Army awards $71.1M contract for Coos Bay North Jetty repairs to Trade West Construction

Contract Overview

Contract Amount: $71,123,601 ($71.1M)

Contractor: Trade West Construction, Inc

Awarding Agency: Department of Defense

Start Date: 2021-11-30

End Date: 2026-12-15

Contract Duration: 1,841 days

Daily Burn Rate: $38.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: COOS BAY NORTH JETTY REPAIRS

Place of Performance

Location: COOS BAY, COOS County, OREGON, 97420

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $71.1 million to TRADE WEST CONSTRUCTION, INC for work described as: COOS BAY NORTH JETTY REPAIRS Key points: 1. Contract awarded for critical infrastructure repair, enhancing coastal resilience. 2. Trade West Construction, Inc. secured the award through full and open competition. 3. The definitive contract has a firm fixed price structure, indicating clear cost expectations. 4. Project duration spans over 1800 days, suggesting a complex and lengthy undertaking. 5. The contract falls under heavy and civil engineering construction, a vital sector for public works. 6. Geographic focus on Oregon highlights regional infrastructure investment.

Value Assessment

Rating: good

The contract value of $71.1 million for jetty repairs appears reasonable given the scale and duration of the project. Benchmarking against similar large-scale civil engineering projects would provide a more precise value-for-money assessment. The firm fixed-price nature suggests that the government has locked in costs, which can be advantageous if costs escalate, but may also mean less flexibility if unforeseen issues arise. The award to a single contractor implies a thorough vetting process to ensure capability for this significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely encouraged to participate. The presence of two bids suggests a competitive process, though the exact number of solicitations and proposals received would offer a clearer picture of the competition dynamics. A competitive award process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces, ensuring the government receives the best possible value for its investment in critical infrastructure.

Public Impact

The primary beneficiaries are the residents and businesses in the Coos Bay area, Oregon, who rely on the jetty for coastal protection and navigation. The project will deliver essential repairs to the North Jetty, ensuring its structural integrity and functionality. Geographic impact is concentrated in Coos Bay, Oregon, supporting local economic activity and safety. The project will likely create or sustain jobs in the construction sector within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (over 1800 days) could introduce risks related to material cost fluctuations and contractor performance over time.
Dependence on a single contractor for such a critical and lengthy project requires robust oversight to ensure timely and quality completion.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process that likely yielded a fair price.
Firm fixed-price contract provides cost certainty for the government, mitigating risks of budget overruns due to contractor-incurred costs.
The project addresses critical infrastructure needs, contributing to coastal resilience and economic stability in the region.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector (NAICS 237990), which includes projects like the construction and repair of dams, levees, harbors, and other major infrastructure. The market for such large-scale civil engineering projects is often characterized by a limited number of highly specialized firms capable of undertaking complex, high-value contracts. Government spending in this sector is crucial for maintaining and upgrading national infrastructure, with significant investments typically made by agencies like the Army Corps of Engineers.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor is Trade West Construction, Inc., there is no explicit information regarding subcontracting plans for small businesses within the provided data. Further analysis would be needed to determine if small businesses will have opportunities to participate in subcontracting roles for this project.

Oversight & Accountability

Oversight for this Army Corps of Engineers project will likely be managed by the contracting agency, with potential involvement from the Department of Defense's Inspector General for audits and investigations. The firm fixed-price contract structure provides a degree of accountability by setting clear cost expectations. Transparency regarding project progress and any significant issues would typically be available through agency reporting mechanisms.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Coastal Infrastructure Repair
Harbor and Navigation Improvements
Federal Heavy Construction Contracts

Risk Flags

Long project duration may increase risk of cost escalation.
Potential for unforeseen environmental or geological conditions.
Contractor performance over an extended period requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.1 million to TRADE WEST CONSTRUCTION, INC. COOS BAY NORTH JETTY REPAIRS

Who is the contractor on this award?

The obligated recipient is TRADE WEST 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 $71.1 million.

What is the period of performance?

Start: 2021-11-30. End: 2026-12-15.

What is the historical spending pattern for Coos Bay North Jetty repairs or similar projects by the Army Corps of Engineers?

Analyzing historical spending for the Coos Bay North Jetty or comparable Army Corps of Engineers projects is crucial for context. Without specific historical data for this exact jetty, we can look at broader trends. The Army Corps of Engineers manages a vast portfolio of civil works projects, including numerous jetty and breakwater repairs across the nation. Spending on such projects can fluctuate significantly year-to-year based on infrastructure condition assessments, available appropriations, and national priorities. For instance, major storm events can trigger emergency repair funding, leading to spikes in spending. Conversely, periods of stable infrastructure may see more routine maintenance and less capital-intensive repair work. Benchmarking the $71.1 million award against the average cost of similar large-scale jetty repair projects undertaken by the Corps over the last 5-10 years would reveal if this contract represents a typical investment, an outlier, or a particularly cost-effective solution given the scope.

How does Trade West Construction, Inc.'s track record compare for similar large-scale civil engineering projects?

Trade West Construction, Inc.'s track record for large-scale civil engineering projects is a key indicator of their capability and reliability. A review of their past performance, particularly on contracts with similar scope, complexity, and value (e.g., over $50 million), would be essential. This includes examining project completion timeliness, adherence to budget, quality of work, and any history of disputes or contract modifications. Information from sources like the Federal Procurement Data System (FPDS) or contractor performance databases can provide insights. If Trade West has a history of successfully delivering complex marine construction or heavy civil engineering projects on time and within budget, it strengthens confidence in their ability to execute the Coos Bay North Jetty repairs effectively. Conversely, any significant past performance issues would raise concerns about potential risks for this current contract.

What are the primary risks associated with a project of this duration and complexity?

Projects with a duration of over 1800 days (approximately five years), such as the Coos Bay North Jetty repairs, carry inherent risks. Material cost escalation is a significant concern; over a five-year period, the price of concrete, steel, and other essential materials can fluctuate considerably, potentially impacting project profitability if not adequately managed or priced into the contract. Labor availability and cost can also be a risk, especially in specialized fields required for marine construction. Environmental factors, such as unforeseen geological conditions at the jetty site or extreme weather events impacting work schedules, pose another substantial risk. Furthermore, the extended timeline increases the potential for regulatory changes or evolving environmental standards that might necessitate design modifications or additional compliance measures. Finally, maintaining consistent project oversight and contractor performance over such a long period requires sustained effort and robust management systems to ensure quality and prevent scope creep or delays.

How does the firm fixed-price contract type influence risk allocation between the government and the contractor?

The firm fixed-price (FFP) contract type significantly shifts risk towards the contractor. Under an FFP agreement, the contractor is obligated to complete the specified work for a predetermined price, regardless of their actual costs incurred. This means that if the contractor's expenses exceed their initial estimates (due to material cost increases, labor issues, or unforeseen site conditions), their profit margin will decrease, or they may even incur a loss. Conversely, if the contractor can complete the work for less than the fixed price, their profit increases. For the government, the primary benefit of an FFP contract is cost certainty; the total expenditure is known upfront, simplifying budgeting and financial planning. However, this certainty comes at the potential cost of paying a premium, as contractors typically build contingency into their FFP bids to account for the risks they are assuming. This contract type is generally preferred when the scope of work is well-defined and the risks are manageable by the contractor.

What are the potential long-term benefits of repairing the Coos Bay North Jetty?

The repair of the Coos Bay North Jetty offers substantial long-term benefits, primarily centered around enhanced coastal protection and improved navigation. A structurally sound jetty acts as a crucial barrier against storm surges and wave action, thereby protecting coastal communities, infrastructure (like ports and businesses), and natural habitats from erosion and flood damage. This increased resilience can reduce the economic impact of severe weather events and lower the long-term costs associated with disaster recovery and repeated repairs. Furthermore, a well-maintained jetty ensures stable water depths within the harbor, which is vital for safe and efficient maritime navigation. This supports commercial fishing, shipping, and recreational boating industries, contributing to the local and regional economy. Ultimately, the investment in jetty repair secures critical maritime access and safeguards the surrounding environment and population for decades to come.

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: SEALED BID

Solicitation ID: W9127N21B0022

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 HAFEN LN, MESQUITE, NV, 89027

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

Financial Breakdown

Contract Ceiling: $71,123,601

Exercised Options: $71,123,601

Current Obligation: $71,123,601

Actual Outlays: $9,044,541

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline