Industrial building construction contract awarded to TEAM CONSTRUCTION LLC for $18.3M by the Department of the Navy

Contract Overview

Contract Amount: $18,292,679 ($18.3M)

Contractor: Team Construction LLC

Awarding Agency: Department of Defense

Start Date: 2008-11-18

End Date: 2010-02-06

Contract Duration: 445 days

Daily Burn Rate: $41.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to TEAM CONSTRUCTION LLC for work described as: BASE Key points: 1. The contract's base value of $18.3 million for industrial building construction appears to be a significant investment in infrastructure. 2. Competition dynamics are noted as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a potentially robust but specific bidding process. 3. The contract type is 'DEFINITIVE CONTRACT' with a 'FIRM FIXED PRICE' payment structure, which typically offers cost certainty. 4. Performance duration of 445 days indicates a substantial project timeline. 5. The absence of small business set-aside flags suggests the primary awardee is not a small business, with potential implications for subcontracting. 6. The North Carolina location points to a specific regional development impact.

Value Assessment

Rating: fair

Benchmarking the value of this $18.3 million industrial building construction contract is challenging without specific project scope details. However, the firm fixed-price nature suggests an attempt to control costs. Comparing it to similar industrial construction projects by the Department of the Navy would provide better context on whether the price reflects market rates for the scope of work. The base value itself doesn't inherently indicate value for money without understanding the deliverables and quality expected.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was open, certain sources were excluded, suggesting a specific set of pre-qualified or otherwise eligible bidders. The number of bidders (4) is provided, which is a moderate level of competition. This suggests that while multiple firms could bid, the exclusion criteria may have narrowed the field, potentially impacting the breadth of price discovery compared to a truly unrestricted full and open competition.

Taxpayer Impact: The limited competition, despite being 'full and open' among a select group, may mean taxpayers did not benefit from the absolute lowest possible price achievable in a broader market. However, it could also indicate a focus on specialized capabilities necessary for the project.

Public Impact

The primary beneficiaries are likely the Department of the Navy, gaining new or improved industrial building facilities. The services delivered involve the construction of industrial buildings, crucial for military operations and logistics. The geographic impact is concentrated in North Carolina, potentially stimulating local economic activity and employment during the construction phase. Workforce implications include job creation for construction workers, engineers, and project managers in the North Carolina region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the 'exclusion of sources' limited competitive pricing significantly.
Risk associated with the firm fixed-price contract if unforeseen site conditions or material cost escalations occur.
The 'definitive contract' type might imply a complex scope that could lead to change orders if not perfectly defined upfront.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The competition, even if limited, suggests multiple firms were considered, potentially leading to a reasonable price.
The contract is for industrial building construction, a tangible asset with clear utility for the agency.

Sector Analysis

This contract falls within the Industrial Building Construction sector, a segment of the broader Construction industry. This sector is vital for supporting manufacturing, logistics, and defense operations by providing specialized facilities. The market size for industrial construction can vary significantly based on economic cycles and government spending priorities. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per project for similar industrial facilities built for government or private entities in the region.

Small Business Impact

The contract does not indicate a small business set-aside (ss: false, sb: false). This suggests that the primary contract was not specifically reserved for small businesses. While the prime contractor, TEAM CONSTRUCTION LLC, is not flagged as small, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting to small businesses would depend on the prime contractor's strategy and any flow-down requirements, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Navy. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified facilities. Transparency is generally facilitated through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Naval Facilities Engineering Command Contracts
Department of Defense Infrastructure Projects
Industrial Facility Development

Risk Flags

Potential for cost growth due to fixed-price nature and undefined scope elements.
Limited competition may impact price optimization.
Contractor performance history needs verification.
Site-specific risks (environmental, geological) not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to TEAM CONSTRUCTION LLC. BASE

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 $18.3 million.

What is the period of performance?

Start: 2008-11-18. End: 2010-02-06.

What is the track record of TEAM CONSTRUCTION LLC in performing similar industrial building construction contracts for the federal government?

Information regarding the specific track record of TEAM CONSTRUCTION LLC for similar federal contracts is not directly available in the provided data snippet. To assess their performance history, one would need to query contract databases for past awards to this entity, examining factors such as contract values, project types, on-time completion rates, and any reported performance issues or disputes. A review of past performance evaluations, if publicly accessible, would also be crucial. Without this data, it's difficult to gauge their reliability and expertise in executing projects of this nature and scale.

How does the awarded value of $18.3 million compare to the market rate for similar industrial building construction projects?

Determining if $18.3 million is aligned with market rates requires detailed comparison with similar projects. Key factors include the size (square footage), complexity of the facility, specific construction materials used, site conditions, and the prevailing labor and material costs in North Carolina during the contract period (2008-2010). Without these specifics, a direct comparison is speculative. However, the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' with 4 bidders suggests a degree of market vetting. Further analysis would involve researching construction cost indices and per-square-foot costs for comparable industrial buildings in that region and time frame.

What are the primary risks associated with this firm fixed-price definitive contract?

The primary risks for a firm fixed-price definitive contract like this revolve around scope definition and unforeseen circumstances. For the contractor (TEAM CONSTRUCTION LLC), the risk lies in potential cost overruns if material prices escalate unexpectedly, labor shortages drive up wages, or unforeseen site conditions (e.g., soil issues, hazardous materials) are encountered, as the price is fixed. For the government, the risk is that the contractor might cut corners on quality to maintain profitability if costs rise significantly, or that the initial scope definition was inadequate, leading to disputes or change orders that could increase the overall cost. The 'definitive contract' nature implies a potentially complex or evolving scope, increasing the importance of robust change management.

What was the rationale behind 'exclusion of sources' in the competition process?

The rationale for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' typically stems from specific requirements that narrow the pool of eligible bidders. This could be due to the need for highly specialized technical capabilities, unique security clearances, proprietary technology, or specific past performance requirements that only a limited number of firms possess. For instance, the project might require specialized equipment or expertise only available from certain manufacturers or contractors with proven experience in a niche area of industrial construction relevant to naval operations. The agency would need to justify why these exclusions were necessary and in the government's best interest.

What is the historical spending trend for industrial building construction by the Department of the Navy?

Analyzing the historical spending trend for industrial building construction by the Department of the Navy requires examining aggregate data over multiple fiscal years. This contract, awarded in 2008, represents a single data point. To understand trends, one would need to look at total obligations for similar North American Industry Classification System (NAICS) codes (like 236210 - Industrial Building Construction) awarded by the Navy over several years. This would reveal whether spending in this category is increasing, decreasing, or remaining stable, and identify any major shifts in contract values or award volumes, potentially influenced by defense budgets and infrastructure needs.

What are the implications of this contract award for small businesses in North Carolina's construction sector?

Since this contract was not a small business set-aside, its direct impact on small businesses is through potential subcontracting opportunities. TEAM CONSTRUCTION LLC, as the prime contractor, may engage small businesses for specialized services (e.g., electrical, plumbing, HVAC, material supply) or general labor. The extent of this depends on the prime's subcontracting plan and the nature of the project. Small businesses in North Carolina could benefit if they are competitive and can meet the prime's requirements. However, if the prime contractor utilizes its own workforce extensively or subcontracts to larger firms, the direct benefit to the small business ecosystem might be limited.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008508R1429

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101-A MIDDLE ST, JACKSONVILLE, NC, 28546

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $18,292,679

Exercised Options: $18,292,679

Current Obligation: $18,292,679

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline