Navy Awards $88.9M Military Construction Contract to Iceland Prime Contractor Ltd
Contract Overview
Contract Amount: $88,888,791 ($88.9M)
Contractor: Iceland Prime Contractor Ltd
Awarding Agency: Department of Defense
Start Date: 2027-01-10
End Date: 2027-01-27
Contract Duration: 17 days
Daily Burn Rate: $5.2M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MILITARY CONSTRUCTION PROJECT 20001
Plain-Language Summary
Department of Defense obligated $88.9 million to ICELAND PRIME CONTRACTOR LTD for work described as: MILITARY CONSTRUCTION PROJECT 20001 Key points: 1. The contract is for military construction, a sector with significant capital investment. 2. Full and open competition was used, suggesting a potentially competitive bidding process. 3. The firm fixed price contract type aims to control costs for the government. 4. The project duration is 17 days, indicating a short, focused construction effort.
Value Assessment
Rating: fair
The contract value of $88.9 million for a 17-day construction project appears high. Benchmarking against similar military construction projects is needed to assess if the pricing is competitive for the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive sign for price discovery. However, the limited duration and specific nature of the project might have restricted the number of qualified bidders.
Taxpayer Impact: The firm fixed price contract aims to protect taxpayers from cost overruns, but the overall value needs scrutiny to ensure it represents a fair price.
Public Impact
Military readiness and infrastructure improvements are directly impacted by this project. Taxpayer funds are allocated for defense infrastructure, requiring careful oversight. The project's success could influence future military construction contracts in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for a short duration.
- Limited information on specific project scope.
- Potential for cost escalation if unforeseen issues arise.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Clear end date for project completion.
Sector Analysis
Military construction falls under the broader Construction sector, often characterized by large capital outlays and complex project management. Spending benchmarks vary widely based on project type and location.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of the Navy is the awarding agency, implying established oversight mechanisms. However, the short duration and specific contractor warrant close monitoring of project execution and final costs.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High cost relative to project duration.
- Potential logistical challenges due to international contractor.
- Lack of detailed scope of work provided.
- Need for detailed cost breakdown and justification.
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $88.9 million to ICELAND PRIME CONTRACTOR LTD. MILITARY CONSTRUCTION PROJECT 20001
Who is the contractor on this award?
The obligated recipient is ICELAND PRIME CONTRACTOR LTD.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $88.9 million.
What is the period of performance?
Start: 2027-01-10. End: 2027-01-27.
What is the specific scope of work for this military construction project, and how does it justify the $88.9 million cost for a 17-day duration?
The provided data lacks specific details on the project's scope. A construction project of this magnitude, even for a short duration, typically involves significant materials, labor, and specialized equipment. Further documentation is required to understand the precise deliverables and justify the substantial cost within the given timeframe.
Given the contractor is based in Iceland, what are the potential logistical and oversight challenges associated with this project, and how might they impact cost and timeline?
Operating in a foreign country can introduce logistical complexities, including transportation of materials and personnel, adherence to local regulations, and potential currency exchange fluctuations. Oversight may also be more challenging due to distance. These factors could potentially increase costs and introduce risks if not managed proactively by the Department of the Navy.
How does the $88.9 million contract value compare to similar military construction projects awarded by the Department of the Navy in recent years, considering project size and complexity?
Without specific project details, a direct comparison is difficult. However, $88.9 million is a substantial sum for a project with a stated duration of only 17 days. Benchmarking against projects of similar scale and complexity, accounting for location and specific construction needs, is crucial to determine if this represents a fair market price or indicates potential overspending.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6247023R0006
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: HOFDABAKKI 9, REYKJAVIK
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $88,888,791
Exercised Options: $88,888,791
Current Obligation: $88,888,791
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2027-01-10
Current End Date: 2027-01-27
Potential End Date: 2027-01-27 00:00:00
Last Modified: 2025-04-23
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