DoD's $13.8M Lake Worth Lagoon Restoration Contract Awarded to Ahtna Marine & Construction

Contract Overview

Contract Amount: $13,812,720 ($13.8M)

Contractor: Ahtna Marine & Construction Company, LLC

Awarding Agency: Department of Defense

Start Date: 2023-12-11

End Date: 2025-08-13

Contract Duration: 611 days

Daily Burn Rate: $22.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LAKE WORTH LAGOON ECOSYSTEM RESTORATION PROJECT, CONTINUING AUTHORITIES PROGRAM SECTION 1135 PALM BEACH COUNTY FLORIDA

Place of Performance

Location: LAKE WORTH BEACH, PALM BEACH County, FLORIDA, 33460

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to AHTNA MARINE & CONSTRUCTION COMPANY, LLC for work described as: LAKE WORTH LAGOON ECOSYSTEM RESTORATION PROJECT, CONTINUING AUTHORITIES PROGRAM SECTION 1135 PALM BEACH COUNTY FLORIDA Key points: 1. Contract focuses on ecosystem restoration, a critical environmental need. 2. Full and open competition suggests a robust bidding process. 3. Firm fixed-price contract type aims to control costs. 4. Contract duration of 611 days provides a clear timeline for project completion. 5. Project is geographically concentrated in Palm Beach County, Florida. 6. Ahtna Marine & Construction is the sole awardee, indicating their competitive advantage or specialization.

Value Assessment

Rating: good

The contract value of $13.8 million for ecosystem restoration appears reasonable given the scope of work, which often involves complex engineering and environmental remediation. Benchmarking against similar large-scale civil engineering and environmental projects, the cost per day of approximately $22,600 is within a typical range for such undertakings. The firm fixed-price structure provides cost certainty for the government, assuming the contractor has accurately estimated all project expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bids received, the competition level suggests a healthy market interest for this type of environmental restoration work. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure the government secures the best possible price for the restoration services, maximizing the value of public funds invested in environmental protection.

Public Impact

The primary beneficiaries are the ecosystems and wildlife within the Lake Worth Lagoon, with improved water quality and habitat. The project delivers critical environmental restoration services, addressing pollution and habitat degradation. Geographic impact is localized to Palm Beach County, Florida, specifically the Lake Worth Lagoon area. The contract supports jobs in the heavy and civil engineering construction sector, potentially including environmental specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions arise, despite the fixed-price contract.
Dependence on a single contractor, Ahtna Marine & Construction, for successful project execution.
Environmental risks associated with large-scale restoration activities, such as unintended ecological impacts.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a competitive award process.
Clear project duration and defined scope of work.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on environmental restoration. The market for such services is driven by regulatory requirements, environmental protection initiatives, and infrastructure development. Comparable spending benchmarks would include other Army Corps of Engineers ecosystem restoration projects or similar large-scale environmental remediation contracts awarded by federal or state agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless Ahtna Marine & Construction actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the awarding agency, the Department of the Army, likely through contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified outcomes. Transparency is generally maintained through contract award databases and public reporting, though specific oversight details are not provided.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Environmental Protection Agency (EPA) Restoration Projects
National Oceanic and Atmospheric Administration (NOAA) Coastal Restoration

Risk Flags

Potential for unforeseen environmental conditions impacting cost and schedule.
Contractor performance risk, though mitigated by fixed-price contract and competition.
Geographic concentration of project may limit broader applicability of lessons learned.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to AHTNA MARINE & CONSTRUCTION COMPANY, LLC. LAKE WORTH LAGOON ECOSYSTEM RESTORATION PROJECT, CONTINUING AUTHORITIES PROGRAM SECTION 1135 PALM BEACH COUNTY FLORIDA

Who is the contractor on this award?

The obligated recipient is AHTNA MARINE & CONSTRUCTION COMPANY, 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 $13.8 million.

What is the period of performance?

Start: 2023-12-11. End: 2025-08-13.

What is Ahtna Marine & Construction Company, LLC's track record with similar federal contracts, particularly in ecosystem restoration?

A review of federal procurement data indicates that Ahtna Marine & Construction Company, LLC has a history of securing contracts with various federal agencies, including the Department of Defense and the Department of the Interior. While specific details on the scale and nature of past ecosystem restoration projects are not immediately available in this summary, their award for the Lake Worth Lagoon project suggests experience in civil engineering and construction relevant to environmental remediation. Further analysis would involve examining their past performance reviews, contract completion history, and any specialized certifications or experience related to ecological restoration to fully assess their capability for this specific project.

How does the awarded amount of $13.8 million compare to the estimated cost or budget for the Lake Worth Lagoon ecosystem restoration?

The provided data indicates an award amount of $13,812,720. Without access to the government's initial cost estimates or the specific budget allocated for the Lake Worth Lagoon Ecosystem Restoration Project, a direct comparison is challenging. However, the fact that the contract was awarded under full and open competition with three bids suggests that the awarded price is likely competitive and reflects market rates. The bid amount of $22,607 per day over the contract duration (611 days) can serve as a benchmark. A more thorough value assessment would require comparing this figure against the government's independent cost estimates and the bids submitted by other competitors.

What are the primary risks associated with the execution of the Lake Worth Lagoon Ecosystem Restoration Project, and how are they being mitigated?

Key risks for this project include potential environmental challenges (e.g., unforeseen site conditions, weather impacts), contractor performance issues, and scope creep. The firm fixed-price contract structure inherently shifts some financial risk to the contractor, incentivizing efficient project management. Mitigation strategies likely involve detailed project planning, regular progress monitoring by the Army Corps of Engineers, clear communication channels, and robust contingency planning for environmental factors. The contractor's experience and the competitive bidding process also serve as risk-reduction factors, suggesting a capable entity was selected.

What is the historical spending pattern for ecosystem restoration projects managed by the Department of the Army in Florida?

Historical spending on ecosystem restoration by the Department of the Army, particularly the Army Corps of Engineers, in Florida has been substantial, driven by the state's extensive coastline and numerous environmental challenges. These projects often involve significant capital investments for activities like dredging, shoreline stabilization, habitat creation, and water quality improvement. While specific annual figures fluctuate based on project lifecycles and appropriations, Florida consistently receives significant federal funding for such initiatives due to its ecological importance and vulnerability. The Lake Worth Lagoon project aligns with this broader pattern of federal investment in Florida's environmental infrastructure.

How does the competition level (3 bidders) for this contract potentially impact the final price and overall value for taxpayers?

A competition level of three bidders for this $13.8 million contract is generally considered moderate. While more bidders could potentially drive prices lower, three offers typically provide sufficient market visibility to ensure a competitive outcome. This level of competition suggests that Ahtna Marine & Construction's winning bid was likely well-priced relative to market expectations and the perceived value of the restoration services. For taxpayers, this moderate competition indicates a reasonable likelihood that the government secured a fair price, avoiding excessive costs that might arise from a sole-source or very limited competition scenario.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912EP23B0014

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 444 W BOYNTON BEACH BLVD # E, BOYNTON BEACH, FL, 33435

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, 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: $13,812,720

Exercised Options: $13,812,720

Current Obligation: $13,812,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline