DoD Awards $51.7M Contract for Sand Island Pile Dike Repairs to Advanced American Construction

Contract Overview

Contract Amount: $51,678,933 ($51.7M)

Contractor: Advanced American Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2026-12-31

Contract Duration: 1,553 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MCR SAND ISLAND PILE DIKE REPAIRS

Place of Performance

Location: HAMMOND, CLATSOP County, OREGON, 97121

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $51.7 million to ADVANCED AMERICAN CONSTRUCTION, INC. for work described as: MCR SAND ISLAND PILE DIKE REPAIRS Key points: 1. The Department of Defense awarded a significant contract for critical infrastructure repair. 2. Advanced American Construction, Inc. secured the award, indicating strong capabilities in heavy civil engineering. 3. The contract's duration suggests a complex, multi-year project with potential for cost overruns if not managed effectively. 4. This expenditure falls under the 'Other Heavy and Civil Engineering Construction' sector, vital for national infrastructure.

Value Assessment

Rating: good

The contract value of $51.7 million for a 1553-day duration appears reasonable for heavy civil engineering projects of this nature. Benchmarking against similar dike repair contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.

Taxpayer Impact: Taxpayers benefit from competitive bidding, ensuring funds are used efficiently for necessary infrastructure repairs.

Public Impact

Ensures the structural integrity of vital coastal defense infrastructure. Supports regional economic activity through construction jobs and material procurement. Mitigates potential environmental risks associated with dike failure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long project duration increases risk of scope creep and cost escalation.
  • Potential for unforeseen site conditions impacting schedule and budget.
  • Reliance on a single awardee for a critical infrastructure project.

Positive Signals

  • Awarded through full and open competition, maximizing value.
  • Firm Fixed Price contract provides cost certainty.
  • Project addresses essential infrastructure maintenance.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, which is crucial for maintaining national infrastructure, including ports and waterways. Spending in this sector is often driven by maintenance needs and federal infrastructure initiatives.

Small Business Impact

The contract was awarded to Advanced American Construction, Inc., a large business. There is no explicit indication of small business subcontracting goals within the provided data, which could be an area for further review to ensure small business participation.

Oversight & Accountability

The Department of the Army's oversight will be critical throughout the project's multi-year duration. Regular progress reviews and adherence to the firm fixed price terms are essential for accountability and preventing cost overruns.

Related Government Programs

  • Other Heavy and Civil Engineering Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Long project duration (over 4 years) increases risk of cost escalation and scope creep.
  • Potential for unforeseen geological or environmental conditions at the Sand Island site.
  • Reliance on a single contractor for a critical infrastructure repair project.
  • Lack of explicit small business subcontracting goals in the provided data.

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, or, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.7 million to ADVANCED AMERICAN CONSTRUCTION, INC.. MCR SAND ISLAND PILE DIKE REPAIRS

Who is the contractor on this award?

The obligated recipient is ADVANCED AMERICAN 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 $51.7 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-12-31.

What specific performance metrics will be used to evaluate the success of the dike repairs and ensure long-term durability?

Performance metrics should include adherence to specified engineering standards, material quality testing, and successful completion of load-bearing capacity tests. Post-construction monitoring for settlement, erosion, and structural integrity over a defined period will also be crucial to assess long-term durability and the effectiveness of the repairs.

What are the contingency plans in place to address potential environmental impacts during the repair process, given the sensitive nature of coastal ecosystems?

Contingency plans should detail measures for spill prevention and containment, sediment control to prevent water quality degradation, and protocols for minimizing noise and habitat disruption. Regular environmental monitoring and rapid response procedures for any unforeseen environmental incidents are essential to mitigate risks.

How will the effectiveness of the 'full and open competition' be measured in terms of achieving the best value and ensuring the contractor's capacity to deliver on such a large-scale project?

Effectiveness can be measured by comparing the final awarded price against initial cost estimates and industry benchmarks. Evaluating the contractor's past performance on similar projects, their technical proposal's robustness, and their financial stability provides insight into their capacity. Post-award monitoring of project execution against the contract terms further validates the competition's success.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W9127N22B0001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8444 NW SAINT HELENS RD, PORTLAND, OR, 97231

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

Financial Breakdown

Contract Ceiling: $51,678,933

Exercised Options: $51,678,933

Current Obligation: $51,678,933

Actual Outlays: $10,723,914

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2022-09-30

Current End Date: 2026-12-31

Potential End Date: 2026-12-31 00:00:00

Last Modified: 2025-03-06

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