DoD's $11.1M Gate Overhaul Contract Awarded to TSC-EDIFICE JV1, LLC for 889 Days

Contract Overview

Contract Amount: $11,097,625 ($11.1M)

Contractor: Tsc-Edifice JV1, LLC

Awarding Agency: Department of Defense

Start Date: 2023-11-08

End Date: 2026-04-15

Contract Duration: 889 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: VIRGINIA AVENUE GATE ATFP OVERHAUL (PROJECT AJXF 13-1524)

Place of Performance

Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to TSC-EDIFICE JV1, LLC for work described as: VIRGINIA AVENUE GATE ATFP OVERHAUL (PROJECT AJXF 13-1524) Key points: 1. Contract value of $11.1 million for a 889-day period suggests a significant investment in facility security. 2. The contract type, Firm Fixed Price, aims to control costs and provide predictability for the government. 3. Awarded by the Department of the Air Force, this project likely supports critical base infrastructure. 4. The project involves commercial and institutional building construction, indicating a focus on physical security upgrades. 5. The duration of nearly three years implies a complex and extensive overhaul rather than a minor repair. 6. The absence of small business set-aside flags suggests the prime contractor is not a small business, and subcontracting opportunities may be limited.

Value Assessment

Rating: fair

The contract value of $11.1 million for an 889-day project translates to approximately $12,483 per day. Benchmarking this against similar large-scale construction projects is challenging without more specific scope details. However, the firm fixed-price nature suggests an attempt to lock in costs. The award amount of $12,483 is noted, but its value-for-money assessment requires comparison to similar gate overhaul projects or broader infrastructure upgrades within the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while competition was intended, certain sources were excluded, potentially due to specific qualifications or prior relationships. The number of bidders is not specified, but the 'limited' competition level might suggest fewer than a full and open competition, potentially impacting price discovery.

Taxpayer Impact: A limited competition may result in less aggressive pricing compared to a fully open process, potentially leading to higher costs for taxpayers if the excluded sources could have offered more competitive bids.

Public Impact

The primary beneficiaries are likely Department of Defense personnel and assets at the Maryland facility, ensuring enhanced security. The project delivers critical infrastructure improvements related to physical security and access control. The geographic impact is localized to the specific Air Force base in Maryland where the gate is located. Workforce implications include employment for construction workers, project managers, and potentially specialized security system installers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher prices than a fully open bid process.
The exclusion of sources, even if justified, reduces the pool of potential bidders and competitive pressure.
Long project duration (889 days) increases the risk of cost overruns or scope creep if not managed tightly.

Positive Signals

Firm Fixed Price contract type helps mitigate cost overrun risks for the government.
Awarding to a JV (TSC-EDIFICE JV1, LLC) might indicate a combination of specialized expertise.
The project addresses critical security infrastructure, enhancing base protection.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing a wide range of construction services. The Department of Defense is a significant client in this sector, frequently awarding contracts for base infrastructure, facility upgrades, and security enhancements. The market size for such construction services is substantial, with government agencies being major consumers. This specific project, a gate overhaul, represents a niche within larger infrastructure spending, focusing on physical security and access control systems.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). This suggests that the prime contractor, TSC-EDIFICE JV1, LLC, is likely a larger entity or a joint venture not classified as a small business. There is no explicit mention of subcontracting goals for small businesses, which could limit opportunities for smaller firms to participate in this project. The impact on the small business ecosystem may be minimal unless the prime contractor voluntarily engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and project management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which penalizes the contractor for cost overruns. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance or closeout.

Related Government Programs

Department of Defense Base Infrastructure Modernization
Air Force Facility Security Upgrades
Federal Construction Contracts
Access Control System Installation
Commercial Building Construction Services

Risk Flags

Limited competition may reduce price competitiveness.
Long project duration increases risk of unforeseen issues.
Potential for scope creep over 889 days.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to TSC-EDIFICE JV1, LLC. VIRGINIA AVENUE GATE ATFP OVERHAUL (PROJECT AJXF 13-1524)

Who is the contractor on this award?

The obligated recipient is TSC-EDIFICE JV1, LLC.

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 $11.1 million.

What is the period of performance?

Start: 2023-11-08. End: 2026-04-15.

What is the track record of TSC-EDIFICE JV1, LLC with the Department of Defense?

Information regarding the specific track record of TSC-EDIFICE JV1, LLC with the Department of Defense is not detailed in the provided data. A comprehensive analysis would require reviewing past performance evaluations, previous contract awards, and any reported issues or successes associated with this contractor on similar projects. Joint ventures often combine the strengths of their parent companies, so understanding the history of the individual entities within the JV could also provide valuable context. Without access to historical performance data, it is difficult to definitively assess their reliability and past success in executing similar federal contracts.

How does the daily cost of this project compare to similar gate overhaul projects?

The daily cost for this project is approximately $12,483 ($11,097,625.4 / 889 days). Directly comparing this to similar gate overhaul projects is challenging without specific data on the scope, complexity, and location of those other projects. Gate overhauls can vary significantly, from simple structural repairs to the integration of advanced security technologies. Factors such as the size of the gate, the type of security enhancements (e.g., biometrics, vehicle barriers, surveillance), and prevailing labor and material costs in the project's region all influence the overall cost. A more robust comparison would necessitate a detailed breakdown of the work involved in this contract and benchmarking against projects with comparable specifications.

What are the primary risks associated with a project of this duration and scope?

The primary risks associated with an 889-day construction project like this gate overhaul include potential scope creep, where additional requirements are added beyond the original agreement, leading to cost increases and schedule delays. Material price fluctuations over the extended period can impact the contractor's profitability and potentially lead to claims if not adequately managed within the fixed-price contract. Labor availability and retention are also risks, as a long project requires a consistent workforce. Furthermore, unforeseen site conditions (e.g., underground utilities, soil issues) can cause significant delays and cost overruns. Finally, changes in security requirements or technology during the project's lifecycle could necessitate modifications, adding complexity and risk.

How effective is the 'Full and Open Competition after Exclusion of Sources' method in ensuring value for money?

The effectiveness of 'Full and Open Competition after Exclusion of Sources' in ensuring value for money is mixed and depends heavily on the justification for excluding sources. If sources are excluded based on legitimate, objective criteria (e.g., specific technical capabilities, security clearances, past performance on highly specialized tasks), it can still lead to competitive pricing among the remaining qualified bidders. However, if the exclusions are arbitrary or overly restrictive, it can limit competition, potentially leading to higher prices and reduced value for money. The key is whether the excluded sources could have realistically competed and offered a better value proposition. Without knowing the specific reasons for exclusion, it's difficult to definitively assess its impact on value.

What is the historical spending pattern for similar gate and access control projects at the Department of the Air Force?

Historical spending patterns for similar gate and access control projects at the Department of the Air Force would typically show a wide range of contract values, influenced by project scope, location, and technological integration. Larger, more complex overhauls involving advanced security systems and infrastructure upgrades would command higher values, potentially in the millions, similar to this $11.1 million contract. Smaller, more routine maintenance or repair contracts would be significantly less. Analyzing past awards would reveal trends in contract types (e.g., Firm Fixed Price vs. Cost-Plus), competition levels, and average project durations. This specific contract's value appears substantial, suggesting a significant upgrade rather than routine maintenance.

What are the implications of this contract being a Firm Fixed Price (FFP) award?

A Firm Fixed Price (FFP) award places the primary risk of cost overruns on the contractor, TSC-EDIFICE JV1, LLC. This contract structure incentivizes the contractor to manage costs efficiently and complete the project within the agreed-upon budget. For the government, the main benefit is cost certainty; the final price is known upfront, barring any contract modifications. However, contractors may build in higher contingency amounts into their FFP bids to account for potential risks, which could result in a higher initial price compared to cost-reimbursement contracts. The FFP structure is generally preferred for projects with well-defined scopes and minimal anticipated changes, like a gate overhaul, to ensure predictable spending.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Terra Site Constructors LLC

Address: 900 SHENANDOAH SHORES RD STE 100, FRONT ROYAL, VA, 22630

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,097,625

Exercised Options: $11,097,625

Current Obligation: $11,097,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA286021D0031

IDV Type: IDC

Timeline