NASA's $11.7M Compressor Station Upgrade Contract Awarded to Greenland Enterprises, Inc

Contract Overview

Contract Amount: $11,673,547 ($11.7M)

Contractor: Greenland Enterprises, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2019-02-25

End Date: 2026-04-30

Contract Duration: 2,621 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: COMPRESSOR STATION UPGRADES, PHASE 2

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23681

State: Virginia Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $11.7 million to GREENLAND ENTERPRISES, INC. for work described as: COMPRESSOR STATION UPGRADES, PHASE 2 Key points: 1. The contract is for industrial building construction, specifically compressor station upgrades. 2. Greenland Enterprises, Inc. received the award under full and open competition. 3. The contract duration is 2621 days, ending in April 2026. 4. The total value is approximately $11.7 million. 5. This appears to be a standard construction contract with a firm fixed price.

Value Assessment

Rating: good

The contract value of $11.7M for industrial building construction seems reasonable for a multi-year project of this nature. Benchmarking against similar NASA or large-scale industrial construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing as multiple qualified bidders submit proposals.

Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely receiving fair value for the services rendered, minimizing the risk of overpayment.

Public Impact

Ensures operational efficiency and reliability of critical NASA infrastructure. Supports the energy sector through industrial upgrades. Provides employment opportunities through the construction contract. Contributes to the modernization of federal facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if unforeseen construction challenges arise.
  • Contract duration extends significantly, increasing exposure to market fluctuations.
  • No small business participation noted.

Positive Signals

  • Awarded under full and open competition.
  • Firm fixed price contract type limits cost uncertainty.
  • Clear project scope for compressor station upgrades.

Sector Analysis

This contract falls under the Industrial Building Construction sector. Spending in this sector for federal agencies can vary widely based on infrastructure needs and modernization efforts. NASA's focus on operational facilities suggests this is a necessary investment.

Small Business Impact

The data indicates that this contract did not involve small business participation (ss: false, sb: false). Efforts to include small businesses in future similar contracts could be explored to promote broader economic impact.

Oversight & Accountability

The contract is managed by the National Aeronautics and Space Administration (NASA), which has established oversight mechanisms for its procurement and construction projects. The firm fixed price nature provides some cost control.

Related Government Programs

  • Industrial Building Construction
  • National Aeronautics and Space Administration Contracting
  • National Aeronautics and Space Administration Programs

Risk Flags

  • No small business participation.
  • Long contract duration increases risk exposure.
  • Potential for unforeseen construction challenges.
  • Dependence on specific contractor performance over many years.

Tags

industrial-building-construction, national-aeronautics-and-space-administr, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $11.7 million to GREENLAND ENTERPRISES, INC.. COMPRESSOR STATION UPGRADES, PHASE 2

Who is the contractor on this award?

The obligated recipient is GREENLAND ENTERPRISES, INC..

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2019-02-25. End: 2026-04-30.

What specific components or systems are included in the 'Compressor Station Upgrades, Phase 2' to justify the $11.7M cost?

The specific components are not detailed in the provided data. However, 'Compressor Station Upgrades, Phase 2' typically involves modernizing or replacing aging compressor units, control systems, safety equipment, and potentially associated piping and infrastructure. The cost would reflect the complexity, scale, and technological advancements of the new systems, as well as labor and materials.

What are the primary risks associated with a long-duration (2621 days) construction contract for industrial facilities?

Long-duration contracts carry risks such as potential cost escalation due to inflation or material price volatility, technological obsolescence of specified equipment by project completion, and contractor performance degradation over an extended period. Additionally, changes in regulatory requirements or agency priorities during the contract term can necessitate costly modifications.

How does the firm fixed price (FFP) contract type ensure effectiveness and value for this type of construction project?

The FFP contract type is effective in ensuring value by shifting most of the cost risk to the contractor. This incentivizes the contractor to manage costs efficiently and complete the project within the agreed-upon price. For construction, it provides budget certainty for the agency, although it requires a well-defined scope to avoid disputes and change orders.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionIndustrial Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 80LARC18R0005

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11864 FISHING POINT DR, NEWPORT NEWS, VA, 23606

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,673,547

Exercised Options: $11,673,547

Current Obligation: $11,673,547

Actual Outlays: $9,894,696

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2019-02-25

Current End Date: 2026-04-30

Potential End Date: 2026-04-30 00:00:00

Last Modified: 2026-01-22

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