Naval shipyard repairs awarded at $46.7M, with 37.9M in prime contract spending

Contract Overview

Contract Amount: $46,699,257 ($46.7M)

Contractor: Cianbro Corporation

Awarding Agency: Department of Defense

Start Date: 2016-11-18

End Date: 2020-04-01

Contract Duration: 1,230 days

Daily Burn Rate: $38.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF STRUCTURAL REPAIRS TO BERTH 11, PORTSMOUTH NAVAL SHIPYARD, KITTERY, ME

Place of Performance

Location: KITTERY, YORK County, MAINE, 03904

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $46.7 million to CIANBRO CORPORATION for work described as: IGF::OT::IGF STRUCTURAL REPAIRS TO BERTH 11, PORTSMOUTH NAVAL SHIPYARD, KITTERY, ME Key points: 1. Contract value appears reasonable given the scope of structural repairs to a naval berth. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include project delays and cost overruns common in large construction projects. 4. Performance context is critical for assessing long-term value and operational impact. 5. This contract falls within the heavy and civil engineering construction sector for the Department of Defense. 6. Prime contractor spending represents a significant portion of the total award.

Value Assessment

Rating: good

The contract value of $46.7 million for structural repairs to Berth 11 at Portsmouth Naval Shipyard is within a typical range for such large-scale infrastructure projects. Benchmarking against similar naval shipyard repair contracts would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract suggests that the initial pricing was considered fair and reasonable by the contracting officer, though potential for change orders exists.

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. While the number of bidders is not explicitly stated, this procurement method generally fosters price discovery and encourages competitive pricing. The Department of the Navy likely sought to maximize value by allowing a broad range of qualified contractors to participate.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices and better quality services due to a wider pool of potential offerors vying for the contract.

Public Impact

The primary beneficiaries are the U.S. Navy and its operational readiness, ensuring a functional berth for naval vessels. The services delivered include critical structural repairs to a key piece of naval infrastructure. The geographic impact is concentrated in Kittery, Maine, supporting local economic activity. Workforce implications include employment opportunities for skilled construction labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex structural repair projects.
Risk of unforeseen site conditions impacting schedule and cost.
Dependence on specialized materials and labor could lead to supply chain disruptions.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Award to a single prime contractor streamlines management and accountability.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a critical industry for national infrastructure. The market for naval shipyard repairs is specialized, often dominated by a few large firms with the necessary security clearances and expertise. Comparable spending benchmarks for similar port and harbor construction projects, particularly those for military facilities, would place this award in the mid-to-high range for a single berth repair.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor, Cianbro Corporation, is a large entity, there may be subcontracting opportunities for small businesses within the scope of this project. The impact on the small business ecosystem would depend on the extent to which the prime contractor utilizes small business subcontractors for specialized services or materials.

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, which shifts much of the cost risk to the contractor. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight reports from an Inspector General would depend on whether any issues were flagged during performance.

Related Government Programs

Naval Shipyard Infrastructure Modernization Programs
Port and Harbor Construction Contracts
Military Construction Projects
Heavy Civil Engineering Services

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting operational readiness.
Need for rigorous quality assurance during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.7 million to CIANBRO CORPORATION. IGF::OT::IGF STRUCTURAL REPAIRS TO BERTH 11, PORTSMOUTH NAVAL SHIPYARD, 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 $46.7 million.

What is the period of performance?

Start: 2016-11-18. End: 2020-04-01.

What is Cianbro Corporation's track record with large-scale naval construction projects?

Cianbro Corporation has a significant history of undertaking large-scale construction projects, including those for the Department of Defense and other government agencies. Their experience often encompasses complex industrial facilities, bridges, and marine structures. While specific details on past naval shipyard repair contracts would require further investigation, their general profile suggests they possess the capabilities for projects of this magnitude. Reviewing past performance evaluations and any reported disputes or claims on similar projects would provide a more comprehensive understanding of their reliability and execution.

How does the $46.7 million award compare to similar naval berth repair projects?

Benchmarking this $46.7 million award against similar naval berth repair projects requires access to a database of comparable contracts. However, based on general industry knowledge, projects involving extensive structural repairs, dredging, and upgrades to critical infrastructure at naval facilities can easily reach tens of millions of dollars. Factors influencing cost include the size and condition of the berth, the complexity of the required repairs (e.g., concrete, steel, utilities), the specific location's logistical challenges, and the duration of the project. Without specific comparable data, it's difficult to definitively state if this award represents exceptional value, but it appears within a plausible range for a project of this nature.

What are the primary risks associated with this specific contract?

The primary risks associated with this contract include potential cost overruns due to unforeseen site conditions, which are common in aging infrastructure repairs. Schedule delays are also a significant risk, stemming from weather impacts, material availability, or complex interdependencies in the repair work. Furthermore, ensuring the contractor maintains the required quality standards throughout the project lifecycle is crucial. The firm-fixed-price nature mitigates direct cost overrun risk for the government, but delays can still impact operational readiness and incur indirect costs.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for projects where the scope of work is well-defined and risks can be reasonably anticipated. For this naval berth repair, the FFP structure places the primary burden of cost control and risk management on the contractor, Cianbro Corporation. This provides the Department of the Navy with a high degree of cost certainty for the base contract amount. However, the effectiveness can be diminished if significant changes or unforeseen conditions necessitate contract modifications (change orders), which could increase the overall cost.

What is the historical spending trend for structural repairs at Portsmouth Naval Shipyard?

Analyzing historical spending trends for structural repairs at Portsmouth Naval Shipyard would require access to historical contract data specific to that facility. Generally, naval shipyards require continuous investment in infrastructure maintenance and upgrades due to the harsh marine environment and the demanding operational tempo. Spending can fluctuate based on major modernization initiatives, deferred maintenance backlogs, and the age of the facilities. Without specific historical data for Portsmouth, it's presumed that such repairs are a recurring and significant expenditure category for the Navy.

What does the 'Other Heavy and Civil Engineering Construction' NAICS code imply about the scope of work?

The North American Industry Classification System (NAICS) code 237990, 'Other Heavy and Civil Engineering Construction,' indicates that the contract's scope extends beyond typical building construction. This category encompasses a wide range of infrastructure projects, including the construction and repair of marine facilities like docks, piers, and breakwaters, as well as bridges, tunnels, and waterways. For Berth 11, this NAICS code suggests the work likely involved substantial structural elements, potentially including dredging, piling, concrete work, and utility installations, all characteristic of heavy civil engineering in a maritime setting.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008516R3011

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: $48,175,393

Exercised Options: $46,945,393

Current Obligation: $46,699,257

Subaward Activity

Number of Subawards: 34

Total Subaward Amount: $25,134,942

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline