Department of the Navy awards $18.6M contract for BEQ M445 repairs to Military & Federal Construction Co., Inc

Contract Overview

Contract Amount: $18,584,642 ($18.6M)

Contractor: Military & Federal Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2025-07-31

End Date: 2027-10-16

Contract Duration: 807 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACT N4008521D0102 N4008525F0416 REPAIR BEQ M445

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 MILITARY & FEDERAL CONSTRUCTION CO., INC. for work described as: CONTRACT N4008521D0102 N4008525F0416 REPAIR BEQ M445 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. The duration of the contract is approximately 807 days, indicating a medium-term project. 4. The contractor, Military & Federal Construction Co., Inc., has secured this award, highlighting their role in federal construction. 5. The project is located in North Carolina, impacting the local construction sector and workforce. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $18.6 million for building repairs appears reasonable for a project of this scope and duration. Benchmarking against similar large-scale construction and repair projects for federal facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the final expenditure will depend on the execution and any potential change orders.

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 5 bids suggests a healthy level of competition for this project. A competitive bidding 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 costs through multiple offers. This approach maximizes the opportunity to secure the best value for the government.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel who will utilize the repaired BEQ M445 facility. The contract delivers essential repair and construction services to a federal building. The geographic impact is concentrated in North Carolina, potentially creating local jobs and stimulating the regional construction economy. The project will likely involve a workforce of skilled tradespeople, engineers, and project managers within the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite the fixed-price nature.
Dependence on the contractor's ability to meet project timelines and quality standards.
Risk associated with the specific structural or system repairs required for BEQ M445.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Contractor has secured a significant federal award, suggesting established capabilities.
Project located in North Carolina, potentially benefiting the local economy and workforce.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, specifically for federal facilities. The federal construction market is substantial, with significant annual spending on infrastructure, repairs, and new builds across various agencies. This award represents a portion of the Department of the Navy's ongoing investment in maintaining and upgrading its physical assets. Comparable spending benchmarks would involve analyzing other large-scale repair and renovation contracts awarded by the DoD or other federal entities for similar types of buildings.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While there is no explicit mention of subcontracting goals, large federal construction contracts often include provisions for small business participation. The absence of a set-aside suggests the primary award went to a larger entity, but opportunities for small businesses may exist through subcontracting opportunities with Military & Federal Construction Co., Inc.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and facilities management divisions. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified work within the agreed-upon price and schedule. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Facilities Maintenance
Naval Facilities Engineering Command Contracts
Federal Building Repair and Renovation
Military Construction Projects

Risk Flags

Potential for unforeseen conditions impacting cost and schedule.
Contractor performance risk.
Dependence on timely material and labor availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to MILITARY & FEDERAL CONSTRUCTION CO., INC.. CONTRACT N4008521D0102 N4008525F0416 REPAIR BEQ M445

Who is the contractor on this award?

The obligated recipient is MILITARY & FEDERAL CONSTRUCTION CO., 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: 2025-07-31. End: 2027-10-16.

What is the track record of Military & Federal Construction Co., Inc. with federal contracts, particularly with the Department of the Navy?

Assessing the track record of Military & Federal Construction Co., Inc. requires a review of their past federal contract awards and performance history. This would involve examining databases like SAM.gov or FPDS to identify previous contracts, their values, agencies involved, and any reported performance issues or accolades. For the Department of the Navy, understanding their experience with similar building repair or construction projects is crucial. A history of successful, on-time, and within-budget project completion would indicate a lower risk profile for this current award. Conversely, a pattern of delays, cost overruns, or performance disputes might raise concerns about their capacity to execute this $18.6 million contract effectively.

How does the awarded amount of $18.6 million compare to similar building repair projects for federal facilities?

The $18.6 million award for BEQ M445 repairs needs to be benchmarked against similar projects to ascertain its value for money. This comparison should consider the scope of work (e.g., structural, MEP, finishes), the size and type of facility being repaired, and the geographic location, as construction costs vary regionally. Analyzing data from recent contracts for similar federal building renovations or repairs, particularly those managed by the Department of the Navy or other branches of the military, would provide a relevant comparison. Factors such as the age and condition of the facility, the complexity of the required repairs, and the duration of the contract (807 days) are also important contextual elements. Without specific comparable project data, it's challenging to definitively state if $18.6 million represents an excellent, fair, or concerning price point.

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

While firm-fixed-price contracts offer cost certainty, they are not without risks. For this $18.6 million contract, key risks include unforeseen conditions discovered during the repair process that could lead to change orders and increased costs, despite the fixed-price nature. The contractor's financial stability and capacity to manage a project of this magnitude are also critical; a financially strained contractor could face delays or quality issues. Furthermore, the risk of schedule delays due to weather, material availability, or labor shortages exists. The specific technical complexity of the BEQ M445 repairs also presents a risk if specialized expertise or equipment is required and not adequately planned for. Finally, ensuring the contractor adheres to all federal regulations, safety standards, and quality requirements throughout the project lifecycle is an ongoing oversight risk.

What is the expected program effectiveness and impact of the BEQ M445 repairs?

The expected program effectiveness hinges on the successful completion of the repairs to BEQ M445, leading to an improved and functional facility for its intended users within the Department of the Navy. The repairs should enhance the building's structural integrity, safety, and operational efficiency, thereby supporting the Navy's mission readiness. The impact includes providing a reliable and modern workspace or living quarters, potentially improving morale and productivity for personnel. The project's effectiveness will be measured by its ability to meet the specified repair objectives, adhere to quality standards, and be completed within the contracted timeframe and budget. Long-term effectiveness will be seen in the reduced need for future extensive repairs and the extended lifespan of the facility.

How does historical spending on similar construction and repair contracts by the Department of the Navy inform this award?

Historical spending patterns by the Department of the Navy on similar construction and repair contracts provide a crucial baseline for evaluating this $18.6 million award. By analyzing past contract values, durations, and the types of repairs undertaken, analysts can identify trends in pricing, contractor performance, and common challenges. For instance, if the Navy has consistently awarded contracts in the $15-$25 million range for similar facility renovations over the past five years, this award would appear within historical norms. Conversely, a significant deviation from historical spending could warrant further investigation into the specific requirements of BEQ M445 or potential market shifts. Understanding historical competition levels and average bid counts also helps contextualize the 'full and open' nature of this award.

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: N4008525R2687

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 846 BELL FORK RD, JACKSONVILLE, NC, 28540

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, 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: $18,584,642

Exercised Options: $18,584,642

Current Obligation: $18,584,642

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008521D0102

IDV Type: IDC

Timeline