DoD's $20M Navy contract for X012 REPAIR BEQ HP512 awarded to Military & Federal Construction Co., Inc

Contract Overview

Contract Amount: $20,054,217 ($20.1M)

Contractor: Military & Federal Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2023-02-01

End Date: 2026-02-19

Contract Duration: 1,114 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: X012 REPAIR BEQ HP512 (200069)

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to MILITARY & FEDERAL CONSTRUCTION CO., INC. for work described as: X012 REPAIR BEQ HP512 (200069) Key points: 1. Contract value appears reasonable given the duration and scope of construction services. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type may limit cost overruns for the government. 4. The contract is for construction services, a critical component of infrastructure maintenance. 5. Awarded to a single contractor, indicating successful bid selection. 6. North Carolina location may have implications for local workforce and material sourcing.

Value Assessment

Rating: good

The contract value of approximately $20 million for a nearly three-year duration seems within a reasonable range for a significant construction project. Benchmarking against similar large-scale military construction or repair contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for controlling costs, assuming the scope was well-defined.

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. The presence of 9 bidders suggests a healthy level of competition for this project, which typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in a lower price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel, who will utilize the improved facilities. The contract delivers essential repair and renovation services for a specific building (BEQ HP512). The geographic impact is localized to the facility in North Carolina where the work will be performed. The contract will likely create or sustain jobs in the construction sector within North Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial repair needs were underestimated.
Reliance on a single contractor for a large project introduces performance risk.
Delays in material procurement or labor availability could impact the schedule.

Positive Signals

Firm fixed-price contract helps mitigate cost escalation risks.
Full and open competition suggests a robust selection process.
Awarded to a contractor with experience in federal construction projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. Federal construction spending is a substantial driver in this sector, particularly for defense and infrastructure projects. The market size for federal construction is vast, and this contract represents a specific investment in maintaining and upgrading military facilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that larger firms were the primary participants in the competition. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight will likely be managed by the Department of the Navy's contracting and facilities management divisions. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to complete the work within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific oversight reports may not be publicly available.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) related projects
Federal Building and Facilities Maintenance
Department of Defense Infrastructure Projects

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Risk of schedule delays due to unforeseen site conditions or material availability.
Contractor performance risk on a large, multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to MILITARY & FEDERAL CONSTRUCTION CO., INC.. X012 REPAIR BEQ HP512 (200069)

Who is the contractor on this award?

The obligated recipient is MILITARY & FEDERAL CONSTRUCTION CO., INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2023-02-01. End: 2026-02-19.

What is the track record of Military & Federal Construction Co., Inc. with federal contracts, particularly with the Department of Defense?

A review of federal procurement data would be necessary to fully assess the track record of Military & Federal Construction Co., Inc. This would involve examining past contract awards, performance evaluations (if available), and any history of disputes or contract terminations. Understanding their experience with similar-sized projects and their performance history with the Department of the Navy specifically would provide crucial context for evaluating their capability to successfully execute the X012 REPAIR BEQ HP512 contract. Without specific historical data, it's difficult to definitively assess their reliability and past performance.

How does the awarded price compare to similar construction projects of this scale and type within the federal government?

To benchmark the value, one would compare the $20 million contract value against similar firm-fixed-price contracts for building repair and renovation awarded by agencies like the Department of Defense, General Services Administration, or other military branches over the past few years. Key comparison points would include the square footage of the facility being repaired, the complexity of the renovation (e.g., structural, MEP, finishes), and the duration of the contract. If data shows similar projects costing significantly more or less, it would indicate whether this contract represents excellent, fair, or questionable value for money.

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

The primary risk in a firm-fixed-price contract is that the contractor may face unforeseen cost increases during performance, potentially leading to reduced quality or contractor default if the price is too low. For the government, the risk lies in the contractor potentially cutting corners to maintain profitability if costs escalate. Mitigation strategies include a well-defined Statement of Work (SOW), thorough pre-bid site assessments, robust contractor pre-qualification, and clear contract clauses addressing change orders and dispute resolution. The government's oversight team also plays a critical role in monitoring progress and ensuring adherence to specifications.

What is the expected impact of this contract on the specific facility (BEQ HP512) and its operational readiness?

This contract is intended to repair and renovate BEQ HP512, which likely means addressing deferred maintenance, upgrading systems (e.g., HVAC, electrical, plumbing), and potentially improving habitability or functionality. The successful completion of this project should enhance the facility's condition, improve its operational efficiency, and ensure it meets current standards, thereby supporting the readiness and mission capabilities of the personnel who use it. The duration of the contract (over 1000 days) suggests a substantial scope of work that could significantly improve the facility's long-term viability.

How has federal spending on similar construction and repair projects for the Department of the Navy trended over the last five years?

Analyzing the trend of federal spending on similar construction and repair projects for the Department of the Navy over the last five years would involve examining historical contract data. This would reveal whether spending in this category has been increasing, decreasing, or remaining stable. Such a trend analysis could indicate shifts in infrastructure investment priorities, the impact of budget cycles, or the overall health of the Navy's facilities maintenance program. For instance, a consistent increase might suggest a growing backlog of maintenance needs or a strategic push for modernization.

What is the significance of the Public Service Code (PSC) or Product Service Code (PSC) associated with this contract, if available?

The Product Service Code (PSC) is a standardized code used by the federal government to classify the goods and services procured. While the provided data shows 'PSC: ', indicating it's not specified, if a code like 'C211 - Architectural and Engineering Services' or '7042 - IT and Telecommunications' were present, it would precisely define the nature of the service or product. For construction contracts, codes related to building construction and maintenance are common. The PSC helps in categorizing spending, analyzing procurement trends within specific service areas, and identifying relevant contractors.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008521R1215

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 846 BELL FORK RD, JACKSONVILLE, NC, 28540

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $20,054,217

Exercised Options: $20,054,217

Current Obligation: $20,054,217

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008521D0102

IDV Type: IDC

Timeline