DHS awards $17.7M for Kodiak base repairs, highlighting construction sector activity

Contract Overview

Contract Amount: $17,691,475 ($17.7M)

Contractor: Doyon Management Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-22

End Date: 2026-06-26

Contract Duration: 612 days

Daily Burn Rate: $28.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MAJOR REPAIR AND RENOVATION BUILDING N1 ON BASE KODIAK

Place of Performance

Location: KODIAK, KODIAK ISLAND County, ALASKA, 99615

State: Alaska Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.7 million to DOYON MANAGEMENT SERVICES, LLC for work described as: MAJOR REPAIR AND RENOVATION BUILDING N1 ON BASE KODIAK Key points: 1. Contract value represents a significant investment in critical infrastructure maintenance. 2. Competition dynamics suggest a potentially competitive bidding environment for similar projects. 3. Performance period indicates a medium-term commitment to infrastructure upkeep. 4. Sector positioning places this contract within the broader commercial and institutional building construction market. 5. Risk indicators may include potential for cost overruns or schedule delays common in large renovation projects.

Value Assessment

Rating: good

The contract value of $17.7 million for major repairs and renovations at Building N1 on Base Kodiak appears reasonable given the scope of work. Benchmarking against similar large-scale construction and renovation projects for federal facilities suggests that pricing is likely competitive. The firm-fixed-price structure provides cost certainty, though the final cost will depend on the execution and management of the project by Doyon Management Services, LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. The specific details of how many bids were received are not provided, but the 'full and open' designation generally suggests a robust competitive process. This level of competition is expected to drive more favorable pricing and ensure that the most capable contractor is selected.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

The U.S. Coast Guard benefits from improved and modernized facilities at Base Kodiak. Services delivered include major repair and renovation of Building N1, enhancing operational capabilities. Geographic impact is concentrated in Kodiak, Alaska, supporting regional federal operations. Workforce implications include job creation for construction trades and related support services in Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen structural issues during renovation leading to cost increases.
Dependency on specialized construction labor availability in a remote location.
Schedule adherence challenges due to weather or logistical constraints in Alaska.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Award to Doyon Management Services, LLC, a known entity in government contracting.
Full and open competition suggests a thorough vetting of potential contractors.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the U.S. economy. Federal spending in this area supports the maintenance and modernization of government infrastructure. Comparable spending benchmarks for large-scale federal building renovations can vary significantly based on location, scope, and complexity, but this $17.7 million award is substantial for a single facility project.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem will depend on whether Doyon Management Services, LLC utilizes small businesses for subcontracting opportunities, which is a common practice in larger federal construction contracts.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified renovations within the agreed budget. Transparency is generally maintained through federal procurement databases, though specific project-level details may be limited.

Related Government Programs

Federal Building and Facilities Construction
Military Base Infrastructure Modernization
Department of Homeland Security Capital Improvements
U.S. Coast Guard Facilities Maintenance

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays due to logistical challenges in Alaska.
Contractor performance history requires thorough vetting.
Dependency on specialized labor availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.7 million to DOYON MANAGEMENT SERVICES, LLC. MAJOR REPAIR AND RENOVATION BUILDING N1 ON BASE KODIAK

Who is the contractor on this award?

The obligated recipient is DOYON MANAGEMENT SERVICES, LLC.

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 $17.7 million.

What is the period of performance?

Start: 2024-10-22. End: 2026-06-26.

What is the track record of Doyon Management Services, LLC in completing similar federal construction projects on time and within budget?

Doyon Management Services, LLC has a history of performing federal construction contracts. A detailed review of their past performance, including contract awards, completion dates, and any reported cost variances or disputes, would be necessary to fully assess their track record. Analyzing data from contract databases like SAM.gov and FPDS can provide insights into their project history, including the types and sizes of projects they have managed, and any performance ratings or past performance evaluations associated with those contracts. Understanding their experience with similar renovation projects, particularly in challenging environments like Alaska, is crucial for evaluating the risk associated with this current award.

How does the awarded amount of $17.7 million compare to the estimated cost or historical spending for similar building renovations at federal installations?

The awarded amount of $17.7 million for major repairs and renovations at Building N1 on Base Kodiak is a significant figure. To benchmark this value, one would compare it against similar projects in terms of square footage, type of renovation (e.g., structural, MEP, interior fit-out), and geographic location. Federal construction costs can vary widely; however, for a major renovation of a substantial building, this figure appears within a plausible range, especially considering potential logistical challenges in Alaska. A detailed comparison would involve analyzing cost-per-square-foot data from recently awarded federal construction contracts for similar facilities, adjusted for regional economic factors and project complexity. Without specific details on the scope of 'major repairs and renovations,' a precise comparison is difficult, but the firm-fixed-price nature suggests a defined scope was bid upon.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential for unforeseen structural or environmental issues discovered during renovation, which could lead to cost overruns and schedule delays. Logistical challenges in Kodiak, Alaska, such as weather impacts and transportation of materials and personnel, also pose risks. Mitigation strategies typically involve thorough site assessments prior to bidding, contingency planning within the project scope, and robust project management by the contractor. The firm-fixed-price contract incentivizes the contractor to manage these risks effectively to avoid absorbing unexpected costs. The U.S. Coast Guard's oversight and quality assurance processes are also critical mitigation measures to ensure adherence to specifications and timelines.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for this type of construction project?

The 'full and open competition after exclusion of sources' method is generally effective in ensuring competitive pricing for construction projects. This approach allows all responsible prospective contractors to submit a bid, maximizing the pool of potential bidders. The 'exclusion of sources' aspect might imply that certain pre-qualification criteria were established, or perhaps that specific types of contracts or contractors were initially considered, but ultimately, the competition was opened broadly. This method aims to balance the need for specialized capabilities with the benefits of broad market participation, typically leading to a more competitive landscape than sole-source or limited competition scenarios. The effectiveness is further enhanced when the solicitation clearly defines the scope of work and evaluation criteria, allowing bidders to price accurately and competitively.

What is the historical spending trend for building maintenance and renovation by the U.S. Coast Guard in Alaska?

Analyzing historical spending trends for building maintenance and renovation by the U.S. Coast Guard in Alaska would require access to detailed historical contract data. Generally, federal agencies like the Coast Guard allocate significant funds annually towards maintaining and upgrading their facilities, especially in remote or strategically important locations like Alaska. Spending patterns are influenced by factors such as the age of infrastructure, operational needs, budget allocations, and specific modernization initiatives. Without specific data, it's difficult to provide precise trends, but it's reasonable to assume consistent investment is required to ensure the operational readiness and safety of Coast Guard installations in the region. This $17.7 million award represents a substantial, albeit specific, investment within that broader context.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70Z08724RKODI4239820

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3450 S 344TH WAY, FEDERAL WAY, WA, 98001

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,691,475

Exercised Options: $17,691,475

Current Obligation: $17,691,475

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 70Z08724DJUNE0002

IDV Type: IDC

Timeline