and successful completion of all specified repair and reinforcement tasks.

How does the $37.5 million cost compare to similar seawall repair projects at other military installations?

Benchmarking this $37.5 million contract against similar seawall repair projects at other military installations requires access to detailed cost data for comparable projects. Factors influencing cost include the size and condition of the existing seawall, the complexity of the repair (e.g., foundation issues, material requirements), the specific environmental conditions, and the labor and material costs in the project's geographic location. Without specific data on comparable projects, it's challenging to definitively state whether this award represents a high, low, or average cost. However, the amount suggests a significant undertaking, potentially involving extensive structural work or large sections of seawall.

What is the track record of CIANBRO CORPORATION in performing large-scale civil engineering and construction contracts for the federal government?

CIANBRO CORPORATION has a history of performing large-scale construction and engineering projects, including significant work for government entities. Their portfolio often includes infrastructure development, industrial construction, and marine projects. To assess their track record specifically for federal contracts of this nature, a review of their past performance ratings, any past performance issues or awards, and their experience with similar projects (e.g., coastal defenses, port infrastructure) would be necessary. Information on their safety record, project completion timeliness, and client satisfaction on previous government contracts would also be relevant.

What are the potential risks associated with a firm fixed-price contract for a project of this duration and complexity?

While a firm fixed-price (FFP) contract shifts the risk of cost overruns to the contractor, risks remain, especially for a project of this duration (over two years) and complexity. Potential risks include unforeseen site conditions (e.g., subsurface geological issues, environmental hazards) that could lead to change orders or disputes, contractor default or poor performance, and potential quality issues if the contractor attempts to cut corners to maintain profitability. Market fluctuations in material costs or labor availability over the contract's long duration could also impact the contractor's ability to perform within the fixed price, potentially leading to claims or reduced quality if not managed carefully. Robust government oversight is crucial to mitigate these risks.

How does the number of bids (4) influence the perceived value for money in this contract award?

Receiving four bids for a contract awarded under full and open competition generally suggests a healthy level of market interest and competition. A higher number of bids typically increases the likelihood that the government is receiving a competitive price, as contractors are motivated to offer their best terms to win the contract. With four bidders, there is a reasonable basis for comparison among proposals, allowing the contracting agency to select the offer that provides the best value. While four bids are positive, the ultimate value for money also depends on the thoroughness of the evaluation process and the specific technical and cost proposals submitted by each bidder.

What is the historical spending pattern for seawall repair and maintenance at the U.S. Naval Academy or similar facilities?

Historical spending data for seawall repair and maintenance at the U.S. Naval Academy or similar facilities is not provided in the current data. Analyzing past expenditures on similar projects would offer valuable context for the $37.5 million award. This would involve examining previous contracts for seawall work, their costs, scopes, and frequencies. Understanding historical spending can help identify trends, assess whether current spending is consistent with past investment levels, and evaluate if there has been a significant increase or decrease in the need for or cost of such repairs over time. This context is crucial for assessing the reasonableness of the current contract's value.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008022R3927

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 CIANBRO SQ, PITTSFIELD, ME, 04967

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

Financial Breakdown

Contract Ceiling: $37,528,700

Exercised Options: $37,528,700

Current Obligation: $37,528,700

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $9,510,635

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline