DoD's $5.1M RLF LEASES contract awarded to MODULAR MANAGEMENT GROUP INC for prefabricated metal buildings

Contract Overview

Contract Amount: $5,121,740 ($5.1M)

Contractor: Modular Management Group Inc

Awarding Agency: Department of Defense

Start Date: 2024-09-26

End Date: 2026-03-16

Contract Duration: 536 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RLF LEASES

Place of Performance

Location: PATRICK AFB, BREVARD County, FLORIDA, 32925

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $5.1 million to MODULAR MANAGEMENT GROUP INC for work described as: RLF LEASES Key points: 1. Value for money appears fair given the fixed-price nature and duration, though specific cost drivers are not detailed. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract and a defined performance period. 4. Performance context is for prefabricated metal buildings, a standard construction requirement. 5. Sector positioning is within the Defense industry, specifically for the Air Force. 6. The contract type is a delivery order, implying it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: fair

The contract value of $5.1 million for prefabricated metal buildings over approximately 1.5 years appears within a reasonable range for such construction projects. Benchmarking against similar Department of Defense contracts for modular or prefabricated structures would provide a clearer picture of value. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the price was set competitively.

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 offers. The presence of 3 bidders suggests a moderate level of competition. While more bidders could potentially drive prices lower, a competitive process was still employed, which is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer funds are used efficiently by encouraging multiple companies to bid, potentially leading to lower prices than a sole-source or limited competition award.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving prefabricated metal buildings. These buildings likely support operational or logistical needs at a Florida facility. The contract supports the defense industrial base, specifically manufacturers of prefabricated structures. Workforce implications are likely within the construction and manufacturing sectors related to prefabricated buildings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays if manufacturing or delivery is impacted by supply chain issues.
Ensuring the prefabricated buildings meet all specific Air Force technical and environmental requirements.
Monitoring contractor performance to ensure timely delivery and quality of construction.

Positive Signals

Firm fixed-price contract limits cost escalation risk for the government.
Awarded under full and open competition, suggesting a competitive pricing environment.
Defined delivery period provides clear performance expectations.
Contract is for prefabricated structures, which can offer faster deployment than traditional construction.

Sector Analysis

The market for prefabricated and modular buildings is a significant segment of the construction industry, driven by demand for cost-effective and rapidly deployable structures. Federal agencies, particularly the Department of Defense, are frequent users of such solutions for barracks, storage, offices, and other facilities. Spending in this sector is influenced by construction cycles, material costs, and the need for rapid infrastructure development. This contract fits within the broader category of federal construction and facilities management spending.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting activity within the Department of the Air Force. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. The specific Inspector General jurisdiction would be that of the Department of Defense.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Facilities
Department of Defense Facilities Management
Modular Building Contracts
Prefabricated Structures Procurement

Risk Flags

Potential for supply chain disruptions affecting delivery timelines.
Ensuring compliance with stringent military specifications.
Contract performance risk associated with delivery and installation.
Adequacy of competition for optimal price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.1 million to MODULAR MANAGEMENT GROUP INC. RLF LEASES

Who is the contractor on this award?

The obligated recipient is MODULAR MANAGEMENT GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $5.1 million.

What is the period of performance?

Start: 2024-09-26. End: 2026-03-16.

What is the historical spending pattern for RLF LEASES by the Department of Defense?

Analyzing historical spending for 'RLF LEASES' requires access to detailed contract databases. Without specific historical data for this exact contract line item or description, it's difficult to provide a precise pattern. However, federal agencies, particularly the Department of Defense, frequently procure lease agreements for various assets, including facilities, vehicles, and equipment. Spending on leases can fluctuate based on strategic needs, budget allocations, and the availability of capital for direct purchases. Trends might show an increase in leasing for flexibility or a decrease if long-term asset ownership is prioritized. Further analysis would involve querying databases like FPDS-NG for similar contract descriptions or categories over several fiscal years to identify trends in award volume, total spending, and average award values.

How does the per-unit cost of these prefabricated buildings compare to market rates or similar government contracts?

Determining the precise per-unit cost requires knowing the number and specifications of the prefabricated buildings included in the $5.1 million award. Assuming this contract covers multiple units, the average cost per building could be calculated by dividing the total award amount by the number of units. Benchmarking this average against industry data for similar prefabricated structures (e.g., size, materials, features) and against other government contracts for comparable items would be necessary. Factors like delivery, installation, and site preparation costs also influence the total price. Without these specifics, a direct comparison is challenging, but the firm fixed-price nature suggests the government sought a defined cost upfront.

What is the track record of MODULAR MANAGEMENT GROUP INC with federal contracts, particularly in construction?

MODULAR MANAGEMENT GROUP INC has been awarded federal contracts, including this $5.1 million delivery order. A comprehensive review of their contract history would involve examining past awards, performance evaluations (if available), and any history of contract disputes or terminations. Their experience with similar construction projects, especially for government clients and involving prefabricated structures, is crucial. Assessing their past performance on delivery timelines, budget adherence, and quality of work provides insight into their reliability. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) could offer detailed performance feedback from previous government contracting officers.

What are the primary risks associated with this specific contract, and how are they being mitigated?

Key risks for this contract include potential delays in manufacturing or delivery due to supply chain disruptions or unforeseen logistical challenges, and ensuring the final product meets the stringent technical specifications required by the Air Force. Mitigation strategies are inherent in the contract structure: the firm fixed-price nature shifts cost overrun risk to the contractor. The defined performance period (ending March 2026) sets clear expectations for delivery timelines. Furthermore, the government's oversight mechanisms, including quality assurance surveillance plans and acceptance testing, are designed to ensure the delivered buildings meet all requirements. The contractor's own risk management processes are also critical.

How does the competition level (3 bidders) for this contract potentially impact pricing and value for the government?

A competition with three bidders, while not a large number, generally provides a better opportunity for price discovery and competitive pricing compared to sole-source or limited solicitations. It suggests that multiple firms were interested and capable of fulfilling the requirement. The government can leverage the bids received to negotiate a fair price. However, a higher number of bidders often leads to more aggressive pricing due to increased market pressure. The value for the government is enhanced by the assurance that the chosen contractor was selected from a pool of at least three viable options, reducing the likelihood of paying an inflated price due to lack of alternatives.

What is the strategic importance of these prefabricated buildings to the Department of the Air Force?

The strategic importance of these prefabricated buildings likely relates to providing essential infrastructure rapidly and cost-effectively. For the Air Force, such structures can be critical for operational readiness, housing personnel, storing equipment, or establishing temporary facilities at various installations, including potentially forward operating bases or training sites. Prefabricated solutions offer advantages in speed of deployment and potentially lower lifecycle costs compared to traditional construction, which aligns with the military's need for agile and adaptable infrastructure. The specific location in Florida might indicate support for training exercises, logistical hubs, or permanent facility upgrades.

Industry Classification

NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Prefabricated Metal Building and Component Manufacturing

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6602 PLAZA PKWY, FORT WORTH, TX, 76116

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,601,740

Exercised Options: $5,121,740

Current Obligation: $5,121,740

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07F0222X

IDV Type: FSS

Timeline