Naval Station Norfolk Hangar Renovation Awarded for $13.5M to EG Designbuild, LLC

Contract Overview

Contract Amount: $13,511,959 ($13.5M)

Contractor: EG Designbuild, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2023-10-01

End Date: 2025-09-29

Contract Duration: 729 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LF-60 RENOVATE HANGAR FOR HSC-26 & REPAIR CANTILEVER HANGAR STRUCTURE, NAVAL STATION NORFOLK, NORFOLK, VIRGINIA

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to EG DESIGNBUILD, L.L.C. for work described as: LF-60 RENOVATE HANGAR FOR HSC-26 & REPAIR CANTILEVER HANGAR STRUCTURE, NAVAL STATION NORFOLK, NORFOLK, VIRGINIA Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a competitive process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. Project duration is 729 days, suggesting a significant scope of work for hangar renovation and repair. 4. The contract is for commercial and institutional building construction, a common category for facility upgrades. 5. The award value of $13.5 million falls within a typical range for major facility construction projects. 6. The project is located in Norfolk, Virginia, a key naval hub.

Value Assessment

Rating: good

The contract value of $13.5 million for renovating and repairing hangar structures at Naval Station Norfolk appears reasonable given the scope of work. While specific benchmarks for hangar renovations are not readily available, the firm-fixed-price nature of the contract suggests that the contractor has assessed the risks and costs associated with the project. Comparing this to similar large-scale construction projects within the Department of Defense, the pricing seems to be in line with industry standards for complex facility upgrades.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was initially intended to be fully open, certain sources may have been excluded based on specific criteria before the final award. The fact that it was still considered 'full and open' suggests that multiple bidders were likely considered and evaluated, leading to a competitive outcome. The number of bidders is not specified, but the designation implies a robust selection process.

Taxpayer Impact: The competitive nature of this award, even with initial source exclusions, is beneficial for taxpayers as it likely drove a more favorable price and ensured the selection of a qualified contractor.

Public Impact

Naval Station Norfolk will benefit from upgraded hangar facilities, improving operational readiness and safety. The project will deliver essential renovation and repair services for critical aviation infrastructure. The geographic impact is concentrated in Norfolk, Virginia, supporting a key naval installation. The project is expected to create or sustain jobs within the construction sector in the Norfolk area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen structural issues are discovered during renovation.
Dependence on timely delivery of materials and specialized equipment.
Risk of schedule delays due to weather or contractor performance issues.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to EG Designbuild, LLC, a company with experience in design-build projects.
Project located at a major naval installation, suggesting established logistical support.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for military facility construction and renovation is substantial, driven by the need to maintain and modernize aging infrastructure and adapt to evolving operational requirements. Comparable spending benchmarks for large-scale hangar construction and renovation projects within the Department of Defense can vary widely based on size, complexity, and location, but projects in the multi-million dollar range are common for major installations.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements specifically for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem through this specific contract may be limited unless EG Designbuild, L.L.C. engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and engineering departments, ensuring compliance with specifications and timelines. Accountability measures are embedded in the firm-fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon cost. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Military Construction Projects
Naval Air Station Infrastructure Upgrades
Base Realignment and Closure (BRAC) Facility Improvements

Risk Flags

Potential for cost overruns if unforeseen structural issues arise.
Schedule delays due to contractor performance or external factors.
Adequacy of competition level given 'exclusion of sources' clause.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to EG DESIGNBUILD, L.L.C.. LF-60 RENOVATE HANGAR FOR HSC-26 & REPAIR CANTILEVER HANGAR STRUCTURE, NAVAL STATION NORFOLK, NORFOLK, VIRGINIA

Who is the contractor on this award?

The obligated recipient is EG DESIGNBUILD, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2023-10-01. End: 2025-09-29.

What is the track record of EG Designbuild, LLC in completing similar large-scale military construction projects?

EG Designbuild, LLC has a history of engaging in design-build projects, which is relevant to this contract's nature. While specific details on past military hangar renovations are not provided in this data snippet, their experience in design-build suggests a capability to manage complex projects from conception through completion. A deeper dive into their contract history within the Federal Procurement Data System (FPDS) would reveal the scale, type, and success rate of their previous government contracts, including any prior work with the Department of the Navy or other military branches. This would provide a clearer picture of their suitability and past performance in delivering similar infrastructure projects on time and within budget.

How does the awarded price of $13.5 million compare to similar hangar renovation projects at other naval installations?

Benchmarking the $13.5 million award for hangar renovation at Naval Station Norfolk against similar projects requires access to detailed cost data for comparable contracts. Factors such as the size of the hangar, the extent of structural repairs needed, the complexity of the renovation (e.g., upgrades to electrical, HVAC, fire suppression systems), and regional labor and material costs significantly influence project pricing. Without specific details on these comparable projects, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of this award suggests that EG Designbuild, LLC has factored these variables into their bid. Further analysis would involve identifying similar projects awarded by NAVFAC or other DoD entities over the past few years and comparing their scope, duration, and final cost.

What are the primary risks associated with this hangar renovation project, and how are they being mitigated?

The primary risks associated with this hangar renovation project include potential unforeseen structural issues discovered during the demolition and repair phase, which could lead to cost overruns and schedule delays. Another risk is the dependency on the timely delivery of specialized materials and equipment required for aviation facilities. Furthermore, contractor performance and potential weather-related delays are inherent risks in any large construction project. Mitigation strategies are likely embedded within the contract terms. The firm-fixed-price structure shifts some financial risk to the contractor, incentivizing them to manage costs effectively. The 'Full and Open Competition After Exclusion of Sources' process aims to select a contractor with a proven track record, reducing performance risk. The project duration of 729 days also allows some buffer for unforeseen circumstances, and the government will likely have oversight mechanisms to monitor progress and address issues proactively.

What is the expected impact of these hangar upgrades on the operational effectiveness of HSC-26 and other naval aviation units at Norfolk?

The renovation and repair of hangars for HSC-26 and other naval aviation units at Naval Station Norfolk are expected to significantly enhance operational effectiveness. Modernized hangars provide a safer and more efficient environment for aircraft maintenance, repair, and storage, reducing downtime and improving readiness. Upgraded facilities can accommodate newer generations of aircraft and support advanced maintenance procedures. Improved environmental controls within the hangars can protect sensitive aircraft components from damage. Ultimately, these infrastructure improvements contribute to the overall mission capability of the naval forces stationed at Norfolk, ensuring that aircraft are mission-ready and personnel have the facilities needed to perform their duties effectively.

How has federal spending on naval aviation infrastructure at Norfolk evolved over the past five years?

Analyzing federal spending on naval aviation infrastructure at Norfolk over the past five years would require a detailed review of contract awards and budget allocations specific to Naval Station Norfolk and its aviation facilities. This would involve querying databases like FPDS for construction, renovation, and maintenance contracts related to hangars, flight lines, and support facilities. Trends might indicate an increasing investment in modernization due to aging infrastructure, or shifts in spending based on evolving naval aviation requirements and fleet composition. Without specific historical data for this location and category, it's difficult to provide a precise evolution. However, it's generally understood that maintaining critical infrastructure at major naval installations like Norfolk is a continuous and substantial budgetary undertaking for the Department of the Navy.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008518R1111

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16 EXECUTIVE PARK CT, GERMANTOWN, MD, 20874

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,511,959

Exercised Options: $13,511,959

Current Obligation: $13,511,959

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008518D1126

IDV Type: IDC

Timeline