Naval Support Activity electrical system upgrade contract awarded to CONTRACK WATTS INC for over $36M
Contract Overview
Contract Amount: $36,298,928 ($36.3M)
Contractor: Contrack Watts Inc
Awarding Agency: Department of Defense
Start Date: 2022-03-24
End Date: 2025-06-01
Contract Duration: 1,165 days
Daily Burn Rate: $31.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN BID BUILD CONTRACT FOR CONSTRUCTION AND UPGRADE OF CURRENT ELECTRICAL SYSTEM AT NAVAL SUPPORT ACTIVITY (NSA), MANAMA, BAHRAIN.
Plain-Language Summary
Department of Defense obligated $36.3 million to CONTRACK WATTS INC for work described as: DESIGN BID BUILD CONTRACT FOR CONSTRUCTION AND UPGRADE OF CURRENT ELECTRICAL SYSTEM AT NAVAL SUPPORT ACTIVITY (NSA), MANAMA, BAHRAIN. Key points: 1. Contract aims to modernize critical electrical infrastructure at a key overseas naval facility. 2. The project involves design, build, and upgrade of the existing electrical system. 3. Firm Fixed Price contract type suggests a defined scope and cost control. 4. A 5-bidder competition indicates moderate market interest for this specialized overseas construction. 5. Project duration of nearly 4 years suggests a complex and extensive scope of work. 6. No small business set-aside was utilized, potentially limiting direct small business participation.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its specific overseas location and specialized nature. The firm fixed price structure provides cost certainty, but the total value of over $36 million for an electrical system upgrade over nearly four years warrants scrutiny. Without comparable project data for similar upgrades at overseas naval facilities, a precise value-for-money assessment is difficult. However, the number of bidders suggests some level of competitive pricing was achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with five bids received. This level of competition is moderate for a project of this scale and complexity, suggesting that while multiple firms were interested, the market for specialized overseas construction services may be somewhat concentrated. The competition likely contributed to price discovery, but the final price reflects the unique challenges and risks associated with performing work in Bahrain.
Taxpayer Impact: A competitive process helps ensure that taxpayer dollars are used efficiently by driving down costs. The five bids received indicate that the government received multiple offers, providing a basis for selecting the most cost-effective solution.
Public Impact
Naval Support Activity (NSA) in Manama, Bahrain benefits from modernized and reliable electrical infrastructure. The project delivers essential construction and upgrade services for critical military support facilities. Geographic impact is concentrated at NSA, Manama, enhancing operational capabilities. The project supports a construction workforce, likely including skilled trades and project management personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise during the extensive upgrade.
- Logistical challenges and increased costs associated with performing construction in an overseas location.
- Dependency on a single contractor for a critical infrastructure project over a long duration.
Positive Signals
- Firm Fixed Price contract provides cost certainty and limits the government's exposure to cost increases.
- Full and open competition suggests a robust process for selecting the most qualified and cost-effective bidder.
- The project addresses a critical need for infrastructure modernization, enhancing operational readiness.
Sector Analysis
This contract falls within the construction sector, specifically focusing on electrical infrastructure. The market for overseas military base construction and upgrades is specialized, often involving a limited number of contractors with the experience and security clearances required. Comparable spending benchmarks are difficult to establish due to the unique geographic and operational context of naval facilities abroad. The total contract value of over $36 million is significant for a single infrastructure project of this nature.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that prime opportunities for small businesses were likely limited to direct subcontracting roles if offered by the prime contractor. The absence of specific set-asides or goals may reduce the direct economic impact on the small business ecosystem for this particular award.
Oversight & Accountability
The contract is a definitive contract awarded by the Department of the Army, indicating established procurement processes. Oversight would typically involve contracting officers, project managers, and potentially quality assurance representatives to monitor progress, adherence to specifications, and financial expenditures. Transparency is facilitated through contract award databases, though detailed project-specific oversight reports are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Facilities Engineering Command (NAVFAC) Contracts
- Overseas Military Construction Projects
- Electrical System Upgrades
- Department of Defense Infrastructure Modernization
Risk Flags
- Overseas project location introduces logistical and geopolitical risks.
