DoD awards $177.6M contract for long-term pier repairs in Alaska, with 2 bidders

Contract Overview

Contract Amount: $177,638,086 ($177.6M)

Contractor: Brice Turnagain JV LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-28

End Date: 2026-09-24

Contract Duration: 1,457 days

Daily Burn Rate: $121.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EAR063 EARECKSON FUEL LONG TERM PIER REPAIRS

Place of Performance

Location: ADAK, ALEUTIANS WEST County, ALASKA, 99546

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $177.6 million to BRICE TURNAGAIN JV LLC for work described as: EAR063 EARECKSON FUEL LONG TERM PIER REPAIRS Key points: 1. Contract value of $177.6M for pier repairs represents a significant investment in critical infrastructure. 2. Competition involved 2 bidders, suggesting a moderately competitive environment for this specialized service. 3. The firm-fixed-price contract type aims to control costs and transfer risk to the contractor. 4. Performance is located in Alaska, a region with unique logistical challenges and environmental considerations. 5. The contract duration of nearly 4 years indicates a substantial, long-term need for these repairs.

Value Assessment

Rating: good

The contract value of $177.6 million for pier repairs appears substantial, but a direct comparison to similar long-term pier repair contracts is needed for a precise value assessment. The firm-fixed-price structure suggests an effort to establish a clear cost baseline. Benchmarking the per-unit cost against historical repair data or industry standards for similar infrastructure projects would provide further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with two bids received. While two bidders indicate some level of competition, it is on the lower end for a contract of this magnitude. A higher number of bidders typically suggests a more robust market and potentially more competitive pricing for the government.

Taxpayer Impact: The presence of two bidders means taxpayers likely received competitive pricing, but there may be an opportunity for even greater savings if more firms were encouraged to participate.

Public Impact

The Department of Defense benefits from the repair and maintenance of critical naval infrastructure. Services delivered include long-term pier repairs, ensuring operational readiness and safety. Geographic impact is concentrated in Alaska, supporting military operations in the region. Workforce implications may include employment opportunities for skilled construction and engineering professionals in Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite fixed-price structure.
Logistical challenges in Alaska could impact project timelines and costs.
Limited competition (2 bidders) may have resulted in a higher price than a more robustly competed contract.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Long-term duration allows for sustained infrastructure improvement and planning.
Award to a joint venture (BRICE TURNAGAIN JV LLC) may indicate capacity to handle complex projects.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on marine infrastructure. The market for large-scale pier repair and construction is specialized, often dominated by a few experienced firms capable of handling the unique demands of military installations and remote locations like Alaska. Spending in this sector is driven by the need to maintain and modernize aging port facilities and naval bases.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity or joint venture, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of the Army, implying oversight from the agency's contracting and program management offices. The firm-fixed-price nature of the contract helps in cost oversight. Transparency would be enhanced by public reporting of performance metrics and any modifications. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Base Infrastructure Modernization
Military Construction Projects
Port and Harbor Maintenance
Defense Logistics Support

Risk Flags

Potential for cost growth due to unforeseen conditions
Logistical challenges in remote locations
Limited competition may impact price competitiveness
Long-term contract duration increases exposure to market fluctuations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $177.6 million to BRICE TURNAGAIN JV LLC. EAR063 EARECKSON FUEL LONG TERM PIER REPAIRS

Who is the contractor on this award?

The obligated recipient is BRICE TURNAGAIN JV 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 $177.6 million.

What is the period of performance?

Start: 2022-09-28. End: 2026-09-24.

What is the track record of BRICE TURNAGAIN JV LLC in performing similar large-scale civil engineering and construction contracts for the Department of Defense?

Assessing the track record of BRICE TURNAGAIN JV LLC is crucial for understanding their capability to execute this $177.6 million pier repair contract. A review of their past performance on similar projects, particularly those involving marine construction, long-term infrastructure development, and work within challenging environments like Alaska, would be necessary. This includes examining their history with the Department of Defense and other federal agencies, looking at project completion rates, adherence to budget and schedule, and any documented performance issues or commendations. Information on their financial stability and bonding capacity is also relevant for a contract of this scale and duration.

How does the awarded price of $177.6 million compare to industry benchmarks for similar long-term pier repair projects of comparable scope and complexity?

To benchmark the $177.6 million award, a detailed analysis of comparable contracts is required. This would involve identifying recent awards for pier repair, rehabilitation, or construction projects of similar size (duration, square footage, depth, materials) and complexity (environmental conditions, structural challenges, location). Factors such as the specific types of repairs needed (e.g., concrete, steel, dredging) and the geographic region's cost of labor and materials would be considered. Comparing the cost per linear foot of pier repaired, or cost per square foot of deck area, against industry averages and historical data for military or civilian port infrastructure projects would help determine if this contract represents good value for money.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks for this $177.6 million pier repair contract include potential cost overruns due to unforeseen site conditions (e.g., subsurface obstructions, environmental hazards), schedule delays caused by Alaska's extreme weather and logistical challenges, and contractor performance issues. Given the firm-fixed-price structure, the contractor bears much of the cost risk, but scope creep or change orders could still impact the government's final expenditure. Mitigation strategies likely involve thorough site investigations prior to award, robust project management and oversight by the Army Corps of Engineers, clear contract terms defining responsibilities, and contingency planning for weather delays. The limited number of bidders also presents a risk of less competitive pricing.

What is the expected impact of these pier repairs on the operational readiness and capabilities of the specific military installation in Alaska?

The long-term pier repairs funded by this $177.6 million contract are expected to significantly enhance the operational readiness and capabilities of the affected military installation in Alaska. Piers are critical nodes for logistics, deployment, and maintenance of naval assets. By addressing structural deficiencies and ensuring the integrity of these facilities, the repairs will likely improve the capacity to handle increased vessel traffic, support larger or heavier ships, and provide more reliable berthing and cargo handling services. This directly contributes to the installation's ability to execute its mission, whether it involves power projection, strategic deterrence, or logistical support in the Arctic region.

How has federal spending on pier repair and maintenance in Alaska trended over the past five years, and how does this contract fit into that pattern?

Analyzing federal spending on pier repair and maintenance in Alaska over the past five years would provide context for this $177.6 million award. This involves examining historical contract data for similar projects awarded by the Department of Defense, Coast Guard, and other relevant agencies operating in Alaska. Trends might reveal increasing investment due to aging infrastructure, the strategic importance of Arctic access, or specific modernization initiatives. This contract, being a substantial single award for long-term repairs, likely represents a significant portion of recent annual spending in this category, indicating a focused effort to address critical infrastructure needs rather than numerous smaller, incremental repairs.

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: TWO STEP

Solicitation ID: W911KB22R0005

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3700 CENTERPOINT DR, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $188,087,692

Exercised Options: $177,638,086

Current Obligation: $177,638,086

Actual Outlays: $18,240,544

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $485,252,898

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline