DoD Awards $17.4M Tank Repair Contract to Kinley Construction Company for Pipeline Structures
Contract Overview
Contract Amount: $17,418,200 ($17.4M)
Contractor: Kinley Construction Company
Awarding Agency: Department of Defense
Start Date: 2024-02-22
End Date: 2027-11-29
Contract Duration: 1,376 days
Daily Burn Rate: $12.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SEYMOUR JOHNSON TANK REPAIR
Place of Performance
Location: GOLDSBORO, WAYNE County, NORTH CAROLINA, 27531
Plain-Language Summary
Department of Defense obligated $17.4 million to KINLEY CONSTRUCTION COMPANY for work described as: SEYMOUR JOHNSON TANK REPAIR Key points: 1. Contract awarded for tank repair services, focusing on oil and gas pipeline structures. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is firm-fixed-price, providing cost certainty for the government. 4. This award falls under the Department of the Army's purview within the DoD. 5. The project duration spans over three years, indicating a significant undertaking.
Value Assessment
Rating: good
The contract value of $17.4 million for tank repair is within a reasonable range for similar large-scale infrastructure projects. Benchmarking against comparable pipeline and structural repair contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which typically leads to competitive pricing and ensures the government receives the best value. The award to Kinley Construction Company suggests they offered the most advantageous proposal.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price, maximizing taxpayer value for essential infrastructure maintenance.
Public Impact
Ensures operational readiness of critical fuel storage and distribution infrastructure. Supports military base operations by maintaining essential fuel supply lines. Creates jobs in the construction sector within North Carolina. Contributes to the longevity and safety of vital energy infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen structural issues arise.
- Dependence on a single contractor for a multi-year project.
- Risk of delays impacting fuel supply chain if performance issues occur.
Positive Signals
- Firm-fixed-price contract limits cost escalation.
- Competitive bidding process likely secured a favorable price.
- Long-term contract provides stability for essential maintenance.
Sector Analysis
This contract falls within the construction sector, specifically focusing on industrial infrastructure like oil and gas pipelines. Spending in this area is crucial for maintaining national energy security and military operational capabilities. Benchmarks for similar pipeline construction and repair projects vary widely based on scope and complexity.
Small Business Impact
While the contract was awarded through full and open competition, there is no specific indication of small business participation in this award. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The Department of the Army's contracting process, including the use of full and open competition, suggests adherence to standard oversight procedures. Monitoring performance and adherence to the firm-fixed-price terms will be key accountability measures.
Related Government Programs
- Oil and Gas Pipeline and Related Structures Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for unforeseen structural issues.
- Reliance on a single contractor for a long duration.
- Environmental and safety compliance risks.
- Contract performance monitoring is critical.
Tags
oil-and-gas-pipeline-and-related-structu, department-of-defense, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.4 million to KINLEY CONSTRUCTION COMPANY. SEYMOUR JOHNSON TANK REPAIR
Who is the contractor on this award?
The obligated recipient is KINLEY CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $17.4 million.
What is the period of performance?
Start: 2024-02-22. End: 2027-11-29.
What is the historical performance record of Kinley Construction Company on similar government contracts?
Assessing Kinley Construction Company's past performance on similar government contracts is crucial for evaluating risk. A review of their track record, including on-time completion rates, quality of work, and any past disputes or contract modifications, would provide valuable insight into their reliability and capability to execute this significant tank repair project effectively.
Are there any specific environmental or safety risks associated with this tank repair project that could impact costs or timelines?
The nature of tank repair, especially involving oil and gas pipelines, inherently carries environmental and safety risks. Potential risks include hazardous material handling, soil contamination, and structural integrity concerns during repair. Proactive risk mitigation strategies, detailed safety protocols, and thorough environmental impact assessments are essential to prevent cost overruns and project delays.
How does the awarded price compare to independent cost estimates for similar tank repair projects of this scale?
Comparing the awarded price of $17.4 million to independent cost estimates for similar tank repair projects is vital for assessing value. If the awarded price is significantly lower than estimates, it suggests strong competition or potential underbidding. Conversely, if it's higher, it warrants closer scrutiny of the contract's scope and the bidding process to ensure taxpayer funds are used efficiently.
Industry Classification
NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9128F21R0008
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7301 E COMMERCIAL BLVD, ARLINGTON, TX, 76001
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,556,326
Exercised Options: $17,418,200
Current Obligation: $17,418,200
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128F22D0017
IDV Type: IDC
Timeline
Start Date: 2024-02-22
Current End Date: 2027-11-29
Potential End Date: 2027-11-29 00:00:00
Last Modified: 2025-05-29
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