Navy awards $20.8M contract for portal crane rail repairs to Methuen Construction Co Inc

Contract Overview

Contract Amount: $20,785,970 ($20.8M)

Contractor: Methuen Construction CO Inc

Awarding Agency: Department of Defense

Start Date: 2020-06-24

End Date: 2024-02-26

Contract Duration: 1,342 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RM17-0252 DD2 PORTAL CRANE RAIL REPAIRS

Place of Performance

Location: KITTERY, YORK County, MAINE, 03904

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to METHUEN CONSTRUCTION CO INC for work described as: RM17-0252 DD2 PORTAL CRANE RAIL REPAIRS Key points: 1. Contract value appears reasonable for specialized heavy construction, but requires benchmarking against similar infrastructure projects. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The contract duration of over three years indicates a significant, long-term infrastructure need. 4. Fixed-price contract type shifts risk to the contractor, which can be beneficial for cost certainty. 5. The project's focus on essential port infrastructure highlights its importance for naval operations. 6. Geographic location in Maine may influence labor costs and material availability.

Value Assessment

Rating: good

The contract value of $20.8 million for portal crane rail repairs is substantial. Without specific details on the scope of work, it's challenging to benchmark precisely. However, for large-scale civil engineering projects involving specialized equipment repair and maintenance, this figure could represent fair market value, especially considering the duration and potential complexity. Further analysis would involve comparing this cost to similar Navy or Army Corps of Engineers projects for port infrastructure maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions to secure the award. The presence of two bids suggests a moderate level of competition for this specific project.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices, maximizing the value of federal dollars spent.

Public Impact

The primary beneficiary is the Department of the Navy, ensuring the operational readiness of port facilities. Services delivered include the repair and maintenance of critical portal crane rail infrastructure. The project has a geographic impact in Maine, supporting local infrastructure and potentially local employment. Workforce implications include the need for skilled construction labor, potentially benefiting the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen repair complexities arise, despite the firm-fixed-price structure.
Dependence on a single contractor for a multi-year project could lead to reduced leverage if issues emerge.
The limited number of bids (2) might indicate a niche market or specific pre-qualification requirements that could be explored.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
The project addresses essential infrastructure, crucial for maintaining operational capabilities.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to port and maritime infrastructure. The North American Industry Classification System (NAICS) code 237990, 'Other Heavy and Civil Engineering Construction,' encompasses a broad range of non-residential heavy construction projects. Spending in this sector is often driven by government infrastructure needs, particularly for defense, transportation, and trade facilitation. Comparable spending benchmarks would involve looking at other large-scale port maintenance and repair contracts awarded by federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Methuen Construction Co Inc. is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award notice. Further investigation into the contractor's subcontracting history and goals would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and project management officials. As a definitive contract awarded under full and open competition, it is subject to standard federal procurement regulations and oversight. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Base Infrastructure Modernization
Port and Terminal Operations Support
Heavy Equipment Maintenance Contracts
Federal Civil Engineering Projects
Department of Defense Construction Awards

Risk Flags

Potential for schedule delays impacting operational readiness.
Risk of unforeseen complexities in repair work affecting final cost.
Limited competition (2 bidders) may warrant further review of market dynamics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to METHUEN CONSTRUCTION CO INC. RM17-0252 DD2 PORTAL CRANE RAIL REPAIRS

Who is the contractor on this award?

The obligated recipient is METHUEN CONSTRUCTION CO 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 $20.8 million.

What is the period of performance?

Start: 2020-06-24. End: 2024-02-26.

What is the track record of Methuen Construction Co Inc. with federal contracts, particularly with the Department of Defense?

Methuen Construction Co Inc. has a history of receiving federal contracts, primarily with the Department of Defense and other agencies involved in infrastructure projects. Reviewing their past performance on similar projects, especially those involving heavy construction, port facilities, or specialized equipment repair, would provide insight into their reliability, quality of work, and adherence to schedules and budgets. Analyzing their award history can reveal patterns in contract types, values, and agencies served, helping to contextualize their capabilities and experience relevant to the portal crane rail repair contract.

How does the awarded amount of $20.8 million compare to similar portal crane rail repair contracts or other heavy civil engineering projects for port infrastructure?

Benchmarking the $20.8 million award requires comparing it against similar projects. Without specific details on the scope, duration, and location of comparable contracts, a precise comparison is difficult. However, for large-scale infrastructure repairs involving specialized heavy equipment like portal cranes, this figure could be within a reasonable range. Factors such as the extent of rail replacement, foundation work, labor costs in Maine, and the specific technical requirements of the Navy's portal cranes would influence the total cost. Researching other Department of Defense or Army Corps of Engineers contracts for port facility maintenance and repair, particularly those awarded in the last few years, would provide a more robust comparison.

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

Key risks include potential cost overruns due to unforeseen site conditions or complexities in the rail repair, schedule delays impacting naval operations, and contractor performance issues. The firm-fixed-price contract type mitigates cost overrun risk for the government by placing that burden on the contractor. However, the government still bears the risk of schedule delays and potential quality deficiencies. Mitigation strategies typically involve robust contract oversight, clear performance standards, regular progress reviews, and potentially liquidated damages clauses for delays. The contractor's experience and the competitive bidding process also serve as risk mitigation factors.

What is the historical spending pattern for portal crane rail repairs or similar port infrastructure maintenance by the Department of the Navy?

Historical spending on portal crane rail repairs and similar port infrastructure maintenance by the Department of the Navy can vary significantly based on the number of facilities, the age of the infrastructure, and modernization initiatives. Analyzing past spending trends would involve examining federal procurement data (like FPDS) for contracts related to port maintenance, heavy equipment repair, and civil engineering at naval installations. This could reveal cyclical spending patterns, identify specific bases with recurring needs, and highlight the average contract values and durations for such services. Understanding this history helps in forecasting future needs and budgeting appropriately.

What is the significance of the 'Other Heavy and Civil Engineering Construction' NAICS code (237990) in the context of federal spending?

The NAICS code 237990, 'Other Heavy and Civil Engineering Construction,' is significant as it captures a broad category of large-scale construction projects that do not fit into more specific categories like highway construction or water treatment facilities. Federal agencies, particularly the Department of Defense, Department of Transportation, and Army Corps of Engineers, frequently utilize this code for projects involving ports, dams, power plants, pipelines, and other critical infrastructure. Spending under this code often represents substantial investments in national infrastructure, supporting economic activity and national security.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008520R0069

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 144 MAIN ST, PLAISTOW, NH, 03865

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

Financial Breakdown

Contract Ceiling: $20,785,970

Exercised Options: $20,785,970

Current Obligation: $20,785,970

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline