DoD Awards $7M Air Intelligence Facility Construction to Tazewell-BGI JV, Virginia
Contract Overview
Contract Amount: $7,071,112 ($7.1M)
Contractor: Tazewell-Bgi JV, LLC
Awarding Agency: Department of Defense
Start Date: 2020-12-08
End Date: 2025-01-17
Contract Duration: 1,501 days
Daily Burn Rate: $4.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P1026 DBB CONSTRUCT AIR INTELLIGENCE SUPPORT FACILITY, NAS O
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23460
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $7.1 million to TAZEWELL-BGI JV, LLC for work described as: P1026 DBB CONSTRUCT AIR INTELLIGENCE SUPPORT FACILITY, NAS O Key points: 1. Contract awarded for a significant construction project supporting air intelligence at NAS Oceana. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The project duration is substantial at 1501 days, indicating a complex undertaking. 4. The contract type is Firm Fixed Price, which transfers risk to the contractor. 5. The project is located in Virginia, a state with significant federal contracting activity.
Value Assessment
Rating: fair
The award amount of $7.07 million for commercial building construction appears reasonable for a project of this scope and duration. Benchmarking against similar large-scale institutional building projects would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for the contract.
Public Impact
Supports critical national security infrastructure for air intelligence. Creates construction jobs and economic activity in the Virginia region. Ensures modern facilities are available for naval aviation intelligence operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (1501 days) could lead to cost overruns if not managed effectively.
- Firm Fixed Price contract may not account for unforeseen material cost increases.
- Dependence on a single joint venture for a large-scale project.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Supports vital national defense infrastructure.
- Located in a region with established construction industry expertise.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, a sector vital for developing and maintaining government facilities. Spending in this sector is often driven by infrastructure upgrades and national security needs.
Small Business Impact
The data indicates the award went to a joint venture (TAZEWELL-BGI JV, LLC). Further analysis is needed to determine the extent of small business participation within this joint venture or as subcontractors.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The long duration and fixed-price nature necessitate diligent monitoring of progress, quality, and adherence to the contract terms to ensure accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration increases exposure to economic fluctuations.
- Firm Fixed Price contract shifts cost overrun risk to the contractor.
- Potential for scope creep over the extended performance period.
- Dependence on a joint venture may introduce internal management complexities.
- Lack of specific performance metrics in the provided data hinders detailed risk assessment.
Tags
commercial-and-institutional-building-co, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.1 million to TAZEWELL-BGI JV, LLC. P1026 DBB CONSTRUCT AIR INTELLIGENCE SUPPORT FACILITY, NAS O
Who is the contractor on this award?
The obligated recipient is TAZEWELL-BGI JV, 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 $7.1 million.
What is the period of performance?
Start: 2020-12-08. End: 2025-01-17.
What is the estimated cost per square foot for this facility, and how does it compare to similar intelligence support facilities?
The provided data does not include square footage, making a per-square-foot cost analysis impossible. To assess value, the facility's size and specific functional requirements would need to be obtained. Benchmarking against similar intelligence support facilities would then reveal if the $7.07 million contract price is competitive on a cost-per-unit basis.
What are the key performance indicators (KPIs) for this contract, and how will performance be measured to mitigate risks associated with the long duration?
Key performance indicators are not detailed in the provided data. Given the 1501-day duration, the Department of the Navy likely employs phased milestones for progress, quality control checks, and regular site inspections. Effective risk mitigation relies on proactive management of schedules, resources, and potential scope creep to ensure timely and successful project completion.
How does the firm-fixed-price structure impact the government's ability to manage cost fluctuations during the 1501-day performance period?
A firm-fixed-price (FFP) contract places the risk of cost overruns on the contractor, TAZEWELL-BGI JV, LLC. While this protects the government from direct cost increases, it means the contractor must absorb unexpected expenses, potentially impacting their profit margin or leading to claims if unforeseen circumstances arise. The government's primary leverage is ensuring strict adherence to the defined scope of work.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N4008518R1109
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 118 BROOKE AVE, NORFOLK, VA, 23510
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,071,112
Exercised Options: $7,071,112
Current Obligation: $7,071,112
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N4008518D1144
IDV Type: IDC
Timeline
Start Date: 2020-12-08
Current End Date: 2025-01-17
Potential End Date: 2025-01-17 00:00:00
Last Modified: 2026-01-06
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