DoD Awards $15M Construction Contract to Port of Portland for Heavy Engineering

Contract Overview

Contract Amount: $15,000,000 ($15.0M)

Contractor: Port of Portland

Awarding Agency: Department of Defense

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $41.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: Construction

Official Description: W66QKZ51926243

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to PORT OF PORTLAND for work described as: W66QKZ51926243 Key points: 1. The contract is for heavy and civil engineering construction. 2. The award was not competed, raising questions about price discovery. 3. The duration is 364 days, suggesting a project-specific need. 4. The Port of Portland is the contractor, a non-traditional defense supplier.

Value Assessment

Rating: questionable

The contract type is 'COST NO FEE' with zero obligated amount initially, making a direct pricing assessment difficult. Benchmarking is challenging without a clear cost structure or fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have limited price discovery and potentially led to a higher cost for taxpayers.

Taxpayer Impact: The absence of competition raises concerns about whether the government secured the best possible price for this construction project.

Public Impact

Potential for increased infrastructure in Oregon. Non-traditional defense contractor involvement. Questions regarding fair pricing due to lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Unclear cost structure
Non-traditional contractor

Positive Signals

Potential infrastructure improvement
Support for regional development

Sector Analysis

This contract falls under heavy and civil engineering construction, a sector often involving large-scale projects. Benchmarks for similar DoD construction contracts vary widely based on scope and location.

Small Business Impact

There is no indication that small businesses were involved in this specific award, as it was awarded directly to the Port of Portland.

Oversight & Accountability

The lack of competition warrants further oversight to ensure the final cost is justified and that appropriate procurement regulations were followed.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns without a fee incentive
Limited transparency on cost justification
Non-traditional supplier may require additional oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to PORT OF PORTLAND. W66QKZ51926243

Who is the contractor on this award?

The obligated recipient is PORT OF PORTLAND.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award would typically involve unique capabilities, urgent needs, or a lack of other qualified sources. Without further details, it's difficult to assess the validity of this approach. Further investigation into the specific requirements and market research conducted is needed to understand why competition was bypassed.

How will the cost-plus-no-fee structure ensure value for the taxpayer?

A cost-plus-no-fee contract means the contractor is reimbursed for allowable costs but receives no additional fee. While this structure can incentivize cost control, the absence of competition makes it harder to benchmark the 'allowable costs' against market rates. Oversight is crucial to ensure costs are reasonable and necessary.

What is the expected impact of this construction on regional infrastructure and military readiness?

The impact depends on the specific nature of the heavy and civil engineering work. If it enhances critical port facilities or supporting infrastructure, it could improve logistical capabilities for the military and benefit regional economic development. The duration suggests a significant, but not indefinite, project.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Port of Portland (INC)

Address: 7200 NE AIRPORT WAY, PORTLAND, OR, 97218

Business Categories: U.S. Government Authorities, Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,360,583

Exercised Options: $28,360,583

Current Obligation: $15,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127N17D0002

IDV Type: IDC

Timeline