Sequoia Construction awarded $4.08M for building construction at JB MDL, utilizing full and open competition

Contract Overview

Contract Amount: $4,083,187 ($4.1M)

Contractor: Sequoia Construction Incorporated

Awarding Agency: Department of Defense

Start Date: 2022-09-26

End Date: 2026-03-31

Contract Duration: 1,282 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MACC TASK ORDER: PROJECT NUMBER HEKP 18-1022: THE CONTRACTOR SHALL COMPLETE ALL THE TASKS IN BUILDINGS 6035, 6052 AND 6053, AT JB MDL

Place of Performance

Location: TRENTON, BURLINGTON County, NEW JERSEY, 08641

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $4.1 million to SEQUOIA CONSTRUCTION INCORPORATED for work described as: MACC TASK ORDER: PROJECT NUMBER HEKP 18-1022: THE CONTRACTOR SHALL COMPLETE ALL THE TASKS IN BUILDINGS 6035, 6052 AND 6053, AT JB MDL Key points: 1. The contract represents a significant investment in infrastructure at JB MDL. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The project duration spans over three years, indicating a substantial scope of work. 5. The award was made by the Department of the Air Force, a key defense agency. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable projects at JB MDL or within the immediate region. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can sometimes lead to higher initial bids to account for contingencies. However, the absence of detailed cost breakdowns or performance metrics makes a definitive value-for-money assessment difficult. Further analysis would require comparing the per-square-foot cost or cost per building to similar construction projects in the defense sector.

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 while the competition was broad, specific sources may have been excluded prior to the solicitation. There were 5 bids received, suggesting a moderate level of competition for this project. A higher number of bidders typically leads to more competitive pricing, but the specific nature of defense construction and the specialized requirements at a military installation can influence the number and quality of bids.

Taxpayer Impact: The use of full and open competition, with multiple bids, generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are the Department of Defense and the personnel stationed at Joint Base McGuire-Dix-Lakehurst (JB MDL). The contract will deliver essential construction services for buildings 6035, 6052, and 6053. The geographic impact is localized to JB MDL in New Jersey. The project will likely involve a workforce of construction laborers, tradespeople, and project managers, contributing to local employment in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Risk of schedule delays due to the multi-year duration and potential for complex construction challenges.
Ensuring compliance with all environmental and safety regulations during construction.
Adequate oversight needed to confirm adherence to specifications and quality standards.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition with multiple bidders suggests a competitive process.
The contractor, Sequoia Construction Inc., is responsible for delivering the specified construction tasks.
The project is located at a major military installation, implying strategic importance.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures such as offices, warehouses, and government facilities. Spending in this area is often driven by government infrastructure needs, economic development, and facility upgrades. Comparable spending benchmarks would typically involve analyzing other large-scale construction projects awarded by federal agencies for similar types of facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Sequoia Construction Inc., may choose to subcontract portions of the work to small businesses as part of their overall project management strategy, which could provide opportunities within 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 embedded in the firm-fixed-price contract, requiring the contractor to complete the work to specification. Transparency is facilitated through contract award databases, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) projects
Department of Defense Facilities Management
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Quality control during extended construction period
Contractor performance monitoring over multi-year duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.1 million to SEQUOIA CONSTRUCTION INCORPORATED. MACC TASK ORDER: PROJECT NUMBER HEKP 18-1022: THE CONTRACTOR SHALL COMPLETE ALL THE TASKS IN BUILDINGS 6035, 6052 AND 6053, AT JB MDL

Who is the contractor on this award?

The obligated recipient is SEQUOIA CONSTRUCTION INCORPORATED.

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 $4.1 million.

What is the period of performance?

Start: 2022-09-26. End: 2026-03-31.

What is the track record of Sequoia Construction Inc. on similar federal contracts?

Assessing Sequoia Construction Inc.'s track record requires a review of their past performance on federal contracts, particularly those involving similar scope, scale, and complexity within the Department of Defense or other federal agencies. Information on past performance, including on-time delivery, adherence to budget, and quality of work, is typically available through sources like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS). A review would look for patterns of successful project completion, any instances of contract disputes or terminations, and overall client satisfaction ratings. Without specific data on Sequoia's past performance, it is difficult to definitively assess their reliability for this particular project.

How does the awarded amount compare to similar building construction projects at military installations?

Comparing the $4.08 million award for buildings 6035, 6052, and 6053 at JB MDL to similar projects requires access to a database of comparable federal construction contracts. Key metrics for comparison would include cost per square foot, cost per building, or cost per unit of work (e.g., cost per cubic yard of concrete). Factors such as geographic location, age and condition of existing structures, specific construction requirements (e.g., specialized environmental controls, security features), and prevailing labor and material costs in the region significantly influence project costs. A thorough benchmark analysis would involve identifying projects with similar characteristics and adjusting for these variables to determine if the awarded amount represents good value for money.

What are the primary risks associated with this firm-fixed-price construction contract?

The primary risks associated with this firm-fixed-price (FFP) contract, while generally favorable for the government in terms of cost certainty, still involve potential issues. For the government, the main risk is that the contractor may cut corners on quality or materials to maintain profitability if unforeseen cost increases arise, although quality assurance measures should mitigate this. For the contractor, the risk lies in underestimating costs, encountering unexpected site conditions (e.g., hazardous materials, difficult soil), or experiencing labor or material price escalations, which could lead to financial losses if not adequately accounted for in their bid. Schedule delays are also a risk, which can impact the operational readiness of the facilities.

How effective are the competition dynamics in ensuring optimal pricing for this contract?

The effectiveness of the competition dynamics in ensuring optimal pricing for this contract hinges on the quality and competitiveness of the five bids received. Full and open competition, even with exclusions, generally promotes better price discovery than sole-source or limited competition. However, the specific nature of construction at a military installation can sometimes limit the pool of qualified bidders. If the five bidders were highly capable and actively competed, it is likely that the pricing is competitive. Conversely, if the pool of qualified bidders was small or if there was tacit collusion, the pricing might not be as optimal as possible. Further analysis would require understanding the bid spread and the historical pricing of the winning contractor.

What is the historical spending pattern for building construction at JB MDL?

Analyzing historical spending patterns for building construction at JB MDL would involve examining contract awards data for similar projects over several fiscal years. This would reveal trends in the volume and value of construction contracts, the types of construction services procured, and the primary contracting agencies involved (e.g., Air Force, Army Corps of Engineers). Understanding historical spending can help contextualize the current $4.08 million award, indicating whether it is an outlier, a typical investment, or part of a larger modernization effort. It can also highlight any shifts in procurement strategies or the types of facilities being prioritized for construction or renovation at the base.

What are the potential implications of the contract duration on project oversight and management?

The contract duration of approximately 1282 days (over three years) for this construction project necessitates robust, long-term oversight and project management. This extended timeline increases the potential for scope creep, changes in requirements, and the need for continuous monitoring of contractor performance, quality control, and adherence to safety standards. Effective management requires dedicated government personnel to oversee the project, manage modifications, process payments, and ensure timely completion. The extended duration also means that market conditions for labor and materials could fluctuate significantly, potentially impacting the contractor's ability to maintain costs within the fixed-price framework, requiring careful contract administration.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 307 FELLOWSHIP ROAD, SUITE 105, MOUNT LAUREL, NJ, 08054

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

Financial Breakdown

Contract Ceiling: $4,083,187

Exercised Options: $4,083,187

Current Obligation: $4,083,187

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA448420D0001

IDV Type: IDC

Timeline