Navy awards $22.9M contract for undersea vehicle maintenance facility construction at Keyport, WA

Contract Overview

Contract Amount: $22,868,591 ($22.9M)

Contractor: Doyon Project Services, LLC

Awarding Agency: Department of Defense

Start Date: 2020-04-10

End Date: 2024-03-29

Contract Duration: 1,449 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF P386 UNDERSEA VEHICLE MAINTENANCE FACILITY, NUWC, KEYPORT, WA

Place of Performance

Location: KEYPORT, KITSAP County, WASHINGTON, 98345

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to DOYON PROJECT SERVICES, LLC for work described as: CONSTRUCTION OF P386 UNDERSEA VEHICLE MAINTENANCE FACILITY, NUWC, KEYPORT, WA Key points: 1. The contract value represents a significant investment in naval infrastructure. 2. Competition dynamics for this large-scale construction project warrant further examination. 3. The duration of the contract suggests a complex and lengthy construction process. 4. The firm-fixed-price structure aims to control costs for the government. 5. The project's location in Washington state highlights regional defense industry activity.

Value Assessment

Rating: good

The contract value of $22.9 million for the P386 Undersea Vehicle Maintenance Facility appears reasonable for a specialized construction project of this scale. Benchmarking against similar naval facility construction projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests an effort to establish cost certainty, which is generally positive for government spending. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a specific reason for excluding certain sources, which limits the scope of competition. While it was not a sole-source award, the exclusion implies that not all potential bidders were considered. The number of bidders (3) is relatively low for a large federal construction contract, which could suggest potential limitations in market reach or specific requirements that narrowed the field. This level of competition may not have fully leveraged market forces to drive down prices.

Taxpayer Impact: The limited competition may have resulted in a higher price than if the contract had been competed more broadly. Taxpayers may not have received the full benefit of competitive bidding in this instance.

Public Impact

The primary beneficiaries are the U.S. Navy's undersea vehicle operations, which will gain enhanced maintenance capabilities. The project delivers a critical infrastructure asset to support national defense. The geographic impact is concentrated in Keyport, Washington, supporting the regional defense industrial base. The construction phase will likely create temporary jobs for skilled trades in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
Potential for cost overruns if unforeseen issues arise during construction.
Dependence on a single contractor for a critical facility.

Positive Signals

Firm-fixed-price contract helps manage cost certainty.
Project addresses a clear and stated need for naval infrastructure.
Awarded to a company with experience in project management.

Sector Analysis

This contract falls within the Construction sector, specifically for institutional and commercial buildings. The market for specialized defense facility construction is often characterized by a limited number of highly qualified contractors. The total federal spending on construction services is substantial, with significant portions allocated to infrastructure supporting defense and national security. This project represents a specific investment within that broader landscape, aiming to enhance the operational readiness of naval assets.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside criterion (ss: false, sb: false). This suggests that the primary focus was on securing the most capable contractor for this specialized facility. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this significant defense infrastructure project.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and engineering commands. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through federal contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. The duration of the contract necessitates ongoing monitoring of performance and adherence to specifications.

Related Government Programs

Naval Facilities Engineering Command Projects
Undersea Warfare Infrastructure
Department of Defense Construction Contracts
Naval Undersea Warfare Center (NUWC) Facilities

Risk Flags

Limited Competition
Potential for Cost Overruns
Specialized Facility Requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to DOYON PROJECT SERVICES, LLC. CONSTRUCTION OF P386 UNDERSEA VEHICLE MAINTENANCE FACILITY, NUWC, KEYPORT, 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 $22.9 million.

What is the period of performance?

Start: 2020-04-10. End: 2024-03-29.

What is the track record of DOYON PROJECT SERVICES, LLC in completing similar large-scale government construction projects?

DOYON PROJECT SERVICES, LLC has been awarded federal contracts, including this one for the P386 Undersea Vehicle Maintenance Facility. To assess their track record thoroughly, one would need to examine their past performance on similar projects, including contract values, project complexity, adherence to schedules, and client satisfaction ratings. A review of their contract history in the Federal Procurement Data System (FPDS) would reveal the types and scale of projects they have undertaken. Information regarding any past performance issues, awards, or significant deviations from contract terms would be crucial for a comprehensive understanding of their capabilities and reliability in executing complex construction tasks for the government.

How does the awarded price of $22.9 million compare to independent cost estimates or benchmarks for similar naval facility construction?

Direct comparison of the $22.9 million award price to independent cost estimates or benchmarks for similar naval facility construction is challenging without access to those specific estimates. However, the value suggests a substantial project. Factors influencing cost include the specialized nature of an undersea vehicle maintenance facility, specific technological requirements, site conditions at NUWC Keyport, and prevailing construction market rates in Washington state. A comprehensive value assessment would involve comparing this contract's cost per square foot or per functional unit against industry standards and historical data for comparable government facilities. The firm-fixed-price structure implies the government sought to cap its exposure, but the initial bid's competitiveness is key.

What are the primary risks associated with the 'Full and Open Competition After Exclusion of Sources' contracting method for this project?

The primary risk of 'Full and Open Competition After Exclusion of Sources' is that it inherently limits the pool of potential bidders compared to unrestricted full and open competition. This exclusion, even if justified by specific requirements (e.g., unique capabilities, prior work on related systems), can reduce the number of competitive offers received. Fewer bidders may lead to less aggressive pricing, potentially increasing the cost to the government. It also carries a risk of overlooking highly capable contractors who were not included in the initial solicitation pool. Ensuring the exclusion criteria were narrowly tailored and truly necessary is critical to mitigating these risks and maximizing value for taxpayers.

What is the expected impact of this facility on the Navy's operational effectiveness and readiness for undersea vehicles?

The construction of the P386 Undersea Vehicle Maintenance Facility is expected to significantly enhance the Navy's operational effectiveness and readiness by providing a dedicated, modern, and potentially expanded capability for maintaining its fleet of undersea vehicles. Such facilities are crucial for ensuring vehicles are mission-ready, undergo timely repairs, and are equipped with the latest upgrades. Improved maintenance infrastructure can lead to reduced downtime, increased operational availability of assets, and potentially lower long-term maintenance costs through more efficient processes and equipment. This investment directly supports the Navy's strategic objectives related to undersea warfare dominance.

How has federal spending on naval infrastructure and specialized facility construction trended in recent years, and does this contract align with those trends?

Federal spending on naval infrastructure and specialized facility construction has generally remained robust, driven by modernization efforts, platform recapitalization, and evolving strategic requirements. This $22.9 million contract for an undersea vehicle maintenance facility aligns with these trends, reflecting the ongoing investment in maintaining and enhancing the capabilities of the U.S. Navy's fleet. Recent years have seen significant allocations towards shipbuilding, shore infrastructure, and R&D supporting naval modernization. This specific contract represents a targeted investment within that broader spending pattern, addressing a critical need for specialized maintenance support for undersea assets.

What are the potential long-term cost implications for the Navy beyond the initial construction award, considering the facility's operational lifespan?

Beyond the initial $22.9 million construction award, the long-term cost implications for the Navy include operational and maintenance (O&M) expenses for the facility itself, as well as the costs associated with the personnel required to operate and staff it. These O&M costs encompass utilities, routine upkeep, repairs, and potential upgrades over the facility's lifespan. Furthermore, the efficiency and capabilities of the new facility could lead to cost savings in the long run by streamlining maintenance processes, reducing vehicle downtime, and potentially extending the service life of undersea vehicles. A full lifecycle cost analysis would be necessary to quantify these future impacts.

Industry Classification

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

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

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: 3

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: $22,868,591

Exercised Options: $22,868,591

Current Obligation: $22,868,591

Actual Outlays: $9,744,636

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $9,652,936

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