DoD's $32.2M Infotech/Telecom Complex contract awarded to Daniels & Daniels Grunley JV shows fair value

Contract Overview

Contract Amount: $32,247,017 ($32.2M)

Contractor: Daniels & Daniels Grunley Joint Venture

Awarding Agency: Department of Defense

Start Date: 2011-03-04

End Date: 2014-09-25

Contract Duration: 1,301 days

Daily Burn Rate: $24.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P1311 CONSOLIDATED INFOTECH/TELECOM COMPLEX

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28542

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $32.2 million to DANIELS & DANIELS GRUNLEY JOINT VENTURE for work described as: P1311 CONSOLIDATED INFOTECH/TELECOM COMPLEX Key points: 1. The contract's total value of $32.2 million over its period of performance suggests a moderate investment in infotech and telecom infrastructure. 2. Awarded via full and open competition, the contract likely benefited from a competitive bidding process, potentially leading to better pricing. 3. The firm-fixed-price contract type indicates that the contractor assumed the majority of the cost risk, a positive sign for the government. 4. Performance occurred over 1301 days, suggesting a substantial project duration requiring sustained effort and management. 5. The contract falls within the Commercial and Institutional Building Construction sector, indicating a focus on physical infrastructure development. 6. The absence of small business set-aside flags suggests this was not specifically targeted to boost small business participation.

Value Assessment

Rating: good

The contract's total award value of approximately $32.2 million over a period of roughly 3.5 years appears reasonable for a complex infotech and telecommunications building project. Benchmarking against similar large-scale construction projects for the Department of Defense, this value falls within expected ranges, especially considering the firm-fixed-price nature which shifts risk to the contractor. Without specific details on the scope of work, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

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 offers. The presence of 11 bids indicates a healthy level of interest and competition for this project. A robust competitive environment generally leads to more favorable pricing and better quality solutions for the government, as contractors strive to win the bid by offering competitive terms.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely resulted in a more cost-effective outcome compared to a sole-source or limited competition award. The multiple bids suggest that the government secured a fair market price.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who gain enhanced infotech and telecom capabilities. The contract delivered essential infrastructure for information technology and telecommunications, crucial for modern military operations. The project was located in North Carolina, indicating a specific geographic impact within that state. The construction and potential fit-out of facilities would have implications for the local construction workforce in North Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract did not adequately account for all project complexities.
Risk of schedule delays impacting the DoD's operational readiness if construction faced unforeseen challenges.
Ensuring the quality of construction meets stringent military standards requires diligent oversight.

Positive Signals

The firm-fixed-price contract structure places cost risk on the contractor, incentivizing efficient project management.
Awarding through full and open competition with 11 bidders suggests a competitive market and likely fair pricing.
The contract's duration of over 1300 days indicates a significant, potentially impactful project for the DoD.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The specific focus on infotech and telecom infrastructure suggests a specialized niche within this sector, likely involving the construction of data centers, communication hubs, or related facilities. The total award of $32.2 million is a significant figure, placing it in the mid-to-large range for individual construction contracts within this specialized area. Comparable spending benchmarks would depend heavily on the exact scope, size, and technological requirements of the facility being built.

Small Business Impact

The contract was not awarded as a small business set-aside, and the 'sb' field is false, indicating no specific provisions were made to prioritize small businesses for the prime contract. This suggests the primary focus was on securing the best offer through full and open competition. There is no explicit information on subcontracting plans, but for a contract of this size and nature, it is common for prime contractors to engage small businesses for specialized services or materials, though this is not guaranteed.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Navy. The firm-fixed-price nature shifts cost risk to the contractor, but government oversight would still be crucial to ensure adherence to specifications, quality standards, and timely completion. Transparency is generally facilitated through contract award databases, but detailed project progress and specific oversight activities are often internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Construction Contracts
Information Technology Infrastructure Projects
Telecommunications Facility Construction
Federal Building and Infrastructure Projects
Naval Facilities Engineering Command Contracts

Risk Flags

Contract Type: Firm Fixed Price - requires careful scope definition to avoid quality compromises.
Project Duration: Over 1300 days - increases risk of schedule slippage and potential cost escalation if not managed tightly.
Sector Specificity: Infotech/Telecom construction can involve complex and rapidly evolving technologies, posing unique challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.2 million to DANIELS & DANIELS GRUNLEY JOINT VENTURE. P1311 CONSOLIDATED INFOTECH/TELECOM COMPLEX

Who is the contractor on this award?

The obligated recipient is DANIELS & DANIELS GRUNLEY 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 $32.2 million.

What is the period of performance?

Start: 2011-03-04. End: 2014-09-25.

What was the specific scope of work for the P1311 CONSOLIDATED INFOTECH/TELECOM COMPLEX contract?

The provided data does not detail the specific scope of work for the P1311 CONSOLIDATED INFOTECH/TELECOM COMPLEX contract beyond its designation as 'Commercial and Institutional Building Construction' with a focus on 'Infotech/Telecom'. Typically, such contracts involve the design, construction, and potentially outfitting of facilities dedicated to housing and supporting advanced information technology and telecommunications systems. This could include data centers, command and control facilities, network infrastructure hubs, or secure communication centers. The firm-fixed-price nature suggests a well-defined scope was established prior to bidding to allow the contractor to assume significant cost risk.

How does the $32.2 million award compare to similar DoD infotech/telecom construction projects?

The $32.2 million award for the P1311 CONSOLIDATED INFOTECH/TELECOM COMPLEX is a substantial investment. To benchmark it accurately against similar projects, one would need to analyze contracts with comparable scope (e.g., data center construction, secure communication facility build-outs) awarded by the Department of Defense or other federal agencies around the same period (2011-2014). Factors like geographic location, specific technological requirements (e.g., cybersecurity hardening, power redundancy, cooling systems), and prevailing construction costs in the region would influence comparisons. Generally, large-scale, specialized federal construction projects can range from tens to hundreds of millions of dollars, placing this contract in a significant, but not exceptionally outlier, category.

What were the key risks associated with this firm-fixed-price contract for the government?

For a firm-fixed-price (FFP) contract, the primary risk to the government is that the contractor may cut corners on quality or scope to maintain profitability if unforeseen issues arise during construction. While the contractor assumes most cost risk, the government still bears the risk of receiving a product or service that does not fully meet the specified requirements if oversight is insufficient. Schedule delays, even with FFP, can still impact government operations. Ensuring the initial scope definition was comprehensive and accurate is critical to mitigating these risks. Robust government inspection and acceptance processes are vital to ensure the final deliverable meets all contractual obligations.

What does the presence of 11 bidders signify for price discovery and taxpayer value?

The fact that 11 bidders submitted offers for this contract is a strong positive signal for price discovery and taxpayer value. A larger number of bidders generally indicates a competitive marketplace where multiple companies are interested and capable of performing the work. This competition typically drives down prices as contractors vie to win the contract by offering the most attractive terms. For taxpayers, this means the government is more likely to have secured the services at a fair market price, avoiding the potential overpayment that can occur in less competitive environments like sole-source or limited-bid situations. It suggests the government received proposals that reflected a realistic assessment of costs and a competitive profit margin.

What is the historical spending pattern for similar infotech/telecom construction contracts by the Department of the Navy?

Analyzing historical spending patterns for similar contracts by the Department of the Navy would require access to detailed contract databases and filtering for projects with comparable North American Industry Classification System (NAICS) codes (like 236220 for Commercial and Institutional Building Construction) and keywords related to 'infotech' or 'telecom' infrastructure. Without such specific data access, a precise historical comparison is not possible. However, it is generally understood that the DoD, including the Navy, invests significantly in modernizing its facilities to support advanced technological capabilities. Spending on such projects can fluctuate based on strategic priorities, budget allocations, and the lifecycle of existing infrastructure, often involving multi-year investments in the tens to hundreds of millions of dollars for major facilities.

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: N4008511R4002

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15020 SHADY GROVE RD STE 500, ROCKVILLE, MD, 20850

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,247,017

Exercised Options: $32,247,017

Current Obligation: $32,247,017

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline