DoD Awards $149M Construction Contract to UKPIK LLC for Heavy Engineering in Alaska
Contract Overview
Contract Amount: $14,906,202 ($14.9M)
Contractor: Ukpik LLC
Awarding Agency: Department of Defense
Start Date: 2004-09-24
End Date: 2010-09-30
Contract Duration: 2,197 days
Daily Burn Rate: $6.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $14.9 million to UKPIK LLC for work described as: Key points: 1. Significant contract value of $149 million awarded. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans a long duration of 2197 days, indicating a substantial project. 4. Construction sector spending is a key area for federal investment.
Value Assessment
Rating: fair
The contract value of $149 million for heavy and civil engineering construction is substantial. Without specific project details or comparable contract data, a precise pricing assessment is difficult. However, the duration suggests a large-scale undertaking where cost efficiency is crucial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can lead to more competitive pricing. The process aims to ensure fair market value is achieved through multiple proposals.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it promotes a competitive environment, potentially driving down costs and ensuring the government receives the best value for its investment.
Public Impact
Impacts infrastructure development in Alaska, potentially creating jobs and stimulating the local economy. Long-term project may require ongoing monitoring and management to ensure timely completion and quality. Federal investment in construction can signal priorities in national infrastructure and defense readiness.
Waste & Efficiency Indicators
Waste Risk Score: 100 / 10
Warning Flags
- Long contract duration (2197 days) increases risk of cost overruns and scope creep.
- Lack of specific project details makes it hard to assess value and potential risks.
- Firm Fixed Price contract may not fully account for unforeseen construction challenges.
Positive Signals
- Awarded under full and open competition, suggesting potential for good value.
- Significant investment in infrastructure development.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, a critical area for government infrastructure projects. Federal spending in this sector often supports national defense, transportation, and public works, with benchmarks varying widely based on project scope and location.
Small Business Impact
The data indicates the contract was not set aside for small businesses (sb: false). This suggests that large businesses likely competed for and were awarded this substantial contract, potentially limiting opportunities for smaller firms in this specific award.
Oversight & Accountability
The long duration of the contract necessitates robust oversight from the Department of Defense to ensure adherence to timelines, budget, and quality standards. Accountability will be key to managing risks and ensuring taxpayer funds are used effectively.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases potential for cost escalation and scope creep.
- Lack of specific project details hinders a thorough risk assessment.
- Firm Fixed Price contract may expose the contractor to significant risk if unforeseen issues arise.
- No indication of small business participation limits broader economic impact.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ak, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.9 million to UKPIK LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is UKPIK LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $14.9 million.
What is the period of performance?
Start: 2004-09-24. End: 2010-09-30.
What specific heavy and civil engineering projects were undertaken under this contract, and how do their costs compare to industry averages for similar work in Alaska?
Without detailed project specifications, it's challenging to ascertain the exact nature of the heavy and civil engineering construction. However, the $149 million award over nearly six years suggests a large-scale, complex undertaking. Benchmarking costs would require comparing specific elements like earthmoving, foundation work, or infrastructure installation against regional cost indices and similar government or private sector projects in Alaska.
What were the primary risks identified during the full and open competition process, and what mitigation strategies were implemented by the Department of the Army?
Key risks in large construction contracts often include schedule delays, cost overruns due to material price fluctuations or unforeseen site conditions, and performance issues. During full and open competition, the Army would evaluate proposals based on technical capability, past performance, and price. Mitigation strategies likely involved detailed contract clauses, performance bonds, regular progress reviews, and contingency planning to address potential challenges.
How effectively did the firm fixed price contract structure ensure value for money given the extended duration and potential for unforeseen issues in construction?
A firm fixed price (FFP) contract aims to provide cost certainty for the government. For a long-duration project like this, an FFP can be advantageous if the scope is well-defined and risks are thoroughly assessed upfront. However, it places more risk on the contractor to manage cost fluctuations. The effectiveness in ensuring value for money depends on the accuracy of the initial cost estimates and the contractor's ability to manage risks effectively throughout the project lifecycle.
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
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Ukpeagvik Inupiat Corporation (UEI: 079253902)
Address: 5326 A STREET, SUITE 2, ANCHORAGE, AK, 00
Business Categories: Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-09-24
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2009-08-06
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