Patriot Construction awarded $10.6M for Camp Lejeune training facilities, highlighting firm fixed-price contract for building construction

Contract Overview

Contract Amount: $10,649,877 ($10.6M)

Contractor: Patriot Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2020-07-22

End Date: 2025-08-27

Contract Duration: 1,862 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ESIGN-BID-BUILD SOF HUMAN PERFORMANCE TRAINING FACILITIES, 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 $10.6 million to PATRIOT CONSTRUCTION, LLC for work described as: ESIGN-BID-BUILD SOF HUMAN PERFORMANCE TRAINING FACILITIES, MARINE CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The firm fixed-price contract type shifts cost risk to the contractor. 3. Project duration of 1862 days indicates a long-term construction commitment. 4. The contract is for building construction, a critical infrastructure need. 5. Awarded by the Department of the Navy, part of the broader Department of Defense. 6. Geographically located in North Carolina, impacting local construction workforce.

Value Assessment

Rating: good

The contract value of $10.6 million for building construction appears reasonable given the project's scope and duration. Benchmarking against similar Department of Defense construction projects of this scale would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor has committed to a set price, which can be advantageous for the government if costs are managed effectively by the contractor. However, without detailed cost breakdowns or comparisons to industry standards for similar facilities, a definitive assessment of cost efficiency is challenging.

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 a bid. The presence of 5 bidders suggests a healthy level of competition for this project. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government. The number of bidders is a positive indicator that the market found the opportunity attractive and that the government likely received competitive proposals.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drove down the final contract price through competitive pressures, ensuring a better return on investment for public funds.

Public Impact

The primary beneficiaries are the U.S. Marines at Camp Lejeune, who will gain improved human performance training facilities. The services delivered include the design and construction of essential training infrastructure. The geographic impact is concentrated in North Carolina, specifically at Camp Lejeune. The project will likely create or sustain jobs within the construction sector in the local North Carolina area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Delays in construction could impact the readiness and training schedules of military personnel.
Quality control during a long-duration construction project requires consistent oversight.

Positive Signals

Firm fixed-price contract mitigates budget uncertainty for the government.
Full and open competition with multiple bidders suggests a competitive pricing environment.
The project addresses a clear need for enhanced training facilities, supporting military readiness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Defense is a major client for construction services, frequently awarding large-scale projects for infrastructure, housing, and specialized facilities. Spending in this sector is influenced by government infrastructure priorities, national security needs, and economic conditions. Comparable spending benchmarks would involve analyzing other large military construction contracts awarded by the Navy or other branches 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 means that the primary award went to Patriot Construction, LLC, a large business. The absence of set-aside provisions or reported subcontracting goals suggests that the direct impact on the small business construction ecosystem may be limited unless Patriot Construction voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the firm fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon cost. Transparency is typically managed through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance.

Related Government Programs

Military Construction, Navy and Marine Corps
Defense Facilities Construction
Training and Simulation Facilities
General Building Construction

Risk Flags

Long-duration project risk
Firm Fixed Price cost escalation potential
Quality control in construction
Contractor financial stability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.6 million to PATRIOT CONSTRUCTION, LLC. ESIGN-BID-BUILD SOF HUMAN PERFORMANCE TRAINING FACILITIES, MARINE CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA

Who is the contractor on this award?

The obligated recipient is PATRIOT 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 $10.6 million.

What is the period of performance?

Start: 2020-07-22. End: 2025-08-27.

What is the track record of Patriot Construction, LLC in completing government contracts, particularly within the Department of Defense?

A review of Patriot Construction, LLC's contract history with the federal government, particularly the Department of Defense, is crucial for assessing their reliability and past performance. Information from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would reveal their experience with similar projects, on-time delivery rates, adherence to budget, and any history of disputes or contract terminations. Understanding their past performance on large-scale construction projects, especially those involving design-build elements, provides valuable insight into their capability to successfully execute the Camp Lejeune training facilities project. Without specific data on their past performance, it is difficult to definitively assess their track record.

How does the awarded price of $10.6 million compare to industry benchmarks for similar human performance training facilities?

To benchmark the $10.6 million award, one would need to compare it against the cost per square foot or per unit of training capacity for similar facilities constructed recently, both within the Department of Defense and in the commercial sector. Factors such as specialized equipment, technology integration, and specific design requirements for human performance training can significantly influence costs. Analyzing data from construction cost databases (e.g., RSMeans) or reports on recent military construction projects of comparable scope and complexity would provide a basis for comparison. If the cost per square foot is significantly higher than industry averages, it might indicate potential issues with pricing or scope, whereas a cost within or below the benchmark would suggest good value.

What are the primary risks associated with a firm fixed-price contract for a long-duration construction project like this?

The primary risk with a firm fixed-price (FFP) contract, especially for a long-duration project (1862 days), is the potential for the contractor to incur significant losses if costs escalate beyond their initial estimates. While FFP shifts cost risk to the contractor, unforeseen issues like material price volatility, labor shortages, or complex site conditions can strain their ability to complete the project within the agreed price. For the government, the risk is that the contractor might cut corners on quality to maintain profitability, or that the contractor could face financial distress, leading to project delays or abandonment. Robust oversight and clear contract specifications are essential to mitigate these risks and ensure quality delivery.

What is the expected impact of these new training facilities on the operational readiness and effectiveness of the Marines at Camp Lejeune?

The new human performance training facilities are expected to significantly enhance the operational readiness and effectiveness of the Marines at Camp Lejeune by providing state-of-the-art resources for physical conditioning, skill development, and tactical simulation. Modern training environments can better replicate real-world operational challenges, allowing Marines to hone critical skills in a controlled setting. Improved facilities can lead to enhanced physical fitness, reduced injury rates, and more efficient skill acquisition, ultimately contributing to a more capable and prepared fighting force. The specific impact will depend on the design and capabilities of the facilities, but the intent is clearly to bolster mission performance.

How has federal spending on construction projects at Marine Corps Base Camp Lejeune trended over the past five years?

Analyzing federal spending trends on construction at Marine Corps Base Camp Lejeune over the past five years would require accessing historical contract award data. This would involve querying databases like FPDS for all construction-related contracts awarded to Camp Lejeune over the specified period. Trends could reveal whether spending has been increasing, decreasing, or remaining stable, and identify any major shifts in the types of construction projects being prioritized (e.g., barracks, training facilities, infrastructure upgrades). Such an analysis would provide context for the current $10.6 million award, indicating if it represents a typical investment or a significant deviation from historical spending patterns.

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: N4008520R0035

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3240 FERRY LANDING RD, DUNKIRK, MD, 20754

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

Financial Breakdown

Contract Ceiling: $10,649,877

Exercised Options: $10,649,877

Current Obligation: $10,649,877

Actual Outlays: $773,504

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline