DoD Awards $37.3M Contract for Water/Sewer Line Construction to Sealaska Construction Solutions
Contract Overview
Contract Amount: $37,293,895 ($37.3M)
Contractor: Sealaska Construction Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-30
End Date: 2027-03-23
Contract Duration: 1,270 days
Daily Burn Rate: $29.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DEMOLITION, CONSTRUCTION, AND ABANDONMEN
Place of Performance
Location: TOBYHANNA, MONROE County, PENNSYLVANIA, 18466
Plain-Language Summary
Department of Defense obligated $37.3 million to SEALASKA CONSTRUCTION SOLUTIONS, LLC for work described as: DEMOLITION, CONSTRUCTION, AND ABANDONMEN Key points: 1. Contract awarded for water and sewer line construction, a critical infrastructure need. 2. Limited competition raises questions about price discovery and potential value. 3. Firm Fixed Price contract type offers cost certainty but may limit flexibility. 4. The sector involves essential public works, impacting local communities.
Value Assessment
Rating: fair
The contract value of $37.3 million for 1270 days is difficult to benchmark without specific project details. The provided 'br' (benchmark rate) of $29,365 seems low for a project of this scale and duration, suggesting it might be a per-day or per-unit rate not fully explained.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This method can lead to higher prices if robust price negotiation and market analysis are not conducted, as competitive pressures are absent.
Taxpayer Impact: Taxpayer funds are committed to this project. Without competitive bidding, there's a risk of overpayment, meaning less value for the invested public funds.
Public Impact
Ensures essential water and sewer infrastructure, vital for public health and safety. Potential for local job creation through construction activities. Long-term impact on community development and environmental quality.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of detailed pricing justification
- Potential for cost overruns due to non-competitive award
Positive Signals
- Addresses critical infrastructure needs
- Firm Fixed Price contract provides cost predictability
Sector Analysis
This contract falls within the construction sector, specifically focusing on utility infrastructure. Spending in this area is often driven by government needs for public works and maintenance, with benchmarks varying significantly based on project scope and location.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract award. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The award was made by the Department of the Army. Oversight would typically involve contract management teams ensuring adherence to terms, quality standards, and timely delivery, especially given the multi-year duration.
Related Government Programs
- Water and Sewer Line and Related Structures Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition raises concerns about price reasonableness.
- Lack of transparency in the justification for non-competitive award.
- Potential for cost inefficiencies without competitive market forces.
- Ambiguity in the provided benchmark rate requires further clarification.
- Long contract duration increases exposure to unforeseen risks and cost fluctuations.
Tags
water-and-sewer-line-and-related-structu, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.3 million to SEALASKA CONSTRUCTION SOLUTIONS, LLC. DEMOLITION, CONSTRUCTION, AND ABANDONMEN
Who is the contractor on this award?
The obligated recipient is SEALASKA CONSTRUCTION SOLUTIONS, 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 $37.3 million.
What is the period of performance?
Start: 2023-09-30. End: 2027-03-23.
What specific factors justified the 'not available for competition' determination, and were alternative competitive strategies considered?
The justification for a 'not available for competition' award is crucial for understanding the necessity of this procurement approach. Agencies must provide detailed reasons, such as unique capabilities or urgent needs, that preclude open competition. Without this information, it's difficult to assess if taxpayer funds were used efficiently or if a more competitive method could have yielded better value.
How does the benchmark rate of $29,365 compare to industry standards for similar water and sewer line construction projects of this duration and scope?
The benchmark rate of $29,365 requires clarification regarding its unit of measure (e.g., per day, per mile, per specific task). If it represents a daily rate, it appears low for complex infrastructure work. A thorough comparison with industry data for similar projects is essential to determine if the overall contract price is reasonable and reflects fair market value.
What are the key performance indicators (KPIs) and quality assurance measures in place to ensure the successful and effective completion of this infrastructure project?
Effective oversight of this significant infrastructure project necessitates clearly defined KPIs and robust quality assurance protocols. These should cover aspects like construction timelines, material quality, adherence to environmental standards, and system functionality post-completion. Regular reporting and inspection schedules are vital to ensure the project meets its objectives and taxpayer expectations.
Industry Classification
NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912BU23R0051
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1200 6TH AVE STE 800, SEATTLE, WA, 98101
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,293,895
Exercised Options: $37,293,895
Current Obligation: $37,293,895
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-30
Current End Date: 2027-03-23
Potential End Date: 2027-03-23 00:00:00
Last Modified: 2025-12-10
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