Brandon Road Lock and Dam Tainter Gate and Pier Replacement contract awarded to AHTNA-BRENNAN JV, LLC for $18.95 million

Contract Overview

Contract Amount: $18,947,324 ($18.9M)

Contractor: Ahtna-Brennan JV, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2027-10-19

Contract Duration: 1,481 days

Daily Burn Rate: $12.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BRANDON ROAD LOCK AND DAM TAINTER GATE AND PIER REPLACEMENT

Place of Performance

Location: IRVINE, ORANGE County, CALIFORNIA, 92602

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to AHTNA-BRENNAN JV, LLC for work described as: BRANDON ROAD LOCK AND DAM TAINTER GATE AND PIER REPLACEMENT Key points: 1. Contract awarded to a joint venture, suggesting a need for specialized capabilities or capacity. 2. The project involves critical infrastructure for the U.S. Army Corps of Engineers, highlighting its national importance. 3. The firm-fixed-price contract type aims to control costs for the government. 4. The project duration of approximately 4 years indicates a significant undertaking. 5. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities for small businesses are not explicitly mandated by this award. 6. The contract is categorized under 'Other Heavy and Civil Engineering Construction', placing it within a broad but essential sector of the economy.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns or comparable projects. The $18.95 million award for gate and pier replacement at a major lock and dam facility appears to be within a reasonable range for complex civil engineering projects of this nature. However, a deeper analysis of the contractor's proposed costs against industry standards for labor, materials, and specialized equipment would be necessary for a more definitive assessment of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), and the award notice indicates it was a sole-source procurement. This means that only one offeror was solicited and considered. The lack of competition raises questions about whether the government received the best possible pricing and terms, as there was no opportunity for multiple vendors to bid and drive down costs through a competitive process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers compared to competitively bid contracts, as the government does not benefit from the price discovery mechanisms inherent in a competitive bidding environment.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and the broader public relying on the Illinois Waterway for navigation and commerce. The project will deliver essential repairs and upgrades to the Brandon Road Lock and Dam, ensuring continued operational capacity. The geographic impact is centered on the Illinois Waterway, a critical transportation artery. The project will likely involve a workforce of skilled engineers, construction workers, and project managers, contributing to employment in the civil engineering and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for the government.
Sole-source awards can sometimes indicate a lack of market research or a reliance on a single provider, potentially limiting future options.
The complexity of the project could introduce unforeseen cost overruns if not managed meticulously.

Positive Signals

Award to a joint venture (AHTNA-BRENNAN JV, LLC) suggests the combination of expertise and resources to handle a complex infrastructure project.
Firm-fixed-price contract type provides cost certainty for the government.
The project addresses critical infrastructure needs, ensuring the continued functionality of a vital waterway.

Sector Analysis

The 'Other Heavy and Civil Engineering Construction' sector encompasses a wide range of infrastructure projects, including dams, bridges, highways, and waterways. This contract falls within a critical sub-segment focused on maintaining and upgrading vital water infrastructure. The market for such projects is often characterized by large, specialized firms and joint ventures capable of undertaking complex, high-value, and long-duration endeavors. Government spending in this sector is substantial, driven by the need to maintain and modernize aging infrastructure across the nation.

Small Business Impact

The contract was not awarded as a small business set-aside, and the prime contractor is a joint venture, which typically consists of larger entities. This suggests that direct subcontracting opportunities for small businesses may not be a primary focus of this specific award, unless mandated by the joint venture partners or through other contractual clauses not detailed here. The impact on the small business ecosystem would depend on whether the joint venture actively seeks out small business subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, which has established project management and quality assurance protocols. Accountability measures are inherent in the firm-fixed-price contract structure, which incentivizes the contractor to complete the work within the agreed-upon budget. Transparency would be facilitated through contract award notices and potentially through public reporting on project milestones, though detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Navigation System
Infrastructure Improvement Projects
Heavy Civil Construction Contracts

Risk Flags

Sole-source procurement
Potential for higher costs due to lack of competition
Complexity of heavy civil engineering projects

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to AHTNA-BRENNAN JV, LLC. BRANDON ROAD LOCK AND DAM TAINTER GATE AND PIER REPLACEMENT

Who is the contractor on this award?

