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: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, 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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