DoD's $7.3M Hydrazine Building Renovation contract awarded to NVE-HHI JV, with completion by Dec 2026

Contract Overview

Contract Amount: $7,338,238 ($7.3M)

Contractor: Nve-Hhi JV

Awarding Agency: Department of Defense

Start Date: 2025-12-10

End Date: 2026-12-10

Contract Duration: 365 days

Daily Burn Rate: $20.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BLDG 2005, 2013, 2024 RENOVATION OF HYDRAZINE PROCESS BLDG FACILITIES

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $7.3 million to NVE-HHI JV for work described as: BLDG 2005, 2013, 2024 RENOVATION OF HYDRAZINE PROCESS BLDG FACILITIES Key points: 1. The contract value of $7.3M for building renovation appears reasonable given the scope, but requires benchmarking against similar facility upgrades. 2. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The project is situated within the broader context of Department of Defense facility maintenance and modernization efforts. 5. The construction sector is characterized by fluctuating material costs and labor availability, which can impact project timelines and budgets. 6. The contract's duration of one year aligns with typical renovation project timelines.

Value Assessment

Rating: fair

The contract value of $7.3 million for the renovation of a Hydrazine Process Building facility needs further context to assess value for money. Benchmarking against similar specialized facility renovations within the Department of Defense or other federal agencies would provide a clearer picture of whether this price is competitive. Factors such as the age and condition of the existing structure, the complexity of the required upgrades (especially concerning hazardous materials like hydrazine), and the specific scope of work will significantly influence the cost. Without detailed project specifications and comparable data, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This 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 based on predefined criteria. The presence of two bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The exclusion of certain sources, however, warrants scrutiny to ensure it did not unduly limit competition or lead to a suboptimal outcome for the government.

Taxpayer Impact: The use of full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that can drive down costs. However, the exclusion of specific sources could potentially limit the most cost-effective options available.

Public Impact

The primary beneficiaries are the Department of the Air Force and its personnel who will utilize the modernized Hydrazine Process Building. The contract delivers essential renovation and upgrade services to a critical facility, ensuring operational safety and efficiency. The geographic impact is localized to the specific Air Force installation in Utah where the facility is located. The project will likely involve construction workers and specialized trades, contributing to employment in the local or regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues or hazardous material remediation needs arise during renovation.
Risk of schedule delays due to the specialized nature of the facility and potential supply chain disruptions for specific materials.
Ensuring compliance with stringent safety and environmental regulations for handling hydrazine-related facilities.

Positive Signals

The firm-fixed-price contract structure incentivizes the contractor to manage costs effectively.
The use of full and open competition, even with exclusions, suggests an effort to secure competitive pricing.
The contractor, NVE-HHI JV, likely possesses relevant experience in construction and facility renovation, contributing to project success.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market is characterized by a mix of large, established firms and smaller specialized contractors. Federal spending in this sector often focuses on maintaining and upgrading government infrastructure, including specialized facilities like process buildings. Comparable spending benchmarks would involve analyzing the cost per square foot or per project for similar renovations of industrial or specialized government facilities.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract was competed broadly, there is no explicit requirement for subcontracting to small businesses outlined in the provided data. This means that opportunities for small businesses to participate in this project are dependent on the prime contractor's procurement decisions. The impact on the small business ecosystem is neutral unless the prime contractor voluntarily engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Facilities Maintenance
Air Force Construction Projects
Specialized Industrial Building Renovations
Federal Building Modernization Programs

Risk Flags

Potential for undisclosed hazardous material remediation costs.
Risk of schedule slippage due to specialized construction requirements.
Adequacy of competition despite exclusion of sources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.3 million to NVE-HHI JV. BLDG 2005, 2013, 2024 RENOVATION OF HYDRAZINE PROCESS BLDG FACILITIES

Who is the contractor on this award?

The obligated recipient is NVE-HHI JV.

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 $7.3 million.

What is the period of performance?

Start: 2025-12-10. End: 2026-12-10.

What is the track record of NVE-HHI JV in completing similar federal construction projects, particularly those involving specialized facilities?

A review of federal contract databases would be necessary to fully assess NVE-HHI JV's track record. Information on past performance, including project types, contract values, completion timeliness, and any past performance issues or awards, would provide insight into their capabilities. Specifically, experience with renovations of facilities handling hazardous materials or specialized industrial processes would be highly relevant to this contract's success. Without direct access to detailed past performance reviews or a comprehensive project history, it is difficult to definitively gauge their suitability beyond the fact they were awarded this contract.

How does the awarded amount of $7.3 million compare to the estimated cost or market rates for similar building renovations of this type?

To benchmark the $7.3 million award, one would need to compare it against similar projects in terms of size, scope, complexity, and location. This would involve analyzing data from the General Services Administration (GSA) or other federal agencies for comparable facility renovations, looking at metrics like cost per square foot, cost per major system upgrade, or total project cost for specialized industrial buildings. The 'Commercial and Institutional Building Construction' NAICS code (236220) provides a broad category, but the specific nature of a 'Hydrazine Process Building' suggests unique requirements that could elevate costs above standard commercial renovations. A detailed cost breakdown from the government's solicitation and evaluation process would be ideal for a precise comparison.

What are the primary risks associated with renovating a Hydrazine Process Building, and how are they mitigated in this contract?

Renovating a Hydrazine Process Building presents significant risks related to the handling and containment of hazardous materials, potential structural integrity issues, and the need for specialized safety protocols. Risks include environmental contamination, worker safety incidents, and operational disruptions. Mitigation strategies in this contract likely involve stringent safety and environmental compliance requirements mandated in the contract specifications, detailed site assessments, and potentially specialized remediation plans. The firm-fixed-price structure also incentivizes the contractor to manage these risks proactively to avoid cost overruns. The 'Full and Open Competition After Exclusion of Sources' might also imply that bidders were pre-qualified based on their ability to manage such specialized risks.

What is the expected impact of this renovation on the operational effectiveness and safety of the Air Force facility?

The renovation is expected to significantly enhance the operational effectiveness and safety of the Hydrazine Process Building. Upgrades typically address aging infrastructure, improve system reliability, and ensure compliance with current safety and environmental standards. For a facility handling hydrazine, this could mean improved containment systems, updated ventilation, enhanced monitoring capabilities, and modernized process controls. These improvements are crucial for maintaining mission readiness, protecting personnel and the environment, and ensuring the long-term viability of the facility's intended functions. The renovation aims to bring the facility up to modern standards, reducing the risk of failures or accidents.

How has federal spending on similar building renovations evolved over the past five years, and does this contract align with historical trends?

Analyzing historical federal spending on building renovations, particularly for specialized industrial or process facilities, would reveal trends in investment and cost escalation. Factors like infrastructure modernization initiatives, budget allocations for facility upkeep, and inflation rates influence these trends. This $7.3 million contract for a one-year renovation needs to be viewed within this broader context. If historical data shows similar projects costing in this range or higher, it suggests alignment. Conversely, if it represents a significant increase without clear justification (e.g., scope expansion, major unforeseen issues), it might warrant further investigation into cost-effectiveness. Understanding the historical spending patterns for the specific Air Force base or similar facilities would provide the most relevant comparison.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11507 N 6090 W, HIGHLAND, UT, 84003

Business Categories: Category Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,338,238

Exercised Options: $7,338,238

Current Obligation: $7,338,238

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA820122D0007

IDV Type: IDC

Timeline