DoD Awards $5.3M Contract for Elevator Replacement at NNSY, Virginia

Contract Overview

Contract Amount: $5,299,870 ($5.3M)

Contractor: Argus CJW JV 3 LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-22

End Date: 2027-06-15

Contract Duration: 540 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NNSY BLDG 510 REPLACE ELEVATORS 63 AND 67

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23709

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to ARGUS CJW JV 3 LLC for work described as: NNSY BLDG 510 REPLACE ELEVATORS 63 AND 67 Key points: 1. Contract awarded to ARGUS CJW JV LLC for elevator upgrades. 2. Project aims to replace elevators 63 and 67 at NNSY Building 510. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Sector is Commercial and Institutional Building Construction. 5. Project duration is 540 days.

Value Assessment

Rating: fair

The award amount of $5.3M for elevator replacement appears within a reasonable range for such projects. Benchmarking against similar government or commercial elevator modernization contracts would provide a clearer assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' suggests a limited competition. This approach may impact price discovery compared to unrestricted full and open competition, potentially leading to higher costs.

Taxpayer Impact: Taxpayers are impacted by the $5.3M expenditure for essential infrastructure upgrades. The chosen competition method warrants scrutiny to ensure optimal value for taxpayer dollars.

Public Impact

Ensures operational continuity and safety for personnel at NNSY. Modernizes critical building infrastructure, potentially improving efficiency. Supports the Navy's facilities maintenance and upgrade requirements. Impacts construction sector employment and local economy in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may affect price competitiveness.
Project duration could be subject to delays.
Reliance on specific contractors for specialized work.

Positive Signals

Addresses critical infrastructure need.
Awarded to a joint venture, potentially bringing diverse expertise.
Clear project scope and fixed-price contract.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on facility upgrades. Spending benchmarks for elevator modernization projects vary significantly based on building complexity, location, and scope, but $5.3M for two elevators is a substantial investment.

Small Business Impact

The contract was awarded to ARGUS CJW JV LLC, a joint venture. Analysis is needed to determine the extent of small business participation within this joint venture or if subcontracting opportunities were offered.

Oversight & Accountability

Oversight will be crucial to ensure the project adheres to the fixed-price contract, stays within budget, and meets the specified timeline. The Department of the Navy's contracting office is responsible for monitoring performance and compliance.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Limited competition may result in suboptimal pricing.
Potential for schedule overruns given the project duration.
Lack of transparency regarding small business utilization.
Dependency on a single joint venture for critical infrastructure work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to ARGUS CJW JV 3 LLC. NNSY BLDG 510 REPLACE ELEVATORS 63 AND 67

Who is the contractor on this award?

The obligated recipient is ARGUS CJW JV 3 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 $5.3 million.

What is the period of performance?

Start: 2025-12-22. End: 2027-06-15.

What specific criteria led to the exclusion of other sources in this 'Full and Open Competition After Exclusion of Sources'?

The exclusion of sources typically occurs when specific capabilities, past performance, or unique requirements are identified that only a limited number of contractors can meet. For elevator replacement, this might involve specialized knowledge of existing systems, unique installation constraints within Building 510, or specific security clearances required for personnel accessing the facility. Understanding these criteria is key to assessing if the limited competition was justified and truly necessary for project success.

How does the $5.3M award compare to industry benchmarks for replacing two elevators in a facility of this type and age?

Benchmarking the $5.3M award requires detailed comparison with similar elevator modernization projects. Factors like the complexity of the existing elevator systems, the extent of structural modifications needed, the specific technology being installed (e.g., modernization vs. full replacement), and regional labor costs in Virginia will influence the price. Without specific comparable data, it's difficult to definitively state if this represents excellent or fair value, but it appears to be a significant investment.

What are the potential risks associated with the project's 540-day duration and the chosen competition method?

A 540-day duration for replacing two elevators presents risks of schedule delays due to unforeseen site conditions, supply chain disruptions, or contractor performance issues. The 'Full and Open Competition After Exclusion of Sources' method, while potentially ensuring specialized expertise, inherently limits the pool of bidders. This could increase the risk of higher costs and potentially reduce the urgency for the selected contractor to perform efficiently if alternative options were scarce.

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

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30 CATOCTIN CIR SE STE 10, LEESBURG, VA, 20175

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

Financial Breakdown

Contract Ceiling: $5,299,870

Exercised Options: $5,299,870

Current Obligation: $5,299,870

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008523D0030

IDV Type: IDC

Timeline