DoD's $27.3M Navy contract for building construction awarded to a joint venture, with 6 bidders

Contract Overview

Contract Amount: $27,329,833 ($27.3M)

Contractor: Mitchell Industrial Contractors Inc / Brasfield & Gorrie,LLC a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2013-09-05

End Date: 2016-07-15

Contract Duration: 1,044 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF

Place of Performance

Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $27.3 million to MITCHELL INDUSTRIAL CONTRACTORS INC / BRASFIELD & GORRIE,LLC A JOINT VENTURE for work described as: IGF::OT::IGF Key points: 1. The contract value of $27.3 million represents a significant investment in infrastructure. 2. Competition dynamics involved 6 bidders, suggesting a moderately competitive environment. 3. Risk indicators include the firm fixed-price contract type, which shifts cost risk to the contractor. 4. Performance context is within the broader Department of the Navy's infrastructure development efforts. 5. Sector positioning is in commercial and institutional building construction, a vital segment for military readiness.

Value Assessment

Rating: good

The contract's value of $27.3 million for building construction appears reasonable given the scope of work typically associated with military installations. Benchmarking against similar large-scale construction projects for the Department of Defense suggests that pricing is likely competitive, especially considering the firm fixed-price nature of the award which incentivizes cost control by the contractor. The presence of 6 bidders further supports the notion of a fair market price being achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The participation of 6 bidders suggests a healthy level of interest and competition for this project. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, benefiting the government.

Taxpayer Impact: The full and open competition with multiple bidders ensures that taxpayer dollars are used efficiently by driving down costs through market forces. This approach maximizes the value received for the investment in infrastructure.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel, who will utilize the constructed facilities. Services delivered include the construction of commercial and institutional buildings, likely supporting operational or administrative functions. The geographic impact is concentrated in North Carolina, where the construction project is located. Workforce implications include job creation for construction workers, engineers, and project managers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm fixed-price structure.
Contractor performance risks, including schedule delays or quality issues, could impact operational readiness.
Dependency on the joint venture's ability to effectively manage resources and subcontractors.

Positive Signals

Firm fixed-price contract type limits the government's exposure to cost increases.
Award to a joint venture of established companies may indicate strong technical capabilities and financial stability.
Full and open competition suggests a robust selection process and potential for competitive pricing.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction. This sector is critical for supporting government operations, including military bases, administrative facilities, and research centers. The market for large-scale government construction is substantial, with significant spending allocated annually to maintain and upgrade infrastructure. Comparable spending benchmarks would involve analyzing other large construction awards by the Department of Defense and other federal agencies for similar types of facilities.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to larger entities, and the direct impact on the small business ecosystem may be limited unless the joint venture partners actively engage small businesses as subcontractors. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Navy program office. Accountability measures are embedded in the firm fixed-price contract terms, which hold the contractor responsible for delivering the project within the agreed-upon cost and schedule. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not provided.

Related Government Programs

Department of Defense Military Construction
Naval Facilities Engineering Command Contracts
General Services Administration Public Buildings Service
Federal Buildings Fund

Risk Flags

Contract awarded to a joint venture.
Firm Fixed Price contract type.
Full and Open Competition after Exclusion of Sources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.3 million to MITCHELL INDUSTRIAL CONTRACTORS INC / BRASFIELD & GORRIE,LLC A JOINT VENTURE. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is MITCHELL INDUSTRIAL CONTRACTORS INC / BRASFIELD & GORRIE,LLC A 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 $27.3 million.

What is the period of performance?

Start: 2013-09-05. End: 2016-07-15.

What is the track record of Mitchell Industrial Contractors Inc. and Brasfield & Gorrie, LLC in executing large federal construction projects?

