DoD's $32.1M Nuclear Facility Utility Investment Contract Awarded to Engineered Construction Services, Inc

Contract Overview

Contract Amount: $32,134,450 ($32.1M)

Contractor: Engineered Construction Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-03-30

End Date: 2021-09-14

Contract Duration: 1,264 days

Daily Burn Rate: $25.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF; P-371 UTILITY INVESTMENT FOR NUCLEAR FACILITIES, NSS PNSY. KITTERY, MAINE

Place of Performance

Location: KITTERY, YORK County, MAINE, 03904

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $32.1 million to ENGINEERED CONSTRUCTION SERVICES, INC. for work described as: IGF::OT::IGF; P-371 UTILITY INVESTMENT FOR NUCLEAR FACILITIES, NSS PNSY. KITTERY, MAINE Key points: 1. The contract awarded to Engineered Construction Services, Inc. for utility investment at nuclear facilities represents a significant investment in critical infrastructure. 2. Competition was full and open, suggesting a robust price discovery process. 3. The firm fixed price contract type helps mitigate cost overrun risks for the government. 4. The sector is primarily construction, specifically power and communication line infrastructure.

Value Assessment

Rating: good

The contract value of $32.1M for construction services appears reasonable given the specialized nature of nuclear facility infrastructure. Benchmarking against similar large-scale utility construction projects would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of full and open competition aims to secure the most cost-effective solution for taxpayers, ensuring funds are used efficiently for essential infrastructure upgrades.

Public Impact

Ensures operational readiness and safety of nuclear facilities through critical utility infrastructure upgrades. Supports long-term national security by maintaining the integrity of naval nuclear propulsion systems. Investment in specialized construction services contributes to the broader defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex infrastructure projects.
Reliance on a single contractor for specialized nuclear facility work.
Long contract duration increases exposure to market fluctuations.

Positive Signals

Firm fixed price contract limits government cost risk.
Full and open competition suggests competitive pricing.
Contract supports critical national defense infrastructure.

Sector Analysis

This contract falls within the construction sector, specifically focusing on power and communication lines for critical infrastructure. Spending benchmarks for similar large-scale utility construction projects, especially those in sensitive government facilities, are typically high due to specialized requirements and safety protocols.

Small Business Impact

The contract was not awarded to small businesses, as indicated by 'sb': false. This suggests the scope and specialized nature of the work may have favored larger, more experienced contractors.

Oversight & Accountability

The contract's duration and value warrant oversight to ensure adherence to scope, budget, and quality standards. Regular performance reviews and progress monitoring by the Department of the Navy are crucial.

Related Government Programs

Power and Communication Line and Related Structures Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Contract duration is lengthy (1264 days).
No small business participation noted.
Specialized nature of work at nuclear facilities.
Potential for cost escalation if scope is not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.1 million to ENGINEERED CONSTRUCTION SERVICES, INC.. IGF::OT::IGF; P-371 UTILITY INVESTMENT FOR NUCLEAR FACILITIES, NSS PNSY. KITTERY, MAINE

Who is the contractor on this award?

The obligated recipient is ENGINEERED CONSTRUCTION SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $32.1 million.

What is the period of performance?

Start: 2018-03-30. End: 2021-09-14.

What is the projected long-term cost savings or operational efficiency gained from this utility investment?

The long-term benefits are expected to include enhanced reliability of essential utilities, reduced risk of system failures, and improved safety at nuclear facilities. Quantifying specific cost savings or efficiency gains would require a detailed analysis of the project's scope and the expected lifespan of the upgraded infrastructure, potentially involving reduced maintenance costs and fewer operational disruptions.

What are the specific risks associated with the firm fixed price contract for this specialized construction?

While firm fixed price limits cost increases for the government, risks include potential contractor underestimation of complex nuclear facility requirements, leading to quality compromises or demands for change orders. The contractor may also face challenges in sourcing specialized materials or labor within the fixed price, potentially impacting project timelines or the contractor's profitability.

How effectively does this investment address the aging infrastructure needs of the naval nuclear facilities?

The effectiveness hinges on the thoroughness of the needs assessment prior to contract award and the execution of the work. If the project scope accurately targets critical vulnerabilities and the construction meets high-quality standards, it should significantly improve the reliability and safety of the facilities. Ongoing monitoring of performance metrics post-completion will be key to assessing long-term effectiveness.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008517R5010

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 28 POND RD, RAYMOND, ME, 04071

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,232,687

Exercised Options: $32,134,450

Current Obligation: $32,134,450

Actual Outlays: $-106,502

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline