DoD's $16.6M Navy Yard Renovation Contract Awarded to G-W Management Services

Contract Overview

Contract Amount: $16,655,847 ($16.7M)

Contractor: G-W Management Services, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2025-08-19

Contract Duration: 1,785 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: B210 3RD FLOOR RENOVATION CONSTRUCTION, DB, NAVY YARD, D.C

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to G-W MANAGEMENT SERVICES, LLC for work described as: B210 3RD FLOOR RENOVATION CONSTRUCTION, DB, NAVY YARD, D.C Key points: 1. Contract value represents a significant investment in facility upgrades at the Navy Yard. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 4 years) indicates a substantial scope of work. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. The project is located in Washington D.C., impacting local construction workforce and economy. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial building construction.

Value Assessment

Rating: fair

Benchmarking the value of this specific renovation against similar projects is challenging without more granular data on scope and materials. However, the $16.6 million price tag for a multi-year renovation of a 3rd-floor space suggests a considerable investment. The firm fixed-price contract type implies that the contractor is responsible for cost overruns, which can be a positive indicator for the government if the contractor's bid was competitive and realistic. Further analysis would require comparing the cost per square foot to similar government or private sector renovations in the D.C. area.

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,' which is a specific type of full and open competition. This indicates that the solicitation was made available to all responsible prospective contractors, and any restrictions were justified and documented. The fact that there were 5 bids received suggests a healthy level of competition for this project, which typically leads to better pricing and value for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective price compared to a sole-source or limited competition scenario. Multiple bids help ensure that the government is not overpaying for the construction services.

Public Impact

The primary beneficiaries are the Department of the Navy personnel who will utilize the renovated 3rd floor space at the Navy Yard. The contract delivers construction services for the renovation of approximately 23,622 square feet of commercial space. The geographic impact is concentrated in Washington D.C., specifically at the Navy Yard. The project will likely involve and support the local construction workforce in the D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if renovation requirements are not precisely defined.
Risk of delays due to unforeseen site conditions common in older buildings.
Contractor performance risk, although mitigated by fixed-price contract.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract shifts cost overrun risk to the contractor.
Contract duration of over 4 years allows for thorough project execution.

Sector Analysis

The construction sector, particularly commercial and institutional building construction (NAICS 236220), is a significant part of federal spending. This contract fits within the broader category of facilities modernization and infrastructure development undertaken by various government agencies. Federal spending in this area often benchmarks against private sector construction costs, with variations due to specific government requirements, security protocols, and procurement processes. The total contract value of $16.6 million is moderate for a federal construction project of this duration.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, G-W Management Services, LLC, is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award data. The impact on the small business ecosystem would depend on whether G-W Management Services actively seeks to subcontract portions of the work to small businesses, which is a common practice but not guaranteed without specific set-aside requirements or contractual clauses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified renovation within the agreed-upon cost. Transparency is facilitated by the public nature of federal contract awards, allowing for review of basic contract details. The Inspector General for the Department of Defense may have jurisdiction to investigate fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense Facilities Modernization Programs
Navy Base Infrastructure Projects
Federal Building Renovations
Commercial Construction Contracts

Risk Flags

Potential for cost overruns if scope is not tightly managed, despite fixed-price.
Risk of schedule delays due to unforeseen site conditions.
Contractor's past performance history needs verification for reliability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to G-W MANAGEMENT SERVICES, LLC. B210 3RD FLOOR RENOVATION CONSTRUCTION, DB, NAVY YARD, D.C

Who is the contractor on this award?

The obligated recipient is G-W MANAGEMENT SERVICES, 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 $16.7 million.

What is the period of performance?

Start: 2020-09-29. End: 2025-08-19.

What is the track record of G-W Management Services, LLC in performing similar federal construction contracts?

Information regarding the specific track record of G-W Management Services, LLC on similar federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any history of disputes or litigation. Federal agencies typically evaluate a contractor's past performance as a key factor in the source selection process. Without access to these records, it's difficult to definitively assess their experience and reliability for this specific $16.6 million renovation project at the Navy Yard.

How does the awarded price of $16.6 million compare to market rates for similar commercial renovations in the Washington D.C. area?

Directly comparing the $16.6 million award to market rates for similar renovations in D.C. is challenging without detailed project specifications (e.g., square footage, scope of work, quality of finishes, specific systems being upgraded). However, the contract value suggests a significant undertaking. Industry benchmarks for commercial construction costs in major metropolitan areas like D.C. can range widely, from a few hundred dollars per square foot for basic renovations to over a thousand dollars per square foot for high-end or complex projects. Given the duration and the nature of a federal facility, this price point warrants scrutiny to ensure it aligns with expected costs for the scope defined in the contract.

What are the primary risks associated with this specific renovation project, and how are they being managed?

Key risks for this renovation include unforeseen structural or environmental issues within the existing building, potential delays in material procurement or labor availability, and scope creep if requirements evolve. The Department of the Navy manages these risks through the contract structure and oversight. The firm fixed-price (FFP) contract shifts significant cost risk to G-W Management Services, LLC. Additionally, the contract's defined duration (1785 days) and specific deliverables provide a framework for managing scope. Robust project management, regular site inspections, and clear communication channels between the government and contractor are crucial for mitigating these risks throughout the project lifecycle.

What is the historical spending pattern for building renovations at the Navy Yard or similar Department of the Navy facilities?

Analyzing historical spending patterns for renovations at the Navy Yard or comparable Department of the Navy facilities would provide context for the $16.6 million award. This would involve examining past contract awards for similar projects, noting their values, durations, and scopes. Understanding the typical cost per square foot, the frequency of such renovations, and the average number of bidders can help determine if this current contract represents a typical investment or an outlier. Without access to historical spending databases or specific facility management reports, a precise comparison is not feasible based solely on the provided data.

What performance metrics or key performance indicators (KPIs) are likely being used to evaluate the success of this renovation contract?

While specific KPIs are not provided, typical performance metrics for federal construction contracts include adherence to schedule (on-time completion of milestones and final delivery), quality of workmanship (meeting specifications and building codes), safety compliance (maintaining a safe work environment), and budget adherence (completing the project within the fixed price). The Department of the Navy's contracting officer and project representatives would monitor these aspects. Contractor performance evaluations, such as those in CPARS, would likely document the contractor's success against these implicit or explicit KPIs.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008018R0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5010 NICHOLSON LN STE 200, ROCKVILLE, MD, 20852

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,255,040

Exercised Options: $16,766,547

Current Obligation: $16,655,847

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008019D0015

IDV Type: IDC

Timeline