DoD Awards $118.4M Dry Dock Contract to Cianbro Corporation for Refueling Complex
Contract Overview
Contract Amount: $118,400,881 ($118.4M)
Contractor: Cianbro Corporation
Awarding Agency: Department of Defense
Start Date: 2023-10-23
End Date: 2025-12-18
Contract Duration: 787 days
Daily Burn Rate: $150.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE AWARD FEE
Sector: Construction
Official Description: DRY DOCK 4 REFUELING COMPLEX
Place of Performance
Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23709
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $118.4 million to CIANBRO CORPORATION for work described as: DRY DOCK 4 REFUELING COMPLEX Key points: 1. Significant investment in naval infrastructure for refueling capabilities. 2. Cianbro Corporation, a major construction firm, secured the contract. 3. Potential risks include project delays and cost overruns in complex construction. 4. Construction sector sees substantial government spending on heavy engineering projects.
Value Assessment
Rating: good
The contract value of $118.4 million appears reasonable for a large-scale, complex construction project of this nature. Benchmarking against similar naval dry dock or heavy civil engineering projects would provide a more precise assessment, but the scope suggests a competitive pricing strategy was likely employed.
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 is expected to drive competitive pricing and ensure the government receives the best value. The fixed-price award fee structure incentivizes performance while managing cost.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective solution for essential naval infrastructure.
Public Impact
Enhances U.S. Navy's refueling capabilities, crucial for fleet readiness. Supports critical infrastructure maintenance and modernization efforts. Creates jobs in the construction sector and related industries. Potential for long-term economic impact through improved naval operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Project complexity and duration increase risk of cost escalation.
- Dependence on a single awardee for a critical infrastructure project.
- Potential for unforeseen site conditions impacting schedule and budget.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Fixed-price award fee structure incentivizes contractor performance.
- Contract duration of over two years allows for phased execution.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically for naval infrastructure. Spending in this area is often driven by national security needs and the modernization of aging facilities. Benchmarks for similar large-scale dry dock projects are typically in the tens to hundreds of millions of dollars.
Small Business Impact
While the primary awardee is Cianbro Corporation, a large entity, the contract may offer subcontracting opportunities for small businesses in specialized areas of construction, materials supply, or support services. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The fixed-price award fee structure includes incentives for performance, suggesting a mechanism for monitoring progress and quality. Regular reporting and site inspections are standard for projects of this magnitude.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to project complexity and duration.
- Risk of schedule delays impacting naval operational readiness.
- Dependence on a single contractor for a critical infrastructure asset.
- Unforeseen environmental or geological conditions at the site.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $118.4 million to CIANBRO CORPORATION. DRY DOCK 4 REFUELING COMPLEX
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 $118.4 million.
What is the period of performance?
Start: 2023-10-23. End: 2025-12-18.
What is the specific breakdown of costs within the $118.4 million award, and how does it compare to industry cost benchmarks for similar refueling complex construction?
A detailed cost breakdown is not publicly available in the provided data. However, the total award value of $118.4 million for a complex project like a dry dock refueling facility is substantial. Industry benchmarks for such specialized heavy civil engineering projects vary widely based on location, specific technical requirements, and duration. A thorough cost analysis would require comparing line-item costs against established construction cost indices and historical data for comparable naval or industrial facilities.
What are the primary risks associated with the 787-day duration of this contract, and what mitigation strategies are in place?
The extended duration of 787 days (over two years) presents risks such as potential material cost fluctuations, labor availability issues, and the possibility of unforeseen site conditions or design changes. Mitigation strategies likely include robust contract clauses addressing escalation, contingency planning for site discoveries, and performance incentives tied to schedule adherence. The fixed-price award fee structure also encourages proactive risk management by the contractor.
How will the effectiveness of the Dry Dock 4 Refueling Complex be measured post-completion to ensure it meets the Navy's operational needs?
Effectiveness will likely be measured through a combination of post-construction testing, operational trials, and performance metrics defined in the contract. This includes verifying the complex's ability to safely and efficiently refuel naval vessels according to specified timelines and standards. Long-term effectiveness will be assessed by its contribution to fleet readiness, reduced maintenance downtime, and overall operational availability of the naval assets it supports.
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: N4008523R2603
Offers Received: 1
Pricing Type: FIXED PRICE AWARD FEE (M)
Evaluated Preference: NONE
Contractor Details
Address: 101 CIANBRO SQ, 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: $118,400,881
Exercised Options: $118,400,881
Current Obligation: $118,400,881
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $45,042,717
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-10-23
Current End Date: 2025-12-18
Potential End Date: 2025-12-18 00:00:00
Last Modified: 2025-06-26
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