DoD Awards $6.89M Contract for Chicago Harbor Breakwater Repair to Roen Salvage Co
Contract Overview
Contract Amount: $6,888,332 ($6.9M)
Contractor: Roen Salvage CO.
Awarding Agency: Department of Defense
Start Date: 2025-02-19
End Date: 2026-03-11
Contract Duration: 385 days
Daily Burn Rate: $17.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CHICAGO HARBOR BREAKWATER REPAIR FUNDING
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60604
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $6.9 million to ROEN SALVAGE CO. for work described as: CHICAGO HARBOR BREAKWATER REPAIR FUNDING Key points: 1. Contract awarded to Roen Salvage Co. for breakwater repairs. 2. Competition method: Full and open after exclusion of sources. 3. Contract type: Firm Fixed Price, Definitive Contract. 4. Project duration: 385 days, with an estimated completion date of March 11, 2026. 5. Location: Illinois.
Value Assessment
Rating: fair
The award amount of $6.89 million appears reasonable for heavy civil engineering construction of this nature. Benchmarking against similar breakwater repair projects would provide a clearer assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a limited competition. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure repair, with the final cost influenced by the limited competitive environment.
Public Impact
Ensures continued functionality and safety of the Chicago Harbor Breakwater. Supports maritime operations and flood control in the Chicago area. Potential for disruption to local marine traffic during repair activities. Investment in critical federal infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Potential for cost overruns if unforeseen issues arise during repairs.
- Dependence on a single contractor for a critical infrastructure project.
Positive Signals
- Addresses a critical infrastructure need.
- Firm Fixed Price contract provides cost certainty.
- Clear project timeline with defined start and end dates.
Sector Analysis
This contract falls under heavy and civil engineering construction, specifically focusing on marine infrastructure. Spending in this sector is often driven by federal infrastructure needs and maintenance requirements.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. The definitive contract structure with a fixed price and defined duration should facilitate accountability.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Potential for unforeseen site conditions
- Weather-related delays
- Dependence on contractor's specialized capabilities
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, il, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.9 million to ROEN SALVAGE CO.. CHICAGO HARBOR BREAKWATER REPAIR FUNDING
Who is the contractor on this award?
The obligated recipient is ROEN SALVAGE CO..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $6.9 million.
What is the period of performance?
Start: 2025-02-19. End: 2026-03-11.
What specific factors led to the exclusion of sources in the 'Full and Open Competition After Exclusion of Sources' method, and how did this impact the final price?
The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements necessitate a narrowed field of bidders. Understanding these specific factors is crucial to assessing whether the limited competition resulted in a fair and reasonable price or if alternative approaches could have yielded better value for taxpayers.
What are the potential risks associated with repairing aging breakwater infrastructure, and how are these risks being mitigated by the contractor and the contracting agency?
Risks include unforeseen structural issues, adverse weather conditions impacting work schedules, and environmental concerns during salvage operations. Mitigation strategies likely involve detailed site assessments, contingency planning for weather delays, and adherence to strict environmental protocols. The firm fixed price contract shifts some cost risk to the contractor, incentivizing efficient management.
How does the $6.89 million investment in the Chicago Harbor Breakwater align with broader federal infrastructure priorities and the long-term maintenance strategy for similar assets?
This investment addresses a critical component of the nation's maritime infrastructure, vital for navigation and coastal protection. Its alignment with broader federal priorities depends on the current administration's focus on infrastructure resilience and modernization. A long-term maintenance strategy would ensure such repairs are part of a proactive, rather than reactive, asset management plan.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Solicitation ID: W912P625B0015
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 180 E REDWOOD ST, STURGEON BAY, WI, 54235
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,933,000
Exercised Options: $6,933,000
Current Obligation: $6,888,332
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-02-19
Current End Date: 2026-03-11
Potential End Date: 2026-03-11 00:00:00
Last Modified: 2025-12-23
More Contracts from Roen Salvage CO.
- Algoma North Breakwater Repairs — $11.5M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)