Balfour Beatty Construction awarded $15.7M contract for US Naval Academy Ward Hall renovations

Contract Overview

Contract Amount: $15,666,128 ($15.7M)

Contractor: Balfour Beatty Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-24

End Date: 2026-08-25

Contract Duration: 731 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CON - WARD HALL RENOVATIONS, WARD HALL, USNA-290 - L MACC

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21402

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to BALFOUR BEATTY CONSTRUCTION, LLC for work described as: CON - WARD HALL RENOVATIONS, WARD HALL, USNA-290 - L MACC Key points: 1. Contract value represents a significant investment in campus infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Firm Fixed Price contract type shifts cost risk to the contractor. 4. Project duration of two years indicates a substantial renovation scope. 5. Geographic focus on Maryland aligns with the Naval Academy's location. 6. The contract falls within the broader commercial and institutional building construction sector.

Value Assessment

Rating: good

The contract value of $15.7 million for renovations at the US Naval Academy's Ward Hall appears reasonable given the scope and duration. Benchmarking against similar institutional building construction projects of this scale, the price seems competitive. The firm fixed-price structure indicates that the contractor has assumed the risk for cost overruns, which is generally favorable for the government. Further analysis would require detailed cost breakdowns and comparisons to specific, comparable renovation projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this project. While more than two bidders would typically indicate stronger price discovery, full and open competition is the most robust method for ensuring fair pricing and access for a wide range of contractors.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple firms to offer their best terms. The two bids received suggest that while competition was present, there may be opportunities to encourage more bidders in future similar solicitations to drive even greater value.

Public Impact

The primary beneficiaries are the US Naval Academy and its midshipmen, who will utilize the renovated Ward Hall. The contract will deliver essential renovations to a key campus facility, improving its functionality and longevity. The geographic impact is localized to Annapolis, Maryland, where the Naval Academy is situated. The project will likely create temporary employment opportunities for construction workers and related trades in the region.

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.
Dependence on contractor's ability to manage subcontractors effectively.

Positive Signals

Firm fixed-price contract mitigates cost escalation risk for the government.
Full and open competition provides a baseline for fair market pricing.
Contractor's experience in institutional construction is likely a positive factor.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. This sector encompasses the building and renovation of non-residential structures like educational facilities, government buildings, and public spaces. Spending in this area is often driven by government investment in infrastructure and facilities maintenance. Comparable spending benchmarks would involve analyzing other large-scale renovation projects for educational institutions or government facilities.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This means that large businesses were eligible to bid and potentially win the entire contract. The impact on the small business ecosystem will depend on whether the prime contractor, Balfour Beatty Construction, LLC, chooses to subcontract portions of the work to small businesses, which is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and project management offices. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering the project within the agreed-upon cost. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Academy Facilities Modernization Projects
Department of Defense Construction Contracts
Federal Building and Renovation Programs
Institutional Building Construction

Risk Flags

Potential for unforeseen site conditions in older building.
Risk of schedule delays impacting facility availability.
Contractor performance on similar large-scale renovations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to BALFOUR BEATTY CONSTRUCTION, LLC. CON - WARD HALL RENOVATIONS, WARD HALL, USNA-290 - L MACC

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 $15.7 million.

What is the period of performance?

Start: 2024-08-24. End: 2026-08-25.

What is Balfour Beatty Construction's track record with similar federal renovation projects?

Balfour Beatty Construction, LLC is a large, established construction firm with extensive experience in federal projects, including renovations of institutional and government facilities. They have a history of undertaking complex projects for various government agencies, including the Department of Defense. While specific details on past performance for projects identical in scope and value to the Ward Hall renovation are not provided here, their general profile suggests they possess the capacity and experience to manage such contracts. A deeper dive into their contract history, including past performance evaluations and any reported issues on similar projects, would provide a more definitive assessment of their suitability and potential risks.

How does the awarded amount compare to the estimated cost or budget for this renovation?

The provided data indicates an award amount of $15,666,128. However, there is no information available regarding the government's initial cost estimate or the allocated budget for the Ward Hall renovations. Without this comparative data, it is difficult to definitively assess whether the contract was awarded at a premium, a discount, or precisely at the estimated value. Typically, a competitive bidding process aims to secure the best value, and an award significantly below the estimate might raise concerns about the scope or quality, while an award significantly above could indicate issues with the initial estimate or intense competition driving up prices.

What are the primary risks associated with renovating an older institutional building like Ward Hall?

Renovating older institutional buildings like Ward Hall often presents several inherent risks. These can include the discovery of unforeseen structural issues, outdated or hazardous building materials (such as asbestos or lead paint), and complex existing utility systems that may require significant rework. Additionally, historical preservation requirements or the need to maintain partial occupancy during renovation can add complexity and potential for delays. The firm fixed-price nature of this contract shifts the financial risk of these unforeseen conditions to Balfour Beatty Construction, but delays or significant changes could still impact the project timeline and require contract modifications.

What is the significance of the 'Delivery Order' contract type in this context?

The 'Delivery Order' (aw) designation, in conjunction with the base contract type (likely an IDIQ or similar vehicle, though not explicitly stated), means this is not a standalone contract but rather an order placed against a pre-existing contract. This implies that the Department of the Navy has an established agreement with Balfour Beatty Construction, LLC, potentially for a range of construction services. A delivery order specifies the exact scope, price, and delivery schedule for a particular task or project. This approach allows for flexibility and streamlined procurement for multiple, distinct requirements under a single overarching contract.

How does the two-year duration (731 days) align with typical renovation timelines for facilities of this nature?

A duration of 731 days, or two years, for the renovation of Ward Hall appears to be a substantial timeframe, suggesting a comprehensive scope of work. Typical renovation timelines for institutional buildings can vary widely based on the size, complexity, and specific upgrades required. For a project involving significant structural, mechanical, electrical, and finishes work, a two-year duration is not uncommon, especially if it includes phasing to minimize disruption or if it involves historical restoration elements. This duration allows ample time for detailed execution, quality control, and potential mitigation of unforeseen issues, while also placing a significant demand on contractor resources.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008023R0020

Offers Received: 2

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: $15,666,128

Exercised Options: $15,666,128

Current Obligation: $15,666,128

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008023D0026

IDV Type: IDC

Timeline