Department of the Navy awards $23.3M contract for NH95 Fire Protection services to MIG WMJ JV1 LLC

Contract Overview

Contract Amount: $23,310,422 ($23.3M)

Contractor: MIG WMJ JV1 LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-21

End Date: 2026-06-01

Contract Duration: 1,015 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NH95 FIRE PROTECTION

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23551

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to MIG WMJ JV1 LLC for work described as: NH95 FIRE PROTECTION Key points: 1. The contract value of $23.3 million over approximately 3.4 years suggests a significant investment in essential fire protection infrastructure. 2. Awarded under full and open competition, this contract indicates a potentially competitive bidding process that could drive favorable pricing. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially protecting the government from cost overruns. 4. The contractor, MIG WMJ JV1 LLC, is relatively new to federal contracting, presenting a moderate performance risk. 5. This contract falls within the broader Commercial and Institutional Building Construction sector, a vital area for government facility maintenance. 6. The duration of 1015 days (approx. 3.4 years) allows for sustained service delivery and project continuity.

Value Assessment

Rating: fair

The contract value of $23.3 million for fire protection services over 1015 days averages approximately $22,966 per day. Benchmarking this against similar large-scale construction and maintenance contracts is challenging without specific service details. However, the firm-fixed-price nature suggests the government has negotiated a set price, which can be advantageous if the contractor's costs remain within expectations. The absence of detailed cost breakdowns or comparisons to market rates makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. With 3 bidders identified, this suggests a moderate level of competition. While more than a sole-source or limited competition, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria are not provided, which limits a deeper analysis of the competitive dynamics.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better pricing. The presence of multiple bidders suggests that taxpayer funds are likely being used efficiently, as contractors vie to offer the best value.

Public Impact

Naval facilities in Virginia will benefit from enhanced fire protection systems, ensuring the safety of personnel and assets. The contract supports the maintenance and potentially upgrade of critical fire suppression and detection infrastructure. Geographic impact is concentrated in Virginia, where the Department of the Navy operates significant installations. The contract likely supports a workforce involved in construction, specialized fire protection services, and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contractor's limited track record in federal contracting may pose performance risks.
Lack of detailed cost breakdowns hinders a thorough value-for-money assessment.
Specific performance metrics and quality assurance details are not publicly available.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive bidding process.
Contract duration allows for sustained service delivery and project continuity.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on specialized fire protection systems. This sector is crucial for maintaining the operational readiness and safety of government facilities. Comparable spending benchmarks for large-scale fire protection installations and maintenance contracts within the federal government can vary widely based on scope, location, and specific technological requirements. The Department of Defense, as a major entity, frequently procures such services to ensure compliance with safety regulations and protect high-value assets.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, the prime contractor, MIG WMJ JV1 LLC, may engage small businesses for specialized services or materials, which would be detailed in their subcontracting plan if applicable.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and facilities management divisions. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards, delivery schedules, and payment milestones. Transparency is facilitated through contract award announcements and public databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Facilities Maintenance
Naval Base Infrastructure Projects
Federal Fire Safety Contracts
Commercial Building Construction Services
Government Facility Modernization

Risk Flags

Contractor Performance Risk
Limited Historical Data for Contractor
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to MIG WMJ JV1 LLC. NH95 FIRE PROTECTION

Who is the contractor on this award?

The obligated recipient is MIG WMJ JV1 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 $23.3 million.

What is the period of performance?

Start: 2023-08-21. End: 2026-06-01.

What is the specific scope of work for the NH95 Fire Protection contract?

The provided data indicates the contract is for 'NH95 FIRE PROTECTION' and falls under 'Commercial and Institutional Building Construction.' While the specific details of the 'NH95' designation are not elaborated, it likely refers to a specific fire protection system, standard, or facility type managed by the Department of the Navy. The scope would typically encompass the installation, inspection, testing, maintenance, and repair of fire detection, alarm, and suppression systems within designated naval facilities. This could include everything from sprinkler systems and fire alarms to specialized suppression units and emergency communication systems, ensuring compliance with safety regulations and operational readiness.

How does the $23.3 million contract value compare to similar fire protection contracts awarded by the Department of the Navy?

Direct comparison of the $23.3 million contract value requires access to a broader dataset of similar fire protection contracts awarded by the Department of the Navy, including their scope, duration, and specific services. However, $23.3 million over approximately 3.4 years represents a substantial investment, suggesting a significant scope of work, potentially covering multiple facilities or a large, complex system. Larger contracts in this category can range from tens to hundreds of millions of dollars, depending on the scale of infrastructure and modernization efforts. The firm-fixed-price nature at this value indicates a commitment to a defined cost for a defined service period.

What are the potential risks associated with awarding a contract to a contractor with a limited federal contracting history?

Awarding a contract to MIG WMJ JV1 LLC, which appears to have a limited federal contracting history based on the provided data, introduces several potential risks. These include a lack of proven performance in meeting federal requirements, unfamiliarity with government regulations and reporting procedures, and potential challenges in scaling operations to meet government demands. There might also be a steeper learning curve for contract administration and oversight. To mitigate these risks, the Department of the Navy would typically implement robust monitoring, clear performance metrics, and regular communication channels to ensure the contractor meets expectations and delivers the required fire protection services effectively.

What is the significance of the contract being a Firm Fixed Price (FFP) award?

The Firm Fixed Price (FFP) contract type is significant because it establishes a ceiling price that the contractor must not exceed. This shifts the majority of the financial risk from the government to the contractor. If the contractor's costs are higher than anticipated, their profit margin decreases. Conversely, if they manage costs effectively, their profit increases. For the government, FFP provides cost certainty, making budgeting more predictable and protecting against unexpected cost increases, which is particularly valuable for services with a defined scope like fire protection.

How does the competition level (3 bidders) impact the value received by the government?

Having three bidders for this contract suggests a moderate level of competition. While more than a sole-source or limited competition, it may not be as robust as a scenario with five or more bidders. A higher number of bidders generally intensifies competition, driving down prices and encouraging more innovative solutions as contractors strive to win the contract. With three bidders, the government likely received competitive pricing, but there's a possibility that a more extensive bidding pool could have yielded even better value. The specific details of the bids received would be necessary for a definitive assessment.

What is the historical spending pattern for fire protection services within the Department of the Navy?

Analyzing historical spending patterns for fire protection services within the Department of the Navy would require access to comprehensive historical contract data. However, it is reasonable to assume that the Navy, operating numerous bases and facilities globally, consistently allocates significant funds to fire safety and protection. Spending in this area is driven by regulatory compliance, asset protection, and operational continuity. Historical data would likely show recurring contracts for maintenance, upgrades, and new installations, with spending levels fluctuating based on infrastructure needs, modernization initiatives, and budget allocations. The $23.3 million award represents a portion of this ongoing investment.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008523R2565

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 545 S BIRDNECK RD 202H, VIRGINIA BEACH, VA, 23451

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, 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: $23,310,422

Exercised Options: $23,310,422

Current Obligation: $23,310,422

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline