Levee repair contract awarded to Aleut Construction LLC for $7.04M, highlighting infrastructure needs in Pennsylvania

Contract Overview

Contract Amount: $7,035,905 ($7.0M)

Contractor: Aleut Construction LLC

Awarding Agency: Department of the Interior

Start Date: 2026-03-19

End Date: 2027-09-30

Contract Duration: 560 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: JOHN HEINZ NWR, PA - REPAIR OF LEVEE SYSTEM

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19153

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Interior obligated $7.0 million to ALEUT CONSTRUCTION LLC for work described as: JOHN HEINZ NWR, PA - REPAIR OF LEVEE SYSTEM Key points: 1. The contract value appears reasonable for a levee repair project of this scope and duration. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The fixed-price contract type shifts performance risk to the contractor. 4. Project duration of 560 days indicates a significant undertaking. 5. The project is located in Pennsylvania, addressing regional infrastructure concerns. 6. The contractor, Aleut Construction LLC, is responsible for delivering the repair services.

Value Assessment

Rating: good

The contract value of $7.04 million for levee system repair seems aligned with typical infrastructure projects of this nature. Without specific benchmarks for levee repair in this region or for this exact scope, a direct per-unit cost comparison is difficult. However, the fixed-price nature of the contract suggests that the government has negotiated a set price, which can be advantageous if the contractor manages costs effectively. The duration of the contract (560 days) also provides a basis for assessing the overall value relative to the expected work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The presence of two bidders suggests some level of competition, but the exclusion of sources warrants further investigation into why this occurred and if it impacted the final price or contractor selection.

Taxpayer Impact: The limited competition, due to the exclusion of sources, may have resulted in a higher price for taxpayers than if all potential qualified bidders had been allowed to compete.

Public Impact

The primary beneficiaries are residents and businesses in the vicinity of the levee system in Pennsylvania, who will receive improved flood protection. The services delivered include the repair of a levee system, crucial for maintaining public safety and preventing environmental damage. The geographic impact is localized to the specific area in Pennsylvania where the levee system is located. The project will likely involve a workforce skilled in construction and civil engineering, potentially creating temporary employment opportunities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repair, despite the fixed-price contract.
Risk of delays due to weather or site conditions impacting the 560-day schedule.
Concerns regarding the exclusion of sources in the competition process could indicate a less competitive environment than ideal.

Positive Signals

The use of a firm-fixed-price contract shifts cost control responsibility to the contractor.
The project addresses critical infrastructure needs, enhancing community safety and resilience.
The award to Aleut Construction LLC signifies a commitment to repairing vital public works.

Sector Analysis

The construction sector, particularly commercial and institutional building construction, is a significant part of the federal procurement landscape. Infrastructure repair, such as levee systems, falls under this broad category. Federal spending in this area often fluctuates based on infrastructure needs, disaster recovery efforts, and government investment priorities. Comparable spending benchmarks would typically involve analyzing other levee repair or civil engineering projects awarded by federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false) or specific subcontracting goals mentioned in the provided data. Therefore, the direct impact on small businesses through this specific award is likely minimal unless Aleut Construction LLC voluntarily engages small businesses as subcontractors. The broader ecosystem impact would depend on the company's subcontracting practices and its own size.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Fish and Wildlife Service, an agency within the Department of the Interior. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to complete the repairs to specified standards. Transparency is facilitated by the public nature of federal contract awards, though detailed project oversight reports are not provided in this data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Department of Homeland Security - FEMA Disaster Relief Funding
State and Local Infrastructure Grants

Risk Flags

Limited competition due to exclusion of sources.
Potential for schedule delays.
Contract performance risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $7.0 million to ALEUT CONSTRUCTION LLC. JOHN HEINZ NWR, PA - REPAIR OF LEVEE SYSTEM

Who is the contractor on this award?

The obligated recipient is ALEUT CONSTRUCTION LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $7.0 million.

What is the period of performance?

Start: 2026-03-19. End: 2027-09-30.

What is the track record of Aleut Construction LLC in completing similar federal infrastructure projects on time and within budget?

Assessing the track record of Aleut Construction LLC requires a review of their past performance on federal contracts. This would involve examining contract databases for similar projects, looking at past performance evaluations (if publicly available), and identifying any history of delays, cost overruns, or contract disputes. Without access to this specific performance data, it is difficult to definitively state their reliability for this levee repair project. Federal agencies typically conduct pre-award responsibility determinations that include reviewing a contractor's past performance to mitigate risks associated with project execution.

How does the awarded amount of $7.04 million compare to the estimated cost or benchmark for similar levee repair projects?

A precise comparison of the $7.04 million award to benchmarks for similar levee repair projects is challenging without detailed project specifications and regional cost data. Levee repair costs can vary significantly based on the extent of damage, the type of repair needed (e.g., structural reinforcement, erosion control, vegetation management), the specific location's labor and material costs, and environmental mitigation requirements. The fact that this was awarded under 'Full and Open Competition After Exclusion of Sources' with two bidders suggests a negotiated price. Further analysis would require comparing this contract's scope and cost per linear foot or per cubic yard of material to other federally funded levee projects in comparable geographic and geological areas.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type presents specific risks primarily related to the potential for reduced competition and potentially higher costs for the government. While it aims for open competition, the exclusion of certain sources means that not all capable contractors may have had the opportunity to bid. This could lead to a less competitive environment, potentially resulting in a higher-than-market price or the selection of a contractor who might not have been the most advantageous if broader competition had been allowed. It also raises questions about the justification for excluding specific sources and whether this exclusion was fair and necessary to meet the government's needs.

What is the expected effectiveness of the levee repair in mitigating future flood risks for the affected Pennsylvania community?

The effectiveness of the levee repair in mitigating future flood risks hinges on the scope and quality of the work performed by Aleut Construction LLC, as defined in the contract specifications. Assuming the repairs address the identified vulnerabilities and meet the engineering standards set forth by the U.S. Fish and Wildlife Service, the project should enhance the levee's structural integrity and its ability to withstand anticipated water levels and environmental stresses. The project's success will be measured by its performance during future flood events. Ongoing monitoring and maintenance post-repair will also be crucial for sustained effectiveness.

How does the $7.04 million spending on this levee repair project compare to historical federal spending on levee maintenance and repair in Pennsylvania?

To compare this $7.04 million levee repair contract to historical federal spending in Pennsylvania, one would need to access historical federal procurement data specifically for levee maintenance and repair contracts awarded by agencies like the Army Corps of Engineers, FEMA, and the Department of the Interior within the state. Analyzing this data would reveal trends in spending, average contract values, and the frequency of such projects. This specific contract represents a significant investment in a single project, and its context within broader historical spending patterns would indicate whether this is a typical expenditure or an outlier for major levee repair initiatives in the region.

What are the potential long-term implications of this contract on the local workforce and economy in the affected Pennsylvania region?

The long-term implications of this $7.04 million levee repair contract on the local workforce and economy in Pennsylvania are likely to be positive in the short to medium term, primarily through job creation. The project will require skilled labor in construction, engineering, and project management, potentially leading to temporary employment opportunities for local residents. Furthermore, the improved flood protection offered by the repaired levee system can enhance economic stability by reducing the risk of costly flood damage to businesses and residential properties, thereby fostering a more secure environment for long-term economic development and investment in the region.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140FC225R0017

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Aleut Corporation

Address: 12355 SUNRISE VALLEY DR STE 300D, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,035,905

Exercised Options: $7,035,905

Current Obligation: $7,035,905

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140A1623D0030

IDV Type: IDC

Timeline