DoD's $18.5M construction contract awarded to BE&K Government Group, LLC for 1089 days

Contract Overview

Contract Amount: $20,202,541 ($20.2M)

Contractor: BE&K Government Group, LLC

Awarding Agency: Department of Defense

Start Date: 2008-06-30

End Date: 2011-06-24

Contract Duration: 1,089 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE BID

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to BE&K GOVERNMENT GROUP, LLC for work described as: BASE BID Key points: 1. The contract's value of $18.5 million over nearly three years suggests a significant investment in construction services. 2. Awarded under full and open competition, the contract indicates a competitive bidding process was utilized. 3. The firm fixed-price contract type shifts performance risk to the contractor, BE&K Government Group, LLC. 4. The contract duration of 1089 days points to a substantial and long-term construction project. 5. The absence of small business set-aside flags suggests this was not specifically targeted for small business participation. 6. The contract falls under Commercial and Institutional Building Construction, a broad category within the construction sector.

Value Assessment

Rating: fair

Benchmarking the value of this $18.5 million construction contract is challenging without specific project scope details. However, for a nearly three-year duration, the average annual spend is approximately $6.3 million. This figure needs to be compared against similar-sized construction projects undertaken by the Department of the Navy or other DoD branches to assess if it represents a fair market price. The firm fixed-price nature implies that the contractor assumed the risk of cost overruns, which can sometimes lead to higher initial bids but provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 4 bidders (indicated by 'no': 4) suggests a reasonable level of competition for this construction project. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment, which should drive down costs and ensure the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Navy, receiving construction services for facilities. The contract delivers essential building construction and potentially renovation or maintenance services. The geographic impact is likely localized to the Navy installation where the construction is taking place, primarily in Virginia. The contract supports jobs within the construction industry, including skilled trades and project management roles, employed by BE&K Government Group, LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for unforeseen construction challenges.
Risk of contractor performance issues impacting project timelines or quality, despite the fixed-price structure.
Limited transparency on the specific scope of work and detailed cost breakdown without further documentation.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract shifts cost risk to the contractor.
Contract duration of over 1000 days suggests a significant, well-defined project.
Contractor BE&K Government Group, LLC has experience in government contracting, implied by the award.

Sector Analysis

The Commercial and Institutional Building Construction sector encompasses a wide range of projects, from office buildings to specialized facilities. Federal spending in this area is substantial, driven by the need for new infrastructure, renovations, and maintenance across various government agencies. This contract, valued at $18.5 million over nearly three years, represents a significant, albeit specific, investment within this broad sector. Comparable benchmarks would involve analyzing other large-scale construction contracts awarded by the DoD or other federal agencies for similar types of facilities.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside ('sb': false) and the prime contractor is not a small business ('ss': false). This suggests that small businesses may not have been the primary focus for this specific award. However, BE&K Government Group, LLC, as a prime contractor, may engage small businesses for subcontracting opportunities to fulfill portions of the construction work, contributing to the small business ecosystem indirectly.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program/project managers within the Department of the Navy. Accountability measures are inherent in the firm fixed-price contract type, which penalizes the contractor for cost overruns. Transparency could be enhanced by making the detailed scope of work and performance reports publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Construction Contracts
Department of the Navy Facilities Management
Commercial Building Construction Services
Federal Infrastructure Projects

Risk Flags

Potential for cost overruns due to fixed-price nature if contractor's estimates were inaccurate.
Risk of performance delays or quality issues impacting project completion.
Limited public information on specific project scope and detailed cost breakdown.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to BE&K GOVERNMENT GROUP, LLC. BASE BID

Who is the contractor on this award?

The obligated recipient is BE&K GOVERNMENT GROUP, 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 $20.2 million.

What is the period of performance?

Start: 2008-06-30. End: 2011-06-24.

What specific type of construction was performed under this contract?

The contract falls under the 'Commercial and Institutional Building Construction' (NAICS 236220) category. While the specific details of the construction are not provided in the abbreviated data, this classification typically includes the construction of commercial buildings such as office buildings, warehouses, and other institutional facilities. Given it's a Department of the Navy contract, it could involve barracks, administrative buildings, maintenance facilities, or other structures supporting naval operations. Further details on the scope of work would be found in the contract's statement of work.

How does the $18.5 million value compare to similar DoD construction contracts?

Comparing the $18.5 million value requires context on the project's scope and duration. For a nearly three-year project (1089 days), this averages to approximately $6.3 million per year. The Department of Defense awards numerous construction contracts annually, ranging from minor repairs to major facility construction. To benchmark this value, one would need to identify similar-sized construction projects (e.g., new building construction, major renovations) awarded by the Navy or other DoD branches over comparable timeframes. Without specific project details (e.g., square footage, type of facility, complexity), a precise comparison is difficult, but $18.5 million for a multi-year construction effort is a substantial, but not extraordinary, sum for federal projects.

What are the key risks associated with a firm fixed-price contract of this magnitude?

A firm fixed-price (FFP) contract, while offering cost certainty to the government, places the primary risk of cost overruns on the contractor, BE&K Government Group, LLC. Key risks include: 1) Contractor underestimation: If the contractor underestimated costs, they might cut corners on quality or attempt to claim unforeseen circumstances, potentially leading to disputes. 2) Scope creep: If the government requires changes or additions beyond the original scope, managing these through change orders can be complex and costly, even under FFP. 3) Contractor financial stability: A large FFP contract can strain a contractor's resources; financial instability could jeopardize project completion. 4) Market fluctuations: Unexpected increases in material or labor costs could significantly impact the contractor's profitability, potentially leading to performance issues if not adequately planned for.

What is the significance of awarding this contract under 'Full and Open Competition' with 4 bidders?

Awarding this contract under 'Full and Open Competition' signifies that the Department of the Navy sought bids from all responsible sources, maximizing the potential pool of contractors. The fact that there were 4 bidders indicates a moderate level of competition for this specific construction project. Generally, more bidders lead to greater price competition and a higher likelihood of selecting the most capable and cost-effective contractor. While 4 bidders suggest a competitive process, it's less robust than competitions with significantly more offers. This level of competition is generally viewed positively for ensuring fair market pricing and value for the government.

What is the historical spending pattern for BE&K Government Group, LLC with the federal government?

The provided data indicates BE&K Government Group, LLC was awarded this specific contract. To understand their historical spending patterns, one would need to access broader federal procurement databases (like USASpending.gov). This would reveal the total value and number of contracts awarded to BE&K Government Group, LLC across all federal agencies over time. Analyzing this history would show their experience, typical contract types (e.g., fixed-price, cost-plus), the agencies they most frequently contract with, and the sectors in which they primarily operate. This context helps assess their track record and reliability as a federal contractor.

What are the potential workforce implications of this construction contract?

This $18.5 million construction contract, spanning nearly three years, would likely create or sustain numerous jobs within the construction sector. BE&K Government Group, LLC, as the prime contractor, would employ project managers, supervisors, skilled tradespeople (carpenters, electricians, plumbers, etc.), and laborers. Additionally, the company may subcontract portions of the work to specialized firms, further extending the job creation impact. The demand for materials and equipment would also benefit suppliers. The specific geographic location of the project in Virginia would mean the majority of these jobs are likely local to that area, providing an economic boost to the regional workforce.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008508R9604

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc. (UEI: 784072626)

Address: 2000 INTERNATIONAL PARK DR, BIRMINGHAM, AL, 35243

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

Financial Breakdown

Contract Ceiling: $20,202,541

Exercised Options: $20,202,541

Current Obligation: $20,202,541

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline