DoD's $18.6M elevator replacement contract awarded to Turner Strategic Technologies, LLC for building modernization

Contract Overview

Contract Amount: $18,654,360 ($18.7M)

Contractor: Turner Strategic Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-17

End Date: 2027-01-04

Contract Duration: 2,300 days

Daily Burn Rate: $8.1K/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: X031 NSN BLDG W-143 REPLACE FREIGHT ELEVATORS

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to TURNER STRATEGIC TECHNOLOGIES, LLC for work described as: X031 NSN BLDG W-143 REPLACE FREIGHT ELEVATORS Key points: 1. Contract value appears reasonable for a multi-year building modernization project. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of over two years indicates a significant scope of work. 5. The contract falls under commercial and institutional building construction NAICS code. 6. Awarded by the Department of the Navy, highlighting defense infrastructure needs.

Value Assessment

Rating: good

The contract's value of $18.6 million for replacing freight elevators in a Navy building seems within a reasonable range for a project of this scope and duration. Benchmarking against similar large-scale building modernization projects for federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government, as it caps the contractor's potential earnings and shifts cost risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial pool of potential bidders might have been narrowed, the final award was made through a competitive process. The presence of four bidders suggests a healthy level of competition, which typically leads to better pricing and value for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs through bidding and ensured the government received competitive proposals for the elevator replacement services.

Public Impact

Naval facilities in Virginia will benefit from modernized and reliable freight elevators. Improved operational efficiency for personnel and cargo movement within the building. Supports the maintenance and upgrade of critical infrastructure for the Department of Defense. Potential for local job creation during the construction and installation phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in project completion impacting building operations.
Ensuring compliance with all safety and building codes during installation.

Positive Signals

Firm fixed-price contract limits cost escalation risks.
Award to an established contractor suggests a degree of reliability.
Long-term contract provides stability for infrastructure upgrade planning.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. Federal spending in this area supports the maintenance, repair, and modernization of government facilities. The market for elevator installation and maintenance is competitive, with numerous specialized firms capable of undertaking such projects. The $18.6 million award is substantial, indicating a major upgrade rather than routine maintenance.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Further investigation would be needed to determine if Turner Strategic Technologies, LLC has a history of subcontracting with small businesses on similar projects or if there are any indirect impacts on the small business ecosystem through this award.

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 type, requiring the contractor to deliver the specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance details may be less public.

Related Government Programs

Department of Defense Facilities Modernization Programs
Navy Base Infrastructure Improvement Projects
Federal Building and Construction Contracts

Risk Flags

Potential for project delays
Ensuring compliance with updated building codes
Contractor performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to TURNER STRATEGIC TECHNOLOGIES, LLC. X031 NSN BLDG W-143 REPLACE FREIGHT ELEVATORS

Who is the contractor on this award?

The obligated recipient is TURNER STRATEGIC TECHNOLOGIES, 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 $18.7 million.

What is the period of performance?

Start: 2020-09-17. End: 2027-01-04.

What is the track record of Turner Strategic Technologies, LLC with federal contracts, particularly within the Department of Defense?

Turner Strategic Technologies, LLC has a history of federal contracting, primarily with the Department of Defense. Analyzing their past performance on similar construction and renovation projects would provide insight into their reliability and ability to meet deadlines and quality standards. Reviewing contract award data can reveal the types and values of previous contracts, as well as any performance issues or disputes. A deeper dive into their contract history, including any awards or penalties, would offer a more comprehensive understanding of their capabilities and suitability for large-scale projects like the elevator replacement.

How does the $18.6 million cost compare to similar elevator replacement projects in federal buildings?

Benchmarking the $18.6 million cost against similar freight elevator replacement projects in federal buildings requires access to detailed cost data for comparable contracts. Factors such as the number of elevators, building size, complexity of installation, and geographic location significantly influence project costs. Without specific comparable data, it's challenging to definitively state if this price is high or low. However, for a multi-year project involving the replacement of multiple elevators in a substantial facility, the amount appears to be within a plausible range for significant infrastructure work. Further analysis would involve comparing square footage, elevator capacity, and the scope of associated building modifications.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential project delays due to unforeseen site conditions, contractor performance issues, or supply chain disruptions. Another risk is ensuring the new elevators meet all modern safety and accessibility standards. Mitigation strategies are likely embedded in the contract terms. The firm fixed-price structure shifts cost overrun risk to the contractor. The Department of the Navy's oversight, including regular progress reviews and inspections, helps monitor performance and address issues proactively. Clear performance standards and liquidated damages clauses can also incentivize timely completion.

What is the expected impact of these new elevators on the operational efficiency of the Navy facility?

The replacement of aging freight elevators with new, modern systems is expected to significantly enhance operational efficiency within the Navy facility. New elevators typically offer improved reliability, reducing downtime and maintenance issues that can disrupt the movement of goods and personnel. Faster travel times and potentially higher weight capacities can streamline logistics and material handling processes. This modernization supports the facility's core functions by ensuring that essential infrastructure is dependable and capable of meeting current operational demands, thereby minimizing disruptions to daily activities.

What has been the historical spending trend for elevator maintenance and replacement at this specific Navy facility or similar facilities?

Analyzing historical spending trends for elevator maintenance and replacement at this specific Navy facility or similar Department of the Navy installations would provide crucial context for the $18.6 million award. If historical spending has been significantly lower, it might indicate a need for deeper scrutiny of the current project's scope or cost. Conversely, if past spending has been high due to frequent breakdowns or phased upgrades, this larger investment could represent a necessary consolidation or modernization effort. Understanding these trends helps assess whether the current contract represents a justifiable investment or a potential anomaly in spending patterns.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008517R0323

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7440 CENTRAL BUSINESS PARK DR, NORFOLK, VA, 23513

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $18,654,360

Exercised Options: $18,654,360

Current Obligation: $18,654,360

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008517D0328

IDV Type: IDC

Timeline