Balfour Beatty Construction awarded $73.6M for Joint Base Andrews Communication Center, highlighting significant investment in defense infrastructure

Contract Overview

Contract Amount: $73,651,646 ($73.7M)

Contractor: Balfour Beatty Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2021-08-09

End Date: 2025-09-04

Contract Duration: 1,487 days

Daily Burn Rate: $49.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P3003 DBB CONSOLIDATED COMMUNICATION CENTER, JOINT BASE ANDREWS, MD

Place of Performance

Location: CLINTON, PRINCE GEORGES County, MARYLAND, 20735

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $73.7 million to BALFOUR BEATTY CONSTRUCTION, LLC for work described as: P3003 DBB CONSOLIDATED COMMUNICATION CENTER, JOINT BASE ANDREWS, MD Key points: 1. The contract value represents a substantial investment in critical communication infrastructure for Joint Base Andrews. 2. Competition dynamics for this large-scale construction project are crucial for ensuring taxpayer value. 3. Performance risk indicators will be monitored closely given the project's complexity and duration. 4. This project fits within the broader context of defense facility modernization efforts. 5. The sector positioning is within commercial and institutional building construction, a key area for defense spending. 6. The firm-fixed-price contract type aims to control costs and manage financial risk.

Value Assessment

Rating: good

The contract value of $73.6 million for a consolidated communication center at Joint Base Andrews appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale defense construction projects would provide a more precise assessment of value for money. The firm-fixed-price structure suggests an effort to establish cost certainty upfront, which is generally positive for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With six bidders participating, the level of competition suggests a healthy market response for this type of defense construction project. This broad competition is generally expected to drive more competitive pricing and encourage contractors to offer their best value propositions.

Taxpayer Impact: The full and open competition with six bidders is beneficial for taxpayers as it likely led to a more competitive price than a sole-source or limited competition award. This process helps ensure that public funds are used efficiently by leveraging market forces to achieve a fair price.

Public Impact

The primary beneficiaries are the Department of Defense and military personnel stationed at Joint Base Andrews, who will gain enhanced communication capabilities. The project delivers a critical piece of infrastructure: a consolidated communication center, essential for operational readiness. The geographic impact is localized to Joint Base Andrews in Maryland, but the improved communication systems can have broader operational implications for regional defense. The contract supports jobs in the construction sector, including skilled trades and project management, within Maryland and potentially surrounding areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price structure.
Schedule delays could impact the operational readiness of the communication center.
Ensuring the final construction meets all stringent military communication and security standards.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, Balfour Beatty Construction, is a large, established firm with experience in large-scale projects.
The project addresses a critical infrastructure need for a major military installation.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the broader construction industry. Defense spending often drives substantial activity in this sector, particularly for specialized facilities like communication centers. Comparable spending benchmarks would involve analyzing other large-scale construction contracts for military bases, focusing on projects with similar functional requirements and security considerations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale construction project, it is likely that Balfour Beatty Construction, LLC, will engage subcontractors. The extent to which small businesses will participate as subcontractors will be a key factor in assessing the broader impact on the small business ecosystem. Further analysis of subcontracting plans would be necessary to determine the specific opportunities for small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and engineering divisions, with potential involvement from the base commander's office at Joint Base Andrews. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services within the agreed-upon price. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction Projects
Defense Communications Infrastructure
Base Realignment and Closure (BRAC) Facilities
Department of Defense IT Infrastructure
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for schedule delays impacting operational readiness.
Risk of unforeseen site conditions affecting project costs.
Ensuring compliance with stringent military communication and security standards.
Dependency on subcontractor performance for specialized systems integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.7 million to BALFOUR BEATTY CONSTRUCTION, LLC. P3003 DBB CONSOLIDATED COMMUNICATION CENTER, JOINT BASE ANDREWS, MD

Who is the contractor on this award?

The obligated recipient is BALFOUR BEATTY 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 $73.7 million.

What is the period of performance?

Start: 2021-08-09. End: 2025-09-04.

What is Balfour Beatty Construction's track record with similar large-scale federal construction projects, particularly within the Department of Defense?

Balfour Beatty Construction, LLC, is a well-established construction firm with extensive experience in large-scale projects, including significant work for the Department of Defense and other federal agencies. They have a history of undertaking complex infrastructure, healthcare, and institutional building projects. Analyzing their past performance on similar definitive contracts, especially those involving communication facilities or secure government installations, would provide insight into their capacity to manage this project effectively. Past performance reviews and any documented issues on previous federal contracts would be critical data points for assessing their reliability and expertise in delivering projects of this magnitude and technical requirement.

How does the awarded amount of $73.6 million compare to the estimated cost or budget for this consolidated communication center project?

The provided data does not include the government's estimated cost or budget for the P3003 DBB CONSOLIDATED COMMUNICATION CENTER project. The awarded amount of $73.6 million represents the price agreed upon through the competitive bidding process. To assess value, this figure should ideally be compared against the government's independent cost estimate (ICE) or a range of bids received from other competitors. If the awarded amount is significantly below the ICE or the average of other bids, it could indicate strong competition and good value. Conversely, if it is substantially higher, it might warrant further investigation into the bidding process and the contractor's proposed costs.

What are the key performance indicators (KPIs) and risk mitigation strategies outlined in the contract for this project?

While the provided data specifies a firm-fixed-price contract type (pt: FIRM FIXED PRICE) and a duration (dur: 1487 days), it does not detail the specific Key Performance Indicators (KPIs) or risk mitigation strategies. Typically, for a project of this nature, KPIs would focus on schedule adherence, quality of construction, adherence to security protocols, and successful integration of communication systems. Risk mitigation strategies would likely include detailed project management plans, contingency planning for unforeseen site conditions, robust quality assurance/quality control (QA/QC) processes, and clear communication protocols between the contractor and the government's contracting officer's representative (COR). These details are usually found within the contract's statement of work (SOW) and associated performance standards.

What is the historical spending trend for communication infrastructure at Joint Base Andrews or similar Department of Defense facilities?

The provided data focuses on a single contract award and does not offer historical spending trends for communication infrastructure at Joint Base Andrews or similar DoD facilities. To analyze historical spending, one would need to examine contract databases (like FPDS) for previous awards related to communication centers, network upgrades, or related infrastructure at this specific base or comparable installations over several fiscal years. This would involve identifying relevant contract vehicles, agencies involved, and the total expenditure over time. Understanding these trends can help contextualize the current $73.6 million award and identify patterns in investment or potential shifts in spending priorities.

How does the number of bidders (6) influence the potential for cost savings and the overall value for money in this full and open competition?

A full and open competition with six bidders generally indicates a healthy level of market interest and a robust competitive environment for this type of construction project. With multiple firms vying for the contract, each bidder is incentivized to offer a more competitive price and a stronger value proposition to win the award. This increased competition typically leads to downward pressure on prices, potentially resulting in significant cost savings for the government compared to a scenario with fewer bidders or a sole-source award. The presence of six bidders suggests that the government likely achieved a favorable price and that the chosen contractor's offer represented a strong balance of cost and technical merit.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008021R9670

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3180 FAIRVIEW PARK DR STE 200, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $74,824,646

Exercised Options: $73,651,646

Current Obligation: $73,651,646

Actual Outlays: $28,623,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline