Navy's $60.6M dry dock contract awarded to Cianbro Corporation for complex defueling and construction

Contract Overview

Contract Amount: $60,609,282 ($60.6M)

Contractor: Cianbro Corporation

Awarding Agency: Department of Defense

Start Date: 2017-06-27

End Date: 2021-11-16

Contract Duration: 1,603 days

Daily Burn Rate: $37.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CIP DRY DOCK 1 DEFUELING COMPLEX PNSY KITTERY ME

Place of Performance

Location: KITTERY, YORK County, MAINE, 03904

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $60.6 million to CIANBRO CORPORATION for work described as: IGF::OT::IGF CIP DRY DOCK 1 DEFUELING COMPLEX PNSY KITTERY ME Key points: 1. Contract value represents a significant investment in naval infrastructure maintenance. 2. Awarded via full and open competition, suggesting a robust bidding process. 3. Firm-fixed-price contract type aims to control costs and mitigate contractor risk. 4. Contract duration of over 4 years indicates a substantial and complex project. 5. Project location in Maine highlights regional economic impact and specialized labor needs. 6. Industrial building construction (NAICS 236210) is a critical but often high-cost sector.

Value Assessment

Rating: good

The contract's value of $60.6 million for a complex defueling and dry dock project appears reasonable given the scope and duration. While specific benchmarks for this exact type of specialized industrial construction are difficult to ascertain without more granular data, the firm-fixed-price structure suggests an effort to lock in costs. Comparing this to similar large-scale naval shipyard infrastructure projects would provide a clearer picture of value for money, but the complexity of defueling and dry dock operations inherently carries high costs.

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 2 bids suggests a competitive environment, though the exact number of potential bidders for such specialized work is unknown. A higher number of bidders generally leads to better price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best value.

Public Impact

The primary beneficiary is the Department of the Navy, ensuring the operational readiness of naval assets through critical shipyard infrastructure. The contract delivers essential services related to dry dock maintenance, including complex defueling operations and industrial building construction. The project's geographic impact is concentrated in Kittery, Maine, supporting the local economy and workforce. Workforce implications include employment opportunities for skilled tradespeople, engineers, and project managers in the construction and maritime sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during the defueling process.
Dependence on specialized labor and materials could lead to supply chain risks.
Long project duration increases exposure to economic fluctuations and changing regulatory environments.

Positive Signals

Firm-fixed-price contract mitigates financial risk for the government.
Awarded through full and open competition, suggesting a competitive pricing environment.
Contractor (Cianbro Corporation) likely has experience in large-scale industrial construction projects.

Sector Analysis

This contract falls within the Industrial Building Construction sector, a segment of the broader construction industry focused on specialized facilities. The market for naval shipyard infrastructure is relatively niche, dominated by a few large contractors capable of handling the complexity and security requirements. Spending benchmarks for such projects are highly variable, depending on the specific scope of work, location, and technological requirements. The total contract value of $60.6 million is substantial for a single project within this specialized sub-sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Cianbro Corporation is a large entity. While there's no direct indication of subcontracting plans for small businesses within the provided data, large prime contractors often engage small businesses for specialized services or materials. The absence of a small business set-aside means opportunities for small businesses would likely be through subcontracting, the extent of which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. The firm-fixed-price nature of the contract shifts much of the performance risk to the contractor, Cianbro Corporation. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Shipyard Infrastructure Modernization Programs
Defense Industrial Base Construction Contracts
Public Works and Facilities Maintenance
Maritime Construction Projects

Risk Flags

Potential for cost overruns due to complexity
Schedule delay risks
Environmental compliance risks during defueling

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.6 million to CIANBRO CORPORATION. IGF::OT::IGF CIP DRY DOCK 1 DEFUELING COMPLEX PNSY KITTERY ME

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 $60.6 million.

What is the period of performance?

Start: 2017-06-27. End: 2021-11-16.

What is Cianbro Corporation's track record with large federal contracts, particularly within the Department of Defense?

Cianbro Corporation has a significant history of performing large-scale industrial and construction projects, including many for the Department of Defense and other federal agencies. Their portfolio often includes complex projects such as shipyard infrastructure, power plants, and manufacturing facilities. While specific details on past performance metrics for this exact contract are not provided, their general experience suggests a capability to handle substantial federal work. A deeper dive into their contract history, including past performance reviews and any reported issues on previous DoD projects, would be necessary for a comprehensive assessment of their track record. Their involvement in similar naval shipyard projects would be a strong positive indicator.

How does the $60.6 million contract value compare to similar naval dry dock and defueling projects?

Benchmarking this $60.6 million contract value against similar naval dry dock and defueling projects is challenging without access to a comprehensive database of comparable contracts. Projects of this nature are highly specialized and their costs are influenced by numerous factors, including the specific shipyard, the complexity of the defueling process (e.g., type of vessel, hazardous materials involved), the extent of dry dock refurbishment required, and prevailing labor and material costs in the region. Generally, naval infrastructure projects are substantial investments. The firm-fixed-price nature of this contract suggests an effort to contain costs, but the inherent complexities of defueling and dry dock operations mean that costs can escalate if unforeseen issues arise. A comparative analysis would ideally look at contracts with similar scope, duration, and location.

What are the primary risks associated with this specific contract, and how are they mitigated?

The primary risks associated with this contract include potential cost overruns due to unforeseen technical challenges during the complex defueling process or unexpected structural issues within the dry dock. Schedule delays are also a risk, given the multi-year duration and the critical nature of shipyard operations. Environmental risks related to the defueling process and potential hazardous material handling are significant. Mitigation strategies are primarily embedded in the contract type: the firm-fixed-price (FFP) structure places the financial risk on the contractor, Cianbro Corporation. The contract's duration (1603 days) and the specific scope of work (defueling complex, dry dock) suggest that detailed planning and risk assessments were conducted prior to award. The Department of the Navy's oversight and quality assurance processes would also serve as mitigation measures.

What is the expected program effectiveness and impact of this contract on naval readiness?

The expected program effectiveness of this contract is high, as it directly addresses the maintenance and operational readiness of critical naval assets. By ensuring the dry dock is functional and safe for vessel repair and maintenance, the contract supports the Navy's ability to deploy and sustain its fleet. Effective completion of the defueling and dry dock refurbishment will reduce downtime for naval vessels requiring maintenance, thereby enhancing overall naval readiness. The project's success is crucial for maintaining the infrastructure necessary for the Navy's long-term operational capabilities. The investment signifies a commitment to preserving and upgrading essential shipyard facilities.

How has federal spending in industrial building construction, particularly for defense purposes, trended over the past 5-10 years?

Federal spending in industrial building construction, especially for defense purposes, has generally seen fluctuations influenced by geopolitical events, military modernization priorities, and budget cycles. Following periods of significant overseas military engagement, there has been a renewed focus on modernizing domestic defense infrastructure, including shipyards, bases, and manufacturing facilities. This has likely led to increased investment in construction projects like the one awarded to Cianbro. Factors such as aging infrastructure, the need for facilities to support new military platforms (e.g., advanced naval vessels), and cybersecurity enhancements for industrial control systems contribute to sustained or increased spending in this sector. Specific budget allocations for naval shipyard improvements would provide a more precise trend analysis.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008516R3036

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Cianbro Companies (UEI: 109132519)

Address: 101 CIANBRO SQUARE, 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: $65,905,282

Exercised Options: $60,609,282

Current Obligation: $60,609,282

Actual Outlays: $20,084,523

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $22,139,233

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline