DoD Awards $6.86M for Lab Renovation, Raising Concerns Over Limited Competition
Contract Overview
Contract Amount: $6,856,955 ($6.9M)
Contractor: Jade Creek Construction LLC
Awarding Agency: Department of Defense
Start Date: 2023-10-02
End Date: 2025-04-04
Contract Duration: 550 days
Daily Burn Rate: $12.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: AD9 B2187 LAB RENOVATION TOWER 3
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $6.9 million to JADE CREEK CONSTRUCTION LLC for work described as: AD9 B2187 LAB RENOVATION TOWER 3 Key points: 1. Significant investment in facility upgrades for the Department of the Navy. 2. Potential for cost overruns due to lack of competitive bidding. 3. Construction sector spending benchmarked against similar projects. 4. Risk of reduced value for taxpayer dollars without competitive pressure.
Value Assessment
Rating: questionable
The contract value of $6.86M for a lab renovation appears high given the lack of competition. Benchmarking against similar institutional building construction projects is difficult without more data, but the absence of competitive bids suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition approach. This likely resulted in less price discovery and potentially a higher price than if multiple bids had been solicited. The specific justification for limited competition is not provided.
Taxpayer Impact: Taxpayer funds may be used inefficiently due to the lack of competitive bidding, leading to a higher overall cost for the renovation.
Public Impact
Essential facility upgrades for military research capabilities. Potential impact on operational readiness if renovations are delayed or over budget. Job creation within the construction sector in Maryland.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Limited price discovery
Positive Signals
- Essential facility upgrade
- Definitive contract award
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project scope and location. The $6.86M award is substantial for a single renovation project.
Small Business Impact
The contract was awarded to JADE CREEK CONSTRUCTION LLC, a specific company. There is no indication that small businesses were involved in subcontracting opportunities or that this award specifically supports small business goals.
Oversight & Accountability
Oversight is crucial for this contract, especially given the limited competition. The Department of the Navy should ensure rigorous monitoring of project progress, costs, and adherence to the contract terms to mitigate risks.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of transparency in the procurement process.
- Potential for cost overruns without competitive oversight.
- No clear indication of small business participation.
Tags
commercial-and-institutional-building-co, department-of-defense, md, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.9 million to JADE CREEK CONSTRUCTION LLC. AD9 B2187 LAB RENOVATION TOWER 3
Who is the contractor on this award?
The obligated recipient is JADE CREEK CONSTRUCTION LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $6.9 million.
What is the period of performance?
Start: 2023-10-02. End: 2025-04-04.
What was the justification for not competing this contract, and what steps were taken to ensure fair pricing?
The justification for not competing this contract is not detailed in the provided data. Typically, justifications include factors like urgency, unique capabilities, or specific government requirements. Without this information, it's difficult to assess if fair pricing was achieved. Further review of the contract file and any associated documentation would be necessary.
What are the primary risks associated with awarding a large renovation contract without full and open competition?
The primary risks include paying a higher price than necessary due to lack of competitive pressure, potential for scope creep without competitive benchmarks, and reduced incentive for the contractor to innovate or optimize costs. There's also a risk of perceived unfairness or a missed opportunity to foster broader market competition.
How does this contract contribute to the overall effectiveness of the Department of the Navy's research infrastructure?
The renovation of Tower 3's laboratory is intended to modernize and improve critical research infrastructure. Effective execution of this contract will enhance the capabilities and efficiency of the Navy's research personnel, potentially leading to advancements in defense technologies and operational effectiveness.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042123R0089
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Nana Regional Corporation, Inc.,
Address: 2553 DULLES VIEW DR, HERNDON, VA, 20171
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,856,955
Exercised Options: $6,856,955
Current Obligation: $6,856,955
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-10-02
Current End Date: 2025-04-04
Potential End Date: 2026-04-04 00:00:00
Last Modified: 2025-12-15
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