Army awards $18.8M Kenai Bluffs stabilization contract to Western Marine Construction

Contract Overview

Contract Amount: $18,766,750 ($18.8M)

Contractor: Western Marine Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-02-07

End Date: 2026-02-07

Contract Duration: 731 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: KENAI BLUFFS BANK STABILIZATION

Place of Performance

Location: KENAI, KENAI PENINSULA County, ALASKA, 99611

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to WESTERN MARINE CONSTRUCTION, INC. for work described as: KENAI BLUFFS BANK STABILIZATION Key points: 1. Contract awarded for critical infrastructure stabilization, indicating a focus on long-term asset preservation. 2. The firm fixed-price structure shifts risk to the contractor, potentially leading to cost efficiencies if managed well. 3. A single award suggests a focused approach to a specialized need, but warrants scrutiny for potential competition limitations. 4. The contract duration of two years allows for thorough execution and monitoring of complex construction tasks. 5. Geographic focus on Alaska highlights the unique environmental and logistical challenges inherent in such projects.

Value Assessment

Rating: good

The contract value of $18.8 million for heavy civil engineering construction appears reasonable given the scope of stabilizing critical infrastructure in a challenging environment like Alaska. Benchmarking against similar large-scale civil engineering projects in remote or environmentally sensitive areas would provide further context. The firm fixed-price nature of the award suggests the government has negotiated a price that includes anticipated risks and contractor profit, aiming for cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources may have been excluded for specific reasons, possibly related to specialized capabilities or prior performance. With 4 bidders, this suggests a moderate level of competition. The exclusion of sources warrants further investigation to ensure it did not unduly limit the competitive pool and impact price discovery.

Taxpayer Impact: The moderate competition level means taxpayers likely benefited from multiple bids, but the exclusion of some sources could have potentially suppressed the lowest possible price.

Public Impact

The primary beneficiaries are the Department of the Army and potentially local communities in Alaska by ensuring the stability of critical infrastructure. The contract will deliver heavy civil engineering construction services focused on stabilizing the Kenai Bluffs. The geographic impact is concentrated in Alaska, specifically the Kenai Peninsula region. Workforce implications include the creation of construction jobs, likely requiring specialized skills for marine and civil engineering in a remote location.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological or environmental conditions arise during stabilization.
Risk of schedule delays due to Alaska's harsh weather and logistical complexities.
Ensuring adequate oversight to confirm the effectiveness and longevity of the stabilization work.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a contractor with experience in heavy civil engineering suggests capability for the task.
The definitive contract structure allows for a defined scope and duration, facilitating project management.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically under NAICS code 237990 (Other Heavy and Civil Engineering Construction). This sector involves projects like dams, levees, and site preparation. Spending in this area is often driven by infrastructure needs, environmental protection, and national security requirements. Comparable spending benchmarks would involve analyzing other large-scale civil works projects undertaken by the Department of Defense or other federal agencies in similar challenging environments.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the scale and specialized nature of heavy civil engineering, it is common for such large contracts to be awarded to larger firms. There is no explicit information on subcontracting plans for small businesses, which would be a key area for oversight to ensure opportunities are provided where feasible.

Oversight & Accountability

Oversight will likely be managed by the contracting officer's representative (COR) within the Department of the Army, ensuring adherence to contract terms, specifications, and timelines. The firm fixed-price nature necessitates close monitoring of progress and quality to prevent scope creep or performance issues. Transparency is generally maintained through contract award databases, though specific project oversight details are internal.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Department of the Interior Infrastructure Projects
Federal Highway Administration Construction Contracts
National Park Service Infrastructure Maintenance

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays related to weather and logistics.
Need for rigorous quality assurance given the critical infrastructure nature.
Ensuring adequate competition despite source exclusions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to WESTERN MARINE CONSTRUCTION, INC.. KENAI BLUFFS BANK STABILIZATION

Who is the contractor on this award?

The obligated recipient is WESTERN MARINE CONSTRUCTION, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2024-02-07. End: 2026-02-07.

What is the specific nature of the Kenai Bluffs stabilization work and why is it critical for the Department of the Army?

The Kenai Bluffs stabilization project addresses geological instability in the Kenai Peninsula region of Alaska. While the specific details of the 'stabilization' are not fully elaborated in the provided data, such projects typically involve measures to prevent landslides, erosion, or structural collapse. For the Department of the Army, critical infrastructure can include military installations, access routes, or facilities vital for operational readiness or national security. Ensuring the integrity of these assets in a geologically active and environmentally challenging area like Alaska is paramount to maintaining their functionality and preventing costly damage or loss.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact potential cost savings for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance broad competition with specific requirements. It means the solicitation was initially open to all responsible sources, but certain entities were later excluded. While this can ensure that only highly qualified or specialized contractors participate, the exclusion of even one potentially competitive bidder could theoretically lead to a less competitive environment. This might result in a higher final price than if all capable sources had been allowed to bid. The number of bidders (4) suggests a moderate level of competition, but the rationale behind the exclusions is key to assessing the full impact on taxpayer value.

What are the primary risks associated with performing heavy civil engineering construction in Alaska, and how might they affect this contract?

Performing heavy civil engineering construction in Alaska presents significant risks, primarily due to the extreme climate and remote locations. These include severe weather conditions (cold, snow, ice, limited daylight) that can drastically shorten construction seasons and increase labor costs. Permafrost thaw can destabilize ground conditions, requiring specialized engineering solutions. Logistical challenges are immense, involving transportation of materials, equipment, and personnel over long distances, often with limited infrastructure, leading to higher costs and potential delays. The contract's firm fixed-price nature means Western Marine Construction bears the brunt of these risks, but unforeseen issues could still lead to claims for extensions or adjustments if contractually permissible.

Can the firm fixed-price contract structure effectively control costs for this type of complex civil engineering project?

A firm fixed-price (FFP) contract is generally considered the preferred type for controlling costs when the scope of work is well-defined and risks can be reasonably anticipated. For complex civil engineering projects like the Kenai Bluffs stabilization, an FFP contract shifts the responsibility for cost overruns to the contractor, Western Marine Construction. This incentivizes the contractor to manage resources efficiently and control expenses. However, the success of FFP in controlling costs hinges on the accuracy of the initial cost estimates and the contractor's ability to manage unforeseen challenges inherent in the project's scope and location. Robust government oversight is still crucial to ensure quality and prevent contractor claims for additional compensation.

What does the contract duration of 731 days (approximately 2 years) imply about the complexity and expected execution timeline?

A contract duration of approximately two years for a heavy civil engineering project like the Kenai Bluffs stabilization suggests a significant scope of work and potentially complex execution phases. This timeframe likely accounts for factors such as site preparation, specialized construction activities, potential environmental mitigation measures, and the inherent limitations imposed by Alaska's climate and logistical challenges. It allows for a structured approach, potentially including multiple construction seasons, and provides ample time for the contractor to procure materials, mobilize resources, perform the work, and complete necessary testing and closeout procedures while maintaining quality standards.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911KB24R0014

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2775 HARBOR AVE SW, SEATTLE, WA, 98126

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,766,750

Exercised Options: $18,766,750

Current Obligation: $18,766,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline