DHS Coast Guard awards $97.4M contract to Tutor Perini for Alaska duplex housing construction
Contract Overview
Contract Amount: $97,389,620 ($97.4M)
Contractor: Tutor Perini Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2022-04-29
End Date: 2026-08-27
Contract Duration: 1,581 days
Daily Burn Rate: $61.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND BUILD CONSTRUCTION SERVICES TO BUILD RESIDENTIAL DUPLEX HOUSING UNITS PER BASE ITEM 1, 1A, 1B, 1C, BASE ITEM 2 AND OPTION ITEMS 1-6.
Place of Performance
Location: KODIAK, KODIAK ISLAND County, ALASKA, 99619
State: Alaska Government Spending
Plain-Language Summary
Department of Homeland Security obligated $97.4 million to TUTOR PERINI CORPORATION for work described as: DESIGN AND BUILD CONSTRUCTION SERVICES TO BUILD RESIDENTIAL DUPLEX HOUSING UNITS PER BASE ITEM 1, 1A, 1B, 1C, BASE ITEM 2 AND OPTION ITEMS 1-6. Key points: 1. Construction services for residential duplexes in Alaska. 2. Contract awarded to Tutor Perini Corporation. 3. Significant investment in military family housing infrastructure. 4. Project spans multiple years with a firm fixed price.
Value Assessment
Rating: good
The contract value of $97.4 million for 1581 days of work appears reasonable for large-scale construction projects of this nature. Benchmarking against similar government housing construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely led to a fair price discovery. The award type is a delivery order, indicating it's part of a larger contract vehicle.
Taxpayer Impact: Taxpayers benefit from competitive bidding ensuring value for money in constructing essential housing for Coast Guard personnel.
Public Impact
Improved housing quality for U.S. Coast Guard members and their families stationed in Alaska. Supports military readiness and retention by providing adequate living conditions. Stimulates local economy in Alaska through construction jobs and material sourcing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise in Alaska's remote environment.
- Schedule delays due to weather or logistical issues specific to the location.
- Reliance on a single large contractor for a significant project.
Positive Signals
- Addresses critical need for housing in a high-cost, remote location.
- Firm fixed price contract provides cost certainty.
- Long-term duration allows for phased construction and potential efficiencies.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Government spending in this area is crucial for maintaining and upgrading infrastructure, particularly for military and federal agencies. Benchmarks for similar projects vary widely based on location, scope, and specific requirements.
Small Business Impact
While the prime contractor is Tutor Perini Corporation, a large entity, there is potential for subcontracting opportunities for small businesses in Alaska for various construction trades, material supply, and support services.
Oversight & Accountability
The Department of Homeland Security, specifically the U.S. Coast Guard, is responsible for overseeing this contract. Robust oversight will be necessary to ensure adherence to schedule, budget, and quality standards throughout the construction period.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Geographic location challenges (Alaska).
- Potential for schedule delays due to weather.
- Logistical complexities for materials and equipment.
- Firm Fixed Price contract may limit flexibility for unforeseen issues.
- Reliance on a single large contractor.
Tags
commercial-and-institutional-building-co, department-of-homeland-security, ak, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $97.4 million to TUTOR PERINI CORPORATION. DESIGN AND BUILD CONSTRUCTION SERVICES TO BUILD RESIDENTIAL DUPLEX HOUSING UNITS PER BASE ITEM 1, 1A, 1B, 1C, BASE ITEM 2 AND OPTION ITEMS 1-6.
Who is the contractor on this award?
The obligated recipient is TUTOR PERINI CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $97.4 million.
What is the period of performance?
Start: 2022-04-29. End: 2026-08-27.
What is the estimated cost per housing unit, and how does it compare to similar construction projects in remote or Arctic regions?
The total contract value is $97.4 million over approximately 1581 days for multiple duplex units. Without the exact number of units, a precise per-unit cost cannot be calculated. However, given the remote Alaskan location and the nature of construction, costs are expected to be higher than in more accessible areas. A detailed cost breakdown and comparison with similar projects would be needed for a definitive assessment.
What are the specific risks associated with building in Alaska, and what mitigation strategies are in place?
Building in Alaska presents risks such as extreme weather, permafrost, logistical challenges for material transport, and a limited local labor pool. Mitigation strategies likely include detailed site surveys, specialized construction techniques for cold climates, robust supply chain management, and potentially incentives for local hiring or specialized labor. The contract's firm fixed price suggests these risks have been factored into the pricing.
How will the effectiveness of this housing project be measured, and what are the key performance indicators?
Effectiveness will likely be measured by the timely completion of quality housing units that meet specified standards and occupancy rates. Key performance indicators could include adherence to the construction schedule, budget compliance, number of units delivered, resident satisfaction surveys post-occupancy, and reduction in housing-related complaints or maintenance issues for Coast Guard personnel.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 70Z05022RNEMETZ
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 15901 OLDEN ST, SYLMAR, CA, 91342
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $97,389,621
Exercised Options: $97,389,621
Current Obligation: $97,389,620
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70Z04718DTUTPER00
IDV Type: IDC
Timeline
Start Date: 2022-04-29
Current End Date: 2026-08-27
Potential End Date: 2026-08-27 12:59:53
Last Modified: 2025-08-21
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