DoD Awards $1.94 Billion for Sault Ste. Marie Lock Construction
Contract Overview
Contract Amount: $1,935,590,947 ($1.9B)
Contractor: Kokosing Alberici Traylor, LLC
Awarding Agency: Department of Defense
Start Date: 2022-06-30
End Date: 2029-07-08
Contract Duration: 2,565 days
Daily Burn Rate: $754.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Construction
Official Description: CONSTRUCTION OF THE NEW THIRD LOCK, NEW LOCK AT THE SOO, SAULT STE. MARIE, MICHIGAN.
Place of Performance
Location: SAULT SAINTE MARIE, CHIPPEWA County, MICHIGAN, 49783
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $1.94 billion to KOKOSING ALBERICI TRAYLOR, LLC for work described as: CONSTRUCTION OF THE NEW THIRD LOCK, NEW LOCK AT THE SOO, SAULT STE. MARIE, MICHIGAN. Key points: 1. The contract awarded to KOKOSING ALBERICI TRAYLOR, LLC is for a significant infrastructure project. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project faces risks associated with long duration and potential economic price adjustments. 4. This falls under the 'Other Heavy and Civil Engineering Construction' sector.
Value Assessment
Rating: fair
The contract value is substantial. Benchmarking against similar large-scale civil engineering projects is difficult without more granular cost data. The fixed-price with economic price adjustment structure introduces variability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive sign for price discovery. However, the long duration and economic price adjustment clauses may introduce uncertainty and potential for cost escalation over time.
Taxpayer Impact: Taxpayers are impacted by the significant investment in critical infrastructure, with potential for cost fluctuations due to economic adjustments.
Public Impact
Enhances Great Lakes shipping capacity and economic activity. Creates jobs during the construction phase in Michigan. Represents a major federal investment in national infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Long project duration (over 7 years)
- Economic price adjustment clauses
- Potential for unforeseen construction challenges
Positive Signals
- Significant infrastructure investment
- Full and open competition utilized
- Addresses critical national waterway needs
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which involves large-scale public works. Spending benchmarks for projects of this magnitude are highly variable and depend on specific scope and location.
Small Business Impact
The contract was awarded to KOKOSING ALBERICI TRAYLOR, LLC. Information on small business subcontracting participation is not detailed in the provided data, but large infrastructure projects often have subcontracting opportunities.
Oversight & Accountability
The Department of Defense, specifically the Army Corps of Engineers, is responsible for this project. Oversight will be crucial given the project's scale, duration, and contract type to ensure cost control and timely completion.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost escalation due to economic price adjustments
- Potential for construction delays
- Complexity of large-scale civil engineering projects
- Long-term maintenance and operational costs
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, mi, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.94 billion to KOKOSING ALBERICI TRAYLOR, LLC. CONSTRUCTION OF THE NEW THIRD LOCK, NEW LOCK AT THE SOO, SAULT STE. MARIE, MICHIGAN.
Who is the contractor on this award?
The obligated recipient is KOKOSING ALBERICI TRAYLOR, 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 $1.94 billion.
What is the period of performance?
Start: 2022-06-30. End: 2029-07-08.
What is the projected economic benefit of the new lock to the Great Lakes region?
The new lock is expected to significantly improve shipping efficiency and capacity on the Great Lakes, potentially leading to reduced transportation costs for goods. This could stimulate regional economic activity, support industries reliant on Great Lakes shipping, and enhance the competitiveness of businesses operating in the area. Quantifying the exact economic benefit requires further analysis of projected trade volumes and cost savings.
How will the economic price adjustment clauses be managed to mitigate taxpayer risk?
The economic price adjustment (EPA) clauses are designed to account for fluctuations in material and labor costs over the long project duration. The Department of Defense will likely implement strict monitoring and verification processes for any cost increases claimed under the EPA. This may involve requiring detailed documentation from the contractor and potentially independent cost audits to ensure that adjustments are reasonable and directly tied to documented economic factors.
What measures are in place to ensure the long-term effectiveness and durability of the new lock?
Ensuring long-term effectiveness involves robust design standards, quality control during construction, and adherence to stringent engineering specifications. The Army Corps of Engineers will likely oversee the construction process closely, conducting inspections and testing at various stages. Furthermore, a comprehensive maintenance and operational plan will be developed to ensure the lock's continued functionality and structural integrity throughout its intended lifespan.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911XK21R0001
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 6235 WESTERVILLE RD, WESTERVILLE, OH, 43081
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,935,590,947
Exercised Options: $1,935,590,947
Current Obligation: $1,935,590,947
Actual Outlays: $160,069,425
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-06-30
Current End Date: 2029-07-08
Potential End Date: 2029-07-08 00:00:00
Last Modified: 2025-12-04
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)