DoD's $38.4M NAS Pensacola Renovations Awarded to OROCON - CAROTHERS JV1 Under Full and Open Competition

Contract Overview

Contract Amount: $38,418,428 ($38.4M)

Contractor: Orocon - Carothers JV1

Awarding Agency: Department of Defense

Start Date: 2014-08-21

End Date: 2018-05-19

Contract Duration: 1,367 days

Daily Burn Rate: $28.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF B603 SAUFLEY FIELD RENOVATIONS NAS PENSACOLA, FL

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $38.4 million to OROCON - CAROTHERS JV1 for work described as: IGF::OT::IGF B603 SAUFLEY FIELD RENOVATIONS NAS PENSACOLA, FL Key points: 1. The contract awarded to OROCON - CAROTHERS JV1 for NAS Pensacola renovations represents a significant investment in infrastructure. 2. Competition was conducted under a 'full and open competition after exclusion of sources' method, suggesting a specific justification for source exclusion. 3. The project duration of 1367 days indicates a complex and lengthy renovation process. 4. The firm-fixed-price contract type aims to control costs for the Department of the Navy. 5. The absence of small business participation is noted.

Value Assessment

Rating: fair

The contract value of $38.4M for building construction is substantial. Benchmarking against similar large-scale institutional building projects would be necessary to fully assess value, but the duration and complexity suggest a potentially fair price given the scope.

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.' This method implies that while the competition was intended to be broad, specific sources were excluded, which could impact price discovery and potentially limit the most competitive bids.

Taxpayer Impact: Taxpayer funds are being utilized for significant infrastructure upgrades at a naval facility. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.

Public Impact

Military readiness and operational capacity at NAS Pensacola are likely enhanced by these renovations. Local economic impact through construction jobs and material sourcing in Florida is probable. The long project duration may cause temporary disruptions to base operations or access. Future maintenance and operational costs of the renovated facilities will be a long-term consideration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited small business participation.
Complex procurement method ('after exclusion of sources').
Long project duration.

Positive Signals

Firm-fixed-price contract.
Full and open competition (despite exclusions).
Significant infrastructure investment.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for government facilities is often driven by modernization needs, repairs, and upgrades to ensure operational readiness and safety. Benchmarks vary widely based on project scale and location.

Small Business Impact

The contract data indicates that small businesses were not involved in this award (ss: false, sb: false). This suggests that the prime contractor is likely a large business, and opportunities for subcontracting to small businesses were either not pursued or not mandated.

Oversight & Accountability

Oversight would typically involve contract management by the Department of the Navy to ensure adherence to specifications, timelines, and budget. The 'exclusion of sources' clause warrants scrutiny to ensure it was justified and did not unduly restrict competition.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for limited competition due to source exclusion.
Extended project duration increases risk of delays and cost escalation.
Lack of stated small business participation.
Complexity of managing a multi-year construction project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.4 million to OROCON - CAROTHERS JV1. IGF::OT::IGF B603 SAUFLEY FIELD RENOVATIONS NAS PENSACOLA, FL

Who is the contractor on this award?

The obligated recipient is OROCON - CAROTHERS JV1.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.4 million.

What is the period of performance?

Start: 2014-08-21. End: 2018-05-19.

What was the specific justification for excluding sources in this 'full and open competition after exclusion of sources' award, and did this exclusion impact the final price?

The justification for excluding sources is critical. Typically, such exclusions are based on factors like unique capabilities, proprietary information, or national security concerns. Without knowing the specific reasons, it's difficult to definitively state the price impact. However, limiting the pool of potential bidders can sometimes lead to higher prices than a truly unrestricted competition.

Given the 1367-day duration, what are the primary risks associated with project delays and cost overruns for these renovations?

The extended duration presents significant risks. Delays can arise from unforeseen site conditions, weather, supply chain disruptions, or contractor performance issues. Cost overruns are a risk if the firm-fixed-price contract doesn't adequately account for all potential contingencies, or if change orders become extensive. Effective project management and contingency planning are crucial to mitigate these risks.

How effectively does this $38.4M investment contribute to the long-term operational effectiveness and modernization goals of NAS Pensacola?

The effectiveness hinges on the scope and quality of the renovations. If the project addresses critical infrastructure needs, enhances energy efficiency, improves safety, or upgrades facilities to meet modern operational requirements, it will significantly boost long-term effectiveness. A thorough post-completion review assessing the realized benefits against the initial objectives would provide a clearer picture of its success.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6945014R0764

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 31 HWY 328, OXFORD, MS, 38655

Business Categories: Category Business, Labor Surplus Area Firm, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,418,428

Exercised Options: $38,418,428

Current Obligation: $38,418,428

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $17,673,940

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945014D0755

IDV Type: IDC

Timeline