Over $79M Awarded for NVWT Dry Bypass Bridge Foundations, Sole-Sourced to Suulutaq Inc

Contract Overview

Contract Amount: $79,012,591 ($79.0M)

Contractor: Suulutaaq Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-22

End Date: 2012-08-02

Contract Duration: 1,410 days

Daily Burn Rate: $56.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NVWT DRY BYPASS BRIDGE-FOUNDATIONS

Place of Performance

Location: NAPA, NAPA County, CALIFORNIA, 94558

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $79.0 million to SUULUTAAQ INC for work described as: NVWT DRY BYPASS BRIDGE-FOUNDATIONS Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Significant investment in heavy civil engineering construction for critical infrastructure. 3. Long contract duration of 1410 days suggests a complex and extensive project. 4. Firm Fixed Price contract type aims to control costs, but sole-sourcing may inflate the baseline. 5. Project located in California, potentially impacting local construction workforce and economy. 6. No indication of small business set-aside or subcontracting, suggesting larger prime contractor involvement.

Value Assessment

Rating: fair

The contract value of $79M for bridge foundations is substantial. Without comparable sole-source contracts for similar scale projects, a precise value-for-money assessment is difficult. The firm fixed price structure is a positive cost control measure, but the lack of competition raises concerns about whether the price reflects the best possible value. Benchmarking against publicly available data for large-scale civil engineering projects would be necessary for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not competed openly. This typically occurs when only one responsible source is available or capable of meeting the government's needs. The lack of competition means there were no other bidders to drive down prices through a bidding process, potentially leading to a higher cost for the government compared to a competed contract.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions typically achieved through competitive bidding, potentially resulting in a higher overall expenditure for this project.

Public Impact

The primary beneficiaries are the Department of the Army and potentially military operations requiring the completed bridge infrastructure. The service delivered is the construction of foundations for the NVWT Dry Bypass Bridge, a critical component of the overall project. The geographic impact is concentrated in California, where the bridge construction is taking place. Workforce implications include employment for construction workers, engineers, and project managers involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the justification for sole-sourcing requires further scrutiny.
Long contract duration increases exposure to potential cost overruns or scope creep, despite fixed-price nature.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Award to Suulutaq Inc. suggests they possess specialized capabilities for this unique project.
The project addresses a specific, identified need for critical infrastructure.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a significant part of the broader construction industry. This sector involves large-scale infrastructure projects such as bridges, highways, and dams. The market size for such projects is substantial, often involving significant government investment. This specific contract for bridge foundations is a foundational element of a larger transportation or military infrastructure initiative, fitting within the typical scope of federal spending in this area.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor is there information suggesting subcontracting opportunities for small businesses. This suggests that the prime contractor, Suulutaq Inc., is likely a large business capable of handling the entire scope of work. Consequently, this contract may not directly benefit the small business ecosystem within the construction sector, and there are no explicit mechanisms noted for small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed price. Transparency is limited due to the sole-source nature of the award, but contract details and performance reports should be accessible through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Base Construction
Transportation Infrastructure Projects
Heavy Civil Engineering Contracts
Department of Defense Procurement

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for higher cost due to lack of competition.
Limited transparency regarding the justification for sole-sourcing.
Long contract duration increases risk exposure.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.0 million to SUULUTAAQ INC. NVWT DRY BYPASS BRIDGE-FOUNDATIONS

Who is the contractor on this award?

The obligated recipient is SUULUTAAQ INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $79.0 million.

What is the period of performance?

Start: 2008-09-22. End: 2012-08-02.

What is the specific justification for the sole-source award to Suulutaq Inc. for the NVWT Dry Bypass Bridge foundations?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source justification. While the specific rationale is not detailed in the summary data, common reasons for sole-sourcing include unique capabilities of the contractor, urgent and compelling needs where only one source can fulfill the requirement, or situations where only one responsible source exists. For a project of this magnitude and specialization, it's plausible that Suulutaq Inc. possesses proprietary technology, specific expertise, or prior involvement that makes them the only viable option. A deeper dive into the Federal Procurement Data System (FPDS) or agency justifications would be required to ascertain the precise reasoning.

How does the $79 million contract value compare to similar bridge foundation projects, particularly those awarded on a sole-source basis?

Benchmarking the $79 million contract value for bridge foundations is challenging without more specific project details (e.g., size, complexity, materials, location specifics) and comparable sole-source awards. Large-scale bridge foundation projects can vary significantly in cost. However, sole-source awards are generally expected to be higher than competitively bid contracts due to the absence of price pressure from multiple bidders. To provide a meaningful comparison, one would need to identify other sole-source contracts for bridge foundations of similar scale and complexity, or analyze the cost components against industry standards for foundation engineering and construction. The firm fixed-price nature suggests an attempt to cap costs, but the initial price point set without competition is the primary concern for value.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?

While specific KPIs are not detailed in the summary data, typical performance indicators for such a construction contract would include adherence to schedule (1410-day duration), quality of work (meeting engineering specifications), safety compliance, and budget management. Risk mitigation strategies are partially addressed by the Firm Fixed Price (FFP) contract type, which shifts cost overrun risk to the contractor. However, risks associated with sole-sourcing (potential overpricing), unforeseen site conditions, material availability, and labor shortages remain. The government would likely employ project oversight, regular progress reviews, and quality assurance checks to mitigate these risks. The long duration also necessitates robust contract management to prevent scope creep.

What is the historical spending pattern for Suulutaq Inc. with the Department of the Army or similar agencies?

Analyzing Suulutaq Inc.'s historical spending patterns with the Department of the Army and other federal agencies is crucial for assessing their track record and reliability. Without access to a comprehensive contract history database, it's difficult to provide specific figures. However, the fact that they were awarded a sole-source contract of this magnitude suggests they have likely performed successfully on previous government contracts, demonstrating the necessary capabilities and reliability. Further investigation into their contract awards, performance ratings (e.g., Contractor Performance Assessment Reporting System - CPARS), and past projects would reveal trends in their award types (competitive vs. sole-source), contract values, and performance history.

What is the potential impact of this contract on the broader construction market in California, particularly for bridge infrastructure?

This $79 million contract represents a significant investment in bridge infrastructure in California. Its sole-source nature means that other qualified construction firms in California did not have the opportunity to bid on this specific project, potentially impacting their business development pipeline. However, the project itself will stimulate economic activity through job creation (engineers, construction labor, material suppliers) and the use of local resources. The long duration suggests sustained economic impact over several years. The success and execution of this project could also influence future contracting strategies for similar large-scale infrastructure needs within the state and for the Department of Defense.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9123808R0024

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4300 B ST STE 205, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $79,189,009

Exercised Options: $79,012,591

Current Obligation: $79,012,591

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline