Balfour Beatty Construction awarded $33M for Camp Pendleton facilities, highlighting construction sector competition

Contract Overview

Contract Amount: $33,077,149 ($33.1M)

Contractor: Balfour Beatty Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-30

End Date: 2011-10-15

Contract Duration: 745 days

Daily Burn Rate: $44.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN / BUILD P-060, WOUNDED WARRIOR HOPE AND CARE CENTER, AND P-1100, WOUNDED WARRIOR BATTALION HEADQUARTERS, AT MCB CAMP PENDLETON, CA

Place of Performance

Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $33.1 million to BALFOUR BEATTY CONSTRUCTION, LLC for work described as: DESIGN / BUILD P-060, WOUNDED WARRIOR HOPE AND CARE CENTER, AND P-1100, WOUNDED WARRIOR BATTALION HEADQUARTERS, AT MCB CAMP PENDLETON, CA Key points: 1. Contract value of $33.1 million for design and build services. 2. Full and open competition indicates a robust bidding environment. 3. Fixed-price contract type suggests cost certainty for the government. 4. Project scope includes specialized facilities for wounded warriors. 5. Geographic focus on Camp Pendleton, California. 6. Contract duration of approximately two years.

Value Assessment

Rating: good

The contract value of $33.1 million appears reasonable for the design and build of specialized military facilities. Benchmarking against similar projects would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the final value is dependent on the contractor's efficiency. The award amount of $44,399,000 (likely a ceiling or estimated value) is higher than the awarded value, suggesting potential savings or a well-managed bid.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with six bidders participating. This level of competition is generally favorable for price discovery and ensures a wide range of potential contractors can submit proposals. The presence of multiple bidders suggests a healthy market for this type of construction service.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, potentially resulting in cost savings for taxpayers compared to sole-source or limited competition awards.

Public Impact

Directly benefits wounded service members by providing enhanced care and support facilities. Enhances the infrastructure at Marine Corps Base Camp Pendleton, California. Supports the construction workforce in California through job creation and related economic activity. Improves the quality of life and recovery environment for injured personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price contract.
Ensuring timely completion within the specified duration is crucial for operational readiness.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a competitive bid process.
Award to a known entity (Balfour Beatty) may indicate a track record of performance.

Sector Analysis

The construction sector, particularly for government and military facilities, is a significant market. This contract falls under commercial and institutional building construction. The market is characterized by large prime contractors and a network of subcontractors. Government contracts often require specialized expertise and adherence to stringent regulations, making competition dynamic.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements were mandated. This suggests that larger firms were the primary focus of the competition. The impact on the small business ecosystem would depend on whether Balfour Beatty Beatty Construction, LLC utilizes small businesses as subcontractors, which is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Wounded Warrior Project
Military Construction Projects
Department of Defense Facilities Management
Naval Facilities Engineering Command Contracts

Risk Flags

Potential for scope creep impacting fixed-price agreement.
Ensuring specialized facility requirements are fully met.
Coordination challenges between design and construction phases.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.1 million to BALFOUR BEATTY CONSTRUCTION, LLC. DESIGN / BUILD P-060, WOUNDED WARRIOR HOPE AND CARE CENTER, AND P-1100, WOUNDED WARRIOR BATTALION HEADQUARTERS, AT MCB CAMP PENDLETON, CA

Who is the contractor on this award?

The obligated recipient is BALFOUR BEATTY CONSTRUCTION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.1 million.

What is the period of performance?

Start: 2009-09-30. End: 2011-10-15.

What is Balfour Beatty Construction, LLC's track record with similar federal contracts, particularly within the Department of Defense?

Balfour Beatty Construction, LLC has a significant history of working with the Department of Defense and other federal agencies on large-scale construction projects. Their portfolio includes numerous military installations, healthcare facilities, and infrastructure developments. While specific details on past performance for projects identical to the Wounded Warrior Hope and Care Center are not provided here, their extensive experience in military construction suggests a capacity to handle complex requirements. A deeper dive into their contract history, including any past performance evaluations or disputes, would offer a more comprehensive understanding of their reliability and expertise in delivering similar federal projects.

How does the awarded value of $33.1 million compare to the estimated value or ceiling of $44.4 million for this project?

The awarded value of $33,097,714.92 is approximately 25.6% lower than the reported ceiling or estimated value of $44,399,000. This significant difference suggests that the bidding process was highly competitive, and Balfour Beatty Construction, LLC was able to propose a price considerably below the government's initial estimate. This could indicate efficient project planning by the contractor, a favorable market for construction services at the time, or potentially that the government's initial estimate was conservative. For taxpayers, this represents a substantial cost avoidance compared to the upper limit of anticipated spending.

What are the primary risks associated with a design-build contract for specialized military facilities?

Design-build contracts, while offering potential efficiencies, carry inherent risks. For specialized military facilities like the Wounded Warrior facilities, risks include potential design flaws that could impact functionality or safety, especially given the unique needs of the intended occupants. Coordination between design and construction phases is critical; any disconnect can lead to delays and cost overruns. Furthermore, unforeseen site conditions at Camp Pendleton could necessitate design changes, impacting the fixed-price agreement. Ensuring the contractor maintains rigorous quality control throughout both design and construction is paramount to mitigate these risks and deliver a facility that meets its intended purpose effectively and safely.

How effective are firm fixed-price contracts in managing costs for large-scale construction projects like this one?

Firm fixed-price (FFP) contracts are generally considered effective for managing costs in large-scale construction projects when the scope of work is well-defined and risks are understood. They place the primary cost risk on the contractor, incentivizing them to control expenses and complete the project efficiently to maximize profit. For this project at Camp Pendleton, the FFP structure provides the Department of the Navy with a high degree of cost certainty. However, the effectiveness can be diminished if unforeseen issues necessitate change orders, which can add costs and complexity. Rigorous initial scope definition and diligent contract administration are key to maximizing the cost-control benefits of an FFP contract.

What is the historical spending trend for similar construction projects at Marine Corps Base Camp Pendleton?

Analyzing historical spending trends for similar construction projects at Marine Corps Base Camp Pendleton would require access to detailed contract databases and project histories specific to the base. Generally, military construction projects are subject to significant investment due to the specialized requirements and scale. Spending can fluctuate based on military readiness needs, infrastructure upgrades, and congressional appropriations. Projects involving specialized facilities, such as those for medical care or troop support, often command higher costs due to unique design and construction specifications. Without specific historical data for Camp Pendleton, it's difficult to provide precise trends, but such projects typically represent a substantial portion of the base's operational and capital expenditure budgets.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247307R2003

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Balfour Beatty PLC (UEI: 210042081)

Address: 3100 MCKINNON ST 10TH FL, DALLAS, TX, 90

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $33,077,149

Exercised Options: $33,077,149

Current Obligation: $33,077,149

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247308D8614

IDV Type: IDC

Timeline