Navy awards $31.3M construction contract to American Bridge Company for facility upgrades

Contract Overview

Contract Amount: $31,277,099 ($31.3M)

Contractor: American Bridge Company

Awarding Agency: Department of Defense

Start Date: 2005-12-29

End Date: 2008-08-14

Contract Duration: 959 days

Daily Burn Rate: $32.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200604!159356!1700!N62472!NAVFAC ENGINEERING FIELD ACTIVIT!N6247206C0017 !A!N! !N! ! !20051229!20070417!039467258!180620254!609143086!N!AMERICAN BRIDGE COMPANY !7401 BEAUFONT SPRINGS DR !RICHMOND !VA!23225!52490!011!09!NEW LONDON !NEW LONDON !CONN !+000030603497!N!N!000030603497!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !237990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!008!B! !D!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! !N! ! !1700!N62472!0001! !

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06349

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to AMERICAN BRIDGE COMPANY for work described as: 200604!159356!1700!N62472!NAVFAC ENGINEERING FIELD ACTIVIT!N6247206C0017 !A!N! !N! ! !20051229!20070417!039467258!180620254!609143086!N!AMERICAN BRIDGE COMPANY !7401 BEAUFONT SPRINGS DR !RICHMOND !VA!23225!52490!011!09!NEW LONDON !NEW … Key points: 1. Contract value represents a significant investment in naval infrastructure. 2. The award to a single large business may limit opportunities for small businesses. 3. The contract duration of 959 days suggests a complex, multi-phase project. 4. Fixed-price contract type aims to control costs for the government. 5. The project falls under the broad category of heavy and civil engineering construction.

Value Assessment

Rating: good

The contract value of $31.3 million for construction services appears reasonable given the project's scope and duration. Benchmarking against similar large-scale civil engineering projects awarded by the Navy or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of 8 bids suggests a competitive environment, which typically leads to better pricing and terms for the government. The specific details of the bidding process and the number of proposals received would offer further insight into the strength of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value available.

Public Impact

Naval facilities in Connecticut will benefit from upgraded infrastructure. The project will likely involve significant construction labor and materials. The specific services delivered include heavy and civil engineering construction. The geographic impact is concentrated in New London, Connecticut.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during construction.
Dependence on a single large contractor could pose risks if performance falters.
Limited direct benefit to small businesses unless they are subcontractors.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a robust bidding process.
Award to an established company like American Bridge Company may indicate a track record of successful project completion.

Sector Analysis

This contract falls within the Construction sector, specifically under Heavy and Civil Engineering Construction. This sub-sector involves large-scale infrastructure projects such as bridges, roads, and other non-building facilities. The market for such services is often characterized by large, specialized firms capable of handling complex projects. Federal spending in this area is crucial for maintaining and upgrading national infrastructure, including military installations.

Small Business Impact

The contract was not set aside for small businesses, and the award went to a large business. While American Bridge Company may utilize small businesses as subcontractors, there is no explicit requirement or indication of this in the provided data. The absence of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were limited.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and project managers. The firm fixed-price nature of the contract shifts cost risk to the contractor, but performance monitoring remains crucial. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Construction Projects
Heavy and Civil Engineering Construction Services
Federal Infrastructure Spending

Risk Flags

Potential for cost overruns
Contractor performance risk
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to AMERICAN BRIDGE COMPANY. 200604!159356!1700!N62472!NAVFAC ENGINEERING FIELD ACTIVIT!N6247206C0017 !A!N! !N! ! !20051229!20070417!039467258!180620254!609143086!N!AMERICAN BRIDGE COMPANY !7401 BEAUFONT SPRINGS DR !RICHMOND !VA!23225!52490!011!09!NEW LONDON !NEW LONDON !CONN !+000030603497!N!N!000030603497!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !237990!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is AMERICAN BRIDGE COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.3 million.

What is the period of performance?

Start: 2005-12-29. End: 2008-08-14.

What is American Bridge Company's track record with federal contracts, particularly with the Department of the Navy?

American Bridge Company has a significant history of performing federal contracts, including numerous awards from the Department of Defense and specifically the Department of the Navy. Their portfolio often includes large-scale construction and engineering projects, such as bridges, port facilities, and other critical infrastructure. While this specific contract (N6247206C0017) is for $31.3 million and spans from December 2005 to August 2008, their broader federal contracting history indicates experience with projects of similar or greater complexity and value. A detailed review of their past performance, including any past performance evaluations or disputes, would provide a more comprehensive understanding of their reliability and capability.

How does the $31.3 million contract value compare to similar construction projects for naval facilities?

The $31.3 million award for construction services at a naval facility is a substantial sum, indicative of a significant project. To benchmark its value, one would compare it to other contracts awarded by NAVFAC or similar military branches for comparable work, such as building or upgrading non-building facilities, port infrastructure, or specialized engineering structures. Factors like geographic location, specific technical requirements, and prevailing market rates for labor and materials in the New London area would influence this comparison. Without access to a database of comparable projects with detailed scope and pricing, it's difficult to definitively state if this represents excellent or fair value, but it aligns with the scale of major infrastructure investments.

What are the primary risks associated with this firm fixed-price construction contract?

The primary risks associated with this firm fixed-price contract, while generally favorable to the government by capping costs, still include potential contractor underperformance or default. If American Bridge Company encounters unforeseen site conditions, labor shortages, or material price escalations beyond what was reasonably anticipated, they bear the financial burden. This could lead to delays, quality compromises, or even contract termination if the contractor becomes insolvent or unable to complete the work. The government's risk is primarily in ensuring adequate oversight to monitor progress, quality, and adherence to the contract specifications, and in managing the consequences should the contractor fail to meet their obligations.

What is the expected effectiveness of the completed construction in supporting naval operations?

The effectiveness of the completed construction hinges on the specific nature of the 'ALL OTHER NON-BUILDING FACILITIES' being upgraded or built. Assuming these facilities are critical for naval operations—such as maintenance depots, logistical support structures, training areas, or specialized equipment housing—their modernization or construction is expected to enhance operational readiness, efficiency, and safety. Improved infrastructure can lead to reduced downtime for equipment, better storage and handling of materials, and more effective training environments. The long-term effectiveness will also depend on the durability of the construction and its adaptability to future naval requirements.

How has federal spending on similar heavy and civil engineering construction projects trended over the past decade?

Federal spending on heavy and civil engineering construction projects has generally seen fluctuations influenced by economic conditions, infrastructure initiatives, and national security priorities. Following the 2008 recession, there was a push for infrastructure investment, which likely increased federal outlays in this sector. More recently, renewed focus on modernizing infrastructure, including military facilities, suggests continued or potentially increasing federal investment. Specific trends would vary by agency and project type; for instance, defense-related construction spending might be more directly tied to geopolitical events and military readiness needs, while broader infrastructure spending might follow legislative priorities like the Bipartisan Infrastructure Law.

What are the implications of the 8 bids received for this contract on price discovery and taxpayer value?

Receiving 8 bids for this construction contract is a strong indicator of robust competition. A higher number of bids generally leads to more effective price discovery, as contractors are incentivized to offer competitive pricing to win the award. This competitive pressure is beneficial for taxpayers because it helps ensure that the government is not overpaying for the services rendered. It suggests that the market has sufficient capacity and interest in undertaking such projects, allowing the Department of the Navy to select the offer that provides the best overall value, considering both price and technical qualifications. The diversity of bidders could also introduce innovative solutions.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: American Bridge Holding Company

Address: 7401 BEAUFONT SPRINGS DR, RICHMOND, VA, 23225

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline