Naval Engineering Contract Awarded to Veteran/Pacific Joint Venture for $14.2M in Construction

Contract Overview

Contract Amount: $14,124,794 ($14.1M)

Contractor: Veteran/Pacific Joint Venture

Awarding Agency: Department of Defense

Start Date: 2006-02-24

End Date: 2007-08-27

Contract Duration: 549 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200605!601159!1700!N40083!NAVAL FAC ENGINEEERING CMD MIDWE!N4008306C4011 !A!N! !N! ! !20060224!20070824!142426704!142426704!142426704!N!VETERAN/PACIFIC JOINT VENTURE !VETERAN-PACIFIC JV !CHICAGO !IL!60603!31175!097!17!GREAT LAKES !LAKE !ILLINOIS !+000012361535!N!N!000013602139!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236210!A!B!3!B!S! ! ! !99990909!B! ! !A! !A!U!J!2!003!K! !C!N!Z! ! !N!A!N!Y!D! ! ! !D!A!000!A!B!Y!S!Y! ! !1700!N40083!0001! !

Place of Performance

Location: GREAT LAKES, LAKE County, ILLINOIS, 60088

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to VETERAN/PACIFIC JOINT VENTURE for work described as: 200605!601159!1700!N40083!NAVAL FAC ENGINEEERING CMD MIDWE!N4008306C4011 !A!N! !N! ! !20060224!20070824!142426704!142426704!142426704!N!VETERAN/PACIFIC JOINT VENTURE !VETERAN-PACIFIC JV !CHICAGO !IL!60603!31175!097!17!GREAT LAKES !LAKE… Key points: 1. The contract is for industrial building construction, a sector with significant federal investment. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs, but potential risks remain. 4. The award to a joint venture may indicate a focus on specific business types or capabilities.

Value Assessment

Rating: good

The contract value of $14.2 million for industrial building construction appears reasonable given the duration and scope. Benchmarking against similar construction contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process that aimed to solicit a broad range of offers. This method generally promotes price discovery and potentially better pricing.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving fair value for the services rendered, as multiple bidders likely vied for the contract.

Public Impact

Supports infrastructure development within the Department of the Navy. Provides economic activity and potential job creation in Illinois. The use of a joint venture may support specific government contracting goals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in fixed-price contracts if scope changes.
Dependence on the performance and stability of the joint venture.

Positive Signals

Awarded through full and open competition.
Fixed-price contract type for cost control.
Supports a specific construction need for the Navy.

Sector Analysis

This contract falls within the Construction sector, specifically industrial building construction. Federal spending in this sector is substantial, driven by infrastructure needs across various agencies. Benchmarks vary widely based on project type and location.

Small Business Impact

The awardee is a joint venture, which may include small business participation. Further analysis would be needed to determine the specific small business utilization within this joint venture.

Oversight & Accountability

The contract was awarded by the Naval Engineering Command, indicating established oversight processes. The fixed-price nature of the contract provides a degree of accountability for the contractor's performance and cost management.

Related Government Programs

Industrial Building Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for scope creep impacting fixed-price contract.
Reliance on the joint venture's capacity and financial stability.
Geographic concentration of the awardee in Illinois.
Lack of detailed performance metrics in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to VETERAN/PACIFIC JOINT VENTURE. 200605!601159!1700!N40083!NAVAL FAC ENGINEEERING CMD MIDWE!N4008306C4011 !A!N! !N! ! !20060224!20070824!142426704!142426704!142426704!N!VETERAN/PACIFIC JOINT VENTURE !VETERAN-PACIFIC JV !CHICAGO !IL!60603!31175!097!17!GREAT LAKES !LAKE !ILLINOIS !+000012361535!N!N!000013602139!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236210!A!B!3!B!S! ! ! !999

Who is the contractor on this award?

The obligated recipient is VETERAN/PACIFIC JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2006-02-24. End: 2007-08-27.

What is the specific scope of work for this industrial building construction contract, and how does it align with the Naval Engineering Command's mission?

The provided data indicates the contract is for 'OTHER MISCELLANEOUS BUILDINGS' and falls under 'Industrial Building Construction.' While the exact scope isn't detailed, it likely pertains to facilities supporting naval operations, maintenance, or training. The alignment with the Naval Engineering Command's mission would be through providing necessary physical infrastructure to support their engineering and facility management responsibilities.

What are the key performance indicators (KPIs) for this contract, and how will the Naval Engineering Command ensure the contractor meets them?

Key performance indicators for construction contracts typically include adherence to schedule, quality of workmanship, safety compliance, and meeting technical specifications. The Naval Engineering Command would likely monitor progress through regular site inspections, progress reports, and milestone reviews. Contractual clauses would define remedies for non-performance, ensuring accountability.

How does the $14.2 million award compare to the estimated cost or budget for this project, and what factors influenced the final price?

Without the original estimated cost or budget, a direct comparison is not possible. However, the fixed-price nature suggests the awarded amount was determined through competitive bidding. Factors influencing the final price would include material costs, labor rates, overhead, profit margins, and the perceived risk associated with the project's scope and duration.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial 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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: VETERAN-PACIFIC JV, CHICAGO, IL, 60603

Business Categories: 8(a) Program Participant, Category Business, Emerging Small Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline