Naval Submarine Base New London Waterfront Repairs Contract Exceeds Benchmark by $2.68M
Contract Overview
Contract Amount: $25,799,478 ($25.8M)
Contractor: Triton-Seaward
Awarding Agency: Department of Defense
Start Date: 2011-08-31
End Date: 2014-04-18
Contract Duration: 961 days
Daily Burn Rate: $26.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: N40085-11-C-7235 DESIG/BID/BUILD CONSTRUCTION PROJECT ST 09-0339 WATERFRONT REPAIRS, NAVAL SUBMARINE BASE NEW LONDON, GROTON, CONNECTICUT.
Place of Performance
Location: GROTON, NEW LONDON County, CONNECTICUT, 06349
Plain-Language Summary
Department of Defense obligated $25.8 million to TRITON-SEAWARD for work described as: N40085-11-C-7235 DESIG/BID/BUILD CONSTRUCTION PROJECT ST 09-0339 WATERFRONT REPAIRS, NAVAL SUBMARINE BASE NEW LONDON, GROTON, CONNECTICUT. Key points: 1. The $25.8M contract for waterfront repairs at Naval Submarine Base New London was awarded to TRITON-SEAWARD. 2. Awarded under full and open competition, the project aimed to address critical infrastructure needs. 3. The final cost was approximately $2.68M over the initial bid, raising questions about cost control. 4. This project falls within the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: questionable
The final award amount of $25,799,477.94 appears to be significantly higher than the initial bid of $23,014,817.94, representing a substantial increase. Benchmarking against similar construction projects of this scale and complexity is difficult without more detailed cost breakdowns, but the overage warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for soliciting bids. However, the final cost exceeding the initial bid by nearly $2.7 million indicates potential issues in the bidding, negotiation, or execution phases that impacted price discovery.
Taxpayer Impact: Taxpayer funds were used for this project. The cost overrun of $2.68M represents an inefficient use of public money, as the final price was considerably higher than initially anticipated.
Public Impact
Essential infrastructure upgrades at a key naval base were completed, ensuring operational readiness. The cost overrun raises concerns about the accuracy of initial cost estimates and contractor performance. Transparency in the bidding and execution process is crucial for public trust in defense spending. The project's duration of 961 days highlights the complexity and scale of naval infrastructure work.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Overrun
- Potential Inaccurate Bidding
- Limited Transparency on Cost Increases
Positive Signals
- Completed Critical Infrastructure
- Full and Open Competition
Sector Analysis
This project falls under Commercial and Institutional Building Construction, a sector often characterized by complex project management and significant capital investment. Benchmarks for similar waterfront repair projects are highly variable due to specific site conditions and material requirements.
Small Business Impact
There is no indication in the provided data whether small businesses were involved as prime contractors or subcontractors in this project. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy awarded this contract. Oversight would typically involve contract management teams monitoring progress, costs, and adherence to specifications. The significant cost overrun suggests potential gaps or weaknesses in the oversight process.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Significant cost overrun compared to initial bid.
- Potential for inaccurate initial cost estimation.
- Lack of detailed justification for cost increases.
- Limited visibility into subcontractor performance.
- Potential for schedule delays impacting overall cost.
Tags
commercial-and-institutional-building-co, department-of-defense, ct, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.8 million to TRITON-SEAWARD. N40085-11-C-7235 DESIG/BID/BUILD CONSTRUCTION PROJECT ST 09-0339 WATERFRONT REPAIRS, NAVAL SUBMARINE BASE NEW LONDON, GROTON, CONNECTICUT.
Who is the contractor on this award?
The obligated recipient is TRITON-SEAWARD.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $25.8 million.
What is the period of performance?
Start: 2011-08-31. End: 2014-04-18.
What specific factors contributed to the $2.68M cost overrun on this waterfront repair project?
The cost overrun could be attributed to several factors, including unforeseen site conditions discovered during construction, changes in material costs, scope creep, or initial underbidding by the contractor. A detailed review of change orders, progress reports, and final cost accounting would be necessary to pinpoint the exact causes.
How effectively did the full and open competition process ensure the best value for taxpayers, given the final cost exceeded initial bids?
While full and open competition is designed to foster competitive pricing, the significant cost overrun suggests that either the initial bids did not accurately reflect the project's true cost, or post-award management allowed costs to escalate beyond initial expectations. The process may have secured a qualified contractor, but the final price indicates potential inefficiencies in cost control or estimation.
What measures are in place to prevent similar cost overruns on future naval construction projects?
Future projects can benefit from more rigorous pre-bid site investigations, robust cost estimation methodologies, stricter change order controls, and enhanced contractor performance monitoring. Implementing performance-based contracts and incentivizing cost savings can also encourage better fiscal discipline and prevent excessive overruns.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N4008511R7235
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2181 CHICO WAY NW, BREMERTON, WA, 98312
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,799,478
Exercised Options: $25,799,478
Current Obligation: $25,799,478
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-08-31
Current End Date: 2014-04-18
Potential End Date: 2014-04-18 00:00:00
Last Modified: 2021-07-29
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