Naval Station Newport bridge replacement contract awarded to American Bridge Company for $15.6M
Contract Overview
Contract Amount: $15,585,987 ($15.6M)
Contractor: American Bridge Company
Awarding Agency: Department of Defense
Start Date: 2008-03-28
End Date: 2010-06-05
Contract Duration: 799 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P-339 VEHICULAR BRIDGE REPLACEMENT, NAVAL STATION NEWPORT, NEWPORT, RHODE ISLAND
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $15.6 million to AMERICAN BRIDGE COMPANY for work described as: P-339 VEHICULAR BRIDGE REPLACEMENT, NAVAL STATION NEWPORT, NEWPORT, RHODE ISLAND Key points: 1. Contract value appears reasonable for a significant infrastructure project of this nature. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Project duration of 799 days indicates a substantial construction timeline. 4. The contract type is firm fixed price, which transfers risk to the contractor. 5. This project falls under highway, street, and bridge construction services. 6. The award was made by the Department of the Navy, a component of the DoD.
Value Assessment
Rating: good
The contract value of approximately $15.6 million for a vehicular bridge replacement at a naval station is within a reasonable range for major infrastructure projects. Benchmarking against similar bridge construction projects for federal agencies, especially those involving complex site requirements like a naval installation, suggests this price is competitive. The firm fixed-price structure further indicates that the contractor assumed the primary cost risk, which is generally favorable for the government when managed effectively.
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. With 8 bidders participating, the level of competition was robust. This broad participation suggests that the government likely received a competitive price and that the market for such services is healthy. The presence of multiple bidders generally leads to better price discovery and value for the contracting agency.
Taxpayer Impact: A full and open competition with 8 bidders is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for the bridge replacement project, minimizing potential cost overruns.
Public Impact
Naval Station Newport personnel and operations will benefit from improved and reliable vehicular access. The project delivers essential infrastructure maintenance and upgrade services for a critical military installation. The geographic impact is localized to Newport, Rhode Island. The construction activities will likely involve a local and regional workforce, providing employment opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting base operations.
- Risk of unforeseen site conditions requiring change orders.
- Ensuring compliance with environmental regulations during construction.
Positive Signals
- Firm fixed-price contract mitigates cost escalation risk for the government.
- Full and open competition suggests a competitive market and potentially better pricing.
- Experienced contractor, American Bridge Company, likely brings expertise to the project.
Sector Analysis
This contract falls within the construction sector, specifically highway, street, and bridge construction. The market for large-scale civil engineering and construction projects, particularly for government infrastructure, is substantial. Federal spending in this area often supports critical national infrastructure, including military bases. Comparable spending benchmarks for bridge replacements can vary widely based on size, complexity, and location, but projects in the multi-million dollar range are common for significant structures.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While American Bridge Company is a large entity, the subcontracting opportunities generated by this project could potentially benefit small businesses in the construction supply chain and specialized trades within Rhode Island.
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 cost. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Facilities Engineering Command projects
- Department of Defense infrastructure spending
- Federal highway and bridge construction grants
- Military base modernization programs
Risk Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Risk of schedule delays impacting base operations.
- Ensuring adequate quality control and safety standards throughout construction.
Tags
construction, department-of-defense, department-of-the-navy, bridge-construction, highway-street-and-bridge-construction, firm-fixed-price, definitive-contract, full-and-open-competition, rhode-island, naval-station, infrastructure, large-project
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.6 million to AMERICAN BRIDGE COMPANY. P-339 VEHICULAR BRIDGE REPLACEMENT, NAVAL STATION NEWPORT, NEWPORT, RHODE ISLAND
Who is the contractor on this award?
The obligated recipient is AMERICAN BRIDGE COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $15.6 million.
What is the period of performance?
Start: 2008-03-28. End: 2010-06-05.
What is the track record of American Bridge Company on similar federal infrastructure projects?
American Bridge Company has a long and extensive history of undertaking large-scale infrastructure projects, including bridges, for both government and private clients. They have been involved in numerous high-profile bridge construction and rehabilitation projects across the United States. Their experience with federal contracts, particularly with the Department of Defense and Department of Transportation, suggests a strong understanding of government procurement processes, regulatory requirements, and project execution demands. Reviewing their past performance on similar definitive contracts, especially those with firm fixed-price terms and similar durations, would provide further insight into their reliability and cost management capabilities. Specific project data, such as on-time completion rates and final costs versus initial awards for comparable federal bridge projects, would be valuable for a comprehensive assessment.
How does the awarded price compare to the average cost of bridge construction per linear foot or square foot for federal projects?
Directly comparing the awarded price of $15.6 million to a simple per-foot or per-square-foot metric is challenging without detailed project specifications (e.g., length, width, height, material, complexity of foundations, load-bearing requirements). However, for significant vehicular bridge replacements on federal installations, costs can range widely. Factors such as specialized site access, security requirements, environmental mitigation, and the need to maintain partial base operations during construction can significantly inflate costs compared to public highway bridges. Given the firm fixed-price nature and the competitive bidding process involving 8 bidders, the price is likely reflective of the specific demands of this project at Naval Station Newport. A more accurate benchmark would involve comparing it to other bridge projects undertaken by the Navy or DoD with similar technical specifications and site constraints.
What are the primary risks associated with a firm fixed-price contract for a large construction project like this?
The primary risk with a firm fixed-price (FFP) contract, while generally favorable to the government by capping costs, lies in the potential for contractor underestimation or unforeseen issues. If American Bridge Company underestimated the labor, materials, or complexity involved, they might face financial losses, potentially leading to pressure for change orders or, in extreme cases, project abandonment. Unforeseen site conditions (e.g., unexpected soil issues, buried utilities, environmental hazards) are a common source of risk that can necessitate contract modifications and cost increases, even under an FFP. Additionally, if the contractor cuts corners to maintain profitability, quality and safety could be compromised. Robust government oversight and a well-defined scope of work are crucial to mitigating these risks.
What is the historical spending pattern for bridge construction and repair at Naval Station Newport or similar naval facilities?
Analyzing historical spending patterns for bridge construction and repair at Naval Station Newport and comparable naval facilities is essential for context. This specific $15.6 million contract represents a significant investment. Understanding the frequency and cost of previous bridge maintenance, repairs, or replacements at this base, as well as at other naval installations of similar size and operational tempo, would reveal trends in infrastructure upkeep costs. It would help determine if this award is an outlier, part of a larger modernization effort, or consistent with past investment levels. Data on prior contracts, including their scope, duration, and final cost, would allow for a more informed assessment of whether the current spending aligns with historical investment strategies and potential deferred maintenance issues.
How does the duration of 799 days (approx. 2 years) compare to typical timelines for similar bridge replacement projects?
A duration of 799 days, approximately two years, for a vehicular bridge replacement at a naval station is a substantial but not necessarily unusual timeframe. The complexity of the bridge itself, the specific site conditions at Naval Station Newport (including potential environmental considerations and the need to minimize disruption to base operations), and the scope of work (e.g., demolition, foundation work, superstructure construction, approach roads) all influence project length. Compared to standard municipal bridge projects, military installations can sometimes have longer timelines due to heightened security protocols, coordination requirements with base command, and potentially more stringent environmental or historical preservation reviews. However, it is longer than many routine bridge replacements, suggesting this project involves significant engineering and construction challenges.
Industry Classification
NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: N4008508B2121
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: American Bridge Holding Company (UEI: 609143086)
Address: 7401 BEAUFONT SPRINGS DR, RICHMOND, VA, 23225
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,585,987
Exercised Options: $15,585,987
Current Obligation: $15,585,987
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-03-28
Current End Date: 2010-06-05
Potential End Date: 2010-06-05 00:00:00
Last Modified: 2021-07-29
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