Naval shipyard electrical repair contract awarded to Doyon Project Services for over $31.2 million

Contract Overview

Contract Amount: $31,216,668 ($31.2M)

Contractor: Doyon Project Services, LLC

Awarding Agency: Department of Defense

Start Date: 2020-04-28

End Date: 2023-06-16

Contract Duration: 1,144 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR SHIPYARD ELECTRICAL BACKBONE, PUGET SOUND NAVAL SHIPYARD, BREMERTON, WA

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98314

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $31.2 million to DOYON PROJECT SERVICES, LLC for work described as: REPAIR SHIPYARD ELECTRICAL BACKBONE, PUGET SOUND NAVAL SHIPYARD, BREMERTON, WA Key points: 1. The contract value represents a significant investment in critical naval infrastructure. 2. Competition dynamics for this type of specialized repair work can be limited. 3. Performance risk is moderate, given the complexity of shipyard electrical systems. 4. The contract duration spans over three years, indicating a substantial project scope. 5. This award falls within the broader category of commercial and institutional building construction.

Value Assessment

Rating: good

The contract's total value of approximately $31.2 million for shipyard electrical backbone repair appears reasonable given the scope and duration. Benchmarking against similar large-scale naval infrastructure projects suggests that pricing is competitive. The firm-fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor. Further analysis would require detailed cost breakdowns and comparison with other shipyard repair contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, specific circumstances led to the exclusion of certain potential bidders. The presence of two bidders suggests a degree of competition, but the exclusion clause warrants further investigation into the rationale. A limited competition environment can sometimes lead to higher prices compared to unrestricted full and open competition.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader range of qualified contractors had been able to bid without exclusion.

Public Impact

The primary beneficiary is the U.S. Navy, ensuring operational readiness of the Puget Sound Naval Shipyard. The contract delivers essential electrical system repairs and upgrades, enhancing safety and functionality. The geographic impact is concentrated in Bremerton, Washington, supporting a key naval facility. Workforce implications include employment opportunities for skilled trades and project management personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during the repair process.
Risk of schedule delays impacting shipyard operational timelines.
Dependence on a limited number of bidders may affect long-term pricing strategies for similar future work.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Award to a specific LLC suggests a focused approach to specialized repair.
The project addresses critical infrastructure needs for national defense.

Sector Analysis

This contract falls within the construction and maintenance sector, specifically focusing on specialized industrial facilities. The market for large-scale naval shipyard repairs is relatively niche, often dominated by a few experienced contractors capable of handling the security and technical requirements. Comparable spending benchmarks would involve analyzing other major shipyard modernization or repair contracts within the Department of Defense, which often run into tens or hundreds of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the contractor, DOYON PROJECT SERVICES, LLC, is not explicitly identified as a small business in this context. There is no direct information on subcontracting plans for small businesses. The absence of a small business set-aside for a contract of this magnitude suggests that the primary focus was on specialized capabilities rather than broad small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments. Accountability measures are embedded in the firm-fixed-price contract terms, requiring adherence to specifications and delivery schedules. Transparency is facilitated through contract award databases, though detailed cost breakdowns and performance reviews may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Shipyard Infrastructure Modernization Programs
Department of Defense Facilities Maintenance and Repair
Public Building and Nonresidential Building Construction Contracts
Military Base Infrastructure Projects

Risk Flags

Potential for schedule delays
Risk of cost overruns if scope expands
Limited competition may impact long-term pricing
Contractor's past performance on similar projects needs verification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.2 million to DOYON PROJECT SERVICES, LLC. REPAIR SHIPYARD ELECTRICAL BACKBONE, PUGET SOUND NAVAL SHIPYARD, BREMERTON, WA

Who is the contractor on this award?

The obligated recipient is DOYON PROJECT SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.2 million.

What is the period of performance?

Start: 2020-04-28. End: 2023-06-16.

What is the track record of DOYON PROJECT SERVICES, LLC in performing similar large-scale electrical repair contracts for the federal government?