- Long project duration increases exposure to market volatility and potential delays.
- Electrical system upgrades are critical infrastructure, making project failure highly impactful.
Tags
construction, department-of-defense, naval-support-activity-manama, bahrain, definitive-contract, firm-fixed-price, full-and-open-competition, infrastructure, electrical-systems, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.3 million to CONTRACK WATTS INC. DESIGN BID BUILD CONTRACT FOR CONSTRUCTION AND UPGRADE OF CURRENT ELECTRICAL SYSTEM AT NAVAL SUPPORT ACTIVITY (NSA), MANAMA, BAHRAIN.
Who is the contractor on this award?
The obligated recipient is CONTRACK WATTS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $36.3 million.
What is the period of performance?
Start: 2022-03-24. End: 2025-06-01.
What is CONTRACK WATTS INC's track record with similar overseas military construction projects?
CONTRACK WATTS INC has a history of performing construction services for the U.S. military, including projects in overseas locations. Their experience often involves design-build contracts for facilities and infrastructure. Specific details on past performance for electrical system upgrades at naval facilities in similar regions would require a deeper dive into their contract history and performance evaluations. However, their selection for this significant project suggests they possess the requisite experience and capability to handle complex international military construction requirements.
How does the per-square-foot cost of this electrical upgrade compare to similar projects?
Determining a precise per-square-foot cost for this electrical system upgrade is not feasible with the provided data. The contract value is for the entire system's design and build, not solely based on square footage. Furthermore, the complexity of electrical systems, the specific requirements of a naval support activity, and the challenges of an overseas location significantly influence costs beyond simple area metrics. Without detailed breakdowns of the scope of work and the specific square footage being served by the upgraded electrical system, a meaningful comparison is not possible.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks include unforeseen site conditions, logistical challenges in Bahrain, potential labor issues, and currency fluctuations. Mitigation strategies likely involve thorough site investigations during the design phase, robust logistical planning, adherence to local labor laws, and potentially hedging strategies for currency. The firm fixed price contract also shifts some cost overrun risk to the contractor, incentivizing them to manage these risks effectively. The long duration also presents risks related to material availability and price escalation, which the contractor must manage.
How effective is the firm fixed price contract type in controlling costs for this project?
The firm fixed price (FFP) contract type is generally effective in controlling costs by establishing a ceiling price upfront. This incentivizes the contractor to manage their expenses efficiently to maximize profit. For this project, it provides the government with cost certainty, assuming the scope of work remains stable. However, if significant scope changes are required due to unforeseen circumstances, change orders could increase the total cost. The FFP structure is well-suited for projects with well-defined requirements, like infrastructure upgrades, where risks can be reasonably assessed.
What is the historical spending trend for electrical system upgrades at naval facilities in the Middle East?
Analyzing historical spending trends for electrical system upgrades at naval facilities specifically in the Middle East requires access to detailed historical contract data. Such data would need to be filtered by agency (Department of Defense, specifically Navy or Naval Facilities Engineering Command), contract type (construction, upgrades), and geographic region. Without this specific dataset, it's impossible to provide a trend analysis. However, it is reasonable to assume that such upgrades are recurring needs driven by aging infrastructure and evolving technological requirements, likely involving significant investment over time.
Industry Classification
NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912ER22R0008
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: OCI Overseas Holding Limited
Address: 6862 ELM STREET, 5TH FLOOR, MC LEAN, VA, 22101
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $36,319,467
Exercised Options: $36,298,928
Current Obligation: $36,298,928
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-03-24
Current End Date: 2025-06-01
Potential End Date: 2025-06-01 00:00:00
Last Modified: 2025-04-03
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