DoD Awards $26.95M Breakwater Project to Western Marine Construction, Boosting Alaska Infrastructure
Contract Overview
Contract Amount: $26,950,000 ($26.9M)
Contractor: Western Marine Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-06-10
End Date: 2027-10-30
Contract Duration: 872 days
Daily Burn Rate: $30.9K/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: KETCHIKAN FLOATING BREAKWATER REPLACEMENT
Place of Performance
Location: KETCHIKAN, KETCHIKAN GATEWAY County, ALASKA, 99901
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $26.9 million to WESTERN MARINE CONSTRUCTION, INC. for work described as: KETCHIKAN FLOATING BREAKWATER REPLACEMENT Key points: 1. Significant investment in critical maritime infrastructure for Alaska. 2. Competition method suggests potential for fair pricing, but exclusion of sources warrants scrutiny. 3. Project duration of 872 days indicates a substantial, long-term undertaking. 4. Focus on heavy civil engineering construction highlights a specialized sector.
Value Assessment
Rating: good
The award amount of $26.95 million for a floating breakwater replacement appears reasonable given the project's scope and duration. Benchmarking against similar large-scale civil engineering projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition was sought, certain sources were initially excluded, potentially impacting the breadth of price discovery and the final negotiated price.
Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure development. The limited competition aspect means oversight is crucial to ensure value for money.
Public Impact
Enhances maritime safety and operational capabilities in Ketchikan, Alaska. Supports regional economic activity through improved port infrastructure. Contributes to the resilience of military and civilian assets against environmental factors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises questions about optimal price discovery.
- Potential for cost overruns on long-duration construction projects.
- Geographic remoteness of Alaska may increase logistical costs.
Positive Signals
- Addresses critical infrastructure needs in a strategic location.
- Firm fixed price contract provides cost certainty.
- Project duration aligns with the complexity of breakwater construction.
Sector Analysis
This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on maritime infrastructure. Spending in this sector is often driven by government needs for port development, defense installations, and public works.
Small Business Impact
The contract was not awarded to a small business. Analysis of subcontracting opportunities for small businesses within this large prime contract would be beneficial.
Oversight & Accountability
The 'exclusion of sources' clause in the competition method requires careful review to ensure fairness and prevent undue restrictions. Robust oversight during the contract performance period is essential to manage risks and ensure adherence to specifications.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may have reduced price competitiveness.
- Long project duration increases exposure to economic and environmental risks.
- Potential for unforeseen site conditions in marine construction.
- Geographic location may impact logistics and costs.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ak, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.9 million to WESTERN MARINE CONSTRUCTION, INC.. KETCHIKAN FLOATING BREAKWATER REPLACEMENT
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 $26.9 million.
What is the period of performance?
Start: 2025-06-10. End: 2027-10-30.
What was the rationale for excluding specific sources prior to the full and open competition?
The rationale for excluding specific sources prior to the full and open competition needs to be thoroughly documented and justified. Agencies typically exclude sources based on specific technical requirements, past performance issues, or national security concerns. Understanding this justification is crucial for assessing whether the competition was truly optimized for value and fairness.
What are the primary risks associated with the 872-day duration of this breakwater project?
The primary risks associated with an 872-day duration include potential for significant cost escalation due to inflation, unforeseen site conditions, weather delays, and material availability issues. Long project timelines also increase the risk of scope creep and can strain contractor resources. Effective project management and contingency planning are vital to mitigate these risks.
How does the firm fixed price contract mitigate taxpayer risk on this project?
The firm fixed price (FFP) contract significantly mitigates taxpayer risk by establishing a ceiling on the total cost. The contractor assumes most of the risk for cost overruns, incentivizing efficient project execution. This provides greater cost certainty for the government compared to cost-reimbursement contracts, although it may lead to higher initial bid prices to account for contractor risk.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911KB25R0018
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, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,950,000
Exercised Options: $26,950,000
Current Obligation: $26,950,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-06-10
Current End Date: 2027-10-30
Potential End Date: 2027-10-30 00:00:00
Last Modified: 2025-06-10
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