DoD Awards $59.3M Contract for King Abdulaziz Naval Base Dredging to Support New Combatant Ships

Contract Overview

Contract Amount: $59,288,000 ($59.3M)

Contractor: Aici-Archirodon JV LLC

Awarding Agency: Department of Defense

Start Date: 2022-01-21

End Date: 2023-10-10

Contract Duration: 627 days

Daily Burn Rate: $94.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: KSA HAS A REQUIREMENT TO DREDGE THE HARBOR AT KING ABDULAZIZ NAVAL BASE (KANB)TO SUPPORT THE INTRODUCTION OF FOUR (4) MULTI-MISSION SURFACE COMBATANT SHIPS (MMSCS). AWARDING ONE FIRM-FIXED PRICE (FPP) DESIGN-BID-BUILD (D-B-B) CONSTRUCTION CONTRACT.

Plain-Language Summary

Department of Defense obligated $59.3 million to AICI-ARCHIRODON JV LLC for work described as: KSA HAS A REQUIREMENT TO DREDGE THE HARBOR AT KING ABDULAZIZ NAVAL BASE (KANB)TO SUPPORT THE INTRODUCTION OF FOUR (4) MULTI-MISSION SURFACE COMBATANT SHIPS (MMSCS). AWARDING ONE FIRM-FIXED PRICE (FPP) DESIGN-BID-BUILD (D-B-B) CONSTRUCTION CONTRACT. Key points: 1. The contract aims to deepen the harbor at KANB to accommodate four new Multi-Mission Surface Combatant Ships. 2. The project utilizes a Design-Bid-Build (D-B-B) approach with a Firm-Fixed-Price (FFP) contract. 3. Competition was full and open, suggesting a potentially competitive bidding process. 4. The dredging is critical infrastructure for naval readiness and operational capability.

Value Assessment

Rating: good

The contract value of $59.3 million for harbor dredging appears reasonable given the scope of work involving naval base infrastructure. Benchmarking against similar large-scale maritime construction projects would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The investment supports critical naval infrastructure, ensuring operational readiness and potentially enhancing national security, which is a significant return for taxpayers.

Public Impact

Enhances naval operational capacity by enabling the docking of new, advanced combatant ships. Supports national defense objectives by ensuring the readiness of key naval facilities. Contributes to the modernization of naval infrastructure to meet evolving military requirements. Potential for follow-on contracts related to port infrastructure or ship support.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Potential for cost overruns if unforeseen geological conditions are encountered during dredging.
Schedule delays could impact the introduction of the new combatant ships.
Environmental impact mitigation during dredging operations.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
Full and open competition likely resulted in competitive pricing.
Strategic importance of the project for naval modernization.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to maritime infrastructure. Spending in this sector is often driven by government defense and infrastructure initiatives, with project costs varying significantly based on scale and complexity.

Small Business Impact

The contract was awarded to AICI-ARCHIRODON JV LLC, a joint venture. Analysis did not indicate specific set-asides for small businesses, suggesting the primary awardee is likely a larger entity. Further investigation into subcontracting opportunities for small businesses would be beneficial.

Oversight & Accountability

The Department of the Army, under the Department of Defense, managed this award. Standard oversight mechanisms for construction contracts, including progress monitoring and quality assurance, are expected to be in place to ensure project completion and adherence to specifications.

Related Government Programs

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

Risk Flags

Potential for unforeseen subsurface conditions impacting cost and schedule.
Environmental compliance risks during dredging operations.
Dependency on timely completion for the introduction of new naval assets.
Geopolitical factors affecting the operational status of the naval base.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.3 million to AICI-ARCHIRODON JV LLC. KSA HAS A REQUIREMENT TO DREDGE THE HARBOR AT KING ABDULAZIZ NAVAL BASE (KANB)TO SUPPORT THE INTRODUCTION OF FOUR (4) MULTI-MISSION SURFACE COMBATANT SHIPS (MMSCS). AWARDING ONE FIRM-FIXED PRICE (FPP) DESIGN-BID-BUILD (D-B-B) CONSTRUCTION CONTRACT.

Who is the contractor on this award?

The obligated recipient is AICI-ARCHIRODON 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 $59.3 million.

What is the period of performance?

Start: 2022-01-21. End: 2023-10-10.

What is the projected impact of the dredging on the local marine ecosystem, and what mitigation strategies are in place?

The environmental impact of dredging can include sediment disruption, water quality degradation, and habitat alteration. Mitigation strategies typically involve careful planning of dredging operations, sediment control measures, monitoring of water quality, and potentially habitat restoration efforts post-completion. Specific details would be found in the project's Environmental Impact Statement or Assessment.

How does the $59.3 million cost compare to similar naval harbor dredging projects, and what factors justify this figure?

Benchmarking against similar naval harbor dredging projects is crucial. Factors influencing cost include the volume of material to be removed, soil/rock type, depth of dredging, environmental regulations, disposal methods, and the specific location's logistical challenges. A detailed cost breakdown and comparison with industry standards would be necessary for a comprehensive assessment.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

Key performance indicators for this dredging contract would likely include adherence to the project schedule, completion of dredging to specified depths and volumes, quality of the dredged material disposal, and compliance with environmental regulations. Success will be measured against the contract's technical specifications, delivery timelines, and overall project objectives as outlined by the Department of the Army.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912ER22R0009

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8201 GREENSBORO DR STE 214, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $59,288,000

Exercised Options: $59,288,000

Current Obligation: $59,288,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline