Tutor Perini Corp. awarded $20.4M for Kodiak housing construction by U.S. Coast Guard

Contract Overview

Contract Amount: $20,356,240 ($20.4M)

Contractor: Tutor Perini Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2014-04-01

End Date: 2016-10-01

Contract Duration: 914 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: KODIAK HOUSING CONSTRUCTION, UPPER GOVERNMENT HILL, BASE KODIAK. IGF::OT::IGF

Place of Performance

Location: KODIAK, KODIAK ISLAND County, ALASKA, 99615

State: Alaska Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.4 million to TUTOR PERINI CORPORATION for work described as: KODIAK HOUSING CONSTRUCTION, UPPER GOVERNMENT HILL, BASE KODIAK. IGF::OT::IGF Key points: 1. Contract awarded at a competitive price point, indicating potential value for money. 2. Full and open competition suggests a robust market for these construction services. 3. The fixed-price contract type helps mitigate cost overrun risks. 4. Project duration of 914 days indicates a significant construction undertaking. 5. Geographic focus on Alaska may present unique logistical and environmental challenges. 6. The contract falls within the broader Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $20.4 million for housing construction appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for government entities in remote or challenging environments would provide a more precise value assessment. The firm fixed-price structure suggests that the contractor assumed the primary risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a healthy level of competition for this project. This competitive environment is expected to drive more favorable pricing and terms for the U.S. Coast Guard.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible price and quality for the housing construction.

Public Impact

Servicemembers and their families stationed at U.S. Coast Guard Base Kodiak will benefit from improved housing. The project delivers essential infrastructure development in the form of new housing units. The geographic impact is concentrated in Kodiak, Alaska, addressing specific base needs. The construction activities will likely involve a local and regional workforce, providing employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise in Alaska's challenging environment.
Logistical complexities of delivering materials and personnel to a remote island location.
Ensuring compliance with stringent environmental regulations specific to Alaska.
Potential for delays due to weather conditions impacting construction schedules.
Ensuring the quality of construction meets long-term durability standards in a harsh climate.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Full and open competition likely resulted in a competitive bid and fair market price.
Award to an established contractor (Tutor Perini Corporation) suggests a degree of reliability.
Project addresses a critical need for housing at a military installation.
The U.S. Coast Guard has a clear requirement and oversight for this construction.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on government facilities. The market for large-scale construction, particularly in remote or specialized locations like military bases, is often characterized by a few large, experienced contractors. Government spending in this sector is substantial, driven by the need for infrastructure maintenance, upgrades, and new construction across various agencies.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Tutor Perini Corporation is a large prime contractor. There is no explicit information on subcontracting plans for small businesses, but large federal construction projects often include subcontracting opportunities, which could benefit small businesses in the Alaska region if included in the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting office and potentially the Department of Homeland Security's Office of Inspector General. The firm fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Military Construction (MILCON)
Base Realignment and Closure (BRAC) Projects
Department of Defense Housing Programs
Federal Buildings and Facilities Construction

Risk Flags

Potential for cost increases due to remote location logistics.
Risk of weather-related delays impacting project timeline.
Need for stringent environmental compliance in Alaska.
Ensuring long-term durability of construction in harsh climate.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.4 million to TUTOR PERINI CORPORATION. KODIAK HOUSING CONSTRUCTION, UPPER GOVERNMENT HILL, BASE KODIAK. IGF::OT::IGF

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 $20.4 million.

What is the period of performance?

Start: 2014-04-01. End: 2016-10-01.

What is Tutor Perini Corporation's track record with similar federal construction contracts, particularly in remote or challenging environments?

Tutor Perini Corporation has a significant history of undertaking large-scale construction projects for various government agencies, including military and civilian infrastructure. Their portfolio includes complex projects in diverse geographical locations, often involving challenging logistical and environmental conditions. While specific details on past performance for U.S. Coast Guard housing in Alaska are not provided here, their general experience suggests a capacity to manage such endeavors. A deeper dive into their contract history, including any past performance evaluations or disputes on similar projects, would offer more insight into their reliability for this specific Kodiak housing construction.

How does the awarded price of $20.4 million compare to the estimated cost or benchmark for similar housing construction projects in Alaska?

Without access to the government's cost estimates or detailed market data for construction in Kodiak, Alaska, a precise benchmark comparison is difficult. However, $20.4 million for housing construction over approximately two years (914 days) suggests a substantial project. Factors such as the remote location, potential need for specialized materials, labor costs in Alaska, and the specific requirements for military housing would influence the overall cost. Generally, construction in remote areas like Alaska tends to be more expensive than in the continental U.S. due to logistical challenges and higher labor rates. The competitive nature of the award (3 bidders) implies the price was acceptable to multiple firms, suggesting it aligns with market expectations for such a project.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include logistical challenges in delivering materials and personnel to Kodiak, potential weather delays impacting the construction schedule, and unforeseen site conditions common in remote or environmentally sensitive areas. Mitigation strategies likely involve detailed project planning, robust supply chain management, contingency planning for weather disruptions, and thorough site investigations prior to and during construction. The firm fixed-price contract also mitigates financial risk for the government by transferring cost overrun responsibility to the contractor, provided the scope remains unchanged. The U.S. Coast Guard's oversight and quality assurance processes are crucial for monitoring progress and ensuring compliance.

What is the expected impact of this housing construction on the operational readiness and morale of the U.S. Coast Guard personnel in Kodiak?

Improved housing is directly linked to enhanced morale and quality of life for service members and their families. Adequate, modern, and well-maintained housing can reduce personnel turnover, increase job satisfaction, and contribute to overall mission readiness. For personnel stationed at a remote location like Kodiak, Alaska, the availability of quality family housing is a significant factor in recruitment and retention. This project addresses a fundamental need, ensuring that Coast Guard members have a stable and comfortable living environment, thereby supporting their ability to focus on critical operational duties.

How does this contract fit into the broader context of U.S. Coast Guard infrastructure investments in Alaska?

This contract represents a specific investment in essential personnel infrastructure at a key U.S. Coast Guard installation in Alaska. The Coast Guard maintains a significant presence in Alaska due to the region's strategic importance for maritime security, search and rescue, and environmental protection. Investments in facilities, including housing, are critical for maintaining and enhancing operational capabilities in this demanding environment. This project likely complements other infrastructure projects aimed at modernizing or expanding the base's capacity to support its missions effectively in the challenging Alaskan theater.

What are the potential long-term implications for the local economy and workforce in Kodiak resulting from this construction project?

The construction project is expected to provide a short-to-medium term economic stimulus to the Kodiak area through direct employment of construction workers, as well as indirect support for local businesses providing materials, services, and accommodations. Depending on the prime contractor's subcontracting strategy, local small businesses may have opportunities to participate. The completion of the housing units will also contribute to the long-term infrastructure of the base, potentially influencing future personnel assignments and the associated economic activity generated by Coast Guard families residing in the community.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 73 MT WAYTE AVE, FRAMINGHAM, MA, 01702

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,356,240

Exercised Options: $20,356,240

Current Obligation: $20,356,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCG4709D3EFK23

IDV Type: IDC

Timeline