DoD Awards $43.5M for Diego Garcia Parking Apron Repairs to Black Construction/Mace JV

Contract Overview

Contract Amount: $43,487,800 ($43.5M)

Contractor: Black Construction/Mace International Joint Venture

Awarding Agency: Department of Defense

Start Date: 2024-03-30

End Date: 2026-06-17

Contract Duration: 809 days

Daily Burn Rate: $53.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: N4008424F4289 - REPAIRS TO NORTH PARKING APRON, F-200045, NSF, DIEGO GARCIA, B.I.O.T.

Plain-Language Summary

Department of Defense obligated $43.5 million to BLACK CONSTRUCTION/MACE INTERNATIONAL JOINT VENTURE for work described as: N4008424F4289 - REPAIRS TO NORTH PARKING APRON, F-200045, NSF, DIEGO GARCIA, B.I.O.T. Key points: 1. Significant contract for infrastructure repair at a key naval facility. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. Risk factors include project duration and potential for cost overruns in remote locations. 4. Sector is Commercial and Institutional Building Construction, vital for operational readiness.

Value Assessment

Rating: fair

The award amount of $43.5M for 809 days of work appears substantial. Benchmarking against similar large-scale construction projects in remote or overseas locations is necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically promotes competitive pricing. However, the specific pricing outcomes and the number of bids received are not detailed here.

Taxpayer Impact: Taxpayer funds are allocated for essential infrastructure maintenance, supporting military operations. The value for money will depend on the efficiency of execution and final cost.

Public Impact

Ensures operational readiness of naval facilities by repairing critical infrastructure. Supports economic activity through construction contracts, though specific local impact is unclear. Potential for long-term asset preservation through necessary maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Remote location (Diego Garcia) may increase logistical costs and complexity.
Long project duration (809 days) increases exposure to market fluctuations and unforeseen issues.
No small business participation noted, potentially missing opportunities for smaller firms.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process.
Firm Fixed Price contract type helps control costs if scope is well-defined.
Essential infrastructure repair supports long-term operational capability.

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, especially in support of defense and operational needs.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is likely a larger entity, and opportunities for subcontracting to small businesses are not explicitly detailed.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for oversight. The contract's duration and remote location necessitate robust monitoring to ensure performance, cost control, and adherence to specifications.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to remote location and logistics.
Long project duration increases risk exposure.
Lack of explicit small business participation.
Dependency on specialized construction services in a limited-access area.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.5 million to BLACK CONSTRUCTION/MACE INTERNATIONAL JOINT VENTURE. N4008424F4289 - REPAIRS TO NORTH PARKING APRON, F-200045, 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 $43.5 million.

What is the period of performance?

Start: 2024-03-30. End: 2026-06-17.

What is the benchmark cost per square foot or linear foot for similar apron repairs in comparable overseas military installations?

Benchmarking the cost per unit for apron repairs requires detailed project specifications (e.g., material type, thickness, area dimensions) and comparison with recent contracts for similar work at other overseas military bases. Without these specifics, a precise benchmark is difficult, but costs in remote locations are typically higher due to logistics and specialized labor.

What are the primary risks associated with performing construction in a remote island location like Diego Garcia, and how are they mitigated?

Key risks include logistical challenges for material and personnel transport, potential environmental sensitivities, limited local resources, and extended timelines. Mitigation strategies often involve detailed logistical planning, pre-positioning of critical supplies, robust environmental impact assessments, and strong contract management to address unforeseen issues promptly.

How effectively does the firm fixed price contract type manage potential cost escalations given the project's long duration and remote setting?

A firm fixed price contract aims to cap costs, providing cost certainty for the government. However, for long-duration projects in remote areas, the initial price must accurately account for all foreseeable risks. If unforeseen conditions arise, the contractor may seek equitable adjustments, potentially negating some cost control benefits. Effective management relies on a well-defined scope and contingency planning.

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: N4008421R0079

Offers Received: 3

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: $43,487,800

Exercised Options: $43,487,800

Current Obligation: $43,487,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008421D0079

IDV Type: IDC

Timeline