A comprehensive review of DOYON PROJECT SERVICES, LLC's past performance is crucial for assessing their capability to execute this significant contract. While the provided data indicates this award, it does not detail their history. Federal procurement databases and past performance reviews would need to be consulted to understand their experience with similar projects, including their success in meeting deadlines, staying within budget, and the quality of their work on complex electrical systems. A lack of extensive relevant experience could indicate a higher performance risk for this specific contract, potentially impacting the shipyard's operational continuity and the overall value for money.

How does the awarded price of $31.2 million compare to the estimated cost or budget for this specific repair project?

The provided data shows the awarded amount but does not include the government's initial estimate or budget for the 'REPAIR SHIPYARD ELECTRICAL BACKBONE' project. To assess value for money, this awarded price should be compared against the government's independent cost estimate (ICE) or the baseline budget. If the award is significantly below the ICE, it might suggest aggressive bidding or potential underestimation of scope by the contractor. Conversely, if it's substantially over, it could indicate issues with the initial budgeting or a lack of sufficient competition driving up the price. Understanding this comparison is key to evaluating the financial prudence of the award.

What specific risks were identified during the procurement process that led to the 'Exclusion of Sources' clause?

The 'Full and Open Competition After Exclusion of Sources' designation implies that while the solicitation was broadly advertised, certain potential bidders were intentionally excluded. The reasons for such exclusions typically stem from specific technical requirements, security clearances, past performance issues, or unique capabilities that only a limited number of firms possess. Understanding these specific exclusion criteria is vital. If the exclusions were based on narrowly defined technical needs, it might justify the limited competition. However, if based on less critical factors, it could raise concerns about artificially limiting competition and potentially inflating costs for taxpayers.

What is the expected impact of these electrical repairs on the operational efficiency and capacity of the Puget Sound Naval Shipyard?

The 'REPAIR SHIPYARD ELECTRICAL BACKBONE' project is fundamental to the operational integrity of the Puget Sound Naval Shipyard. A robust and modern electrical system is essential for powering shipyard operations, including dry docks, cranes, workshops, and administrative facilities. Upgrading the backbone is expected to improve reliability, reduce downtime due to electrical failures, and potentially increase the capacity to handle larger or more complex vessels and projects. This enhancement directly supports the Navy's mission readiness by ensuring the shipyard can perform its maintenance and repair functions without interruption or limitation due to aging infrastructure.

How has federal spending on naval shipyard maintenance and repair evolved over the past five years, and where does this contract fit within that trend?

Analyzing historical spending trends for naval shipyard maintenance and repair provides context for this $31.2 million contract. Over the past five years, federal spending in this category has likely fluctuated based on fleet readiness needs, infrastructure aging, and budget allocations. Major modernization efforts or critical repairs, like the electrical backbone upgrade at Puget Sound, represent significant individual investments within the broader spending picture. This contract, awarded in 2020 with a duration extending to 2023, falls within a period where the Navy has emphasized modernizing its infrastructure to support a growing fleet. Its value suggests it is a substantial, but not unprecedented, component of the overall annual investment in shipyard facilities.

What are the key performance indicators (KPIs) that will be used to measure the success of this contract and the performance of DOYON PROJECT SERVICES, LLC?

The success of this contract will likely be measured against several Key Performance Indicators (KPIs) outlined in the contract documents. These typically include adherence to the project schedule, completion of work within the firm-fixed-price budget, and meeting stringent quality and safety standards for electrical systems. Specific technical benchmarks related to system performance post-repair, such as power output, reliability metrics, and compliance with current electrical codes and Navy specifications, will also be critical. The government will monitor these KPIs through regular progress reports, site inspections, and potentially independent testing to ensure the contractor is meeting all obligations and delivering the expected value.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4425515R0004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 33810 WEYERHAEUSER WAY S STE 100, FEDERAL WAY, WA, 98001

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,216,668

Exercised Options: $31,216,668

Current Obligation: $31,216,668

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $23,348,081

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4425517D4036

IDV Type: IDC

Timeline