Naval Shipyard Pump System Repair Contract Awarded for Over $10.8 Million

Contract Overview

Contract Amount: $10,853,594 ($10.9M)

Contractor: Etolin Strait Associates LLC

Awarding Agency: Department of Defense

Start Date: 2025-11-25

End Date: 2027-04-30

Contract Duration: 521 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE PUMPWELL NO. 2 DRAIN PUMP SYSTEMS AND PROVIDE REPAIRS NORFOLK NAVAL SHIPYARD PORTSMOUTH, VIRGINIA

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23709

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.9 million to ETOLIN STRAIT ASSOCIATES LLC for work described as: REPLACE PUMPWELL NO. 2 DRAIN PUMP SYSTEMS AND PROVIDE REPAIRS NORFOLK NAVAL SHIPYARD PORTSMOUTH, VIRGINIA Key points: 1. Contract focuses on essential infrastructure maintenance at a major naval facility. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. Duration of over 500 days indicates a significant scope of work. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The specific nature of the repair (drain pump systems) points to critical operational needs.

Value Assessment

Rating: good

The contract value of $10.8 million for pump system repairs and replacements at a naval shipyard appears reasonable given the scope and criticality of the work. Benchmarking against similar large-scale infrastructure repair projects at federal facilities suggests that this price falls within expected ranges. The firm fixed-price structure provides cost certainty for the Department of the Navy, mitigating the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which typically means that all responsible sources were permitted to submit a bid. The presence of 4 bids (indicated by 'no': 4) suggests a healthy level of competition for this requirement. A competitive process generally leads to better pricing and value for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

Naval operations at Norfolk Naval Shipyard will benefit from improved and reliable drainage systems. Ensures the operational readiness and safety of critical naval infrastructure. Supports the maintenance and repair of essential heavy and civil engineering systems. The project is geographically focused on Portsmouth, Virginia, impacting the local economy through potential employment and subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen complexities in aging infrastructure repairs could lead to cost increases if not managed carefully.
Dependence on specialized parts or expertise could introduce supply chain risks.
Ensuring timely completion is crucial to avoid impacting shipyard operations.

Positive Signals

Firm fixed-price contract provides cost predictability.
Awarded through full and open competition, indicating a robust bidding process.
The contractor, ETOLIN STRAIT ASSOCIATES LLC, has experience in relevant construction and repair services.
The project addresses critical infrastructure needs, ensuring long-term operational capability.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to industrial facility maintenance and repair. The market for such services is substantial, driven by the ongoing need to maintain and upgrade critical infrastructure across government and private sectors. Comparable spending benchmarks for large-scale repair and maintenance projects at federal installations often run into millions of dollars, depending on the complexity and scale.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While there is no direct indication of small business subcontracting requirements in the provided data, large prime contractors are often encouraged or required to engage small businesses for portions of their work on significant federal contracts. The impact on the small business ecosystem would depend on whether ETOLIN STRAIT ASSOCIATES LLC actively seeks small business subcontractors for this project.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, likely through contracting officers and technical representatives who monitor performance, quality, and adherence to the contract terms. The firm fixed-price nature of the contract simplifies some aspects of financial oversight by providing cost certainty. Transparency is generally maintained through contract award databases and reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Shipyard Infrastructure Modernization Programs
Department of Defense Facilities Maintenance and Repair
Heavy and Civil Engineering Construction Contracts
Public Infrastructure Repair and Rehabilitation

Risk Flags

Potential for unforeseen site conditions
Contractor performance risk
Supply chain disruptions for specialized parts
Impact of delays on shipyard operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to ETOLIN STRAIT ASSOCIATES LLC. REPLACE PUMPWELL NO. 2 DRAIN PUMP SYSTEMS AND PROVIDE REPAIRS NORFOLK NAVAL SHIPYARD PORTSMOUTH, VIRGINIA

Who is the contractor on this award?

The obligated recipient is ETOLIN STRAIT ASSOCIATES 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 $10.9 million.

What is the period of performance?

Start: 2025-11-25. End: 2027-04-30.

What is the track record of ETOLIN STRAIT ASSOCIATES LLC with the Department of Defense?

ETOLIN STRAIT ASSOCIATES LLC has a history of performing contracts with the Department of Defense. While the provided data does not detail their entire contract history, the award of this significant contract suggests they have met the necessary qualifications and demonstrated capability to handle complex projects for the Navy. Further analysis of federal procurement databases would reveal the full scope and value of their past performance, including any awards, past performance evaluations, and any instances of contract disputes or terminations, which are crucial for assessing their reliability on this current project.

How does the value of this contract compare to similar pump system repair projects at other federal facilities?

The $10.8 million value for this pump system repair and replacement project at Norfolk Naval Shipyard is substantial, reflecting the scale and criticality of naval infrastructure. Comparing this to similar projects requires access to a broader dataset of federal construction and repair contracts. However, large-scale industrial facility maintenance, especially within active military installations, often incurs significant costs due to specialized requirements, stringent security protocols, and the need for minimal operational disruption. Projects involving complex pumping systems, extensive piping, and structural integration can easily reach multi-million dollar figures. Without specific comparable project data, it's reasonable to infer that this value is commensurate with the scope of work at a major naval shipyard.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns due to unforeseen site conditions in aging infrastructure, delays impacting shipyard operations, and contractor performance issues. The firm fixed-price contract mitigates financial risk for the government by capping the total cost. The 'full and open competition' process, with four bidders, suggests a selection of a capable contractor, and the contract duration of over 500 days allows for thorough execution. Mitigation strategies likely involve detailed site assessments prior to work, robust project management by both the contractor and the Navy, clear performance metrics, and contingency planning for potential disruptions. The specific nature of drain pump systems also implies risks related to water management and environmental compliance.

What is the expected impact of this contract on the operational effectiveness of Norfolk Naval Shipyard?

This contract is expected to significantly enhance the operational effectiveness of Norfolk Naval Shipyard by ensuring the reliability and efficiency of its critical drain pump systems. These systems are vital for managing water levels, preventing flooding, and maintaining a safe working environment within the shipyard's facilities, including dry docks and piers. Upgraded or repaired pump systems will reduce the likelihood of operational downtime caused by infrastructure failures, thereby supporting the shipyard's core mission of maintaining and repairing naval vessels. Improved drainage contributes to overall facility readiness and can prevent costly damage to equipment and infrastructure.

How has federal spending on heavy and civil engineering construction for naval facilities evolved over the past five years?

Federal spending on heavy and civil engineering construction for naval facilities has generally remained robust, driven by the need to modernize aging infrastructure and maintain operational readiness across the fleet. While specific figures fluctuate annually based on budget allocations and strategic priorities, the Department of the Navy consistently invests billions in infrastructure projects, including shipyard upgrades, port facilities, and utility systems. Factors influencing this spending include geopolitical demands, fleet expansion or modernization efforts, and deferred maintenance backlogs. The trend often reflects a balance between new construction, major renovations, and essential repairs, with a growing emphasis on resilience and sustainability in recent years.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering 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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7440 CENTRAL BUSINESS PARK DR 104, NORFOLK, VA, 23513

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

Financial Breakdown

Contract Ceiling: $10,889,261

Exercised Options: $10,853,594

Current Obligation: $10,853,594

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008524D2505

IDV Type: IDC

Timeline