DoD awards $23.7M for Brunswick County disposal facility improvements, with 8 bidders competing

Contract Overview

Contract Amount: $23,707,283 ($23.7M)

Contractor: AIS Infrastructure, LLC

Awarding Agency: Department of Defense

Start Date: 2021-05-20

End Date: 2025-03-14

Contract Duration: 1,394 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EAGLE ISLAND CONFINED DISPOSAL FACILITY IMPROVEMENTS FOR CELL 1, (FY21) BRUNSWICK COUNTY, NORTH CAROLINA

Place of Performance

Location: WILMINGTON, NEW HANOVER County, NORTH CAROLINA, 28401

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to AIS INFRASTRUCTURE, LLC for work described as: EAGLE ISLAND CONFINED DISPOSAL FACILITY IMPROVEMENTS FOR CELL 1, (FY21) BRUNSWICK COUNTY, NORTH CAROLINA Key points: 1. The contract's firm-fixed-price structure aims to control costs for the disposal facility upgrades. 2. Full and open competition suggests a healthy market for this type of civil engineering construction. 3. The contract duration of nearly four years indicates a significant, long-term infrastructure project. 4. The award to AIS Infrastructure, LLC, represents a substantial investment in North Carolina's defense support infrastructure. 5. The project's focus on confined disposal facilities highlights environmental and operational considerations for the Army.

Value Assessment

Rating: good

The contract value of $23.7 million for heavy civil engineering construction appears reasonable given the project scope and duration. Benchmarking against similar confined disposal facility projects is challenging without more specific project details, but the number of bidders suggests competitive pricing was likely achieved. The firm-fixed-price contract type provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 bidders submitting proposals. This level of competition is generally favorable as it encourages multiple companies to offer their best pricing and technical solutions, leading to a more efficient use of taxpayer funds. The presence of numerous bidders suggests that the market for this type of specialized heavy civil engineering construction is robust and accessible to qualified firms.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final price and ensured the government received competitive proposals for the disposal facility improvements.

Public Impact

The primary beneficiaries are the Department of Defense and its operational readiness, ensuring proper waste management at the Brunswick County facility. The services delivered include significant infrastructure improvements to a confined disposal facility, crucial for environmental compliance and operational efficiency. The geographic impact is concentrated in Brunswick County, North Carolina, supporting local economic activity through construction jobs and contractor presence. Workforce implications include employment opportunities for skilled labor in heavy civil engineering and construction within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the multi-year construction period.
Dependence on a single contractor for a critical, long-term infrastructure project introduces performance risk.
The specific nature of confined disposal facilities may limit the pool of highly specialized subcontractors, potentially impacting schedule or cost.

Positive Signals

Firm-fixed-price contract provides cost certainty and limits the government's exposure to cost increases.
Full and open competition with 8 bidders suggests a competitive environment that should yield a fair price.
The project addresses a critical operational need for the Department of Defense, enhancing environmental and safety standards.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to environmental infrastructure. The market for such specialized construction, particularly for government facilities, is significant, driven by ongoing needs for maintenance, upgrades, and new builds. Comparable spending benchmarks would typically involve large-scale civil works, port infrastructure, or environmental remediation projects, where costs can range widely based on complexity and location.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides. While AIS Infrastructure, LLC may utilize small businesses as subcontractors, there is no explicit indication of a subcontracting plan geared towards small business participation in this award. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this definitive contract will likely be managed by the contracting officer and relevant project managers within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified improvements. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available.

Related Government Programs

Army Corps of Engineers Construction Contracts
Department of Defense Environmental Infrastructure Projects
Civil Engineering and Construction Services
Confined Disposal Facility Management

Risk Flags

Long contract duration may increase risk of cost escalation or performance issues.
Potential for unforeseen site conditions in heavy civil engineering projects.
Dependence on specialized construction services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to AIS INFRASTRUCTURE, LLC. EAGLE ISLAND CONFINED DISPOSAL FACILITY IMPROVEMENTS FOR CELL 1, (FY21) BRUNSWICK COUNTY, NORTH CAROLINA

Who is the contractor on this award?

The obligated recipient is AIS INFRASTRUCTURE, 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 $23.7 million.

What is the period of performance?

Start: 2021-05-20. End: 2025-03-14.

What is the track record of AIS Infrastructure, LLC in performing similar large-scale civil engineering projects for the Department of Defense?

A review of federal procurement data indicates that AIS Infrastructure, LLC has been awarded multiple contracts, primarily in the heavy and civil engineering construction domain. While specific details on past performance for confined disposal facilities are not immediately available in this summary, their history suggests experience with large government projects. Further investigation into their past performance ratings, contract completion success, and any past disputes or claims would provide a more comprehensive understanding of their capabilities and reliability for this specific project. Examining their portfolio for projects of similar scale and complexity, particularly those involving environmental or specialized infrastructure, would be crucial for a thorough assessment.

How does the awarded price of $23.7 million compare to similar confined disposal facility improvement projects in North Carolina or other coastal regions?

Benchmarking this $23.7 million contract against similar confined disposal facility improvement projects requires access to detailed cost data for comparable projects, which is not readily available in the public domain. Factors such as the specific scope of work (e.g., cell size, required engineering, environmental mitigation), site conditions, and regional construction cost indices significantly influence project pricing. However, the presence of 8 bidders in a full and open competition suggests that the price achieved is likely competitive within the market for such specialized infrastructure. Without specific comparable project data, a definitive value-for-money assessment relative to market rates is difficult, but the competitive bidding process provides a degree of assurance.

What are the primary risks associated with the long duration (nearly 4 years) of this construction contract?

The nearly four-year duration of this construction contract introduces several potential risks. Firstly, there is an increased risk of cost escalation due to inflation or unforeseen market fluctuations in material and labor costs, although the firm-fixed-price structure aims to mitigate this. Secondly, the extended timeline increases the likelihood of encountering unforeseen site conditions or environmental challenges that could lead to change orders and delays. Thirdly, maintaining consistent project oversight and quality control over such a long period requires sustained effort and resources. Finally, there's a risk of contractor performance degradation or key personnel turnover over an extended duration, potentially impacting project quality and schedule adherence.

What is the expected impact of these facility improvements on the operational efficiency and environmental compliance of the DoD's operations in Brunswick County?

These facility improvements are expected to significantly enhance the operational efficiency and environmental compliance of the DoD's operations in Brunswick County. Confined disposal facilities are critical for managing dredged material and other waste streams in an environmentally sound manner, particularly in coastal areas. Upgrades to Cell 1 likely aim to increase capacity, improve containment integrity, or modernize handling processes. This would reduce the risk of environmental contamination, ensure compliance with stringent environmental regulations, and potentially streamline waste management operations, thereby supporting the overall mission readiness and sustainability of the DoD's presence in the region.

How has federal spending on 'Other Heavy and Civil Engineering Construction' in North Carolina trended in recent fiscal years?

Analyzing the trend of federal spending on 'Other Heavy and Civil Engineering Construction' in North Carolina requires a review of historical contract data. While this specific contract is for FY21, broader trends would involve examining spending patterns across multiple fiscal years. Generally, federal investment in infrastructure, including civil engineering projects, can fluctuate based on national priorities, economic conditions, and specific agency needs. Coastal states like North Carolina often see significant federal investment in areas such as port improvements, environmental restoration, and military infrastructure. A detailed trend analysis would involve aggregating contract awards within this NAICS code for North Carolina over several years to identify patterns of increase or decrease.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912PM20B0024

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2250 LOVVORN RD, CARROLLTON, GA, 30117

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,707,283

Exercised Options: $23,707,283

Current Obligation: $23,707,283

Actual Outlays: $1,572,641

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline