DoD Awards $377.7M Seismic Retrofit for Dry Dock 4 Under SIOP MACC

Contract Overview

Contract Amount: $377,700,000 ($377.7M)

Contractor: Kiewit-Alberici Siop Macc AJV

Awarding Agency: Department of Defense

Start Date: 2025-09-02

End Date: 2026-09-18

Contract Duration: 381 days

Daily Burn Rate: $991.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RM25-4869 SEISMIC REPAIR DRY DOCK 4, B704. DESIGN AND RETROFIT THE WALLS OF DRY DOCK 4 (DD4) FOR A SEISMIC LEVEL EVENT. THIS ACTION WAS ISSUED UNDER THE NAVFAC PACIFIC WATERFRONT MULTIPLE AWARD CONSTRUCTION CONTRACT (SIOP MACC). CONTINUES ON PAGE 2.

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98337

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $377.7 million to KIEWIT-ALBERICI SIOP MACC AJV for work described as: RM25-4869 SEISMIC REPAIR DRY DOCK 4, B704. DESIGN AND RETROFIT THE WALLS OF DRY DOCK 4 (DD4) FOR A SEISMIC LEVEL EVENT. THIS ACTION WAS ISSUED UNDER THE NAVFAC PACIFIC WATERFRONT MULTIPLE AWARD CONSTRUCTION CONTRACT (SIOP MACC). CONTINUES ON PAGE 2. Key points: 1. Significant investment in critical naval infrastructure resilience. 2. Utilizes an existing Multiple Award Construction Contract (MACC) for efficiency. 3. Risk of cost overruns or schedule delays inherent in large construction projects. 4. Sector: Heavy and Civil Engineering Construction.

Value Assessment

Rating: good

The contract value of $377.7 million is substantial for a seismic retrofit project. Benchmarking against similar large-scale civil engineering construction contracts would be necessary for a precise comparison, but the scale suggests a significant investment in infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a Full and Open Competition via a Multiple Award Construction Contract (MACC). This method generally promotes competitive pricing by allowing multiple qualified contractors to bid, leading to potentially better price discovery.

Taxpayer Impact: Taxpayer funds are being used to enhance the seismic resilience of a critical naval asset, ensuring long-term operational capability and potentially avoiding greater costs from seismic damage.

Public Impact

Enhances the operational readiness and safety of a key naval facility. Supports the modernization of aging military infrastructure. Contributes to the economic activity within the heavy construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Potential for scope creep in complex retrofitting projects.
Dependency on the performance of the SIOP MACC contractor.
Geopolitical factors impacting material costs and availability.

Positive Signals

Leverages an existing contract vehicle for streamlined procurement.
Focus on critical infrastructure resilience.
Full and open competition aims for best value.

Sector Analysis

This project falls within the Heavy and Civil Engineering Construction sector, specifically focusing on infrastructure retrofitting. Spending in this sector is often driven by government investments in public works and military installations, with large projects like this being common for maintaining national defense capabilities.

Small Business Impact

While the prime contractor is a large joint venture, the use of a MACC structure often allows for subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation in this specific delivery order.

Oversight & Accountability

The project is managed under the NAVFAC Pacific SIOP MACC, which implies established oversight mechanisms. However, the scale and complexity necessitate rigorous monitoring of schedule, budget, and quality to ensure accountability and taxpayer value.

Related Government Programs

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

Risk Flags

Large contract value increases financial risk.
Complexity of seismic retrofitting.
Potential for schedule delays.
Dependency on existing MACC structure.
Infrastructure modernization is critical but costly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $377.7 million to KIEWIT-ALBERICI SIOP MACC AJV. RM25-4869 SEISMIC REPAIR DRY DOCK 4, B704. DESIGN AND RETROFIT THE WALLS OF DRY DOCK 4 (DD4) FOR A SEISMIC LEVEL EVENT. THIS ACTION WAS ISSUED UNDER THE NAVFAC PACIFIC WATERFRONT MULTIPLE AWARD CONSTRUCTION CONTRACT (SIOP MACC). CONTINUES ON PAGE 2.

Who is the contractor on this award?

The obligated recipient is KIEWIT-ALBERICI SIOP MACC AJV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $377.7 million.

What is the period of performance?

Start: 2025-09-02. End: 2026-09-18.

What is the historical cost performance of seismic retrofit projects of similar scale and complexity within the Department of Defense?

Historical data on large-scale seismic retrofits within the DoD is varied. Projects often face cost escalations due to unforeseen site conditions, material price fluctuations, and the complexities of working with existing structures. Benchmarking against similar projects, considering factors like location, structural type, and seismic zone, is crucial for assessing the reasonableness of the $377.7 million award.

What are the specific risks associated with retrofitting Dry Dock 4 for seismic events, and how are they being mitigated?

Key risks include encountering unexpected structural issues within the existing dry dock, potential environmental hazards during excavation or demolition, and the impact of construction activities on ongoing naval operations. Mitigation strategies likely involve thorough geotechnical surveys, phased construction approaches, robust environmental management plans, and close coordination with facility users to minimize operational disruptions.

How effectively does the SIOP MACC structure ensure competitive pricing and efficient project delivery for specialized construction needs like seismic retrofitting?

The SIOP MACC is designed to streamline the procurement of complex construction projects by pre-qualifying contractors. Full and open competition within the MACC framework should foster competitive pricing. However, the effectiveness in ensuring optimal price discovery and efficient delivery depends on the specific task order competition process and the government's ability to clearly define requirements and manage the contract.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2200 COLUMBIA HOUSE BLVD, VANCOUVER, WA, 98661

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $377,700,000

Exercised Options: $377,700,000

Current Obligation: $377,700,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6274222D1313

IDV Type: IDC

Timeline