DoD Awards $5.2M Combatant Craft Facility Contract to Baron-Rand JV LLC
Contract Overview
Contract Amount: $5,226,985 ($5.2M)
Contractor: Baron-Rand JV LLC
Awarding Agency: Department of Defense
Start Date: 2024-07-27
End Date: 2025-11-07
Contract Duration: 468 days
Daily Burn Rate: $11.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P602U - MSRON TWO COMBATANT CRAFT MAINTENANCE FACILITY, JOINT EXPEDITIONARY BASE LITTLE CREEK - FORT STORY, VIRGINIA BEACH, VA
Place of Performance
Location: VIRGINIA BEACH, NORFOLK CITY County, VIRGINIA, 23459
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $5.2 million to BARON-RAND JV LLC for work described as: P602U - MSRON TWO COMBATANT CRAFT MAINTENANCE FACILITY, JOINT EXPEDITIONARY BASE LITTLE CREEK - FORT STORY, VIRGINIA BEACH, VA Key points: 1. The contract is for construction of a maintenance facility at Joint Expeditionary Base Little Creek. 2. Baron-Rand JV LLC, a joint venture, secured the award. 3. The contract falls under the Commercial and Institutional Building Construction sector. 4. The award method indicates competition after exclusion of sources, suggesting a potentially limited field.
Value Assessment
Rating: good
The award amount of $5.2M for a combatant craft maintenance facility appears reasonable given the scope and location. Benchmarking against similar DoD construction projects of this size and complexity would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded using 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This method implies that while competition was sought, certain sources were excluded, potentially limiting the number of bidders and impacting price discovery.
Taxpayer Impact: The use of a limited competition method may result in a higher price than full and open competition, but the final price is subject to negotiation and market conditions.
Public Impact
Enhances naval readiness by providing critical maintenance infrastructure for combatant craft. Supports military operations and personnel stationed at Joint Expeditionary Base Little Creek. Contributes to the local economy in Virginia Beach through construction jobs and related services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the best possible price.
- Potential for cost overruns in construction projects.
Positive Signals
- Addresses a critical military infrastructure need.
- Awarded to a joint venture, potentially fostering collaboration.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which is a significant area of government spending. Benchmarks for similar DoD construction projects would be necessary for a precise comparison.
Small Business Impact
The awardee is a joint venture, Baron-Rand JV LLC. Analysis is needed to determine the extent of small business participation within this joint venture and if subcontracting opportunities were prioritized.
Oversight & Accountability
The Department of the Navy awarded this contract. Oversight will be crucial to ensure timely completion, adherence to specifications, and responsible cost management throughout the project lifecycle.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition may lead to higher costs.
- Construction projects are susceptible to delays and cost overruns.
- Dependence on a single joint venture for critical infrastructure.
- Potential for scope creep if requirements are not clearly defined.
Tags
commercial-and-institutional-building-co, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.2 million to BARON-RAND JV LLC. P602U - MSRON TWO COMBATANT CRAFT MAINTENANCE FACILITY, JOINT EXPEDITIONARY BASE LITTLE CREEK - FORT STORY, VIRGINIA BEACH, VA
Who is the contractor on this award?
The obligated recipient is BARON-RAND JV LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $5.2 million.
What is the period of performance?
Start: 2024-07-27. End: 2025-11-07.
What specific criteria led to the exclusion of certain sources in the competition?
The exclusion of sources suggests that the Department of the Navy may have had specific requirements or pre-qualifications that not all potential bidders met. This could include specialized experience, security clearances, or existing relationships with the base. Understanding these criteria is key to assessing whether the limited competition was justified and if it truly served the government's best interest in obtaining the required capabilities.
How does the firm fixed price contract structure mitigate risk for the government?
A firm fixed price (FFP) contract shifts the majority of the cost risk to the contractor, Baron-Rand JV LLC. This means the government is obligated to pay the agreed-upon price regardless of the contractor's actual costs. This structure incentivizes the contractor to manage costs efficiently and complete the project within budget, providing greater cost certainty for the Department of the Navy.
What is the expected impact of this facility on the operational readiness of combatant craft?
The new maintenance facility is expected to significantly enhance the operational readiness of combatant craft by providing a dedicated, modern, and well-equipped space for repairs, upgrades, and routine maintenance. This will likely reduce downtime for critical assets, improve the quality of maintenance performed, and ensure that these vessels are mission-ready when needed by naval forces.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N4008522R2627
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 850 39TH ST, NEWPORT NEWS, VA, 23607
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,375,259
Exercised Options: $5,226,985
Current Obligation: $5,226,985
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N4008523D0031
IDV Type: IDC
Timeline
Start Date: 2024-07-27
Current End Date: 2025-11-07
Potential End Date: 2025-11-07 00:00:00
Last Modified: 2025-12-30
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