DoD's $28.7M AUTEC Pier Repair Project Faces Potential Delays and Cost Overruns

Contract Overview

Contract Amount: $28,678,311 ($28.7M)

Contractor: Orion Government Services LLC

Awarding Agency: Department of Defense

Start Date: 2021-12-16

End Date: 2024-07-28

Contract Duration: 955 days

Daily Burn Rate: $30.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AUTEC FACILITY 1902 PERMANENT PIER DEMO AND REPAIR PROJECT AT ANDROS ISLAND BAHAMAS

Plain-Language Summary

Department of Defense obligated $28.7 million to ORION GOVERNMENT SERVICES LLC for work described as: AUTEC FACILITY 1902 PERMANENT PIER DEMO AND REPAIR PROJECT AT ANDROS ISLAND BAHAMAS Key points: 1. The project involves critical infrastructure repair for the Navy's AUTEC facility in the Bahamas. 2. Orion Government Services LLC is the prime contractor, awarded through full and open competition. 3. The contract is a Firm Fixed Price type, aiming to control costs. 4. Potential risks include logistical challenges in a remote location and unforeseen site conditions. 5. The construction sector is experiencing material cost volatility, impacting fixed-price contracts.

Value Assessment

Rating: fair

The contract's fixed-price nature aims for cost certainty. However, the duration and remote location present risks for potential cost overruns if unforeseen issues arise. Benchmarking against similar heavy civil engineering projects is difficult due to the unique location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and aims for a fair market price. The fixed-price structure further incentivizes the contractor to manage costs effectively.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure maintenance in a strategic naval facility. While competition aims for value, potential cost overruns due to location and project complexity could impact the final taxpayer cost.

Public Impact

Ensures continued operational readiness of the Atlantic Undersea Test and Evaluation Center (AUTEC). Supports critical naval testing and training capabilities in the Bahamas. Addresses aging infrastructure to prevent further degradation and safety hazards. Potential for extended disruption to facility operations if repairs are delayed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Remote location logistical challenges
Potential for unforeseen site conditions
Firm Fixed Price risk in volatile market
Extended duration increases risk exposure

Positive Signals

Awarded via Full and Open Competition
Critical infrastructure investment
Firm Fixed Price contract type

Sector Analysis

This project falls under heavy and civil engineering construction, a sector vital for national infrastructure. Spending in this sector can be influenced by government infrastructure initiatives and defense spending priorities. Benchmarks are often project-specific due to scale and location.

Small Business Impact

The prime contractor is Orion Government Services LLC, a large business. There is no indication of subcontracting opportunities for small businesses in the provided data, which could be a missed opportunity for small business participation.

Oversight & Accountability

The Department of the Navy is responsible for oversight. Given the project's remote location and extended duration, robust oversight will be crucial to monitor progress, manage risks, and ensure adherence to contract terms and budget.

Related Government Programs

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

Risk Flags

Logistical challenges in remote location
Potential for unforeseen site conditions
Firm Fixed Price risk in volatile construction market
Extended project duration increases risk exposure
Limited visibility into small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.7 million to ORION GOVERNMENT SERVICES LLC. AUTEC FACILITY 1902 PERMANENT PIER DEMO AND REPAIR PROJECT AT ANDROS ISLAND BAHAMAS

Who is the contractor on this award?

The obligated recipient is ORION GOVERNMENT SERVICES 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 $28.7 million.

What is the period of performance?

Start: 2021-12-16. End: 2024-07-28.

What specific unforeseen conditions were encountered or are anticipated that could impact the project's timeline and budget?

The provided data does not specify anticipated or encountered unforeseen conditions. However, remote island locations often present challenges such as difficult access for materials and personnel, unique geological formations, and environmental sensitivities. These factors commonly lead to schedule delays and cost increases if not adequately planned for and managed.

How does the $28.7 million cost compare to similar pier demolition and repair projects in comparable remote or overseas locations?

Benchmarking this project's cost is challenging due to its specific location in the Bahamas and the nature of the AUTEC facility. Similar projects in remote or overseas locations often incur higher costs due to logistical complexities, specialized labor requirements, and import/export regulations. Without detailed cost breakdowns and comparable project data, a precise value assessment is difficult.

What measures are in place to ensure the long-term durability and effectiveness of the repaired pier, considering the harsh marine environment?

The contract specifies a Firm Fixed Price, suggesting that the contractor is responsible for delivering a durable repair according to specified standards. However, the data doesn't detail the specific materials, construction techniques, or quality assurance protocols. Effective long-term durability relies heavily on adherence to stringent engineering specifications and rigorous quality control during the repair process.

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: N6945021R0028

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Orion Marine Group, Inc.

Address: 12000 AEROSPACE AVE STE 300, HOUSTON, TX, 77034

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

Financial Breakdown

Contract Ceiling: $28,678,311

Exercised Options: $28,678,311

Current Obligation: $28,678,311

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline