DoD's $29.4M Transit Protection System Contract Awarded to Watts-Orion JV Under Full and Open Competition

Contract Overview

Contract Amount: $29,371,988 ($29.4M)

Contractor: Watts-Orion JV

Awarding Agency: Department of Defense

Start Date: 2016-08-30

End Date: 2019-08-07

Contract Duration: 1,072 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF P-993 TRANSIT PROTECTION SYSTEM FORWARD OPERATING LOCATION AT EDIZ HOOK, PORT ANGELES, WA.

Place of Performance

Location: PORT ANGELES, CLALLAM County, WASHINGTON, 98362

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $29.4 million to WATTS-ORION JV for work described as: IGF::OT::IGF P-993 TRANSIT PROTECTION SYSTEM FORWARD OPERATING LOCATION AT EDIZ HOOK, PORT ANGELES, WA. Key points: 1. The contract for the Transit Protection System at Ediz Hook, Port Angeles, WA, was awarded for $29.4 million. 2. Watts-Orion JV secured the contract through full and open competition. 3. The project falls under Other Heavy and Civil Engineering Construction, a sector often subject to significant cost fluctuations. 4. The firm fixed-price contract type suggests a defined scope and potential for cost certainty, but risks remain in execution.

Value Assessment

Rating: fair

The award amount of $29.4 million for a 1072-day duration contract appears within a reasonable range for heavy civil engineering construction projects of this nature. However, without specific project details and comparable contract data, a precise pricing assessment is difficult.

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 had the opportunity to submit proposals. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: Full and open competition is designed to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Construction of a transit protection system can enhance security and operational capabilities at a critical military location. The project's duration of over 1000 days suggests a substantial undertaking with potential for long-term economic impact in the local area through job creation and resource utilization. The use of a firm fixed-price contract aims to control costs for taxpayers, though unforeseen issues can still arise during execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price contract.
Execution risks associated with large-scale construction projects in potentially challenging environments.
Dependence on a single contractor (Watts-Orion JV) for project completion.

Positive Signals

Awarded through full and open competition, maximizing potential for best value.
Firm fixed-price contract provides cost certainty for taxpayers.
Project addresses a specific security or operational need for the Department of Defense.

Sector Analysis

This contract falls within the Other Heavy and Civil Engineering Construction sector. Spending in this sector can be highly variable, influenced by infrastructure needs, defense installations, and economic conditions. Benchmarks are difficult without specific project scope.

Small Business Impact

The data indicates this was a large contract awarded to a joint venture. There is no specific information provided regarding the participation of small businesses in this particular contract award.

Oversight & Accountability

The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve contract management teams ensuring adherence to terms, quality standards, and timely delivery, with potential for IG involvement if issues arise.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Large contract value ($29.4M).
Long contract duration (1072 days).
Construction sector inherent risks (weather, materials, labor).
Potential for scope creep impacting fixed-price contract.
Joint venture structure may have internal complexities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.4 million to WATTS-ORION JV. IGF::OT::IGF P-993 TRANSIT PROTECTION SYSTEM FORWARD OPERATING LOCATION AT EDIZ HOOK, PORT ANGELES, WA.

Who is the contractor on this award?

The obligated recipient is WATTS-ORION JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.4 million.

What is the period of performance?

Start: 2016-08-30. End: 2019-08-07.

What specific security or operational improvements does the Transit Protection System aim to achieve at Ediz Hook?

The Transit Protection System likely aims to enhance the physical security and operational readiness of the Forward Operating Location at Ediz Hook. This could involve measures to protect against unauthorized access, environmental hazards, or specific threats relevant to the base's function. The exact improvements would depend on the detailed requirements outlined in the contract statement of work, which is not publicly available.

What are the primary risks associated with the firm fixed-price contract type for this construction project?

The primary risk with a firm fixed-price contract is that the contractor (Watts-Orion JV) bears the brunt of cost overruns. If unforeseen issues arise during construction, such as material price increases, labor shortages, or unexpected site conditions, the contractor may incur losses. Conversely, the government risks paying a premium if the contractor's initial bid was overly conservative to account for these potential risks.

How does the duration of the contract (1072 days) impact the overall value and effectiveness assessment?

A contract duration of 1072 days (approximately 3 years) indicates a significant and complex construction project. This extended timeline allows for thorough execution but also increases the potential for scope creep, changing requirements, and market fluctuations. Assessing its effectiveness requires monitoring progress against milestones, final delivery of the system, and its long-term performance in meeting the intended security and operational objectives.

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: N4425515R6006

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6825 ELM ST STE 500, MCLEAN, VA, 22101

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

Financial Breakdown

Contract Ceiling: $29,371,988

Exercised Options: $29,371,988

Current Obligation: $29,371,988

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline