DoD's Navy Awards $24.8M Construction Contract to ENCON DESBUILD JV LLC Under Full and Open Competition
Contract Overview
Contract Amount: $24,863,579 ($24.9M)
Contractor: Encon Desbuild JV 3 LLC
Awarding Agency: Department of Defense
Start Date: 2023-08-31
End Date: 2026-02-25
Contract Duration: 909 days
Daily Burn Rate: $27.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P656 BASE BID PRICE FOR THE ENTIRE WORK
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.9 million to ENCON DESBUILD JV 3 LLC for work described as: P656 BASE BID PRICE FOR THE ENTIRE WORK Key points: 1. The contract is for commercial and institutional building construction, valued at $24.8 million. 2. Awarded by the Department of the Navy, it falls under the Department of Defense. 3. The contract was secured through full and open competition, indicating a competitive bidding process. 4. The project duration is 909 days, with an estimated completion date in February 2026.
Value Assessment
Rating: good
The base bid price of $24.8 million appears reasonable for a large-scale construction project of this duration. Benchmarking against similar institutional building construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, maximizing the value of taxpayer funds for this construction project.
Public Impact
Military families and personnel in Virginia will benefit from improved facilities. Local economy may see a boost through subcontracting and employment opportunities. The project contributes to the modernization of naval infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction issues arise.
- Dependency on the contractor's ability to meet project timelines and quality standards.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm fixed price contract type limits cost uncertainty for the government.
- Clear project scope and defined completion date.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for maintaining and upgrading government facilities, with benchmarks varying significantly based on project scope, location, and complexity.
Small Business Impact
While the primary awardee is a joint venture, the contract's success may involve subcontracting opportunities for small businesses in the construction trades and material supply chain.
Oversight & Accountability
The award process under full and open competition suggests adherence to standard procurement regulations. Ongoing oversight will be critical to ensure project milestones, quality, and budget adherence.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep if requirements are not strictly managed.
- Contractor performance risk, especially given the project's multi-year duration.
- Dependency on timely availability of materials and skilled labor.
- Geographic location in Virginia may present specific environmental or logistical challenges.
Tags
commercial-and-institutional-building-co, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.9 million to ENCON DESBUILD JV 3 LLC. P656 BASE BID PRICE FOR THE ENTIRE WORK
Who is the contractor on this award?
The obligated recipient is ENCON DESBUILD JV 3 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 $24.9 million.
What is the period of performance?
Start: 2023-08-31. End: 2026-02-25.
What specific types of buildings or facilities are included in this construction project, and how do they align with current naval operational needs?
The provided data specifies 'Commercial and Institutional Building Construction' but lacks granular detail on the specific types of facilities. Understanding if these are barracks, administrative buildings, training centers, or specialized operational structures is key to assessing their strategic value and impact on the Navy's mission readiness in Virginia.
How does the awarded price of $24.8 million compare to the government's independent cost estimate or similar construction projects in the region?
Without access to the government's independent cost estimate or detailed comparative data for similar projects in Virginia, a precise value assessment is challenging. The bid price of $24.8 million is noted, and further analysis would involve comparing it against historical data for comparable institutional building construction projects to identify potential over or under-pricing.
What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure the contractor delivers the project on time and within budget?
The contract is a firm fixed price type, which inherently incentivizes the contractor to manage costs. Specific KPIs and oversight mechanisms would typically be detailed within the contract's statement of work and performance clauses, likely including regular progress reviews, quality inspections, and adherence to a defined schedule.
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: N4008023R0007
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8201 CORPORATE DRIVE, SUITE 720, HYATTSVILLE, MD, 20785
Business Categories: Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,863,579
Exercised Options: $24,863,579
Current Obligation: $24,863,579
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-08-31
Current End Date: 2026-02-25
Potential End Date: 2026-02-25 00:00:00
Last Modified: 2025-11-05
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