DoD awards $5.46M for Langley-Eustis fabrication facility, raising questions about competition and value

Contract Overview

Contract Amount: $5,465,888 ($5.5M)

Contractor: Ashford International, LLC

Awarding Agency: Department of Defense

Start Date: 2020-07-31

End Date: 2026-03-13

Contract Duration: 2,051 days

Daily Burn Rate: $2.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT ADVANCED FABRICATION FACILITY ON JOINT BASE LANGLEY - EUSTIS (JBLE) - FORT EUSTIS, VA.

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $5.5 million to ASHFORD INTERNATIONAL, LLC for work described as: CONSTRUCT ADVANCED FABRICATION FACILITY ON JOINT BASE LANGLEY - EUSTIS (JBLE) - FORT EUSTIS, VA. Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The fixed-price contract type offers some cost certainty but may not reflect the best value. 3. Limited competition raises concerns about whether the government secured the most advantageous terms. 4. The project aims to enhance advanced fabrication capabilities at a key military installation. 5. The duration of the contract (over 5 years) suggests a significant, long-term investment. 6. No indication of small business participation or set-asides, potentially excluding smaller firms.

Value Assessment

Rating: fair

The contract value of $5.46 million for a fabrication facility appears within a reasonable range for a Department of Defense construction project of this nature. However, without detailed breakdowns of labor, materials, and overhead, a precise value-for-money assessment is difficult. The firm fixed-price structure provides cost certainty for the government, but it relies heavily on the initial pricing being competitive. Benchmarking against similar advanced fabrication facility constructions at other military bases would be necessary for a more robust comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This significantly limits the number of potential bidders and removes the pressure of competitive bidding to drive down prices. While sole-source awards can be justified for specific reasons (e.g., unique capabilities, urgent needs), they often result in higher costs for the government compared to fully competed contracts. The lack of multiple bids means the government did not benefit from a range of proposals and pricing.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as competition is a key driver for cost savings in government contracting.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Air Force, gaining enhanced advanced fabrication capabilities. The project will deliver a new advanced fabrication facility at Joint Base Langley-Eustis (Fort Eustis), Virginia. The geographic impact is localized to Fort Eustis, Virginia, supporting military operations and readiness. The contract will likely involve a workforce of construction professionals, engineers, and skilled tradespeople, though specific numbers are not provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs for taxpayers.
Lack of transparency regarding the justification for a sole-source award.
Firm fixed-price contract may not reflect the absolute best value if initial pricing was not aggressively competitive.
No information on small business participation or subcontracting opportunities.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Project aims to enhance critical military fabrication capabilities.
Located at a major joint base, suggesting strategic importance.

Sector Analysis

The construction sector, particularly for government and defense projects, involves significant capital investment and specialized capabilities. This contract falls under commercial and institutional building construction, focusing on a facility designed for advanced fabrication. The market for such specialized facilities is often characterized by a limited number of experienced contractors capable of meeting stringent military requirements. Comparable spending benchmarks would typically involve other military construction projects for specialized facilities, with costs varying based on size, complexity, and location.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb=false) and there is no indication of a small business set-aside (ss=false). This suggests that the prime contract was likely awarded to a larger firm. Without specific subcontracting plans or goals outlined in the award details, it is difficult to assess the impact on the small business ecosystem. Typically, larger construction contracts offer opportunities for small businesses to participate as subcontractors, but this is not guaranteed without explicit provisions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force and the Department of Defense's contracting and engineering divisions. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified facility within the agreed-upon price. Transparency regarding the sole-source justification and the contractor's performance would be crucial. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction Projects
Advanced Manufacturing Facilities
Department of Defense Procurement
Base Infrastructure Development

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 million to ASHFORD INTERNATIONAL, LLC. CONSTRUCT ADVANCED FABRICATION FACILITY ON JOINT BASE LANGLEY - EUSTIS (JBLE) - FORT EUSTIS, VA.

Who is the contractor on this award?

The obligated recipient is ASHFORD INTERNATIONAL, 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 $5.5 million.

What is the period of performance?

Start: 2020-07-31. End: 2026-03-13.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are justified when only one responsible source is available to meet the government's needs, such as when a unique capability is required, or in cases of urgent and compelling need where competition is not feasible. Without further documentation from the Department of the Air Force, the precise rationale remains unknown. This lack of transparency can be a concern for ensuring fair and open competition.

How does the contract value of $5.46 million compare to similar advanced fabrication facility constructions at other military bases?

A direct comparison of the $5.46 million contract value for this advanced fabrication facility at Joint Base Langley-Eustis is challenging without access to a comprehensive database of similar military construction projects. Factors such as facility size, technological sophistication, specific equipment included, labor costs in the region, and the overall scope of work can vary significantly. However, for a specialized facility supporting advanced fabrication, this value appears to be within a plausible range for a Department of Defense project. A more thorough analysis would require benchmarking against projects with comparable square footage, functional requirements, and construction timelines at other installations.

What are the potential risks associated with a sole-source award for this construction project?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bids, the government may not secure the most cost-effective solution. Another risk is a reduced incentive for the contractor to innovate or optimize performance, as they are the only option. Furthermore, a sole-source award can raise concerns about fairness and equal opportunity for other qualified contractors who were not given a chance to bid. This can also lead to perceptions of a lack of transparency in the procurement process.

What is the expected impact of this facility on the operational capabilities of Joint Base Langley-Eustis?

The construction of an advanced fabrication facility is expected to significantly enhance the operational capabilities of Joint Base Langley-Eustis by providing on-site, state-of-the-art manufacturing and prototyping resources. This can lead to faster development cycles for new technologies, quicker repairs and modifications of existing equipment, and improved readiness. The ability to fabricate complex parts and components locally reduces reliance on external suppliers, potentially shortening lead times and increasing self-sufficiency. This investment supports the military's drive towards modernization and maintaining a technological edge.

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

Analyzing historical spending patterns for similar construction projects at Joint Base Langley-Eustis or within the Department of the Air Force requires access to extensive historical contract data. Generally, military construction projects, especially those involving specialized facilities like advanced fabrication centers, represent significant investments. Spending can fluctuate based on modernization priorities, infrastructure upgrades, and national defense strategies. Without specific historical data points for comparable facilities, it's difficult to establish a precise trend. However, the trend across the DoD has been towards investing in advanced capabilities and modernizing infrastructure to support evolving mission requirements.

What are the performance metrics or milestones defined in the contract for the fabrication facility?

The provided contract data specifies the start date (2020-07-31) and end date (2026-03-13), indicating a performance period of approximately 2051 days. However, the specific performance metrics, key milestones, or deliverables for the construction and commissioning of the advanced fabrication facility are not detailed in this summary. Typically, such contracts would include phased milestones for design completion, site preparation, construction phases, equipment installation, testing, and final acceptance. Performance would be evaluated against these milestones, quality standards, and adherence to the schedule and budget.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2803 FRUITVILLE RD STE 125, SARASOTA, FL, 34237

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,465,888

Exercised Options: $5,465,888

Current Obligation: $5,465,888

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline