Air Force awards $16.3M contract for dormitory repair, highlighting construction sector activity

Contract Overview

Contract Amount: $16,253,283 ($16.3M)

Contractor: MB Design Consultants, LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-22

End Date: 2025-11-10

Contract Duration: 567 days

Daily Burn Rate: $28.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR DORMITORY B460

Place of Performance

Location: CHARLESTON AFB, CHARLESTON County, SOUTH CAROLINA, 29404

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to MB DESIGN CONSULTANTS, LLC for work described as: REPAIR DORMITORY B460 Key points: 1. Contract value appears reasonable for a large-scale repair project of this nature. 2. Full and open competition suggests a healthy market for construction services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of 567 days indicates a significant scope of work. 5. The award to MB DESIGN CONSULTANTS, LLC contributes to the firm fixed-price contract landscape. 6. This contract falls within the broader category of facility maintenance and repair spending.

Value Assessment

Rating: good

The $16.3 million contract for dormitory repair is a substantial investment. Benchmarking against similar large-scale construction and repair projects for federal facilities is crucial. While specific per-unit costs for dormitory repair are not provided, the overall value seems aligned with the scope of work, which includes extensive repairs over a 567-day period. The firm fixed-price nature of the contract provides cost certainty, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were likely considered after an initial exclusion. The presence of four bidders suggests a competitive environment, which generally leads to better pricing and value for the government. This level of competition is a positive sign for price discovery and ensures that the government receives proposals from a range of qualified contractors.

Taxpayer Impact: The competitive bidding process for this dormitory repair contract is beneficial for taxpayers by driving down costs and ensuring the government secures services at a fair market price.

Public Impact

Military personnel stationed at the South Carolina base will benefit from improved living quarters. The contract delivers essential repair and maintenance services for a critical infrastructure asset. The geographic impact is localized to the specific Air Force base in South Carolina. The project will likely create or sustain jobs within the construction sector in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays given the 567-day duration and complexity of building repairs.
Ensuring quality of repairs meets long-term durability standards will be key.
Coordination with base operations to minimize disruption during repair work.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Award to a single contractor streamlines project management and execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Federal spending in this sector often focuses on maintaining and upgrading existing infrastructure, such as military barracks and dormitories. The market size for federal construction and repair is significant, with numerous firms capable of undertaking projects of this scale. This award represents a typical investment in facility upkeep within the defense sector.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. The award went to MB DESIGN CONSULTANTS, LLC, which may or may not be a small business itself. Further analysis would be needed to determine the extent of small business participation, either as prime contractors or subcontractors, and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and engineering divisions. Accountability measures are inherent in the firm fixed-price contract type, which penalizes cost overruns for the contractor. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Housing Construction
Base Infrastructure Modernization
Federal Building Repair and Maintenance
Department of Defense Facilities Management

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Ensuring contractor's long-term financial stability and workforce availability.
Adequate government oversight to manage performance and quality over extended duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to MB DESIGN CONSULTANTS, LLC. REPAIR DORMITORY B460

Who is the contractor on this award?

The obligated recipient is MB DESIGN CONSULTANTS, 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 $16.3 million.

What is the period of performance?

Start: 2024-04-22. End: 2025-11-10.

What is the track record of MB DESIGN CONSULTANTS, LLC with federal contracts, particularly within the Department of Defense?

A review of federal contract databases would be necessary to fully assess MB DESIGN CONSULTANTS, LLC's track record. Key metrics to examine would include the number of previous federal awards, the total value of contracts held, performance ratings on past projects, and any history of contract disputes or terminations. Understanding their experience with similar-sized construction and repair projects, especially for military facilities, would provide crucial context for evaluating their capability to successfully execute this dormitory repair contract. A positive history of on-time and within-budget project completion would be a strong indicator of reliability.

How does the awarded amount of $16.3 million compare to the estimated cost or budget for this dormitory repair project?

The provided data does not include the government's estimated cost or budget for the dormitory repair. To assess value for money, this contract award should be compared against the initial cost estimates or approved budgets. If the award is significantly below the estimate, it could indicate successful competition or potentially underestimated project needs. Conversely, if it's at or above the estimate, further scrutiny of the scope and pricing would be warranted. Without the estimated cost, a definitive value assessment is challenging, though the number of bidders suggests competitive pricing was sought.

What are the primary risks associated with a 567-day firm fixed-price contract for building repair?

The primary risks for a 567-day firm fixed-price contract for building repair include potential scope creep if not managed tightly, unforeseen site conditions (e.g., structural issues, hazardous materials) that could lead to change orders, and contractor performance issues. While the fixed-price nature protects the government from cost overruns, delays can still occur, impacting operational readiness. Contractor solvency and the ability to maintain a skilled workforce over the extended duration are also risks. The government's risk lies in ensuring the contractor adequately priced for contingencies and that robust oversight is in place to manage performance and address any emergent issues promptly.

What is the historical spending pattern for dormitory repair and similar construction projects at this specific Air Force base or within the Air Force?

Analyzing historical spending patterns for dormitory repair and similar construction projects at this specific Air Force base, or more broadly within the Air Force, is essential for context. This involves examining past contract awards for facility maintenance, renovation, and construction over several fiscal years. Key questions include the frequency of such large repair contracts, the average contract values, the types of contractors typically awarded these projects, and whether spending has been consistent or shows significant fluctuations. Understanding these patterns can help identify trends, potential underinvestment, or recurring needs, providing a benchmark against which the current $16.3 million award can be evaluated.

How does the competition level (4 bidders) for this contract compare to similar federal construction projects of comparable value?

A competition level of four bidders for a federal construction contract valued at $16.3 million is generally considered moderate to good. In the construction sector, especially for specialized or large-scale projects, the number of qualified bidders can vary. For projects of this magnitude, having four interested and capable firms suggests a reasonably competitive market. However, comparing this to similar federal construction projects is crucial. If comparable projects typically attract 8-10 bidders, then four might indicate some barriers to entry or a less robustly competed market. Conversely, if 2-3 bidders are common for such projects, then four represents strong competition.

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

Solicitation ID: FA441824R0002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8841 BLUEBONNET BLVD, BATON ROUGE, LA, 70810

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,253,283

Exercised Options: $16,253,283

Current Obligation: $16,253,283

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline