Navy awards $325M seismic repair contract for dry docks to Kiewit-Alberici SIOP MACC AJV

Contract Overview

Contract Amount: $325,073,119 ($325.1M)

Contractor: Kiewit-Alberici Siop Macc AJV

Awarding Agency: Department of Defense

Start Date: 2023-02-01

End Date: 2023-10-15

Contract Duration: 256 days

Daily Burn Rate: $1.3M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SEISMIC REPAIR OF DRY DOCKS WITHIN THE COGNIZANCE OF NAVFAC NORTH

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98314

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $325.1 million to KIEWIT-ALBERICI SIOP MACC AJV for work described as: SEISMIC REPAIR OF DRY DOCKS WITHIN THE COGNIZANCE OF NAVFAC NORTH Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the Navy. 3. The project focuses on essential infrastructure repair, indicating a need for critical facility maintenance. 4. The duration of 256 days suggests a significant scope of work for the seismic repairs. 5. The awardee, Kiewit-Alberici SIOP MACC AJV, is likely a joint venture with relevant construction expertise.

Value Assessment

Rating: good

The contract value of $325,073,119 for seismic repair of dry docks appears substantial, reflecting the complexity and critical nature of the work. Benchmarking against similar large-scale civil engineering projects would be necessary for a precise value-for-money assessment. However, the firm-fixed-price structure provides a degree of cost control for the government. The specific details of the repair scope will heavily influence the overall value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The government likely received multiple proposals, allowing for a selection based on a combination of price and technical merit.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through robust bidding and encourage the most capable contractors to participate.

Public Impact

The primary beneficiaries are the U.S. Navy and its operational readiness, ensuring critical naval infrastructure is safe and functional. The services delivered include essential seismic repairs to dry docks, vital for ship maintenance and repair operations. The geographic impact is localized to the naval facilities under the cognizance of NAVFAC NORTH, likely in a specific region. Workforce implications include job creation for skilled construction labor, engineers, and project managers involved in the repair process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues are discovered during repairs.
Risk of schedule delays due to the complexity of seismic retrofitting and potential weather impacts.
Dependence on the specialized expertise of the joint venture awardee for successful execution.

Positive Signals

Firm-fixed-price contract provides cost certainty and limits the government's exposure to cost increases.
Awarded through full and open competition, suggesting a competitive environment that likely yielded a fair price.
Focus on critical infrastructure repair ensures long-term operational capability and safety for naval assets.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on specialized infrastructure repair. The market for large-scale naval facility construction and maintenance is often dominated by a few large, experienced firms capable of handling complex projects. The $325 million award is significant and indicative of the substantial investment required for maintaining critical defense infrastructure.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside criterion (ss: false, sb: false). However, the prime contractor, Kiewit-Alberici SIOP MACC AJV, may engage small businesses as subcontractors to fulfill specific scopes of work or meet diversity goals. The subcontracting plan, if any, will determine the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Naval Facilities Engineering Command (NAVFAC) and potentially the Department of Defense's Inspector General. Accountability measures will be embedded in the contract's performance standards, delivery schedules, and payment terms. Transparency is facilitated through the Federal Procurement Data System (FPDS) where contract awards are reported.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Contracts
Department of Defense Infrastructure Modernization Programs
Seismic Retrofitting and Infrastructure Resilience Projects
Heavy Civil Engineering Construction Services

Risk Flags

Potential for unforeseen conditions impacting cost and schedule.
Complexity of seismic retrofitting requires specialized expertise.
Coordination with active naval operations may cause delays.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $325.1 million to KIEWIT-ALBERICI SIOP MACC AJV. SEISMIC REPAIR OF DRY DOCKS WITHIN THE COGNIZANCE OF NAVFAC NORTH

Who is the contractor on this award?

The obligated recipient is KIEWIT-ALBERICI SIOP MACC AJV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $325.1 million.

What is the period of performance?

Start: 2023-02-01. End: 2023-10-15.

What is the historical spending pattern for seismic repairs of naval dry docks?

Historical spending on seismic repairs for naval dry docks can vary significantly based on the age and condition of the facilities, as well as the seismic risk of their location. Major naval bases often undergo periodic infrastructure assessments, leading to multi-year modernization programs. For instance, significant investments may have been made in the past decade following major earthquakes or updated seismic code requirements. Without specific data on past dry dock repair contracts, it's difficult to provide precise figures, but large-scale projects like this often represent a substantial portion of NAVFAC's annual capital improvement budget. The current $325 million award suggests a significant, potentially one-off or phase-based, investment rather than routine maintenance.

How does the awardee's track record compare for similar large-scale civil engineering projects?

Kiewit and Alberici are both well-established construction companies with extensive experience in large-scale civil engineering and infrastructure projects, including those for government clients. Kiewit, in particular, has a strong reputation for managing complex projects in challenging environments. The formation of a joint venture (AJV) for this specific contract suggests a strategic pooling of resources and expertise to meet the demanding requirements of the seismic repair project. A review of their past performance on similar projects, such as port infrastructure, bridge construction, or other heavy civil works, would reveal their capacity to handle the technical complexities, project management demands, and safety protocols required for this naval dry dock repair.

What are the key risk indicators associated with this type of infrastructure repair contract?

Key risk indicators for this seismic repair contract include the potential for unforeseen subsurface conditions or structural deficiencies that could lead to scope creep and cost overruns, despite the firm-fixed-price nature. Schedule delays are another significant risk, stemming from the complexity of seismic retrofitting, potential environmental impacts, coordination with ongoing naval operations, and weather disruptions. The specialized nature of dry dock repair and seismic engineering also presents a risk if the contractor encounters technical challenges beyond their initial assessment. Furthermore, ensuring the long-term effectiveness and durability of the seismic upgrades against future seismic events is a performance risk that requires rigorous quality control and assurance throughout the project lifecycle.

How does this contract's value compare to other recent large civil engineering construction awards by the Navy?

The $325 million award for seismic repair of dry docks is a substantial contract, placing it among significant infrastructure investments by the Navy. Recent large civil engineering awards by the Navy often range from tens of millions to hundreds of millions of dollars, depending on the project's scope, such as new construction, major renovations, or specialized facility upgrades. Contracts for shipbuilding or aircraft carrier maintenance, while related to naval operations, would fall under different categories and funding streams. This specific award reflects a significant commitment to maintaining and upgrading critical shore-based infrastructure, essential for supporting naval fleet readiness and operational capabilities.

What is the potential impact of this contract on the regional construction labor market?

A contract of this magnitude, valued at $325 million, is likely to have a notable positive impact on the regional construction labor market where the work is being performed. It will create demand for a variety of skilled trades, including structural engineers, heavy equipment operators, ironworkers, concrete finishers, electricians, and project management professionals. Depending on the availability of local skilled labor, the contractor may need to recruit from outside the immediate area, potentially leading to temporary population influx and increased demand for local services. The duration of the project (256 days) suggests sustained employment opportunities over a significant period.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6274221R1345

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2200 COLUMBIA HOUSE BLVD, VANCOUVER, WA, 98661

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

Financial Breakdown

Contract Ceiling: $325,073,119

Exercised Options: $325,073,119

Current Obligation: $325,073,119

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6274222D1313

IDV Type: IDC

Timeline