DoD's $32.4M Logistics Facility in Virginia Awarded to DPR Hardin Construction-WGI JV

Contract Overview

Contract Amount: $32,393,331 ($32.4M)

Contractor: DPR Hardin Construction- WGI Joint Venture

Awarding Agency: Department of Defense

Start Date: 2016-02-10

End Date: 2020-05-01

Contract Duration: 1,542 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF P-334 LOGSU TWO OPERATIONS FACILITY, LITTLE CREEK, VA.

Place of Performance

Location: VIRGINIA BEACH, NORFOLK CITY County, VIRGINIA, 23459

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to DPR HARDIN CONSTRUCTION- WGI JOINT VENTURE for work described as: IGF::OT::IGF P-334 LOGSU TWO OPERATIONS FACILITY, LITTLE CREEK, VA. Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The firm fixed-price contract type indicates that the contractor bears the risk of cost overruns. 3. The project duration of approximately 1542 days (over 4 years) suggests a significant construction undertaking. 4. The facility is located in Little Creek, Virginia, indicating a specific geographic focus for this spending. 5. The contract falls under Commercial and Institutional Building Construction, a broad category within the construction sector. 6. The absence of small business set-aside flags suggests this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable projects. The total award amount of $32.4 million for a logistics facility over four years suggests a substantial investment. However, without detailed project specifications, scope of work, and market conditions at the time of award, a precise value-for-money assessment is difficult. The firm fixed-price nature shifts cost risk to the contractor, which can sometimes lead to higher initial bids but provides budget certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, three bids generally provide a reasonable basis for price discovery and selection.

Taxpayer Impact: Full and open competition, with three bidders, suggests that taxpayers likely received a fair price, as multiple companies vied for the contract. This level of competition helps prevent inflated pricing that might occur in less competitive scenarios.

Public Impact

The primary beneficiaries are the Department of the Navy and its operational units requiring logistics support at Little Creek, Virginia. The contract delivers a critical logistics facility, enhancing the operational capabilities and infrastructure of the Navy. The geographic impact is concentrated in Virginia, specifically at the Little Creek base. The project likely involved a significant number of construction workers and potentially supported ancillary services, impacting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Dependence on the successful performance and financial stability of the joint venture contractor.
Risk of schedule delays impacting the Navy's operational readiness if construction is not completed on time.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Full and open competition suggests a robust bidding process.
Award to a joint venture may indicate a combination of specialized expertise.
The project addresses a clear need for enhanced logistics infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area supports the development and maintenance of essential government facilities. The total award of $32.4 million is a substantial figure for a single facility project, reflecting the complexity and scale of military infrastructure development. Comparable spending benchmarks would typically involve analyzing other large-scale construction projects for military branches or government agencies.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates 'sb' is false. This suggests that small businesses were not specifically targeted for this prime contract award. However, the joint venture nature of the contractor (DPR Hardin Construction-WGI JV) might involve larger firms, and there could be subcontracting opportunities for small businesses within the execution of this project, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Given the construction nature and duration, quality assurance representatives would likely be involved on-site. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally maintained through contract award databases like FPDS, where basic details are publicly available.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Naval Support Facilities
Logistics Infrastructure
Commercial Building Construction

Risk Flags

Potential for cost overruns
Schedule delay risk
Contractor performance risk
Quality control during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to DPR HARDIN CONSTRUCTION- WGI JOINT VENTURE. IGF::OT::IGF P-334 LOGSU TWO OPERATIONS FACILITY, LITTLE CREEK, VA.

Who is the contractor on this award?

The obligated recipient is DPR HARDIN CONSTRUCTION- WGI JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $32.4 million.

What is the period of performance?

Start: 2016-02-10. End: 2020-05-01.

What is the track record of DPR Hardin Construction and WGI Joint Venture on similar federal contracts?

Assessing the track record of the DPR Hardin Construction-WGI Joint Venture requires examining their past performance on federal contracts, particularly those involving large-scale construction and logistics facilities. A review of federal procurement databases would reveal their history of awards, contract values, performance ratings, and any instances of disputes or terminations. For WGI, known for engineering and design, their involvement might focus on the technical aspects of the facility. DPR Hardin's experience would be crucial for the construction execution. Understanding their past project delivery timelines, budget adherence, and quality of work is essential for evaluating their capability to successfully complete this $32.4 million project within the specified timeframe and requirements.

How does the $32.4 million cost compare to similar logistics facility constructions by the DoD?

Comparing the $32.4 million cost requires identifying comparable logistics facility projects undertaken by the Department of Defense (DoD) around the same period (2016-2020). Key factors for comparison include the facility's size (square footage), specific functionalities (e.g., storage capacity, specialized handling equipment), location, and the complexity of construction. Without these details, a direct cost-per-square-foot or cost-per-function benchmark is difficult. However, large-scale military infrastructure projects often involve significant costs due to stringent security, environmental, and operational requirements. The firm fixed-price nature also means the quoted price includes contractor risk, potentially making it appear higher than cost-reimbursable contracts but offering budget certainty.

What are the primary risks associated with a firm fixed-price contract for a multi-year construction project?

The primary risk with a firm fixed-price (FFP) contract for a multi-year construction project like this logistics facility lies with the contractor. While FFP offers budget certainty to the government, the contractor assumes the risk of cost overruns due to unforeseen issues such as material price escalation, labor shortages, design changes, or unexpected site conditions. If the contractor's costs exceed the fixed price, their profit margin shrinks, or they may incur a loss. Conversely, if costs are lower than anticipated, the contractor benefits from higher profits. For the government, the risk is ensuring the contractor has adequately priced for potential challenges and possesses the capability to manage these risks effectively to avoid project delays or quality compromises.

How effective is full and open competition in ensuring value for taxpayer money in large construction contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in large construction contracts. By allowing all responsible sources to compete, it fosters a competitive environment that encourages bidders to offer their best pricing and most efficient solutions to win the contract. This process typically leads to lower prices than sole-source or limited competition scenarios. The presence of multiple bids, as seen with the three received in this case, provides a basis for price comparison and negotiation. However, the effectiveness also depends on the clarity of the solicitation requirements and the evaluation criteria used to select the winning bid, ensuring the lowest price isn't chosen at the expense of quality or capability.

What are the potential workforce implications of a $32.4 million construction project in Virginia?

A $32.4 million construction project typically has significant workforce implications, both directly and indirectly. Directly, it requires a substantial number of skilled laborers, tradespeople (electricians, plumbers, carpenters, etc.), equipment operators, supervisors, and project managers for the duration of the project, estimated at over four years. This can create job opportunities and stimulate local employment. Indirectly, the project can boost demand for materials suppliers, subcontractors, and related support services, further impacting the regional economy and workforce. The specific skills needed and the duration of employment will depend on the project's phasing and construction methods employed.

What oversight mechanisms are typically in place for large DoD construction contracts?

Large Department of Defense (DoD) construction contracts are subject to multiple layers of oversight. This includes program management oversight from the awarding agency (in this case, the Department of the Navy), ensuring the project aligns with strategic goals and requirements. Quality assurance representatives (QARs) are often assigned to monitor construction progress, adherence to specifications, and quality standards on-site. Contract specialists manage the contractual aspects, including payments, modifications, and compliance. Furthermore, the DoD Inspector General's office provides an independent oversight function, investigating allegations of fraud, waste, and abuse. Transparency is facilitated through public contract databases and reporting requirements.

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: N4008510R5306

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DPR Construction, Inc. (UEI: 617801915)

Address: 3301 WINDY RIDGE PKWY STE 400, ATLANTA, GA, 30339

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,393,331

Exercised Options: $32,393,331

Current Obligation: $32,393,331

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008510D5333

IDV Type: IDC

Timeline