The obligated recipient is AHTNA-BRENNAN JV, 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 $18.9 million.

What is the period of performance?

Start: 2023-09-29. End: 2027-10-19.

What is the track record of AHTNA-BRENNAN JV, LLC in executing similar large-scale civil engineering projects?

Assessing the track record of AHTNA-BRENNAN JV, LLC requires examining past performance data for both AHTNA and BRENNAN, as well as any previous joint ventures they may have formed. Joint ventures are often created for specific large-scale projects where the combined expertise and resources of the parent companies are necessary. A review of federal contract databases and project portfolios for both entities would reveal their experience in areas such as dam construction, lock maintenance, and heavy civil engineering. Specific details on project completion, adherence to budget and schedule, and client satisfaction would be crucial for evaluating their capability to successfully execute the Brandon Road Lock and Dam project.

How does the awarded amount of $18.95 million compare to the estimated cost or budget for this project?

The provided data indicates an award amount of $18.95 million. However, without access to the government's independent cost estimate or the contractor's proposed cost breakdown, it is difficult to definitively assess whether this award represents good value. In sole-source procurements, the government negotiates directly with the contractor. If the negotiation process was robust and included thorough market research and cost analysis, the award amount could be considered fair. Conversely, a lack of competitive pressure might allow for a higher-than-optimal price. Further analysis would require comparing this figure against similar gate and pier replacement projects at other lock and dam facilities, considering factors like project scope, complexity, and location.

What are the primary risks associated with a sole-source award for a critical infrastructure project like this?

The primary risk associated with a sole-source award for a critical infrastructure project is the potential for inflated costs due to the absence of competitive bidding. Without competing offers, the government may not achieve the most favorable pricing. Additionally, sole-source awards can sometimes indicate a lack of available qualified contractors or insufficient market research, which could limit future procurement options. There's also a risk that the chosen contractor may not be the most innovative or efficient provider. For critical infrastructure, ensuring the best value and highest quality is paramount, and sole-sourcing can introduce uncertainty in achieving these goals.

What is the historical spending pattern for the Brandon Road Lock and Dam facility or similar projects managed by the Army Corps of Engineers?

Analyzing historical spending patterns for the Brandon Road Lock and Dam facility and similar Army Corps of Engineers projects is essential for context. This involves reviewing past contracts awarded for maintenance, repairs, or upgrades at this specific facility and comparing them to projects of a similar scale and complexity at other lock and dam sites. Understanding the historical cost trends, contract durations, and types of work performed can help identify any significant deviations in the current award. For instance, if previous gate replacement projects at comparable facilities were significantly less expensive or took less time, it might warrant further investigation into the specifics of this award. This historical data provides a benchmark for evaluating the current contract's value and potential risks.

What are the potential implications of the firm-fixed-price contract type on project execution and cost control?

A firm-fixed-price (FFP) contract type is generally favored by the government for its cost control benefits. Under an FFP contract, the contractor agrees to a set price for the work, and the government's financial liability is fixed. This shifts the risk of cost overruns to the contractor. For the Brandon Road Lock and Dam project, this means AHTNA-BRENNAN JV, LLC is responsible for managing its costs to stay within the $18.95 million award. While this provides budget certainty for the government, it can incentivize the contractor to cut corners if cost pressures become too high, potentially impacting quality. Conversely, it encourages efficient project management by the contractor to maximize profit.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W912EK23R0024

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3200 EL CAMINO REAL STE 240, IRVINE, CA, 92602

Business Categories: 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, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,485,346

Exercised Options: $18,947,324

Current Obligation: $18,947,324

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline