Naval Shipyard Dry Dock Project Exceeds $1.77 Billion, Awarded to 381 Constructors
Contract Overview
Contract Amount: $1,775,117,690 ($1.8B)
Contractor: 381 Constructors
Awarding Agency: Department of Defense
Start Date: 2021-08-13
End Date: 2029-03-30
Contract Duration: 2,786 days
Daily Burn Rate: $637.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P-381 MULTI-MISSION DRY DOCK #1, 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 $1.78 billion to 381 CONSTRUCTORS for work described as: P-381 MULTI-MISSION DRY DOCK #1, PORTSMOUTH NAVAL SHIPYARD, KITTERY, ME Key points: 1. The project involves significant construction for a naval shipyard, indicating a critical infrastructure need. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The firm fixed-price contract type aims to control costs, but the high total value presents a substantial financial risk. 4. The sector is heavy construction, a field often subject to delays and cost overruns.
Value Assessment
Rating: questionable
The total award value of $1.77 billion is exceptionally high for a single construction project. Benchmarking against similar large-scale civil engineering projects is difficult without more specific scope details, but the sheer magnitude warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the high value and specialized nature of the work may have limited the number of truly capable bidders, potentially impacting the final price discovery.
Taxpayer Impact: The substantial investment of over $1.77 billion represents a significant allocation of taxpayer funds towards naval infrastructure.
Public Impact
Enhances critical naval repair and maintenance capabilities at Portsmouth Naval Shipyard. Supports regional economic activity through construction jobs and related services. Long-term project duration (2021-2029) implies sustained federal investment in infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High total contract value
- Long project duration
- Potential for cost overruns despite fixed-price contract
Positive Signals
- Full and open competition
- Essential infrastructure development
Sector Analysis
This project falls within the heavy and civil engineering construction sector, which is characterized by large-scale, complex undertakings. Federal spending in this area often supports national infrastructure and defense needs, with benchmarks varying widely based on project scope and location.
Small Business Impact
The contract was awarded to '381 Constructors', which does not immediately suggest a small business. Further analysis would be needed to determine if small business subcontracting goals were established and met.
Oversight & Accountability
The long duration and high value of this contract necessitate robust oversight from the Department of the Navy to ensure adherence to schedule, budget, and quality standards. Regular performance reviews and audits are crucial for accountability.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High total contract value
- Long project duration
- Potential for scope creep
- Dependency on specific contractor capabilities
- Geographic location challenges
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, me, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.78 billion to 381 CONSTRUCTORS. P-381 MULTI-MISSION DRY DOCK #1, PORTSMOUTH NAVAL SHIPYARD, KITTERY, ME
Who is the contractor on this award?
The obligated recipient is 381 CONSTRUCTORS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $1.78 billion.
What is the period of performance?
Start: 2021-08-13. End: 2029-03-30.
What specific factors contributed to the exceptionally high cost of this dry dock construction?
The high cost is likely attributable to a combination of factors including the specialized engineering requirements for a naval dry dock, the complexity of the site at Portsmouth Naval Shipyard, the extended construction timeline spanning several years, and potentially the inclusion of advanced technologies or materials. Market conditions for construction labor and materials during the contract award period also play a role.
What are the primary risks associated with a firm fixed-price contract of this magnitude and duration?
Despite the fixed-price nature, risks include contractor default or bankruptcy, unforeseen site conditions requiring costly remediation, significant escalation in material or labor costs beyond initial projections (though less impact on fixed price), and potential disputes over scope changes or contract interpretation. The sheer scale increases the financial exposure if issues arise.
How will the effectiveness of this dry dock be measured post-completion?
Effectiveness will be measured by its ability to meet the Navy's operational requirements for vessel repair and maintenance, including capacity, turnaround time, and technological capabilities. Key performance indicators will likely include reduced maintenance downtime for deployed vessels, successful completion of scheduled repairs, and overall contribution to fleet readiness and operational availability.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering 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: N4008520R0021
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3555 FARNAM ST, OMAHA, NE, 68131
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,943,886,664
Exercised Options: $1,939,278,552
Current Obligation: $1,775,117,690
Subaward Activity
Number of Subawards: 527
Total Subaward Amount: $283,171,371
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-08-13
Current End Date: 2029-03-30
Potential End Date: 2029-03-30 00:00:00
Last Modified: 2025-12-18
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