Department of Defense awards $18.6M contract for building repair, highlighting construction sector activity

Contract Overview

Contract Amount: $18,574,471 ($18.6M)

Contractor: Blue Rock Structures, Inc

Awarding Agency: Department of Defense

Start Date: 2023-07-28

End Date: 2025-07-27

Contract Duration: 730 days

Daily Burn Rate: $25.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: X006 REPAIR BEQ HP514 (220040)

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to BLUE ROCK STRUCTURES, INC for work described as: X006 REPAIR BEQ HP514 (220040) Key points: 1. Contract value appears reasonable for a multi-year repair project of this scope. 2. Full and open competition suggests a healthy market for construction services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of two years aligns with typical repair and renovation timelines. 5. Contract awarded to a single entity, indicating successful bid evaluation. 6. Geographic focus on North Carolina points to regional construction needs.

Value Assessment

Rating: good

The contract value of $18.6 million for building repair seems within a reasonable range for a two-year project. Benchmarking against similar large-scale construction and repair contracts awarded by the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for controlling costs, assuming the scope of work was well-defined.

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 bids. The presence of 4 bidders suggests a competitive environment for this type of construction service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel, who will utilize the repaired facilities. The contract delivers essential repair and maintenance services for existing building infrastructure. The geographic impact is concentrated in North Carolina, supporting local economic activity. The project will likely involve skilled labor in the construction trades, potentially creating or sustaining jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial repair assessments are incomplete.
Risk of delays due to unforeseen site conditions or material availability.

Positive Signals

Firm fixed-price contract limits financial exposure for the government.
Two-year duration allows for thorough execution of repair work.
Awarded under full and open competition, suggesting competitive pricing.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220), a significant segment of the U.S. economy. Federal spending in this area supports the maintenance and modernization of government facilities. Comparable spending benchmarks would involve analyzing other large-scale repair and renovation contracts awarded by federal agencies for similar building types and project scopes.

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 the primary award went to a large business. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this project.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a firm fixed-price contract, oversight will focus on ensuring adherence to the contract terms and specifications. The Department of the Navy's contracting office is responsible for administration, and any significant issues could fall under the purview of the agency's Inspector General.

Related Government Programs

Military Base Construction
Federal Building Maintenance
Department of Defense Facilities Management
Naval Facilities Engineering Command Contracts

Risk Flags

Potential for cost increases if unforeseen conditions are encountered.
Risk of schedule delays impacting facility availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to BLUE ROCK STRUCTURES, INC. X006 REPAIR BEQ HP514 (220040)

Who is the contractor on this award?

The obligated recipient is BLUE ROCK STRUCTURES, 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 $18.6 million.

What is the period of performance?

Start: 2023-07-28. End: 2025-07-27.

What is the track record of BLUE ROCK STRUCTURES, INC. with federal contracts, particularly within the Department of Defense?

A review of federal procurement data would be necessary to assess the track record of BLUE ROCK STRUCTURES, INC. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of disputes or contract modifications. Understanding their experience with similar projects, especially within the Department of Defense and for building repair, would provide insight into their capabilities and reliability. Without specific historical data, it's difficult to definitively assess their past performance, but the award of this contract suggests they met the requirements for this specific procurement.

How does the awarded amount of $18.6 million compare to similar building repair contracts for the Navy or DoD?

To benchmark the $18.6 million award, one would compare it to similar firm-fixed-price contracts for building repair and renovation projects of comparable size, scope, and duration awarded by the Department of the Navy or the broader Department of Defense. Factors such as the type of building, the extent of repairs needed (e.g., structural, HVAC, electrical), and the geographic location can influence costs. A preliminary assessment suggests the amount is substantial, reflecting a significant project, but a detailed comparison with historical data for similar projects is required for a definitive value-for-money conclusion.

What are the primary risks associated with this firm-fixed-price contract for building repair?

The primary risks for the government in a firm-fixed-price contract are typically related to the contractor potentially cutting corners on quality to maintain profitability if unforeseen issues arise, or if the initial scope of work was underestimated. For BLUE ROCK STRUCTURES, INC., the risk lies in accurately estimating all costs and potential challenges within the fixed price. Unforeseen conditions discovered during the repair process could lead to requests for change orders, which, if not managed carefully, could increase the overall cost to the government. However, the fixed-price nature generally incentivizes the contractor to manage risks and costs effectively.

How effective is the 'full and open competition' strategy in ensuring competitive pricing for construction services like this?

Full and open competition is generally considered the most effective strategy for ensuring competitive pricing for a wide range of services, including construction. By allowing all responsible sources to bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids. The fact that four bids were received for this contract indicates a degree of market interest and competition. This process helps the government secure services at or near market rates, as contractors are motivated to offer their best pricing to win the award.

What is the historical spending trend for building repair contracts within the Department of the Navy over the last five years?

Analyzing the historical spending trend for building repair contracts within the Department of the Navy over the last five years would require access to comprehensive federal procurement databases. Such an analysis would likely reveal fluctuations based on military readiness needs, infrastructure investment priorities, and budget allocations. Generally, spending in this category can be substantial, reflecting the vast inventory of aging facilities requiring ongoing maintenance and upgrades. A trend analysis would help contextualize the $18.6 million award within the broader spending patterns and identify any significant increases or decreases in investment in facility repair.

Are there any specific performance metrics or deliverables outlined in the contract that can be used to assess project success?

The provided data does not detail specific performance metrics or deliverables. However, for a contract of this nature (building repair), typical performance expectations would include adherence to the project schedule, completion of all specified repair work according to industry standards and technical specifications, compliance with safety regulations, and overall quality of workmanship. The contract likely includes clauses for inspection and acceptance of work, and potentially penalties for delays or deficiencies. A thorough review of the contract's Statement of Work (SOW) and inspection clauses would be necessary to identify the specific metrics for assessing success.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008521R1215

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10689 US HWY 17, POLLOCKSVILLE, NC, 28573

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,059,184

Exercised Options: $18,574,471

Current Obligation: $18,574,471

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008521D0097

IDV Type: IDC

Timeline