Mitchell Industrial Contractors Inc. and Brasfield & Gorrie, LLC, operating as a joint venture, have a significant history in large-scale construction. Brasfield & Gorrie, in particular, is a well-established general contractor with extensive experience in various sectors, including healthcare, commercial, and government facilities. They have a proven track record of delivering complex projects on time and within budget. Mitchell Industrial Contractors Inc. also contributes specialized expertise. The joint venture structure itself often aims to leverage the combined strengths and past performance of its constituent companies to successfully execute major federal contracts, mitigating risks associated with large projects and ensuring adherence to stringent government requirements.

How does the awarded price of $27.3 million compare to similar building construction contracts awarded by the Navy or DoD in the past five years?

Benchmarking the $27.3 million award requires detailed comparison with contracts of similar scope, size, and complexity within the Department of the Navy or broader DoD. Factors such as project type (e.g., barracks, administrative buildings, specialized facilities), location, specific construction requirements (e.g., LEED certification, security features), and the prevailing economic conditions at the time of award are crucial. Generally, large-scale institutional building construction for the military can range from tens to hundreds of millions of dollars. Given that this contract involved 6 bidders under full and open competition, the price is likely competitive. However, a precise comparison would necessitate access to a database of comparable contracts, analyzing metrics like cost per square foot or cost per functional unit, adjusted for inflation and regional cost differences.

What are the primary risks associated with this firm fixed-price contract, and how are they mitigated?

The primary risk with a firm fixed-price (FFP) contract is that the contractor bears the burden of any cost overruns. If the actual costs of labor, materials, or unforeseen site conditions exceed the contract price, the contractor's profit margin will be reduced, or they may incur a loss. Mitigation strategies employed by the government include thorough pre-award evaluations of the contractor's technical capability and financial stability, detailed scope definition in the contract to minimize ambiguity, and robust oversight during project execution. The contractor mitigates these risks through detailed cost estimation, contingency planning, efficient project management, and potentially by securing fixed-price subcontracts. The government's mitigation is primarily in ensuring a well-defined scope and selecting a capable contractor.

What is the expected impact of this contract on the local North Carolina economy and workforce?

This $27.3 million construction contract is expected to have a positive impact on the local economy in North Carolina. It will directly create numerous jobs for skilled and unskilled labor in the construction trades, including carpenters, electricians, plumbers, masons, and heavy equipment operators. Indirectly, it will stimulate economic activity through the procurement of local materials, equipment rentals, and services from supporting businesses such as suppliers, transportation companies, and hospitality providers. The project duration of approximately 1044 days (around 2.8 years) suggests a sustained period of employment and economic contribution. The presence of a joint venture with established firms may also lead to knowledge transfer and capacity building within the local construction sector.

How does the competition level (6 bidders) influence the value for money achieved for taxpayers on this contract?

A competition level of 6 bidders for a federal contract of this magnitude ($27.3 million) generally indicates a healthy and effective market response. More bidders typically lead to increased price competition, as contractors strive to offer the most attractive pricing to win the award. This heightened competition puts downward pressure on prices, ensuring that the government secures the best possible value for taxpayer dollars. It also increases the likelihood that the selected contractor possesses the necessary qualifications and offers a robust technical solution. While 6 bidders is a good number, an even higher number could potentially yield even greater cost savings, but the current level suggests that the government was able to leverage market forces effectively to achieve good value.

What are the potential long-term implications of this infrastructure investment for the Department of the Navy's operational capabilities?

The long-term implications of this infrastructure investment are significant for the Department of the Navy's operational capabilities. The construction of new or upgraded commercial and institutional buildings directly supports the Navy's mission by providing essential facilities for personnel, training, administration, logistics, or specialized operations. Modern, well-maintained facilities can improve efficiency, enhance quality of life for service members, and ensure the readiness and sustainability of naval installations. Depending on the specific nature of the buildings, this investment could enable new capabilities, expand existing ones, or replace aging infrastructure that may be hindering operational effectiveness. Ultimately, it contributes to the overall modernization and resilience of the Navy's shore-based infrastructure.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008512R7713

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 188 WESTCHESTER DR, MADISON, AL, 35758

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,329,833

Exercised Options: $27,329,833

Current Obligation: $27,329,833

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline