Department of the Navy awards $11.5M for building renovations, highlighting construction sector activity

Contract Overview

Contract Amount: $11,504,070 ($11.5M)

Contractor: Construction Development Services Inc.

Awarding Agency: Department of Defense

Start Date: 2012-02-08

End Date: 2015-03-26

Contract Duration: 1,142 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 33

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING Z-140 INTERIOR RENOVATIONS

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to CONSTRUCTION DEVELOPMENT SERVICES INC. for work described as: BUILDING Z-140 INTERIOR RENOVATIONS Key points: 1. Contract value appears reasonable for a large-scale renovation project. 2. Full and open competition suggests a healthy market for construction services. 3. Project duration of over three years indicates a complex scope of work. 4. Fixed-price contract type shifts risk to the contractor. 5. This contract falls within the broad category of commercial and institutional building construction. 6. The award was made by the Department of the Navy, a significant federal buyer.

Value Assessment

Rating: good

The contract value of $11.5 million for interior renovations of a building (Z-140) is within a typical range for such projects. Without specific details on the scope of work, square footage, or the extent of renovations, a precise benchmark is difficult. However, given the duration and the nature of building renovations, the cost appears to be a fair investment for the services rendered. The firm fixed-price contract type suggests that the initial pricing was deemed acceptable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were likely considered after an initial exclusion period. This suggests a competitive bidding process where the government sought the best value from a range of qualified contractors. The presence of 33 bids points to significant interest and a robust competitive environment for this type of construction service.

Taxpayer Impact: A competitive bidding process like this generally leads to better pricing for taxpayers by encouraging contractors to offer their most competitive rates to win the contract.

Public Impact

The primary beneficiaries are the Department of the Navy personnel who will utilize the renovated facilities. The services delivered include interior renovations, improving the functionality and condition of Building Z-140. The geographic impact is localized to the facility where Building Z-140 is located, likely a naval base. Workforce implications include employment opportunities for construction workers, project managers, and related trades during the renovation period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during renovation, despite fixed-price contract.
Delays in project completion could impact facility availability and operational readiness.
Quality of work may vary between subcontractors, requiring diligent oversight.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Extensive competition (33 bids) suggests a strong pool of qualified contractors.
Project duration allows for thorough execution of renovation tasks.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). The federal government is a significant consumer of construction services for maintaining and upgrading its vast real estate portfolio. Comparable spending benchmarks would involve analyzing other large-scale renovation or construction contracts awarded by federal agencies for similar building types and scopes of work.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is Construction Development Services Inc., there is no explicit information on subcontracting plans for small businesses. The large value of the contract could offer opportunities for small businesses to participate as subcontractors if they possess the necessary expertise.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project's technical representatives within the Department of the Navy. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is facilitated through federal procurement databases where contract awards are recorded.

Related Government Programs

Federal Building Renovations
Military Base Infrastructure
Department of Defense Construction Contracts
Naval Facilities Engineering Command Projects

Risk Flags

Potential for scope creep if not managed tightly.
Contract duration may lead to extended disruption.
Quality control is crucial for renovation projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to CONSTRUCTION DEVELOPMENT SERVICES INC.. BUILDING Z-140 INTERIOR RENOVATIONS

Who is the contractor on this award?

The obligated recipient is CONSTRUCTION DEVELOPMENT SERVICES 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 $11.5 million.

What is the period of performance?

Start: 2012-02-08. End: 2015-03-26.

What specific renovations were undertaken within Building Z-140?

The provided data does not detail the specific interior renovations performed on Building Z-140. Typically, such projects could include upgrades to HVAC systems, electrical and plumbing, interior finishes (flooring, walls, ceilings), modernization of office spaces, or structural improvements. A comprehensive understanding would require reviewing the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which outlines the exact requirements, specifications, and deliverables for the renovation.

How does the $11.5 million cost compare to similar building renovation projects by the Department of Defense?

Benchmarking the $11.5 million cost requires comparing it to similar projects based on factors like building size (square footage), type of facility, scope of renovation (e.g., cosmetic vs. major system overhaul), and geographic location. Without these specifics, a direct comparison is challenging. However, for a large-scale interior renovation of a significant federal building, $11.5 million is within a plausible range. Federal procurement data and industry cost estimators can provide more granular benchmarks if project details are known.

What are the primary risks associated with this firm fixed-price renovation contract?

The primary risks for the government in a firm fixed-price contract are minimal regarding cost overruns, as the price is set. However, risks can include potential compromises in quality if the contractor seeks to reduce costs, or delays in project completion if the contractor faces unforeseen challenges. The government's main risk mitigation strategy is thorough contract oversight, clear performance standards, and potentially liquidated damages clauses for delays. The contractor bears the financial risk of cost overruns.

What was the historical spending pattern for Building Z-140 renovations prior to this award?

The provided data does not include historical spending patterns for Building Z-140 renovations. This specific award represents a significant investment in the building's interior. To understand historical spending, one would need to access historical federal procurement databases (like FPDS or USASpending) and search for previous contracts awarded for maintenance, repair, or renovation specifically tied to Building Z-140 or its associated facility.

How effective was the competition in driving down costs for this project?

With 33 bids received under full and open competition, the high level of competition is a strong indicator that costs were likely driven down. A larger number of bidders generally forces each contractor to submit a more competitive price to have a chance at winning the contract. While the firm fixed-price nature locks in the cost, the initial bid price is a result of this competitive pressure, suggesting taxpayers likely received a favorable price compared to a sole-source or limited competition scenario.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008511R6512

Offers Received: 33

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5900 E VIRGINIA BEACH BLVD #602, NORFOLK, VA, 23502

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,504,070

Exercised Options: $11,504,070

Current Obligation: $11,504,070

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008511D6585

IDV Type: IDC

Timeline