Department of the Navy awards $17.3M for academic instruction facility construction at Camp Lejeune

Contract Overview

Contract Amount: $17,347,572 ($17.3M)

Contractor: Virtexco Corp

Awarding Agency: Department of Defense

Start Date: 2008-02-04

End Date: 2011-04-03

Contract Duration: 1,154 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY08 MCON, P002, ACADEMIC INSTRUCTION FACILITY, CAMP GEIGER, AT MARINE CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to VIRTEXCO CORP for work described as: FY08 MCON, P002, ACADEMIC INSTRUCTION FACILITY, CAMP GEIGER, AT MARINE CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm-fixed-price definitive contract, which shifts cost risk to the contractor. 3. Construction services are being provided in North Carolina, impacting the local economy and workforce. 4. The contractor, Virtexco Corp, has been awarded this contract for services valued at over $17 million. 5. The project duration is over three years, indicating a significant construction undertaking. 6. This award falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

The contract value of $17.3 million for an academic instruction facility appears within a reasonable range for a construction project of this nature. However, without specific details on the facility's size, scope, and complexity, a precise value-for-money assessment is challenging. Benchmarking against similar academic facilities or training structures within military bases would provide better context. The firm-fixed-price nature of the contract helps control costs, but the final cost-effectiveness depends on the quality of construction and adherence to the original scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. With six bidders participating, the competition level suggests a healthy market response for this type of construction service. This broad competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

Military personnel at Camp Lejeune will benefit from improved academic instruction facilities. The construction project will create jobs in the North Carolina region. The services delivered include the construction of a new academic instruction facility. The geographic impact is concentrated at Marine Corps Base, Camp Lejeune, North Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Ensuring the quality of construction meets long-term durability and safety standards.
Dependency on the contractor's ability to manage the project timeline effectively.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm-fixed-price contract structure transfers cost risk to the contractor.
Contractor has been selected for a significant construction project, suggesting some level of capability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for military base construction is often characterized by specialized requirements and stringent security protocols. While specific market size data for academic facilities on military bases is not readily available, the Department of Defense is a consistent investor in infrastructure, making this a recurring contract category. Comparable spending benchmarks would involve analyzing other construction projects for educational or training facilities on federal installations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award appears limited. However, the prime contractor may engage small businesses as subcontractors, which would indirectly benefit them.

Oversight & Accountability

Oversight for this construction contract would typically be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the firm-fixed-price contract, with payments tied to project milestones and final delivery. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction (MILCON)
Department of Defense Facilities Construction
Naval Facilities Engineering Command Contracts

Risk Flags

Potential for scope creep if not managed tightly.
Risk associated with construction in a potentially active military zone.
Contractor performance history needs further review for potential risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to VIRTEXCO CORP. FY08 MCON, P002, ACADEMIC INSTRUCTION FACILITY, CAMP GEIGER, AT MARINE CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA

Who is the contractor on this award?

The obligated recipient is VIRTEXCO CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2008-02-04. End: 2011-04-03.

What is the specific scope and size of the academic instruction facility being constructed?

The provided data does not specify the exact scope or square footage of the academic instruction facility. It is identified as 'ACADEMIC INSTRUCTION FACILITY, CAMP GEIGER, AT MARINE CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA.' To understand the project's scale, one would need to consult the contract's statement of work or associated architectural plans. This information is crucial for a detailed cost-benefit analysis and for comparing the value against similar construction projects. Without these specifics, the $17.3 million award is a broad figure that requires further context to assess its efficiency.

How does the contractor, Virtexco Corp, perform on other federal contracts?

The provided data identifies Virtexco Corp as the contractor for this $17.3 million award. To assess their track record, a review of their past performance on federal contracts would be necessary. This would involve examining contract histories for on-time delivery, adherence to budget, quality of work, and any past performance issues or disputes. Information from sources like the Federal Procurement Data System (FPDS) or contractor performance assessment reports (CPARS) would be essential for a comprehensive evaluation of Virtexco Corp's reliability and capabilities in executing similar construction projects for the government.

What is the historical spending trend for academic instruction facilities at Camp Lejeune or similar Marine Corps bases?

The provided data only details a single award for an academic instruction facility at Camp Lejeune. To establish a historical spending trend, one would need to analyze contract awards for similar facilities over multiple fiscal years, not just for Camp Lejeune but also for other Marine Corps bases. This would involve querying federal procurement databases for contracts categorized under military construction (MILCON) or educational facilities within the Department of the Navy or Department of Defense. Understanding past spending patterns can help identify fluctuations in demand, average project costs, and potential budget predictability for future infrastructure investments.

Are there any specific performance metrics or quality standards outlined in the contract?

The provided data does not detail the specific performance metrics or quality standards for this construction contract. Typically, such details are found within the contract's Statement of Work (SOW) or performance work statement (PWS). These documents would outline requirements for materials, construction methods, safety protocols, and final acceptance criteria. The firm-fixed-price nature implies that the contractor is responsible for meeting these standards to receive full payment. Government oversight would ensure adherence to these specified metrics and standards throughout the project lifecycle.

What is the potential impact of this construction project on the local North Carolina workforce?

This $17.3 million construction project is likely to have a positive impact on the local workforce in North Carolina, particularly around the Camp Lejeune area. Construction projects of this magnitude typically require a significant number of skilled and unskilled laborers, including carpenters, electricians, plumbers, and general construction workers. Virtexco Corp, as the prime contractor, may hire locally or subcontract with local firms, thereby stimulating job creation and economic activity within the region. The duration of the project (over three years) suggests sustained employment opportunities.

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: N4008507R1921

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 977 NORFOLK SQ, NORFOLK, VA, 23502

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,347,572

Exercised Options: $17,347,572

Current Obligation: $17,347,572

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline