DoD Awards $13.3M for Marine Corps Base Construction, Exceeding Initial Estimate by $1.7M
Contract Overview
Contract Amount: $13,265,560 ($13.3M)
Contractor: Team Construction LLC
Awarding Agency: Department of Defense
Start Date: 2008-03-05
End Date: 2010-04-12
Contract Duration: 768 days
Daily Burn Rate: $17.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MCON PROJECT P-1135, MODIFY K-RANGES PHASE I AT MARINE CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA
Place of Performance
Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547
Plain-Language Summary
Department of Defense obligated $13.3 million to TEAM CONSTRUCTION LLC for work described as: MCON PROJECT P-1135, MODIFY K-RANGES PHASE I AT MARINE CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA Key points: 1. The Department of the Navy awarded a $13.3 million contract for construction at Camp Lejeune. 2. The contract was awarded to Team Construction LLC under full and open competition. 3. The final award amount exceeded the initial estimate by approximately 11.5%. 4. The project falls within the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: fair
The final award of $13.3 million is 11.5% higher than the initial estimate of $11.6 million. This suggests potential cost overruns or scope adjustments during the bidding process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a broad solicitation for bids. However, the significant increase in award amount compared to the estimate raises questions about the initial pricing accuracy and the effectiveness of price discovery.
Taxpayer Impact: Taxpayers may be impacted by the 11.5% increase over the initial project estimate, potentially indicating less efficient cost management than anticipated.
Public Impact
Military readiness and infrastructure at Camp Lejeune will be improved by the upgraded K-ranges. Local construction firms may have been indirectly impacted by the award to a single prime contractor. The project duration of 768 days suggests a substantial construction effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Award amount significantly exceeded initial estimate.
- No small business participation noted.
Positive Signals
- Full and open competition utilized.
- Project aims to improve critical military infrastructure.
Sector Analysis
This project falls under the Commercial and Institutional Building Construction sector, which is a significant area of government spending. Benchmarks for similar construction projects would typically consider factors like project complexity, location, and specific building requirements.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business set-asides were considered or if the prime contractor subcontracted to small businesses.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects would apply, including site inspections and progress reporting.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Award amount exceeded initial estimate.
- No small business participation identified.
- Potential for cost overruns or scope creep.
- Contract duration is substantial.
Tags
commercial-and-institutional-building-co, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.3 million to TEAM CONSTRUCTION LLC. MCON PROJECT P-1135, MODIFY K-RANGES PHASE I AT MARINE CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA
Who is the contractor on this award?
The obligated recipient is TEAM 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 $13.3 million.
What is the period of performance?
Start: 2008-03-05. End: 2010-04-12.
What factors contributed to the 11.5% increase between the initial estimate and the final award amount for the K-ranges project?
The increase could be attributed to several factors, including unforeseen site conditions, changes in material costs, updated labor rates, or scope adjustments requested during the bidding or negotiation phase. A detailed review of the contract modifications and the bidding process would be necessary to pinpoint the exact reasons for the cost escalation.
Given the full and open competition, why did the final award exceed the initial estimate by such a significant margin?
While full and open competition aims for competitive pricing, the initial estimate might have been conservative or based on incomplete information. Market conditions, contractor overhead and profit margins, and the specific technical requirements of the K-ranges could have led bidders to propose higher prices than initially anticipated by the government. The government's acceptance of the higher bid suggests it was deemed the best value.
What is the long-term value proposition of upgrading the K-ranges at Camp Lejeune, and how does this $13.3 million investment align with broader military training objectives?
Upgrading the K-ranges is crucial for maintaining and enhancing the combat readiness of Marine Corps personnel stationed at Camp Lejeune. Modernized ranges allow for more realistic and effective training scenarios, incorporating advanced technologies and safety features. This investment directly supports the military's objective of ensuring personnel are proficient in essential combat skills, thereby contributing to national security.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N4008508R1400
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 101-A MIDDLE ST, JACKSONVILLE, NC, 28546
Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, Woman Owned Business
Financial Breakdown
Contract Ceiling: $13,265,560
Exercised Options: $13,265,560
Current Obligation: $13,265,560
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-03-05
Current End Date: 2010-04-12
Potential End Date: 2010-04-12 00:00:00
Last Modified: 2021-07-28
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