DoD's $11.5M construction management contract awarded to ISI-MARKON JV LLC for 547 days

Contract Overview

Contract Amount: $11,538,002 ($11.5M)

Contractor: Isi-Markon JV LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-03-31

Contract Duration: 547 days

Daily Burn Rate: $21.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION MANAGEMENT TECHNICAL SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to ISI-MARKON JV LLC for work described as: CONSTRUCTION MANAGEMENT TECHNICAL SUPPORT SERVICES Key points: 1. The contract value represents a significant investment in construction management technical support. 2. Competition dynamics for this contract need further examination to understand pricing efficiency. 3. Potential risks include project delays or cost overruns, common in large construction projects. 4. Performance context is crucial to assess the effectiveness of the awarded contractor. 5. This contract falls within the broader construction and facilities management sector for the DoD. 6. The firm-fixed-price structure aims to control costs, but requires careful scope management.

Value Assessment

Rating: fair

Benchmarking the $11.5 million contract value against similar construction management technical support services is challenging without more specific scope details. However, the duration of 547 days suggests a substantial project. The firm-fixed-price (FFP) contract type indicates an attempt to establish a ceiling on costs, but the ultimate value-for-money will depend on the contractor's ability to deliver within that price while meeting all technical requirements. Without comparable contract data or detailed performance metrics, a definitive assessment of value is difficult.

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,' which implies that while the competition was broad, specific sources may have been excluded based on certain criteria. The number of bidders is not provided, but this type of competition generally aims to foster price discovery and ensure a competitive market. The effectiveness of this competition in driving down costs depends on the number and capability of the participating firms.

Taxpayer Impact: This competitive approach is intended to secure the best possible pricing and service for taxpayers by allowing multiple qualified vendors to bid on the requirement.

Public Impact

The Department of Defense benefits from enhanced technical support for its construction projects. Services delivered likely include project planning, oversight, quality assurance, and risk management for construction initiatives. The geographic impact is centered around Department of Defense facilities, potentially in Virginia where the awardee is registered. Workforce implications may involve the direct employment by ISI-MARKON JV LLC and potential indirect employment through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex construction projects, leading to cost increases despite FFP.
Reliance on a joint venture may introduce coordination challenges between partners.
Ensuring adequate oversight to verify contractor performance against technical specifications is critical.

Positive Signals

Award to a joint venture suggests combined expertise and capacity to handle significant projects.
The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition, even with exclusions, generally promotes competitive pricing.

Sector Analysis

The construction management and technical support sector is vital for the execution of large-scale infrastructure and facility projects across government and private industries. This contract fits within the broader commercial and institutional building construction market, estimated to be a multi-billion dollar industry. The Department of Defense is a significant client within this sector, often requiring specialized expertise for its diverse construction needs. Comparable spending benchmarks would typically involve analyzing the total annual expenditure on construction management services by federal agencies.

Small Business Impact

The contract data indicates that small business participation (ss and sb flags) was not a primary set-aside consideration for this specific award. This suggests that the primary focus was on securing the best technical solution and price through broader competition. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting these critical construction management services.

Oversight & Accountability

Oversight for this contract will likely be managed by the relevant contracting officers and program managers within the Department of Defense's Washington Headquarters Services. Accountability measures are typically embedded in the contract's performance work statement and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Construction Projects
Facilities Engineering and Management
Construction Technical Services
Government Contracting Support

Risk Flags

Potential for limited competition due to source exclusion.
Risk of cost overruns if scope is not tightly managed.
Dependence on joint venture partners' performance and coordination.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to ISI-MARKON JV LLC. CONSTRUCTION MANAGEMENT TECHNICAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ISI-MARKON JV LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-03-31.

What is the specific scope of work covered by this $11.5 million contract for construction management technical support?

The provided data indicates the contract is for 'CONSTRUCTION MANAGEMENT TECHNICAL SUPPORT SERVICES' with a North American Industry Classification System (NAICS) code of 236220, which pertains to Commercial and Institutional Building Construction. However, the precise details of the scope of work, such as the specific projects, locations, or types of technical support (e.g., design review, site supervision, scheduling, cost estimating, quality control), are not detailed in the summary data. This level of detail is typically found in the Performance Work Statement (PWS) or Statement of Work (SOW) attached to the contract award. Understanding the specific services is crucial for a comprehensive value assessment.

How does the awarded price of $11.5 million compare to market rates for similar construction management technical support services?

Directly comparing the $11.5 million contract value to market rates is difficult without knowing the exact scope, duration, and complexity of the services required. The contract is for a firm-fixed-price (FFP) with a duration of 547 days (approximately 1.5 years). The NAICS code 236220 covers a broad range of commercial and institutional building construction activities. To benchmark effectively, one would need to identify comparable federal or large-scale private sector contracts for construction management support on projects of similar scale and complexity, and then analyze their total costs or hourly rates. The provided data does not include such comparative metrics.

What are the key performance indicators (KPIs) used to evaluate the success of ISI-MARKON JV LLC under this contract?

The summary data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for construction management technical support, KPIs would relate to adherence to schedule, budget control, quality of work performed, safety compliance, and responsiveness to government requests. Performance evaluations are usually documented in Contractor Performance Assessment Reporting System (CPARS) reports. Without access to the PWS or CPARS data, it's impossible to detail the specific metrics used to measure ISI-MARKON JV LLC's success.

What is the track record of ISI-MARKON JV LLC in performing similar federal construction management contracts?

ISI-MARKON JV LLC is a joint venture, suggesting a combination of capabilities from its constituent members. To assess their track record, one would need to examine past performance data for both ISI and MARKON individually, as well as any previous joint ventures they may have formed. This would involve searching federal contract databases (like SAM.gov or FPDS) for prior awards, performance evaluations (CPARS), and any reported issues or successes on similar projects. The provided data does not contain this historical performance information.

What is the potential risk associated with the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type indicates that while the competition was intended to be broad, certain potential sources were deliberately excluded. The rationale for exclusion must be justified and documented, often based on specific capabilities, past performance, or other pre-defined criteria. The risk lies in whether the exclusion process inadvertently limited the pool of highly qualified bidders, potentially impacting the final price or the optimal solution. If the exclusion criteria were not well-defined or justified, it could raise questions about the fairness and competitiveness of the procurement process.

How does this $11.5 million contract fit into the Department of Defense's overall spending on construction and facilities management?

The Department of Defense has a vast portfolio of real property and infrastructure, requiring substantial annual investment in construction, maintenance, and management. An $11.5 million contract for construction management technical support is a component of this larger spending. To contextualize it, one would need to compare it against the DoD's total budget allocated for facilities and construction, as well as the number and value of other similar contracts awarded within a given fiscal year. This single contract represents a specific need for expertise in managing construction projects, contributing to the overall goal of maintaining and improving DoD infrastructure.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003422R0221

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 45610 WOODLAND RD STE 130, STERLING, VA, 20166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $40,993,081

Exercised Options: $14,035,857

Current Obligation: $11,538,002

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003424D0006

IDV Type: IDC

Timeline