Navy awards $90.6M contract for pier replacement and distribution upgrades in Virginia

Contract Overview

Contract Amount: $90,600,265 ($90.6M)

Contractor: Weeks Marine Inc

Awarding Agency: Department of Defense

Start Date: 2006-09-29

End Date: 2010-04-09

Contract Duration: 1,288 days

Daily Burn Rate: $70.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P391, PIER 3 REPLACEMENT AND GOSPORT 35KV DISTRIBUTION TO PIERS

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23709

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $90.6 million to WEEKS MARINE INC for work described as: P391, PIER 3 REPLACEMENT AND GOSPORT 35KV DISTRIBUTION TO PIERS Key points: 1. Contract value represents a significant investment in naval infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of work. 3. Contract duration of 1288 days indicates a complex, long-term project. 4. The project's focus on critical infrastructure highlights its importance to naval operations. 5. Fixed-price contract type aims to control costs and manage financial risk. 6. The award to Weeks Marine Inc. suggests their capability in large-scale civil engineering projects.

Value Assessment

Rating: good

The contract value of $90.6 million for pier replacement and electrical distribution upgrades appears reasonable for a project of this scale and complexity, spanning over three years. Benchmarking against similar large-scale civil engineering and construction projects for naval facilities suggests that the pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor. Without specific cost breakdowns or detailed comparisons to identical projects, a precise value-for-money assessment is challenging, but the competitive award process likely contributed to a fair price.

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 bids. The presence of two bidders suggests a moderate level of competition for this significant infrastructure project. While two bidders are better than one, a higher number of bids could potentially drive prices down further and offer a wider range of technical solutions. The competition level here implies that the Navy received at least two viable proposals, allowing for a selection based on a balance of price and technical merit.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions. The presence of multiple bidders helps ensure that the government is not overpaying and receives the best value for its investment.

Public Impact

Naval operations in Virginia will benefit from modernized and reliable pier infrastructure. The project delivers essential upgrades to the 35kV electrical distribution system, enhancing power reliability. The geographic impact is concentrated in Virginia, supporting naval installations in the region. The construction activities will likely create temporary employment opportunities for skilled labor in the civil engineering and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the project's duration and complexity.
Risk of unforeseen site conditions impacting costs and timelines.
Ensuring compliance with environmental regulations during construction.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded under full and open competition, suggesting a competitive process.
Project addresses critical infrastructure needs for naval readiness.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to marine construction and infrastructure. This sector is characterized by large-scale projects requiring specialized equipment, expertise, and significant capital investment. The market for naval infrastructure projects is often dominated by a few large, experienced contractors capable of handling the complexity and security requirements. Spending in this area is driven by the need to maintain and modernize aging military facilities to ensure operational readiness and safety.

Small Business Impact

The contract was awarded under full and open competition and does not appear to have a specific small business set-aside. The prime contractor, Weeks Marine Inc., is a large business. While there is no direct set-aside, the contract may include provisions for subcontracting opportunities for small businesses, which is common in large federal construction projects. The extent of small business participation would depend on the prime contractor's subcontracting plan and the availability of qualified small businesses for specific scopes of work.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and project management offices. The firm-fixed-price nature of the contract provides a degree of financial oversight by establishing a ceiling cost. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance or closeout.

Related Government Programs

Naval Base Infrastructure Modernization
Military Construction Projects
Port and Harbor Improvements
Defense Infrastructure Contracts
Public Works and Utilities Construction

Risk Flags

Long project duration increases risk of delays and cost escalation.
Potential for unforeseen environmental or geological conditions.
Dependence on a single prime contractor for complex, integrated work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.6 million to WEEKS MARINE INC. P391, PIER 3 REPLACEMENT AND GOSPORT 35KV DISTRIBUTION TO PIERS

Who is the contractor on this award?

The obligated recipient is WEEKS MARINE INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $90.6 million.

What is the period of performance?

Start: 2006-09-29. End: 2010-04-09.

What is the track record of Weeks Marine Inc. in performing similar large-scale naval infrastructure projects?

Weeks Marine Inc. has a substantial history of undertaking large-scale marine construction and civil engineering projects, including those for government and military clients. Their portfolio often features dredging, port development, bridge construction, and marine facility upgrades. While specific details on past naval pier replacement projects would require deeper research into their contract history, their experience in complex marine environments and with large federal contracts suggests they possess the necessary capabilities. Reviewing past performance evaluations and project completion records would provide a more definitive assessment of their suitability for this specific type of work.

How does the awarded amount of $90.6 million compare to the estimated cost or budget for this pier replacement and distribution upgrade project?

Without access to the government's original cost estimates or budget allocations for this specific project, it is difficult to definitively state how the $90.6 million award compares. However, the fact that it was awarded under full and open competition with two bidders suggests that the award price was likely within a reasonable range of the government's expectations and the bidders' cost structures. If the award was significantly below the estimate, it might indicate aggressive bidding or potential underestimation of scope by the bidders. Conversely, if it was close to or slightly above the estimate, it could reflect the true cost of the complex work involved.

What are the primary risks associated with a project of this magnitude and duration (1288 days)?

Projects of this magnitude and duration, such as the $90.6 million pier replacement and distribution upgrade, carry several inherent risks. These include potential schedule delays due to unforeseen site conditions (e.g., subsurface obstructions, environmental issues), weather impacts, or labor shortages. Cost overruns are also a risk, particularly with firm-fixed-price contracts, if the contractor underestimates complexity or encounters unexpected challenges. Furthermore, there's a risk of scope creep if requirements evolve during the project, and ensuring consistent quality and adherence to safety and environmental regulations over an extended period requires robust oversight.

What is the expected impact of these infrastructure upgrades on the Navy's operational readiness in Virginia?

The replacement of aging piers and the upgrade of the 35kV electrical distribution system are critical for maintaining and enhancing the Navy's operational readiness in Virginia. Modernized piers provide safer and more efficient berthing for vessels, supporting maintenance, repair, and deployment operations. Reliable electrical infrastructure is essential for powering onboard systems, shore facilities, and command and control functions. These upgrades reduce the risk of service disruptions, improve safety, and ensure that naval assets can operate effectively and efficiently from these key installations.

How has federal spending on naval infrastructure, particularly pier construction and upgrades, trended in recent years?

Federal spending on naval infrastructure, including pier construction and upgrades, has generally been a consistent priority, driven by the need to maintain aging facilities and adapt to evolving naval requirements. While specific annual figures fluctuate based on budget allocations and project pipelines, there has been a sustained focus on modernizing ports and bases to support fleet readiness and new vessel classes. Spending often increases during periods of heightened geopolitical tension or when significant fleet recapitalization efforts are underway. Data from sources like the Congressional Research Service or the Department of Defense's own budget justifications would provide detailed historical spending trends.

What are the key performance indicators (KPIs) likely used to evaluate the success of this contract?

Key performance indicators (KPIs) for this contract would likely include adherence to schedule (on-time completion of milestones and final delivery), cost control (staying within the firm-fixed-price), quality of work (meeting specified standards and technical requirements), safety performance (minimizing accidents and incidents), and environmental compliance. For infrastructure projects, successful completion of all specified construction elements, functionality of the new piers and distribution systems, and minimal disruption to ongoing naval operations would also be critical measures of success.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: N4008506B6023

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4 COMMERCE DR, CRANFORD, NJ, 07016

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

Financial Breakdown

Contract Ceiling: $90,600,265

Exercised Options: $90,600,265

Current Obligation: $90,600,265

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline