DoD awards $29.2M for Marine Construction and Repair in Kuwait, highlighting significant investment in naval infrastructure

Contract Overview

Contract Amount: $29,212,969 ($29.2M)

Contractor: Gulf Dredging & General Contracting CO. KSC Closed

Awarding Agency: Department of Defense

Start Date: 2022-05-12

End Date: 2024-09-23

Contract Duration: 865 days

Daily Burn Rate: $33.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MARINE CONSTRUCTION AND REPAIR KUWAIT NAVY BASE

Plain-Language Summary

Department of Defense obligated $29.2 million to GULF DREDGING & GENERAL CONTRACTING CO. KSC CLOSED for work described as: MARINE CONSTRUCTION AND REPAIR KUWAIT NAVY BASE Key points: 1. Contract value represents a substantial commitment to maintaining and enhancing naval facilities abroad. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The definitive contract type indicates a clear scope of work and pricing structure. 4. The duration of the contract (865 days) points to a long-term project requiring sustained effort. 5. The award to Gulf Dredging & General Contracting Co. KSC Closed signifies a key player in regional marine construction. 6. This contract aligns with broader defense objectives for maintaining operational readiness in strategic locations.

Value Assessment

Rating: good

The contract value of $29.2 million for marine construction and repair in Kuwait appears reasonable given the scope and duration. While direct comparisons are difficult without specific project details, the number of bids (8) suggests a competitive environment that likely influenced pricing. The firm-fixed-price structure provides cost certainty for the government. Benchmarking against similar overseas naval infrastructure projects would offer further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 8 bids received. This indicates a healthy level of market interest and a competitive bidding process. The presence of multiple bidders generally supports price discovery and can lead to more favorable terms for the government. The agency's decision to pursue full and open competition suggests confidence in the availability of qualified contractors.

Taxpayer Impact: A competitive bidding process like this one is beneficial for taxpayers as it increases the likelihood of securing services at a fair market price, preventing potential overspending.

Public Impact

The primary beneficiaries are the U.S. Navy and allied forces operating in the region, who will gain improved and maintained marine facilities. Services delivered include essential marine construction and repair, crucial for naval base functionality and operational readiness. The geographic impact is focused on Kuwait, supporting U.S. military presence and operations in the Middle East. Workforce implications may include employment opportunities for skilled labor in construction, engineering, and maritime trades, both locally and potentially internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price structure.
Geopolitical risks in the region could impact project timelines and execution.
Ensuring consistent quality control over an extended construction period requires diligent oversight.

Positive Signals

The firm-fixed-price contract provides budget certainty for the Department of Defense.
Full and open competition with multiple bidders suggests a competitive pricing environment.
The long contract duration allows for comprehensive project completion and facility enhancement.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on marine infrastructure. The market for such specialized construction services, particularly for defense applications in strategic overseas locations, is often characterized by a limited number of highly qualified and experienced firms. The global defense construction market is substantial, with significant annual spending on military base maintenance, upgrades, and new construction to support operational readiness and power projection.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides. There is no explicit information regarding subcontracting plans for small businesses. Without specific set-aside goals or subcontracting requirements, the direct impact on the small business ecosystem for this particular contract is likely minimal, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Base Construction and Maintenance
Overseas Military Construction Projects
Defense Infrastructure Modernization
Kuwait Naval Operations Support
Heavy Engineering and Construction Services

Risk Flags

Geopolitical Risk
Logistical Challenges
Environmental Factors
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.2 million to GULF DREDGING & GENERAL CONTRACTING CO. KSC CLOSED. MARINE CONSTRUCTION AND REPAIR KUWAIT NAVY BASE

Who is the contractor on this award?

The obligated recipient is GULF DREDGING & GENERAL CONTRACTING CO. KSC CLOSED.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $29.2 million.

What is the period of performance?

Start: 2022-05-12. End: 2024-09-23.

What is the track record of Gulf Dredging & General Contracting Co. KSC Closed with the Department of Defense?

Gulf Dredging & General Contracting Co. KSC Closed has a history of performing contracts with the U.S. Department of Defense, particularly in construction and engineering services. While specific details on past performance metrics for this contractor require deeper database analysis, their ability to win a full and open competition for a significant project like this suggests a demonstrated capability and a competitive standing within the defense contracting community. Reviewing past contract awards, performance evaluations, and any past disputes or claims would provide a more comprehensive understanding of their track record and reliability in executing complex projects for the DoD.

How does the $29.2 million contract value compare to similar marine construction projects for naval bases overseas?

Benchmarking the $29.2 million contract value requires comparing it to similar marine construction and repair projects for naval bases in comparable geographic regions or with similar scope and duration. Projects involving dredging, pier construction, or facility repair at overseas bases can vary significantly in cost due to location, labor rates, material costs, and security requirements. Without access to a database of comparable contracts, it's challenging to provide a precise benchmark. However, for a project spanning over two years and involving significant marine engineering, $29.2 million appears to be within a reasonable range, especially considering the complexities of operating in an overseas environment. Further analysis would involve identifying contracts with similar North American Industry Classification System (NAICS) codes and project characteristics.

What are the primary risks associated with this marine construction contract in Kuwait?

The primary risks associated with this marine construction contract in Kuwait include geopolitical instability in the region, which could lead to project delays or security concerns. Environmental factors, such as harsh weather conditions or unforeseen subsurface geological conditions, could impact construction timelines and costs. Furthermore, logistical challenges related to importing materials and equipment, as well as managing a workforce in a foreign country, pose inherent risks. Ensuring compliance with local regulations and labor laws is also critical. Finally, the potential for scope creep or changes in requirements during the contract's extended duration could affect the final cost and schedule, despite the firm-fixed-price nature.

How effective is full and open competition in ensuring value for money for this type of defense contract?

Full and open competition is generally considered the most effective method for ensuring value for money in defense contracting, as it maximizes the pool of potential bidders and fosters a competitive environment. For a specialized service like marine construction and repair, having 8 bidders indicates sufficient market interest to drive competitive pricing. This process allows the government to receive multiple proposals, which can then be evaluated based on technical merit, past performance, and price. The inherent pressure to offer competitive bids helps prevent inflated pricing and encourages efficiency. While effective, the ultimate value for money also depends on the clarity of the solicitation, the rigor of the evaluation process, and the government's ability to manage the contract effectively post-award.

What is the historical spending trend for marine construction and repair services by the Department of Defense in the Middle East?

Historical spending trends for marine construction and repair services by the Department of Defense in the Middle East are generally substantial, reflecting the strategic importance of the region and the presence of significant naval assets. Annual expenditures can fluctuate based on geopolitical events, modernization initiatives, and the condition of existing infrastructure. While specific aggregate data for this niche service category across the entire Middle East is not readily available in this context, it is understood that the DoD consistently invests billions annually in overseas base operations, maintenance, and construction. Contracts for services like those awarded here are recurring needs, driven by the continuous requirement to maintain operational readiness of naval facilities supporting U.S. Fifth Fleet and other regional operations.

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: TWO STEP

Solicitation ID: W912ER20R0016

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: SHUWAIKH PORT, END OF GAZALI STREET, SHUWAIKH

Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $42,033,217

Exercised Options: $29,212,969

Current Obligation: $29,212,969

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline