Coast Guard awarded $17.8M for hanger and pier renovation, highlighting construction sector activity

Contract Overview

Contract Amount: $17,795,826 ($17.8M)

Contractor: WSP USA Environment & Infrastructure Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-09-15

End Date: 2013-03-25

Contract Duration: 922 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SFRL NO. 05-632758 RENOVATE NCRAD HANGER 5 AND PIER 4

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.8 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: SFRL NO. 05-632758 RENOVATE NCRAD HANGER 5 AND PIER 4 Key points: 1. Contract value represents a significant investment in critical infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for similar projects. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. Project duration of over two years indicates a substantial scope of work. 5. Geographic location in Virginia places the project within a key coastal region.

Value Assessment

Rating: fair

The contract value of $17.8 million for renovating a hangar and pier appears within a reasonable range for large-scale construction projects of this nature. Benchmarking against similar infrastructure upgrades for military or maritime facilities would provide a clearer picture of value for money. The firm fixed-price structure suggests an attempt to control costs, but the final expenditure relative to the initial scope and any change orders will be key indicators of overall cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With five bidders participating, the competition level suggests a healthy market interest in this type of government contract. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process for this renovation project likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The U.S. Coast Guard benefits from improved operational facilities. Renovations to NCRAD Hangar 5 and Pier 4 enhance critical maritime infrastructure. The project's impact is primarily localized to the Virginia area where the facilities are located. Construction jobs are likely supported by this significant renovation effort.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during renovation.
Risk of schedule delays impacting operational readiness of the Coast Guard facilities.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust market response.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Federal spending in this area often supports the maintenance and upgrade of government facilities, including military bases, ports, and research centers. The market for such projects is characterized by a mix of large prime contractors and specialized subcontractors, with significant competition often driven by government procurement processes.

Small Business Impact

While this contract was awarded under full and open competition and there is no explicit indication of a small business set-aside, large federal construction projects often involve significant subcontracting opportunities. Prime contractors are typically required to outline their plans for engaging small businesses, including those owned by disadvantaged individuals, women, or veterans, as part of their proposals. The success of small businesses in securing subcontracts on this project would be a key indicator of its impact on the small business ecosystem.

Oversight & Accountability

The contract's oversight would typically involve the U.S. Coast Guard contracting officer and potentially a contracting officer's representative (COR) to monitor performance, ensure compliance with terms, and manage payments. Transparency is generally maintained through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building and Facilities Construction
Military Base Infrastructure Projects
Port and Harbor Development
Coast Guard Capital Improvements

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Dependency on contractor's ability to manage complex construction logistics.
Risk of schedule slippage affecting Coast Guard operational readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.8 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. SFRL NO. 05-632758 RENOVATE NCRAD HANGER 5 AND PIER 4

Who is the contractor on this award?

The obligated recipient is WSP USA ENVIRONMENT & INFRASTRUCTURE INC..

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 $17.8 million.

What is the period of performance?

Start: 2010-09-15. End: 2013-03-25.

What is the track record of WSP USA Environment & Infrastructure Inc. with similar federal construction contracts?

WSP USA Environment & Infrastructure Inc. has a substantial history of performing federal construction and engineering services. Analyzing their past performance on contracts of similar size and scope, particularly those involving renovations of maritime or aviation facilities for government agencies, would provide insight into their capabilities and reliability. A review of past performance evaluations and any documented issues or successes on previous projects would be crucial for assessing their suitability and risk profile for this specific contract. Their experience with firm fixed-price contracts and managing complex renovation projects is a key factor in evaluating their track record.

How does the awarded amount compare to the estimated cost or budget for this renovation project?

Without access to the original cost estimates or budget allocations for the renovation of NCRAD Hangar 5 and Pier 4, a direct comparison is challenging. However, the awarded amount of $17.8 million serves as a benchmark for the market's valuation of the required work. If the awarded price was significantly lower than initial estimates, it could indicate strong competition or efficient contractor bidding. Conversely, if it was higher, it might suggest underestimation of project complexity or scope. Further analysis would require comparing this figure against similar renovation projects undertaken by the Coast Guard or other federal agencies to ascertain if it represents a fair market price.

What are the primary risks associated with renovating aging maritime infrastructure like piers?

Renovating aging maritime infrastructure, such as piers, presents several inherent risks. These include the discovery of unforeseen structural deficiencies, environmental hazards (like contaminated sediments or asbestos), and the presence of unexploded ordnance in older port areas. Weather-related delays are also a significant concern, particularly in coastal regions. Furthermore, the logistical challenges of working in an active maritime environment, including managing vessel traffic and ensuring operational continuity for adjacent facilities, add complexity. The potential for encountering unexpected subsurface conditions or material degradation can lead to scope changes and cost overruns, even with a fixed-price contract.

What is the expected impact of these renovations on the U.S. Coast Guard's operational capabilities in Virginia?

The renovation of NCRAD Hangar 5 and Pier 4 is expected to significantly enhance the U.S. Coast Guard's operational capabilities in Virginia. Improved hangar facilities can lead to more efficient aircraft maintenance, quicker deployment readiness, and better protection for aviation assets. Upgraded pier infrastructure is crucial for the safe and effective berthing, maintenance, and deployment of Coast Guard vessels. These enhancements collectively contribute to increased operational readiness, improved safety standards, and potentially expanded mission capacity for the Coast Guard units operating from these facilities, thereby strengthening maritime security and response efforts in the region.

How has federal spending on construction and infrastructure maintenance evolved in recent years, and where does this contract fit?

Federal spending on construction and infrastructure maintenance has seen fluctuations driven by economic conditions, national security priorities, and legislative initiatives like infrastructure bills. In recent years, there has been a renewed focus on modernizing aging federal facilities and critical infrastructure. This $17.8 million contract for hangar and pier renovation fits within this broader trend of investing in essential government assets. It reflects the ongoing need to maintain and upgrade facilities that support vital national functions, such as maritime safety and security, which are core missions of the U.S. Coast Guard. Tracking overall federal outlays for similar construction projects can provide context for the scale and significance of this particular award.

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

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amec PLC (UEI: 229533856)

Address: ONE PLYMOUTH MEETING STE 850, PLYMOUTH MEETING, PA, 19462

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,795,826

Exercised Options: $17,795,826

Current Obligation: $17,795,826

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSCG4710D3EFK12

IDV Type: IDC

Timeline