Navy awards $19M for building repairs, with 8 bids received in a competitive process

Contract Overview

Contract Amount: $19,043,506 ($19.0M)

Contractor: Blue Rock Structures, Inc

Awarding Agency: Department of Defense

Start Date: 2023-10-27

End Date: 2026-09-12

Contract Duration: 1,051 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: X008 REPAIR BEQ HP165 (220039)

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to BLUE ROCK STRUCTURES, INC for work described as: X008 REPAIR BEQ HP165 (220039) Key points: 1. Contract value appears reasonable given the scope of construction and repair services. 2. Strong competition with 8 bidders suggests a healthy market for these services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of nearly three years indicates a substantial and complex undertaking. 5. The contract falls within the broad commercial and institutional building construction sector.

Value Assessment

Rating: good

The $19 million award for building repairs is within a typical range for large-scale construction projects of this nature. Benchmarking against similar Department of Defense contracts for facility maintenance and repair suggests that the pricing is competitive. The firm-fixed-price structure further enhances value by transferring risk to the contractor, ensuring cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 bids received. This level of competition is a positive indicator, suggesting that multiple qualified contractors were aware of and interested in the opportunity. A robust bidding process generally leads to better price discovery and selection of the most capable and cost-effective offeror.

Taxpayer Impact: The strong competition ensures that taxpayer dollars are being used efficiently, as contractors are incentivized to offer competitive pricing to win the award.

Public Impact

The primary beneficiaries are the Department of the Navy, which will receive updated and repaired facilities. Services delivered include comprehensive repair and construction for institutional buildings. The geographic impact is concentrated in North Carolina, where the facilities are located. Workforce implications include job creation for construction trades and related support personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the multi-year duration and complexity of construction.
Ensuring quality of repairs meets long-term durability standards will require diligent oversight.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
Strong competition suggests a capable contractor was selected at a fair price.
Clear delivery order award mechanism provides a structured approach to task execution.

Sector Analysis

This contract operates within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Spending in this sector is driven by both public and private demand for new construction, renovation, and repair of facilities. Comparable federal spending benchmarks for similar construction and repair projects indicate that this award is of moderate to large size within the government contracting landscape.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor, BLUE ROCK STRUCTURES, INC, is not explicitly identified as a small business in the provided data, the robust competition suggests opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting planned for this project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and facility management offices. Accountability measures are inherent in the firm-fixed-price contract type, which penalizes contractor cost overruns. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Construction and Renovation
Department of Defense Facilities Maintenance
Naval Facilities Engineering Command Contracts
Commercial Building Repair Services

Risk Flags

Potential for schedule slippage due to project complexity.
Risk of quality control issues in large-scale repair work.
Contractor financial stability under firm-fixed-price terms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to BLUE ROCK STRUCTURES, INC. X008 REPAIR BEQ HP165 (220039)

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 $19.0 million.

What is the period of performance?

Start: 2023-10-27. End: 2026-09-12.

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

A thorough review of federal procurement databases would be necessary to fully assess BLUE ROCK STRUCTURES, INC.'s track record. This would involve examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or claims. Understanding their experience with similar-sized projects, firm-fixed-price contracts, and construction/repair work for the Department of Defense would provide crucial context for evaluating their capability and reliability on this specific $19 million award.

How does the awarded price of $19,043,506.94 compare to similar building repair contracts awarded by the Department of the Navy in the last three years?

To benchmark the value, we would compare this $19 million award against similar firm-fixed-price contracts for institutional building repair and construction awarded by the Department of the Navy over the past three years. Key comparison points would include contract size, scope of work (e.g., structural, electrical, plumbing), geographic location, and duration. If similar projects averaged between $15-25 million with comparable scopes, this award would be considered within the expected range. A significantly lower average for similar work might raise questions about potential overpricing, while a higher average could indicate favorable pricing for the government in this instance.

What are the primary risks associated with a multi-year, firm-fixed-price construction contract of this magnitude?

The primary risks for a multi-year, firm-fixed-price construction contract of this magnitude include potential schedule delays due to unforeseen site conditions, weather, or supply chain disruptions, which can strain contractor resources and potentially lead to claims. While the fixed price mitigates cost escalation for the government, the contractor bears the risk of cost overruns, which could impact their financial stability or lead to quality compromises if they face significant unexpected expenses. Ensuring robust project management, clear communication channels, and diligent oversight by the government are critical to mitigating these risks and ensuring successful project completion.

What specific types of building repairs or construction are included under this contract, and how do they align with the Navy's facility modernization goals?

The provided data indicates the contract falls under NAICS code 236220 (Commercial and Institutional Building Construction), suggesting a broad scope of repair and construction services. Without a detailed Statement of Work (SOW), the specific repairs are unknown. However, such contracts typically encompass structural repairs, HVAC system upgrades, electrical and plumbing work, roofing, and potentially interior renovations. These activities generally align with the Navy's ongoing facility modernization goals, which aim to maintain operational readiness, improve energy efficiency, enhance safety, and ensure the long-term viability of its infrastructure.

What has been the historical spending trend for building construction and repair by the Department of the Navy over the past five fiscal years?

Analyzing the Department of the Navy's historical spending on building construction and repair over the past five fiscal years would provide essential context. This trend analysis would reveal whether this $19 million award represents an increase, decrease, or stable level of investment in facilities. Understanding this pattern helps assess if current spending aligns with strategic priorities, budget allocations, and the overall condition of naval infrastructure. Significant deviations from historical averages might warrant further investigation into the underlying reasons, such as major modernization initiatives or deferred maintenance backlogs.

Given the 'NC' (North Carolina) location, are there specific regional economic factors or workforce availability considerations that might influence this contract's execution?

The contract's location in North Carolina is significant. The state has a robust construction sector, but specific regional economic conditions, such as the availability of skilled labor, material costs, and local permitting processes, can influence project timelines and costs. High demand for construction services in certain areas could lead to increased competition for labor and materials, potentially impacting the contractor's ability to execute efficiently. Conversely, a stable regional market might offer predictable costs and readily available resources. The contractor's familiarity with North Carolina's regulatory environment and labor market would be a key factor in successful execution.

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: 8

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: $20,137,394

Exercised Options: $19,043,506

Current Obligation: $19,043,506

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