DoD Awards $27.3M Contract for NHCC Water Intrusion Remediation to Chitina Electric Inc

Contract Overview

Contract Amount: $27,340,350 ($27.3M)

Contractor: Chitina Electric Inc - Ames 1 JV

Awarding Agency: Department of Defense

Start Date: 2018-09-28

End Date: 2023-08-28

Contract Duration: 1,795 days

Daily Burn Rate: $15.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF NHCC WATER INTRUSION

Place of Performance

Location: GOOSE CREEK, BERKELEY County, SOUTH CAROLINA, 29445

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $27.3 million to CHITINA ELECTRIC INC - AMES 1 JV for work described as: IGF::OT::IGF NHCC WATER INTRUSION Key points: 1. Significant contract value for building construction services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (1795 days) may indicate complex scope or potential for cost overruns. 4. Firm Fixed Price contract type offers some cost certainty but limits flexibility for unforeseen issues.

Value Assessment

Rating: fair

The contract value of $27.3M for commercial building construction is substantial. Without specific benchmarks for similar water intrusion remediation projects in institutional settings, it's difficult to definitively assess pricing. However, the lack of competition suggests potential for higher costs than if multiple bids were considered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competitive procurement.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competitive pressure.

Public Impact

Ensures operational readiness of the NHCC facility by addressing critical water intrusion issues. Supports a single contractor for an extended period, potentially impacting market availability for other firms. The long-term nature of the contract suggests a significant, ongoing need for facility maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Long contract duration increases risk of cost escalation and scope creep.
Lack of small business participation noted.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Addresses critical facility infrastructure need.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is often driven by infrastructure maintenance, upgrades, and new construction needs across government agencies. Benchmarks vary widely based on project type, location, and complexity.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is not a small business, and there's no indication of subcontracting goals for small businesses within this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the justification for not pursuing competition was robust and that the pricing is fair and reasonable. Oversight should focus on contract performance and adherence to the fixed-price terms.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks competitive pricing.
Long contract duration increases risk.
No small business participation.
Potential for cost overruns if scope is not tightly managed.
Limited transparency on justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.3 million to CHITINA ELECTRIC INC - AMES 1 JV. IGF::OT::IGF NHCC WATER INTRUSION

Who is the contractor on this award?

The obligated recipient is CHITINA ELECTRIC INC - AMES 1 JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.3 million.

What is the period of performance?

Start: 2018-09-28. End: 2023-08-28.

What was the specific justification for awarding this contract on a sole-source basis, and was a thorough market analysis conducted to confirm no other capable sources existed?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or specific circumstances where only one contractor can fulfill the requirement. A comprehensive market analysis is crucial to validate these claims. Without this information, it's difficult to ascertain if the government truly exhausted all competitive options or if potential cost savings were forgone.

How does the per-unit cost or overall project cost compare to industry benchmarks for similar water intrusion remediation projects, considering the firm-fixed-price structure?

Assessing the value requires comparing the $27.3M contract price against established industry benchmarks for similar large-scale water intrusion remediation projects in institutional buildings. Factors like geographic location, building type, and the specific nature of the water intrusion significantly influence costs. The firm-fixed-price nature provides some cost control, but the absence of competition makes a definitive value assessment challenging without detailed cost breakdowns or comparative data.

What mechanisms are in place to monitor contractor performance and ensure the quality of work throughout the 1795-day contract duration, especially given the sole-source nature?

Effective oversight mechanisms are critical for long-term, sole-source contracts. This includes rigorous quality assurance surveillance plans (QASP), regular progress meetings, milestone reviews, and potentially independent technical inspections. Given the lack of competition, the government must be particularly diligent in verifying that the contractor meets all performance standards and delivers the required outcomes within the agreed-upon fixed price.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912HP18R7001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chitina Native Corp

Address: 2011 MILE 1 VILLAGE RD, CHITINA, AK, 99566

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Government, HUBZone Firm, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,340,350

Exercised Options: $27,340,350

Current Obligation: $27,340,350

Actual Outlays: $862,676

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline