Army Awards $58.7M Echo Pier Restoration Contract to Arkel International at Kwajalein Atoll
Contract Overview
Contract Amount: $58,728,987 ($58.7M)
Contractor: Arkel International, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2016-07-28
End Date: 2026-11-05
Contract Duration: 3,752 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY14 MCA PN057797 ECHO PIER RESTORATION, U.S. ARMY KWAJALEIN ATOLL (USAKA), REPUBLIC OF THE MARSHALL ISLANDS IGF::OT::IGF
Place of Performance
Location: MARSHALL ISLANDS, 96555
Plain-Language Summary
Department of Defense obligated $58.7 million to ARKEL INTERNATIONAL, L.L.C. for work described as: FY14 MCA PN057797 ECHO PIER RESTORATION, U.S. ARMY KWAJALEIN ATOLL (USAKA), REPUBLIC OF THE MARSHALL ISLANDS IGF::OT::IGF Key points: 1. Significant investment in critical infrastructure at a remote U.S. Army installation. 2. Arkel International, a single awardee, faces no direct competition on this contract. 3. Long contract duration (2016-2026) may present risks related to cost escalation and scope creep. 4. Construction sector spending benchmark for similar projects needs further analysis.
Value Assessment
Rating: fair
The contract value of $58.7M over approximately 10 years suggests a substantial project. Benchmarking against similar large-scale construction projects in remote or challenging environments is necessary to fully assess pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the single awardee suggests Arkel International was the sole successful bidder, and the price discovery mechanism relies on the initial bid.
Taxpayer Impact: Taxpayer funds are allocated for essential infrastructure maintenance and improvement, aiming for long-term asset preservation.
Public Impact
Restoration of vital pier infrastructure at a key strategic location. Ensures continued operational capability for U.S. Army assets and personnel. Potential for economic activity in the Republic of the Marshall Islands through contract execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases risk of cost overruns.
- Remote location may lead to logistical challenges and higher costs.
- Lack of ongoing competition limits price pressure.
Positive Signals
- Essential infrastructure project with clear military necessity.
- Awarded under full and open competition.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. The significant value and remote location at Kwajalein Atoll are key contextual factors. Benchmarking against similar large-scale, geographically isolated construction projects is crucial for cost evaluation.
Small Business Impact
The data indicates that small business participation was not a stated factor in this contract award, as the 'sb' field is false. Further investigation would be needed to determine if subcontracting opportunities were pursued or available.
Oversight & Accountability
Oversight will be critical given the contract's long duration and remote location. The Department of the Army's contracting officer representatives will need to ensure adherence to scope, quality, and budget throughout the project lifecycle.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (10 years)
- Remote location (Marshall Islands)
- Single awardee (limited competition)
- Potential for cost escalation
- Logistical challenges
Tags
commercial-and-institutional-building-co, department-of-defense, mh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.7 million to ARKEL INTERNATIONAL, L.L.C.. FY14 MCA PN057797 ECHO PIER RESTORATION, U.S. ARMY KWAJALEIN ATOLL (USAKA), REPUBLIC OF THE MARSHALL ISLANDS IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is ARKEL INTERNATIONAL, L.L.C..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $58.7 million.
What is the period of performance?
Start: 2016-07-28. End: 2026-11-05.
What specific construction challenges are anticipated at Kwajalein Atoll that justify the project's scale and duration?
Kwajalein Atoll's remote island location presents unique logistical hurdles, including transportation of materials and personnel, limited local resources, and potential environmental considerations. These factors often contribute to longer project timelines and increased costs compared to mainland construction. Understanding the specific environmental conditions and existing infrastructure limitations will be key to assessing the justification for the project's scale and duration.
How will the Army ensure cost control and prevent scope creep over the 10-year contract period?
Effective cost control and scope management will rely on robust contract administration. This includes detailed performance metrics, regular progress reviews, and strict change order management processes. The Army should implement phased funding releases tied to milestones and conduct independent cost estimates periodically to validate expenditures against market rates and project progress.
What is the long-term strategic importance of the Echo Pier at Kwajalein Atoll, and how does this contract support it?
The Echo Pier likely serves as a critical logistical hub for military operations, research, and personnel support at Kwajalein Atoll, a key U.S. strategic missile defense testing site. Restoring and maintaining this infrastructure ensures the continued operational readiness and effectiveness of U.S. forces and assets in the Indo-Pacific region. This contract directly supports that mission by preserving a vital piece of national defense infrastructure.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: W9128A16B0002
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1055 CONVENTION ST, BATON ROUGE, LA, 70802
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,728,987
Exercised Options: $58,728,987
Current Obligation: $58,728,987
Actual Outlays: $426,273
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-07-28
Current End Date: 2026-11-05
Potential End Date: 2026-11-05 00:00:00
Last Modified: 2025-07-14
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