DoD's $8.3M contract for relocatable facilities awarded to Modular Management Group Inc

Contract Overview

Contract Amount: $8,337,655 ($8.3M)

Contractor: Modular Management Group Inc

Awarding Agency: Department of Defense

Start Date: 2023-12-06

End Date: 2026-04-15

Contract Duration: 861 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RELOCATABLE FACILITY

Place of Performance

Location: EDWARDS, KERN County, CALIFORNIA, 93524

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $8.3 million to MODULAR MANAGEMENT GROUP INC for work described as: RELOCATABLE FACILITY Key points: 1. Contract awarded for prefabricated metal buildings, a niche manufacturing sector. 2. Fixed-price contract type aims to control costs for the government. 3. Delivery order structure suggests a need for flexible, on-demand facility solutions. 4. The contract duration of 861 days indicates a medium-term requirement. 5. Awarded by the Department of the Air Force, highlighting a specific military need. 6. The contract value is modest within the broader federal procurement landscape.

Value Assessment

Rating: good

The contract value of $8.3 million for relocatable facilities appears reasonable given the scope and duration. Benchmarking against similar prefabricated building contracts is challenging without more specific details on size, features, and delivery locations. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The award to a single entity for this amount indicates a focused procurement, and further analysis would require comparing the unit costs of the delivered facilities to market rates for comparable modular structures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it resulted in a single delivery order suggests that while competition was open, Modular Management Group Inc. was selected as the most advantageous offer. The level of competition is not explicitly detailed (e.g., number of bids received), but the 'full and open' designation implies a robust process designed to solicit a wide range of potential suppliers.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging a competitive bidding environment.

Public Impact

Military personnel and operations will benefit from the provision of relocatable facilities, likely for temporary or deployable infrastructure needs. Services delivered include the manufacturing and potentially installation of prefabricated metal buildings. The geographic impact is specified as California (SN: CALIFORNIA), indicating the primary delivery or operational area. Workforce implications may include jobs in manufacturing, logistics, and potentially construction/installation related to the facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for all material and labor costs.
Risk of delays in delivery or installation impacting operational readiness.
Dependence on a single contractor for a critical infrastructure need.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive selection process.
Modular design can offer flexibility and faster deployment compared to traditional construction.

Sector Analysis

This contract falls within the construction and manufacturing sector, specifically focusing on prefabricated metal buildings. The market for modular and relocatable structures is significant, driven by needs for rapid deployment, cost-effectiveness, and flexibility across various industries, including government, education, and commercial sectors. Federal spending in this area often supports military base infrastructure, disaster relief efforts, and temporary operational facilities. Comparable spending benchmarks would depend on the specific size, features, and intended use of the relocatable facilities.

Small Business Impact

The data indicates that small business participation (SB: false) was not a primary consideration for this specific award, nor was there a small business set-aside (SS: false). This suggests the contract was competed broadly, and the selected contractor is likely a larger entity. There is no explicit information on subcontracting plans, but for a contract of this nature, it's possible that smaller specialized firms could be engaged for specific components or services, though this is not guaranteed.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified facilities within the agreed timeframe and budget. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction
Base Operations Support
Facilities Engineering
Modular Building Systems
Prefabricated Structures

Risk Flags

Potential for cost increases if material prices fluctuate significantly.
Risk of delivery delays impacting operational timelines.
Need for robust quality assurance to ensure facilities meet specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.3 million to MODULAR MANAGEMENT GROUP INC. RELOCATABLE FACILITY

Who is the contractor on this award?

The obligated recipient is MODULAR MANAGEMENT GROUP INC.

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 $8.3 million.

What is the period of performance?

Start: 2023-12-06. End: 2026-04-15.

What is the track record of Modular Management Group Inc. with federal contracts, particularly with the Department of Defense?

A review of federal procurement data would be necessary to fully assess Modular Management Group Inc.'s track record. This would involve examining past awards, contract performance history, and any reported issues or successes. For this specific contract, the award is a delivery order under a larger contract vehicle, suggesting prior vetting or a pre-existing relationship. Understanding their history with similar projects, especially for the Department of the Air Force, would provide context on their reliability and capability in delivering relocatable facilities. Without access to detailed performance reports or past performance evaluations, it's difficult to definitively assess their track record beyond the fact they were selected for this award.

How does the $8.3 million contract value compare to similar relocatable facility procurements by the DoD or other federal agencies?

Benchmarking this $8.3 million contract requires comparing it to procurements of similar scale, complexity, and specifications. Relocatable facilities can vary significantly in size, features (e.g., insulation, HVAC, plumbing), and intended use (e.g., office space, barracks, storage). A direct comparison to other $8.3 million contracts for relocatable facilities would be most relevant. However, if such precise matches are unavailable, analysis would involve looking at contracts for modular buildings or temporary structures within a similar dollar range (e.g., $5M-$15M) and considering factors like the number of units, square footage, and delivery timelines. The firm fixed-price nature of this contract also suggests a focus on cost containment, which should be a factor in any value assessment.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?

Key performance indicators for this contract would likely include timely delivery of the relocatable facilities, adherence to specifications (quality, dimensions, features), and successful installation if included in the scope. Risk mitigation strategies are partially addressed by the firm fixed-price contract type, which shifts cost overrun risk to the contractor. Further mitigation would involve clear contract language, defined acceptance criteria, performance bonds, and potentially liquidated damages for delays. The Department of the Air Force would also employ oversight through contract officers and technical representatives to monitor progress and address issues proactively. The duration of the contract and the delivery order structure might also imply phased delivery, allowing for risk management across multiple shipments or installations.

What is the historical spending pattern for relocatable facilities by the Department of the Air Force and the DoD?

Analyzing historical spending patterns for relocatable facilities by the Department of the Air Force and the broader DoD would reveal trends in demand, average contract values, and common contractors. This specific $8.3 million award needs to be viewed within that context. If historical spending shows a consistent need for such facilities, it validates the ongoing requirement. Significant fluctuations might indicate shifts in deployment strategies, base infrastructure projects, or budget priorities. Understanding the typical contract vehicles used (e.g., IDIQs, specific delivery orders) and the average duration and cost per square foot for similar facilities would provide valuable insights into whether this particular award is within the expected range or represents an outlier.

What specific types of relocatable facilities are being procured, and what is their intended operational purpose?

The contract specifies 'RELOCATABLE FACILITY' and falls under NAICS code 332311 (Prefabricated Metal Building and Component Manufacturing). This suggests the procurement is for prefabricated metal structures designed to be moved. The intended operational purpose is not detailed in the provided data but can be inferred from the awarding agency (Department of the Air Force). Such facilities are commonly used for administrative offices, barracks, training facilities, storage, or specialized operational support at military installations, potentially including forward operating bases or areas undergoing construction or renovation. The specific configuration, size, and amenities (e.g., climate control, power, plumbing) would dictate their exact use and contribute to the overall contract value.

Industry Classification

NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Prefabricated Metal Building and Component Manufacturing

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6602 PLAZA PKWY, FORT WORTH, TX, 76116

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

Financial Breakdown

Contract Ceiling: $8,337,655

Exercised Options: $8,337,655

Current Obligation: $8,337,655

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07F0222X

IDV Type: FSS

Timeline