Naval Observatory parking and gate construction awarded to Balfour Beatty for $13.6M, with a 550-day duration

Contract Overview

Contract Amount: $13,632,652 ($13.6M)

Contractor: Balfour Beatty Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-18

End Date: 2027-03-22

Contract Duration: 550 days

Daily Burn Rate: $24.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BOOTH, GATES, AND SECURE PARKING, UNITED STATES NAVAL OBSERVATORY, WASHINGTON DC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20392

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to BALFOUR BEATTY CONSTRUCTION, LLC for work described as: BOOTH, GATES, AND SECURE PARKING, UNITED STATES NAVAL OBSERVATORY, WASHINGTON DC Key points: 1. Contract value appears reasonable for a construction project of this scope and location. 2. Full and open competition suggests a competitive bidding process, likely leading to better pricing. 3. Project duration of 550 days is substantial, indicating a complex undertaking. 4. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 5. Location in Washington D.C. may contribute to higher labor and material costs. 6. The project involves construction, a sector with established cost benchmarks.

Value Assessment

Rating: good

The contract value of $13.6 million for constructing gates and secure parking at the U.S. Naval Observatory seems within a reasonable range for a federal construction project in a high-cost urban area like Washington D.C. While specific benchmarks for similar projects are not provided, the scope implies significant infrastructure development. The firm fixed-price nature of the contract helps in cost predictability for the government, assuming the contractor has accurately estimated all costs.

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. A higher number of bidders typically leads to more aggressive pricing and a wider range of solutions, but two bids can still result in a competitive outcome if the bidders are well-qualified and the requirements are clearly defined.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiaries are the United States Naval Observatory, which will receive enhanced security and operational infrastructure. The project will deliver secure parking facilities and improved gate access, contributing to the operational efficiency and security of the facility. The geographic impact is localized to Washington D.C., specifically the Naval Observatory site. The project will likely involve local construction labor and potentially local material suppliers, providing economic stimulus within the District of Columbia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
Delays in construction could impact the operational readiness and security of the Naval Observatory.
Reliance on a single contractor for a critical infrastructure project carries inherent risks if performance issues emerge.

Positive Signals

Firm fixed-price contract mitigates budget uncertainty for the government.
Full and open competition suggests a robust vetting of potential contractors.
The contractor, Balfour Beatty, is a large, established construction firm with experience in government projects.
The project is for essential infrastructure, directly supporting the mission of the Naval Observatory.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by a wide range of project types, from small renovations to large-scale new builds. Federal construction spending is a significant component of this market. Benchmarks for similar government construction projects, particularly those involving security infrastructure in high-cost urban areas, would be relevant for a detailed value assessment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Balfour Beatty Construction, LLC is a large prime contractor. While there is no explicit mention of small business subcontracting goals in the provided data, large federal construction contracts often include requirements for small business participation. The impact on the small business ecosystem would depend on the specific subcontracting plan developed by Balfour Beatty.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant project management team within the Department of the Navy. The firm fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency is generally maintained through contract award databases and public reporting, though specific project-level oversight details are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Construction Projects
Naval Facilities Engineering Command Contracts
Federal Security Infrastructure Projects
Washington D.C. Federal Construction

Risk Flags

Potential for schedule delays due to construction complexity.
Risk of unforeseen site conditions impacting cost and schedule.
Contractor performance risk, despite established reputation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to BALFOUR BEATTY CONSTRUCTION, LLC. BOOTH, GATES, AND SECURE PARKING, UNITED STATES NAVAL OBSERVATORY, WASHINGTON DC

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 $13.6 million.

What is the period of performance?

Start: 2025-09-18. End: 2027-03-22.

What is Balfour Beatty Construction, LLC's track record with federal contracts, particularly within the Department of Defense?

Balfour Beatty Construction, LLC is a major player in the construction industry with a significant history of performing federal contracts, including numerous projects for the Department of Defense and its various branches like the Navy. Their experience often spans large-scale infrastructure, facilities, and specialized construction. Analyzing their past performance on similar projects, including any history of cost overruns, schedule delays, or contract disputes, would provide crucial context for assessing the risk associated with this specific award. Publicly available contract databases often contain performance ratings and award histories that can be reviewed.

How does the awarded price of $13.6 million compare to similar federal construction projects for gates and secure parking?

A direct comparison of the $13.6 million award for gates and secure parking at the Naval Observatory requires access to a database of comparable federal construction projects. Key factors influencing price include project size (square footage, linear feet of gates), complexity of security features, site conditions (e.g., soil stability, existing utilities), labor costs in the specific geographic region (Washington D.C. is a high-cost area), and material costs. Without specific details on these comparable projects, it's difficult to definitively benchmark the value. However, the firm fixed-price nature suggests the government sought cost certainty, and the full and open competition implies a market-driven price was sought.

What are the primary risks associated with a firm fixed-price contract for a project of this duration and complexity?

The primary risk with a firm fixed-price (FFP) contract, especially for a project lasting 550 days and involving complex construction, is that the contractor may encounter unforeseen issues (e.g., subsurface conditions, material price escalation beyond initial estimates, labor shortages) that significantly increase their costs. If these costs exceed the fixed price, the contractor may seek change orders, potentially leading to disputes and cost increases for the government, or they may cut corners to maintain profitability, impacting quality. Conversely, if the contractor's estimate was overly conservative, the government might overpay. The government's risk is mitigated by thorough initial planning and clear contract specifications.

What is the historical spending pattern for similar construction services at the U.S. Naval Observatory or similar Department of the Navy facilities?

Analyzing historical spending for similar construction services at the U.S. Naval Observatory or comparable Department of the Navy facilities would provide valuable context for this $13.6 million award. This includes examining past contracts for gate upgrades, parking structures, or general facility construction at the Observatory or other high-security naval installations. Understanding the average contract values, durations, and types of competition used for these past projects can help determine if the current award is consistent with historical trends or represents a significant deviation. Such analysis could reveal patterns of cost escalation or changes in procurement strategies over time.

How will the 550-day duration impact the operational security and efficiency of the Naval Observatory during construction?

A 550-day construction period for gates and secure parking at the Naval Observatory will inevitably have an impact on daily operations. Phased construction plans will be crucial to minimize disruption to access control and personnel movement. Potential impacts include temporary traffic diversions, noise pollution, and limitations on access to certain areas. The effectiveness of the mitigation strategies employed by the contractor and the Naval Observatory will determine the extent of the disruption. Clear communication and coordination between the construction team and facility management are essential to ensure continued operational security and efficiency throughout the project lifecycle.

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

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: $53,975,000

Exercised Options: $13,632,652

Current Obligation: $13,632,652

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