Navy awards $8.58M for NNSY Building 278 Exterior Envelope Replacement to Interior Design, Inc

Contract Overview

Contract Amount: $8,583,543 ($8.6M)

Contractor: Within Interior Design, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-31

End Date: 2026-06-12

Contract Duration: 1,016 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: X008 NNSY BUILDING 278 RENOVATIONS:EXTERIOR ENVELOPE REPLACEMENT

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23709

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.6 million to WITHIN INTERIOR DESIGN, INC. for work described as: X008 NNSY BUILDING 278 RENOVATIONS:EXTERIOR ENVELOPE REPLACEMENT Key points: 1. Contract value appears reasonable for building envelope renovations of this scale. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type shifts risk to the contractor. 4. Project duration of over 1000 days indicates a complex, multi-phase undertaking. 5. Location in Norfolk, VA, places it within a significant naval hub. 6. The contract is for exterior envelope replacement, a critical infrastructure component.

Value Assessment

Rating: good

The contract value of $8.58 million for exterior envelope replacement on a significant facility like Building 278 at Norfolk Naval Shipyard (NNSY) appears to be within a reasonable range for such extensive renovations. Benchmarking against similar large-scale building envelope projects for federal facilities suggests that this price is competitive, especially considering the specialized nature of naval shipyard infrastructure. The firm fixed-price contract structure also indicates a clear understanding of costs by the contractor, potentially leading to better value realization for the government.

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 competition was broad, specific justifications were made for excluding certain sources. The presence of 3 bidders suggests a moderate level of competition for this specialized project. This level of competition is generally sufficient to promote price discovery and ensure a fair market price, though a higher number of bidders could potentially drive prices lower.

Taxpayer Impact: The full and open competition, even with exclusions, aims to secure the best value for taxpayers by allowing multiple qualified contractors to bid. The moderate number of bidders suggests that while competitive, the market for this specific type of renovation may be somewhat specialized.

Public Impact

The primary beneficiaries are the Department of the Navy and personnel working within or utilizing Building 278 at NNSY. The contract delivers essential services for the repair and modernization of critical naval infrastructure. Geographic impact is concentrated at the Norfolk Naval Shipyard in Virginia. Workforce implications include employment for construction trades, project managers, and support staff involved in the renovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen structural issues arise during renovation.
Contractor performance risk associated with a project of this duration and complexity.
Dependency on timely material procurement and skilled labor availability.

Positive Signals

Firm fixed-price contract mitigates cost overrun risk for the government.
Exterior envelope work is crucial for long-term facility integrity and operational efficiency.
Competition, even if moderate, provides a basis for value assessment.

Sector Analysis

This contract falls within the construction and facilities maintenance sector, specifically focusing on building envelope systems. The market for large-scale federal building renovations is substantial, driven by the need to maintain aging infrastructure and improve energy efficiency. Comparable spending benchmarks for similar projects at major federal installations would typically range from several million to tens of millions of dollars, depending on the facility's size and complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for specialized subcontracting work.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and facilities management departments. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified work within the agreed budget. Transparency is generally maintained through contract award databases and reporting, though specific project-level oversight details are not provided.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) projects
Department of Defense Infrastructure Modernization Programs
Federal Building Renovation Contracts
Exterior Envelope Repair and Replacement

Risk Flags

Potential for unforeseen conditions impacting schedule and cost.
Contractor performance risk on long-duration projects.
Dependency on specialized materials and labor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.6 million to WITHIN INTERIOR DESIGN, INC.. X008 NNSY BUILDING 278 RENOVATIONS:EXTERIOR ENVELOPE REPLACEMENT

Who is the contractor on this award?

The obligated recipient is WITHIN INTERIOR DESIGN, 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 $8.6 million.

What is the period of performance?

Start: 2023-08-31. End: 2026-06-12.

What is the track record of Interior Design, Inc. with federal contracts, particularly within the Department of Defense?

A review of federal contract databases indicates that Interior Design, Inc. has a history of securing contracts, primarily within the Department of Defense and specifically with the Department of the Navy. While the provided data does not detail the full scope or success rate of their past performance, the award of this significant contract suggests a level of capability and reliability deemed sufficient by the procuring agency. Further analysis would involve examining past performance reviews, contract modifications, and any reported disputes or terminations to fully assess their track record.

How does the awarded amount of $8.58 million compare to the estimated cost or budget for this specific renovation project?

The provided data does not include the government's estimated cost or budget for the NNSY Building 278 exterior envelope replacement. The awarded amount of $8.58 million represents the price agreed upon through the competitive bidding process. Without the government's independent cost estimate, it is difficult to definitively assess whether the award was significantly above, below, or in line with expectations. However, the fact that it was awarded under full and open competition suggests the price was deemed fair and reasonable by the contracting officer based on the bids received.

What are the primary risks associated with the exterior envelope replacement of Building 278, and how are they mitigated by the contract terms?

Key risks for exterior envelope replacement include unforeseen structural issues discovered during demolition, material cost fluctuations, and weather-related delays. The firm fixed-price (FFP) contract structure is the primary mitigation tool, shifting the financial risk of cost overruns to the contractor, Interior Design, Inc. This incentivizes the contractor to accurately estimate costs and manage the project efficiently. Additionally, the contract likely includes clauses for managing delays and potential change orders, though the specifics would be detailed in the contract's statement of work and general provisions.

What is the expected impact of this renovation on the operational efficiency and energy consumption of Building 278?

Replacing the exterior envelope is expected to significantly improve the operational efficiency and reduce energy consumption of Building 278. A modern, well-sealed envelope minimizes air infiltration, reduces heat loss in winter and heat gain in summer, and enhances the building's thermal performance. This leads to more stable interior temperatures, reduced strain on HVAC systems, and consequently, lower energy bills for the Navy. Improved weatherproofing also protects the building's interior and structural components from moisture damage, extending its lifespan and reducing future maintenance needs.

How does the competition level (3 bidders) for this $8.58 million contract influence the value for taxpayers?

A competition level of three bidders for a specialized project valued at $8.58 million generally indicates a reasonably competitive market. While more bidders could potentially lead to lower prices, three offers are often sufficient to establish a competitive range and prevent collusion. This level of competition suggests that the government likely received multiple proposals, allowing the contracting officer to compare technical approaches and pricing to select the best value. For taxpayers, this means the price paid is likely reflective of market conditions rather than being excessively inflated due to a lack of viable alternatives.

What is the historical spending pattern for exterior envelope renovations at Norfolk Naval Shipyard (NNSY) or similar naval facilities?

Historical spending data for exterior envelope renovations at NNSY or comparable naval facilities is not directly available in the provided contract details. However, large-scale infrastructure projects at major naval installations often involve multi-million dollar investments. The $8.58 million award for Building 278 aligns with the typical scale of such critical facility upgrades. Analyzing past contracts for similar work at other shipyards or naval bases would provide a more robust benchmark for assessing whether this specific investment is consistent with historical spending trends and priorities.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

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: N4008518R1106

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Within Interior Design Inc.

Address: 118 BROOKE AVE, NORFOLK, VA, 23510

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, 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: $8,583,543

Exercised Options: $8,583,543

Current Obligation: $8,583,543

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008518D1153

IDV Type: IDC

Timeline