Department of Defense awards $36.2M contract for wharf repairs at NSF Diego Garcia, highlighting infrastructure needs

Contract Overview

Contract Amount: $36,169,416 ($36.2M)

Contractor: Black Construction/Mace International Joint Venture

Awarding Agency: Department of Defense

Start Date: 2021-01-22

End Date: 2025-01-28

Contract Duration: 1,467 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: X024 BID SOLICITATION FOR CONSTRUCTION WON 1569194 - REPAIRS TO DEEP DRAFT WHARF, F-4027, NSF, DIEGO GARCIA, B.I.O.T.

Plain-Language Summary

Department of Defense obligated $36.2 million to BLACK CONSTRUCTION/MACE INTERNATIONAL JOINT VENTURE for work described as: X024 BID SOLICITATION FOR CONSTRUCTION WON 1569194 - REPAIRS TO DEEP DRAFT WHARF, F-4027, NSF, DIEGO GARCIA, B.I.O.T. Key points: 1. Contract addresses critical infrastructure maintenance for naval operations. 2. Full and open competition suggests a potentially competitive bidding process. 3. Long duration indicates a significant, multi-year project. 4. Firm-fixed-price contract shifts cost risk to the contractor. 5. Project is located in a strategic, remote overseas location. 6. Focus on building construction, specifically maritime infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific nature and overseas location. The firm-fixed-price structure is standard for construction projects of this scale, aiming to control costs. However, without comparable bids for similar overseas wharf repairs, assessing whether the $36.2 million represents excellent value is difficult. The duration of the contract (over four years) suggests a substantial scope of work, which could justify the overall cost if executed efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the number of bidders is not specified, this procurement method generally fosters price discovery and encourages competitive pricing. The Department of the Navy's approach suggests a desire to leverage the market to secure the best possible offer for this essential infrastructure repair.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and a fair market value for the services rendered.

Public Impact

Naval operations at NSF Diego Garcia benefit from improved and maintained wharf facilities. The project supports the strategic presence of U.S. forces in the Indian Ocean region. Construction activities may involve local labor or specialized international workforces. Ensures the continued operational readiness of a key naval support facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during repairs.
Logistical challenges and increased costs associated with working in a remote overseas location.
Dependency on the contractor's ability to manage complex construction in a sensitive environment.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition can lead to better pricing and contractor selection.
Project addresses critical infrastructure, ensuring long-term operational capability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on maritime infrastructure. The global market for defense construction and infrastructure maintenance is substantial, driven by the need to support military installations worldwide. Comparable spending benchmarks are difficult to establish due to the unique nature of overseas bases and the specialized requirements of wharf repair, but large-scale infrastructure projects for defense entities often run into tens of millions of dollars.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is a joint venture, the extent of small business subcontracting opportunities is not detailed in the provided data. Further analysis would be needed to determine if small businesses are being effectively integrated into the supply chain for this project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to complete the work to specified standards. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) contracts
Defense Infrastructure Projects
Overseas Military Construction
Maritime Port Infrastructure

Risk Flags

Potential for cost overruns due to remote location logistics
Dependency on specialized labor and materials
Long project duration increases risk exposure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.2 million to BLACK CONSTRUCTION/MACE INTERNATIONAL JOINT VENTURE. X024 BID SOLICITATION FOR CONSTRUCTION WON 1569194 - REPAIRS TO DEEP DRAFT WHARF, F-4027, NSF, DIEGO GARCIA, B.I.O.T.

Who is the contractor on this award?

The obligated recipient is BLACK CONSTRUCTION/MACE INTERNATIONAL 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 $36.2 million.

What is the period of performance?

Start: 2021-01-22. End: 2025-01-28.

What is the track record of BLACK CONSTRUCTION/MACE INTERNATIONAL JOINT VENTURE on similar defense infrastructure projects?

Assessing the track record of BLACK CONSTRUCTION/MACE INTERNATIONAL JOINT VENTURE requires a review of their past performance on Department of Defense contracts, particularly those involving maritime construction or overseas projects. Information on their history with similar wharf repairs, project completion times, adherence to budget, and quality of work would be crucial. A review of past performance evaluations and any documented disputes or awards would provide insight into their reliability and capability to execute this significant contract successfully. Without specific historical data on this joint venture's performance, it is difficult to definitively assess their suitability for this project beyond the standard vetting processes inherent in the full and open competition.

How does the $36.2 million cost compare to similar wharf repair projects globally or within the DoD?

Benchmarking the $36.2 million cost for wharf repairs at NSF Diego Garcia against similar projects is challenging due to several factors. Firstly, the remote overseas location significantly impacts logistical costs, labor rates, and material sourcing, making direct comparisons difficult. Secondly, the specific scope of 'repairs to deep draft wharf, F-4027' can vary greatly in complexity and scale. Generally, large-scale maritime infrastructure projects for defense purposes can range from tens to hundreds of millions of dollars, depending on the extent of damage, required upgrades, and geographic challenges. Without detailed specifications and cost breakdowns for comparable projects, it's hard to ascertain if this figure represents a competitive market rate or an outlier.

What are the primary risks associated with performing construction in a remote overseas location like Diego Garcia?

Performing construction in a remote overseas location like Diego Garcia presents several significant risks. Logistical challenges are paramount, including the transportation of personnel, equipment, and materials, which can lead to delays and increased costs. Labor availability and cost can also be a concern, potentially requiring specialized overseas labor or extensive travel arrangements for domestic workers. Environmental factors, such as weather patterns and the need for specialized environmental compliance, add complexity. Furthermore, security considerations and the potential for geopolitical instability, though less of a concern at a U.S. facility, can impact operations. Finally, managing a project remotely requires robust communication and oversight protocols to ensure quality and progress.

What is the expected impact of this contract on the operational readiness of NSF Diego Garcia?

This contract is expected to have a direct and positive impact on the operational readiness of NSF Diego Garcia by ensuring the structural integrity and functionality of a critical piece of maritime infrastructure – the deep draft wharf. Wharves are essential for the berthing, loading, and unloading of naval vessels, supporting supply chain operations, and facilitating fleet movements. By repairing and maintaining Wharf F-4027, the Navy ensures that these vital functions can continue without interruption or compromise. This directly supports the base's ability to project power, sustain deployed forces, and execute its strategic mission in the Indian Ocean region, thereby enhancing overall naval operational readiness.

How has spending on maritime infrastructure repair and maintenance by the Department of the Navy trended over the past five years?

Analyzing the spending trends on maritime infrastructure repair and maintenance by the Department of the Navy over the past five years would reveal the consistent investment in aging naval facilities. This spending is typically driven by the need to address deferred maintenance, modernize aging ports and docks, and ensure the capacity to handle newer generations of naval vessels. Factors such as geopolitical priorities, budget allocations, and the lifecycle of existing infrastructure influence these expenditures. A trend analysis would likely show a sustained or potentially increasing level of investment as the Navy confronts the challenges of maintaining a global network of bases and facilities critical for its operational reach and effectiveness.

What are the specific performance standards and quality assurance measures required under this contract?

While the specific performance standards and quality assurance measures are detailed within the full contract documentation, typical requirements for a project of this nature include adherence to stringent engineering specifications, building codes (where applicable), and naval standards for maritime construction. The firm-fixed-price nature implies the contractor is responsible for delivering the completed repairs to a pre-defined standard of quality and functionality. Quality assurance would likely involve regular inspections by government representatives (e.g., NAVFAC engineers), material testing, progress reviews, and potentially third-party oversight. Failure to meet these standards could result in contract penalties, withholding of payment, or termination.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008416R0001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: HARMON INDUSTRIAL PARK, HARMON, GU, 96913

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,169,416

Exercised Options: $36,169,416

Current Obligation: $36,169,416

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008418D0066

IDV Type: IDC

Timeline