Navy's $29.3M Dry Dock Repair Contract Awarded to Cianbro Corporation for Kittery, Maine Facility

Contract Overview

Contract Amount: $29,313,394 ($29.3M)

Contractor: Cianbro Corporation

Awarding Agency: Department of Defense

Start Date: 2016-12-22

End Date: 2020-06-30

Contract Duration: 1,286 days

Daily Burn Rate: $22.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF RM12-1961, DRY DOCK #3 CAISSON REPLACEMENT AND SEAT REPAIRS, PNSY, KITTERY, ME

Place of Performance

Location: KITTERY, YORK County, MAINE, 03904

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to CIANBRO CORPORATION for work described as: IGF::OT::IGF RM12-1961, DRY DOCK #3 CAISSON REPLACEMENT AND SEAT REPAIRS, PNSY, KITTERY, ME Key points: 1. The contract focused on essential infrastructure repair, ensuring operational readiness for naval assets. 2. A single award was made, indicating a potentially concentrated market for this specialized service. 3. The fixed-price contract type suggests a defined scope and risk allocation. 4. The project duration of 1286 days highlights the complexity and scale of the dry dock repairs. 5. Geographic concentration in Maine may point to regional expertise or facility-specific requirements. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: good

The contract's value of $29.3 million for dry dock repair and seat maintenance appears reasonable given the specialized nature of naval infrastructure. Benchmarking against similar large-scale civil engineering projects for military facilities is challenging without more granular data on scope and location. However, the firm fixed-price structure suggests that the government secured a defined cost for the work, mitigating potential overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of two bidders, as suggested by the 'no' field, implies a degree of competition, though the specific number of proposals received and the evaluation process are not detailed. This level of competition is generally favorable for price discovery and ensuring a reasonable award.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best value for public funds by encouraging multiple firms to offer their most competitive pricing.

Public Impact

Naval operations at the Portsmouth Naval Shipyard (PNSY) in Kittery, Maine, benefit from the improved dry dock facilities. The project ensures the continued maintenance and repair capabilities for naval vessels. The workforce in the Kittery, Maine area, particularly in specialized construction and maritime trades, likely saw employment opportunities. The successful completion of the project supports the broader mission of the Department of Defense and the Navy's fleet readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise beyond the initial scope.
Dependence on a single contractor for a critical infrastructure repair could pose risks if performance falters.
Limited visibility into the specific performance metrics and quality control during the multi-year project.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive market for this service.
Project addresses a critical need for naval infrastructure maintenance, supporting operational readiness.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on maritime infrastructure. The market for large-scale dry dock construction and repair is specialized, often dominated by a few experienced firms capable of handling complex projects for government entities. Spending in this area is driven by the need to maintain aging naval fleets and port facilities, with significant investments required for specialized equipment and skilled labor.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through direct subcontracting by Cianbro Corporation, the details of which are not provided in this data.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of the Navy, implying oversight from the agency's contracting and program management offices. The firm fixed-price nature of the contract provides a degree of financial oversight. Further oversight details would typically be managed through contract clauses, performance reviews, and potentially the Naval Sea Systems Command (NAVSEA) or relevant Inspector General offices for construction projects.

Related Government Programs

Naval Shipyard Infrastructure Modernization Programs
Department of Defense Facilities Maintenance and Repair
Heavy Civil Engineering Construction Contracts
Port and Waterway Infrastructure Projects

Risk Flags

Potential for schedule delays due to complexity of repairs.
Risk of unforeseen structural issues discovered during work.
Contractor performance monitoring is crucial for a long-duration project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to CIANBRO CORPORATION. IGF::OT::IGF RM12-1961, DRY DOCK #3 CAISSON REPLACEMENT AND SEAT REPAIRS, 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 $29.3 million.

What is the period of performance?

Start: 2016-12-22. End: 2020-06-30.

What was the specific scope of work for the Dry Dock #3 caisson replacement and seat repairs?

The contract, IGF::OT::IGF RM12-1961, involved the replacement of the caisson for Dry Dock #3 and associated seat repairs at the Portsmouth Naval Shipyard (PNSY) in Kittery, Maine. The caisson is a critical component that seals the dry dock, allowing it to be emptied for vessel maintenance. Seat repairs refer to the structural elements that support the caisson when it is in place. The project aimed to ensure the structural integrity and operational functionality of this vital piece of naval infrastructure, supporting the maintenance and repair of naval vessels.

How does the $29.3 million award compare to similar dry dock repair contracts?

Directly comparing the $29.3 million award for this specific dry dock repair is challenging without access to a comprehensive database of similar, recent contracts with comparable scope and complexity. However, large-scale maritime construction and repair projects, especially those for military facilities, can range from tens to hundreds of millions of dollars depending on the size of the dry dock, the extent of structural work required, and the specific components being replaced or repaired. The firm fixed-price nature of this contract suggests a defined scope, which aids in cost assessment, but the unique requirements of naval dry docks often command premium pricing due to stringent specifications and security considerations.

What are the key risks associated with this type of heavy civil engineering construction contract?

Key risks in heavy civil engineering construction, particularly for maritime infrastructure like dry docks, include unforeseen subsurface conditions (e.g., soil instability, unexpected rock formations), material price escalation (though mitigated by fixed-price contracts), labor shortages in specialized trades, weather delays impacting work schedules, and potential design changes or scope creep. For this specific contract, the age of the facility and the critical nature of the dry dock could introduce risks related to discovering latent defects or structural issues during the repair process. The long duration (1286 days) also increases exposure to these risks over time.

What is the track record of Cianbro Corporation in performing similar federal contracts?

Cianbro Corporation has a significant track record in heavy civil engineering and industrial construction, including numerous contracts with federal agencies, particularly the Department of Defense and the Navy. They have experience with large-scale maritime projects, including bridge construction, port facilities, and industrial plant infrastructure. While specific details on past dry dock repair performance are not provided here, their general experience suggests they possess the capabilities and resources to undertake complex projects of this nature. A deeper dive into their contract performance history, including past performance evaluations and any disputes or claims, would provide a more complete picture.

How has federal spending on naval shipyard infrastructure evolved over the past decade?

Federal spending on naval shipyard infrastructure has generally seen significant investment over the past decade, driven by the need to modernize aging facilities and support the Navy's expanding fleet requirements, including the introduction of new classes of vessels. Budgets allocated for shipyard improvements, maintenance, and repair projects have fluctuated based on strategic priorities, congressional appropriations, and the overall defense spending climate. Investments often focus on upgrading dry docks, improving industrial plant equipment, enhancing cyber security, and addressing environmental compliance. This specific contract for Dry Dock #3 repairs aligns with the broader trend of sustained investment in maintaining and modernizing critical naval infrastructure.

What is the significance of the 'definitive contract' award type for this project?

A definitive contract, such as the one awarded to Cianbro Corporation, is a standard contract type that specifies all terms and conditions, including price, scope, and delivery schedule, at the time of award. Unlike a basic ordering agreement or letter contract, it represents a fully negotiated and binding agreement. For a project of this magnitude and duration, a definitive contract provides the highest level of certainty for both the government and the contractor, clearly outlining responsibilities and expectations, and establishing the firm fixed price for the specified work.

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: N4008516R3020

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: $29,313,394

Exercised Options: $29,313,394

Current Obligation: $29,313,394

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $16,479,823

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline