DoD's $20.4M Pier Repair Contract for Diego Garcia Awarded to Centerra-SJC, LLC

Contract Overview

Contract Amount: $20,457,064 ($20.5M)

Contractor: Centerra-Sjc, LLC

Awarding Agency: Department of Defense

Start Date: 2014-06-05

End Date: 2016-10-26

Contract Duration: 874 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DLA SPECIAL PROJECT P.2014.00300 POL PIER REPAIRS, U.S. NAVAL SUPPORT FACILITY, DIEGO GARCIA, BRITISH INDIAN OCEAN TERRITORIES

Plain-Language Summary

Department of Defense obligated $20.5 million to CENTERRA-SJC, LLC for work described as: IGF::OT::IGF DLA SPECIAL PROJECT P.2014.00300 POL PIER REPAIRS, U.S. NAVAL SUPPORT FACILITY, DIEGO GARCIA, BRITISH INDIAN OCEAN TERRITORIES Key points: 1. The contract addresses critical infrastructure needs at a key U.S. Naval Support Facility. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The project falls under heavy and civil engineering construction, a sector vital for military logistics. 4. The firm fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract's value of $20.4M for pier repairs appears reasonable given the location and scope. Benchmarking against similar large-scale civil engineering projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive bidding process for this significant infrastructure project aims to ensure taxpayer funds are used efficiently for necessary repairs.

Public Impact

Ensures operational readiness of U.S. Naval Support Facility, Diego Garcia. Supports critical logistical capabilities in the British Indian Ocean Territories. Represents investment in long-term infrastructure maintenance for national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during construction.
Geopolitical risks associated with the British Indian Ocean Territories location.
Contract duration of 874 days may indicate complex or lengthy repair work.

Positive Signals

Firm fixed-price contract helps mitigate cost uncertainty.
Full and open competition suggests a robust selection process.
Project addresses essential infrastructure for naval operations.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is crucial for maintaining military installations and logistical hubs. Spending in this sector can fluctuate based on infrastructure needs and modernization efforts.

Small Business Impact

The contract was awarded to Centerra-SJC, LLC, and there is no indication that small businesses were involved as prime contractors or significant subcontractors. Further analysis would be needed to determine any small business participation.

Oversight & Accountability

The Department of the Navy, as the contracting agency, is responsible for oversight. The Inspector General's office may conduct audits or reviews to ensure contract compliance and proper use of funds.

Related Government Programs

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

Risk Flags

Geographic location presents logistical challenges.
Potential for unforeseen site conditions impacting cost and schedule.
Contract duration suggests a complex scope of work.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to CENTERRA-SJC, LLC. IGF::OT::IGF DLA SPECIAL PROJECT P.2014.00300 POL PIER REPAIRS, U.S. NAVAL SUPPORT FACILITY, DIEGO GARCIA, BRITISH INDIAN OCEAN TERRITORIES

Who is the contractor on this award?

The obligated recipient is CENTERRA-SJC, 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 $20.5 million.

What is the period of performance?

Start: 2014-06-05. End: 2016-10-26.

What is the projected impact of these pier repairs on the operational capacity and efficiency of the naval facility?

The pier repairs are expected to significantly enhance the operational capacity and efficiency of the U.S. Naval Support Facility in Diego Garcia. By addressing structural deficiencies, the project will ensure the safe and reliable docking of vessels, facilitate smoother cargo operations, and support the overall logistical throughput of the base. This modernization is critical for maintaining the facility's role as a key strategic asset in the region.

What are the primary risks associated with performing construction in the British Indian Ocean Territories, and how were they mitigated?

Construction in the British Indian Ocean Territories presents unique risks including logistical challenges due to remote location, potential environmental sensitivities, and limited availability of local resources. Mitigation strategies likely involved detailed logistical planning, pre-positioning of materials and equipment, adherence to strict environmental protocols, and potentially bringing in specialized labor. The contract's firm fixed-price nature also shifts some of these execution risks to the contractor.

How does the firm fixed-price contract structure ensure value for money for this extensive construction project?

The firm fixed-price (FFP) contract structure is designed to ensure value for money by establishing a set price for the defined scope of work. This shifts the risk of cost overruns to the contractor, incentivizing them to manage resources efficiently and complete the project within budget. For the government, it provides cost certainty, making it easier to budget and track expenditures, assuming the scope of work is well-defined and changes are managed strictly.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6274214R1306

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4800 OVERTON PLAZA, SUITE 380, FORT WORTH, TX, 76109

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

Financial Breakdown

Contract Ceiling: $20,457,064

Exercised Options: $20,457,064

Current Obligation: $20,457,064

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline