DoD awards $99.4M for Portsmouth Naval Shipyard dry dock services, with limited competition

Contract Overview

Contract Amount: $99,375,171 ($99.4M)

Contractor: Cianbro Corporation

Awarding Agency: Department of Defense

Start Date: 2024-12-06

End Date: 2026-06-26

Contract Duration: 567 days

Daily Burn Rate: $175.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PRE-CONSTRUCTION SERVICES PORTSMOUTH NAVAL SHIPYARD DRY DOCK 2 COMPLEX

Place of Performance

Location: KITTERY, YORK County, MAINE, 03904

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $99.4 million to CIANBRO CORPORATION for work described as: PRE-CONSTRUCTION SERVICES PORTSMOUTH NAVAL SHIPYARD DRY DOCK 2 COMPLEX Key points: 1. Contract awarded to Cianbro Corporation for pre-construction services at Portsmouth Naval Shipyard. 2. The contract is a firm-fixed-price definitive contract, indicating a clear scope and pricing structure. 3. Awarded as 'Not Competed', raising questions about potential cost efficiencies and market engagement. 4. The duration of 567 days suggests a significant, multi-phase project. 5. The contract value of approximately $99.4 million represents a substantial investment in naval infrastructure. 6. Services are for Dry Dock 2 Complex, a critical component of shipyard operations.

Value Assessment

Rating: questionable

The contract value of $99.4 million for pre-construction services is substantial. Without a competitive bidding process, it is difficult to benchmark the value for money. The firm-fixed-price structure provides cost certainty for the government, but the lack of competition may have led to a higher price than could have been achieved through an open market solicitation. Further analysis would require comparison to similar pre-construction service contracts for naval facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'Not Competed' basis, indicating a sole-source procurement. This means that only one contractor, Cianbro Corporation, was solicited for these services. While sole-source awards can be justified under specific circumstances (e.g., urgency, unique capabilities), they generally limit price discovery and may not yield the most cost-effective outcome for the government.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the most competitive pricing that could have been achieved through a broader solicitation process.

Public Impact

The primary beneficiary is the Department of the Navy, ensuring critical infrastructure maintenance at Portsmouth Naval Shipyard. Services include pre-construction activities essential for the modernization of Dry Dock 2. The geographic impact is concentrated in Kittery, Maine, supporting regional economic activity. This contract is likely to support a specialized workforce in construction management and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for taxpayers.
Limited transparency into the justification for a sole-source award.
Potential for cost overruns if not closely managed due to lack of competitive pressure.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established contractor may ensure timely and quality execution.
Focus on critical naval infrastructure supports national defense readiness.

Sector Analysis

This contract falls within the construction and facilities maintenance sector, specifically supporting critical defense infrastructure. The market for specialized shipyard services is often concentrated among a few large, experienced firms. The value of this contract is significant, reflecting the complexity and importance of dry dock modernization. Comparable spending benchmarks would typically involve large-scale civil engineering and construction projects for government facilities.

Small Business Impact

The contract data indicates that small business participation was not a stated requirement or set-aside for this award (ss: false, sb: false). As a sole-source award to a large prime contractor, there is a potential for subcontracting opportunities for small businesses. However, the extent of this will depend on Cianbro Corporation's subcontracting plan and the availability of qualified small businesses for specialized pre-construction services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and project management offices. Accountability measures will be embedded within the firm-fixed-price contract terms, requiring adherence to scope, schedule, and quality standards. Transparency may be limited due to the sole-source nature of the award, but contract modifications and performance reports should be publicly available through federal procurement databases.

Related Government Programs

Naval Shipyard Modernization Programs
Dry Dock Construction and Repair
Department of Defense Infrastructure Projects
Major Capital Construction Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in procurement process.
Significant contract value requires robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $99.4 million to CIANBRO CORPORATION. PRE-CONSTRUCTION SERVICES PORTSMOUTH NAVAL SHIPYARD DRY DOCK 2 COMPLEX

Who is the contractor on this award?

The obligated recipient is CIANBRO CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $99.4 million.

What is the period of performance?

Start: 2024-12-06. End: 2026-06-26.

What is the specific justification for awarding this contract on a sole-source basis to Cianbro Corporation?

The provided data indicates the contract was 'Not Competed', suggesting a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, urgent and compelling circumstances, or a lack of market research indicating other viable sources. Without further documentation from the agency, the precise rationale remains unclear, but it is a critical point for assessing the value and fairness of the procurement.

How does the $99.4 million cost for pre-construction services compare to similar projects at other naval shipyards?

Benchmarking the $99.4 million cost for pre-construction services requires detailed comparison with similar projects at other naval facilities. Pre-construction services can encompass a wide range of activities, including design development, site investigation, cost estimating, scheduling, and constructability reviews. The complexity and scope of Dry Dock 2 at Portsmouth Naval Shipyard are key factors. Without specific details on the deliverables included in this $99.4 million award and comparable data from other shipyards for similar modernization efforts, a direct cost comparison is challenging. However, given the scale of naval infrastructure projects, this figure represents a significant investment, and its value is best assessed against the specific scope of work and the criticality of the dry dock.

What are the potential risks associated with a sole-source award for critical shipyard infrastructure?

Sole-source awards for critical infrastructure like shipyard dry docks carry several potential risks. Primarily, the absence of competition can lead to inflated pricing, as the contractor faces less pressure to offer the most cost-effective solution. There's also a risk of reduced innovation and quality, as the government cannot leverage the competitive landscape to drive best practices. Furthermore, a sole-source award can limit transparency and public trust, raising questions about fairness and the efficient use of taxpayer funds. Finally, if the sole-source contractor underperforms, the government has limited recourse without renegotiating or terminating a contract that may have been difficult to secure competitively in the first place.

What is Cianbro Corporation's track record with large-scale federal construction and infrastructure projects?

Cianbro Corporation is a large, established construction firm with a significant history of undertaking complex industrial and infrastructure projects, including work for the federal government. They have experience in heavy civil construction, marine facilities, and industrial plant construction. While specific details of their past performance on federal contracts, particularly those comparable to this naval shipyard project, would require a deeper dive into federal procurement databases (like SAM.gov or FPDS), their general profile suggests they possess the capacity and experience for such endeavors. Their track record would be a key factor in the agency's decision-making, especially if justification for a sole-source award relied on unique qualifications or past performance.

How will the performance of these pre-construction services be monitored to ensure value and timely completion?

Performance monitoring for this contract will likely involve a multi-faceted approach by the Department of the Navy. As a firm-fixed-price contract, the primary focus will be on adherence to the defined scope of work, schedule milestones, and quality standards. The government will assign a Contracting Officer's Representative (COR) or a similar technical point of contact to oversee the contractor's progress, review deliverables (such as design documents, cost estimates, and schedules), and ensure compliance with contract terms. Regular progress meetings, site inspections, and performance reporting will be crucial. Any deviations from the plan or quality issues would be addressed promptly through contract administration channels to ensure the government receives the intended value and the project remains on track for subsequent construction phases.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6247025R8006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 CIANBRO SQ, PITTSFIELD, ME, 04967

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $99,763,411

Exercised Options: $99,375,171

Current Obligation: $99,375,171

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline