Verexco Corp awarded $13.6M for DB/DBB construction services by the Department of the Navy

Contract Overview

Contract Amount: $13,655,517 ($13.7M)

Contractor: Virtexco Corp

Awarding Agency: Department of Defense

Start Date: 2009-05-29

End Date: 2012-11-30

Contract Duration: 1,281 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE YEAR FOR THE DB/DBB GEN MAC

Place of Performance

Location: YORKTOWN, YORK County, VIRGINIA, 23691

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.7 million to VIRTEXCO CORP for work described as: BASE YEAR FOR THE DB/DBB GEN MAC Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Base year value of $13.6M for construction services. 4. Performance period spans over 3 years. 5. The North American Industry Classification System (NAICS) code 236220 indicates commercial and institutional building construction. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle.

Value Assessment

Rating: fair

The base year value of $13.6 million for commercial and institutional building construction appears within a reasonable range for projects of this nature. However, without specific details on the scope of work, project complexity, and location, a precise value-for-money assessment is challenging. Benchmarking against similar construction projects awarded by the Department of the Navy or other federal agencies would provide a clearer picture of whether this price reflects competitive market rates for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 15 bidders suggests a robust competitive environment. A high number of bidders generally leads to better price discovery and can result in more favorable pricing for the government, as contractors vie to win the award.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down costs and ensured the government received competitive pricing for the construction services.

Public Impact

The Department of the Navy benefits from the construction services provided under this contract, likely for facilities or infrastructure. The services delivered are related to commercial and institutional building construction. The geographic impact is primarily within Virginia, where the contractor is located. The contract supports the construction workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in construction projects if not clearly defined.
Risk of cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Dependence on contractor's ability to manage subcontractors effectively.

Positive Signals

Firm Fixed Price contract structure mitigates cost uncertainty for the government.
Full and open competition suggests a competitive market and potentially good pricing.
Delivery Order award implies it might be part of a pre-competed IDIQ, streamlining future procurements.

Sector Analysis

The construction sector is a significant part of federal spending, encompassing a wide range of projects from infrastructure to facility maintenance. NAICS code 236220 specifically covers commercial and institutional building construction. Federal agencies frequently contract for these services to build, renovate, or maintain government-owned buildings. Spending in this sector is influenced by infrastructure needs, modernization efforts, and national security requirements. Comparable spending benchmarks would typically be derived from historical data on similar construction projects awarded by agencies like the Department of Defense, General Services Administration, or Department of Veterans Affairs.

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, VIRTEXCO CORP, is not explicitly identified as a small business in the provided data, the contract's size and nature may offer subcontracting opportunities for small businesses in specialized trades or material supply. Further analysis would be needed to determine if subcontracting plans were required and how effectively small businesses were integrated into the project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Navy. Performance monitoring, quality assurance checks, and compliance reviews are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Military Construction
Facilities Maintenance and Repair
Architectural and Engineering Services
General Services Administration (GSA) Contracts

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of delays due to contractor performance or subcontractor issues.
Need for robust oversight to ensure quality and compliance with specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.7 million to VIRTEXCO CORP. BASE YEAR FOR THE DB/DBB GEN MAC

Who is the contractor on this award?

The obligated recipient is VIRTEXCO CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2009-05-29. End: 2012-11-30.

What is the specific scope of work for this $13.6 million construction contract?

The provided data indicates the contract is for 'BASE YEAR FOR THE DB/DBB GEN MAC' and falls under NAICS code 236220 (Commercial and Institutional Building Construction). DB/DBB typically refers to Design-Build/Design-Bid-Build project delivery methods. However, the exact scope of work, such as the type of building, specific renovations, or new construction, is not detailed. This level of detail is crucial for a comprehensive understanding of the project's complexity, the services required, and the justification for the awarded amount. Without this, it's difficult to assess if the $13.6 million base year value is appropriate for the intended outcome.

How does the $13.6 million base year cost compare to similar construction projects awarded by the Department of the Navy?

Benchmarking this $13.6 million base year cost against similar Department of the Navy construction projects requires access to a broader dataset of contracts with comparable scope, size, and location. Projects involving new construction of institutional buildings or significant renovations of existing facilities could serve as comparators. Factors like geographic location (construction costs vary significantly by region), project complexity, and specific design requirements heavily influence pricing. A preliminary assessment suggests the amount is substantial, indicating a significant project, but without direct comparisons, it's hard to definitively state if it represents excellent, fair, or questionable value.

What are the potential risks associated with a Firm Fixed Price (FFP) contract for construction services?

While FFP contracts are generally favored by the government for cost control, they shift significant risk to the contractor. For construction, potential risks include unforeseen site conditions (e.g., soil issues, hazardous materials), design ambiguities, material price escalations beyond the contractor's control, and labor shortages. If these risks materialize and are not adequately addressed in the contract's contingency planning or change order provisions, the contractor might incur losses, potentially leading to project delays, disputes, or even contractor default. Conversely, if the contractor manages these risks effectively, the government benefits from cost certainty.

What does the award of a Delivery Order imply about the underlying contract vehicle?

The 'AW' field indicating 'DELIVERY ORDER' suggests that this contract is likely a task order or delivery order issued against a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. These vehicles are typically established through a competitive process themselves, allowing agencies to procure specific services or supplies over a period. Awarding delivery orders under such vehicles streamlines the procurement process for individual task requirements, as much of the initial competition and due diligence has already occurred. It implies that VIRTEXCO CORP was one of several awardees on a broader contract.

What is the track record of VIRTEXCO CORP in performing federal construction contracts?

To assess VIRTEXCO CORP's track record, one would need to examine their past performance on federal contracts, particularly those with the Department of Defense or other agencies. Key indicators include on-time delivery, adherence to budget (especially relevant for FFP contracts), quality of work, and any history of disputes or contract terminations. A review of their contract history in the Federal Procurement Data System (FPDS) or similar databases would reveal the volume and types of contracts they have held, their performance ratings (if available), and any significant issues encountered. Without this specific performance data, it's difficult to gauge their reliability for this project.

How has federal spending on commercial and institutional building construction evolved over the past five years?

Analyzing federal spending trends for commercial and institutional building construction (NAICS 236220) over the past five years would reveal patterns related to infrastructure investment, agency modernization priorities, and overall economic conditions. Typically, such spending fluctuates based on congressional appropriations, major federal building initiatives, and national security requirements. An upward trend might indicate increased investment in federal facilities, while a decline could suggest budget constraints or a shift in priorities. Examining historical spending data from agencies like the DoD, GSA, and others would provide context for the current contract's significance within the broader federal construction landscape.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008508R9602

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 977 NORFOLK SQ, NORFOLK, VA, 23502

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $13,655,517

Exercised Options: $13,655,517

Current Obligation: $13,655,517

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008509D5033

IDV Type: IDC

Timeline