Army awards $399M contract for Port of Nome infrastructure, with Kiewit Infrastructure West as prime

Contract Overview

Contract Amount: $399,443,425 ($399.4M)

Contractor: Kiewit Infrastructure West CO.

Awarding Agency: Department of Defense

Start Date: 2025-08-28

End Date: 2029-09-05

Contract Duration: 1,469 days

Daily Burn Rate: $271.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PORT OF NOME MODIFICATION PHASE 1A, NOME, ALASKA

Place of Performance

Location: NOME, NOME County, ALASKA, 99762

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $399.4 million to KIEWIT INFRASTRUCTURE WEST CO. for work described as: PORT OF NOME MODIFICATION PHASE 1A, NOME, ALASKA Key points: 1. Contract focuses on significant infrastructure development in a strategic Arctic location. 2. The award represents a substantial investment in port modernization and expansion. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration spans over five years, indicating a long-term commitment. 5. Geographic focus on Alaska highlights the strategic importance of the region.

Value Assessment

Rating: fair

The contract value of $399.4 million for port infrastructure development is substantial. Benchmarking this against similar large-scale civil engineering projects is challenging due to the unique Arctic location and specific scope. However, the firm fixed-price nature suggests an attempt to lock in costs. Further analysis would require comparing the unit costs of specific construction elements (e.g., per cubic yard of dredging, per linear foot of pier) to industry standards for similar, albeit less remote, projects.

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. This competitive process is generally expected to yield a fair market price. The number of bids received and the bid spread would provide further insight into the intensity of the competition and its impact on pricing.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive offers.

Public Impact

The primary beneficiaries are the Department of Defense and the state of Alaska, through enhanced logistical capabilities and economic development. Services delivered include significant construction and engineering work for port expansion. The geographic impact is concentrated in Nome, Alaska, with broader implications for Arctic maritime access. Workforce implications may include job creation in construction and related support services in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the complexity and remoteness of Arctic construction.
Logistical challenges in sourcing materials and labor to a remote Alaskan location.
Environmental considerations and permitting complexities in an ecologically sensitive area.

Positive Signals

Strategic importance of the Port of Nome for national security and economic interests in the Arctic.
Firm fixed-price contract structure provides cost certainty for the government.
Award to a known infrastructure contractor (Kiewit) suggests experience with large projects.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on port and maritime infrastructure. The market for such specialized construction, particularly in remote and challenging environments like the Arctic, is limited. The Port of Nome's development is critical for enhancing U.S. presence and operational capacity in a strategically vital region, supporting both defense and commercial interests.

Small Business Impact

The contract details do not indicate a specific small business set-aside. Given the scale and specialized nature of the work, it is likely that Kiewit Infrastructure West Co. will engage subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the broader small business ecosystem in Alaska.

Oversight & Accountability

Oversight will likely be managed by the contracting officer and relevant Army Corps of Engineers personnel. Transparency is expected through contract award databases and potentially public reporting on project milestones. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Arctic Port Development Projects
Military Construction Projects
Heavy Civil Engineering Contracts
Department of Defense Infrastructure Modernization

Risk Flags

Arctic Logistics Complexity
Environmental Permitting Risk
Weather-Dependent Construction Schedule
Potential for Cost Overruns (despite FFP)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $399.4 million to KIEWIT INFRASTRUCTURE WEST CO.. PORT OF NOME MODIFICATION PHASE 1A, NOME, ALASKA

Who is the contractor on this award?

The obligated recipient is KIEWIT INFRASTRUCTURE WEST CO..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $399.4 million.

What is the period of performance?

Start: 2025-08-28. End: 2029-09-05.

What is Kiewit Infrastructure West Co.'s track record with large-scale federal construction projects, particularly in remote or challenging environments?

Kiewit Infrastructure West Co. has a significant track record with large-scale federal construction projects. They are a major player in heavy civil engineering and infrastructure development across North America. Their portfolio includes numerous projects for the Department of Defense, Department of the Interior, and other federal agencies, often involving complex logistics and challenging environmental conditions. Examples include major bridge constructions, highway projects, and port facilities. Their experience in Alaska, while not explicitly detailed for this specific contract, is likely substantial given their presence and capabilities in the region. A deeper dive into their past performance ratings and any past performance issues on similar projects would provide further context for this award.

How does the $399.4 million cost compare to similar port development projects, considering the unique Arctic location?

Direct cost comparisons for port development projects are difficult due to the highly variable factors involved, including location, scope, environmental conditions, and specific infrastructure needs. The $399.4 million award for the Port of Nome Modification Phase 1A is substantial, reflecting the significant engineering and construction required. Projects in remote Arctic regions inherently incur higher costs due to logistical challenges, specialized equipment needs, shorter construction seasons, and potentially higher labor rates. While benchmark data for comparable Arctic port projects is scarce, this figure should be assessed against the specific deliverables outlined in the contract and Kiewit's proposed approach. The firm fixed-price nature suggests that the government has sought to cap these costs, but the underlying unit costs would need to be evaluated against industry standards for similar, albeit less remote, heavy civil engineering work.

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

The primary risks associated with this contract include logistical challenges in delivering materials and personnel to Nome, Alaska, potential environmental impacts and permitting delays in an ecologically sensitive Arctic region, and the inherent complexities of large-scale marine construction. Weather-related delays and the short construction season are also significant risks. Mitigation strategies likely involve detailed logistical planning, early engagement with environmental regulators, robust safety protocols, and contingency planning for weather disruptions. The firm fixed-price contract structure also shifts some of the cost-overrun risk to the contractor, Kiewit Infrastructure West Co., incentivizing them to manage these risks effectively. The government's oversight will be crucial in monitoring progress and addressing emerging issues.

What is the expected impact of this contract on the economic development and workforce in Nome and the surrounding Alaskan region?

This contract is expected to have a significant positive impact on the economic development and workforce in Nome and the broader Alaskan region. The substantial investment in infrastructure will create numerous jobs in construction, engineering, and related support services. Local businesses may benefit from supplying materials, equipment, and services to the prime contractor and its subcontractors. Furthermore, the improved port facilities will enhance Nome's capacity as a logistical hub, potentially attracting further investment and commercial activity. This could lead to long-term economic growth and diversification for the region, improving its resilience and connectivity.

How does the duration of the contract (over five years) align with the scope of work and potential future phases of the Port of Nome development?

The contract duration of approximately five years (from award date to estimated completion) aligns with the significant scope of work for Phase 1A of the Port of Nome Modification. Large-scale civil engineering projects, especially those in challenging environments, require extensive planning, execution, and potential adjustments. This duration suggests a phased approach to construction, allowing for the completion of critical elements while potentially accommodating unforeseen challenges. It also implies that this phase is likely part of a larger, multi-phase development plan for the port, with subsequent phases potentially building upon the infrastructure established in Phase 1A. The extended timeline provides stability for the contractor and allows for methodical execution.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911KB25RA006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2200 COLUMBIA HOUSE BLVD, VANCOUVER, WA, 98661

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

Financial Breakdown

Contract Ceiling: $399,443,425

Exercised Options: $399,443,425

Current Obligation: $399,443,425

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline