DoD awards $35.8M contract for communications center construction at Naval Support Activity Souda Bay, Greece

Contract Overview

Contract Amount: $35,779,216 ($35.8M)

Contractor: Macro Vantage Levant Dmcc

Awarding Agency: Department of Defense

Start Date: 2022-02-07

End Date: 2025-02-18

Contract Duration: 1,107 days

Daily Burn Rate: $32.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P131 - COMMUNICATIONS CENTER NAVAL SUPPORT ACTIVITY SOUDA BAY, GREECE

Plain-Language Summary

Department of Defense obligated $35.8 million to MACRO VANTAGE LEVANT DMCC for work described as: P131 - COMMUNICATIONS CENTER NAVAL SUPPORT ACTIVITY SOUDA BAY, GREECE Key points: 1. Contract awarded to MACRO VANTAGE LEVANT DMCC for construction services. 2. Project aims to establish a communications center at a key overseas naval facility. 3. Definitive contract type suggests a single award after a competitive process. 4. Firm Fixed Price contract type shifts cost risk to the contractor. 5. Contract duration of approximately 3 years indicates a significant construction undertaking. 6. Awarded by the Department of the Navy, highlighting investment in naval infrastructure.

Value Assessment

Rating: fair

The contract value of $35.8 million for a communications center construction project in Greece appears to be within a reasonable range for a project of this scope and location. Without specific benchmarks for similar overseas military construction projects, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract suggests that the initial pricing was deemed acceptable by the contracting agency. Further analysis would require comparison with similar construction projects in comparable geographic regions and for similar facility types.

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 offers. The presence of 3 bidders suggests a moderate level of competition for this project. While more than one bidder is positive, a higher number of competitors typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it generally encourages a wider range of offers, potentially leading to more competitive pricing and better value. A moderate number of bidders suggests that while the government likely received competitive offers, there may have been opportunities for even greater savings with more extensive competition.

Public Impact

The primary beneficiaries are the U.S. Navy and its personnel operating from Naval Support Activity Souda Bay, Greece, who will gain enhanced communication capabilities. The contract will deliver the construction of a new communications center, a critical piece of infrastructure for military operations. The geographic impact is concentrated in Greece, specifically at the Souda Bay naval facility, a strategic location for U.S. military presence in the Mediterranean. The project will likely involve local labor and subcontractors in Greece, contributing to the regional economy and potentially creating employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, although mitigated by the firm fixed-price contract.
Dependence on the contractor's ability to manage complex overseas construction logistics and supply chains.
Geopolitical risks in the region could potentially impact project timelines or costs.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
Firm fixed-price contract structure transfers significant cost risk to the contractor.
The project addresses a critical infrastructure need for U.S. naval operations in a strategic location.

Sector Analysis

The construction sector, particularly for government and defense facilities, is a significant market. This contract falls within the broader category of commercial and institutional building construction, with a specific focus on defense infrastructure. The Department of Defense is a major client for construction services, both domestically and internationally. Benchmarking this contract would involve comparing its cost per square foot or per functional unit against similar overseas military construction projects, considering factors like labor costs, material availability, and security requirements in the region.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to MACRO VANTAGE LEVANT DMCC, a company not typically categorized as a small business, suggests that the primary contract was likely awarded to a larger entity. Further investigation into the contractor's subcontracting plan would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, likely through its contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, which penalize the contractor for cost overruns. Transparency is facilitated by the contract's award under full and open competition, with details typically available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) construction projects
Overseas military construction contracts
Department of Defense communication infrastructure projects
Construction services for foreign military bases

Risk Flags

Moderate competition level
Overseas construction complexity
Potential for cost escalation if scope changes

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to MACRO VANTAGE LEVANT DMCC. P131 - COMMUNICATIONS CENTER NAVAL SUPPORT ACTIVITY SOUDA BAY, GREECE

Who is the contractor on this award?

The obligated recipient is MACRO VANTAGE LEVANT DMCC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.8 million.

What is the period of performance?

Start: 2022-02-07. End: 2025-02-18.

What is the track record of MACRO VANTAGE LEVANT DMCC with the Department of Defense?

Information regarding MACRO VANTAGE LEVANT DMCC's specific track record with the Department of Defense is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, including on-time delivery, quality of work, and adherence to budget. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would typically contain such information. Understanding their experience with overseas construction projects, particularly in the Mediterranean region, would be crucial for evaluating their capability to execute this specific contract successfully.

How does the cost of this communications center construction compare to similar projects?

A direct cost comparison for this $35.8 million communications center construction project is challenging without specific benchmarks for similar overseas military facilities. Factors such as location (Greece), labor costs, material sourcing, security requirements, and the specific technical specifications of the communications center significantly influence project costs. While the firm fixed-price nature suggests the initial price was deemed acceptable, a detailed value-for-money analysis would involve comparing cost per square foot, or cost per functional unit of communication capacity, against comparable projects undertaken by the DoD or other government agencies in similar geopolitical and economic environments. The moderate competition level (3 bidders) also suggests that price discovery might not have reached its maximum potential.

What are the primary risks associated with this construction contract?

The primary risks associated with this construction contract include potential delays due to unforeseen site conditions, logistical challenges inherent in overseas construction, and fluctuations in material costs or availability, although the firm fixed-price contract shifts much of this risk to the contractor. Geopolitical instability in the region could also pose risks to project timelines and security. Furthermore, the contractor's capacity to manage a project of this scale and complexity in a foreign environment is a key consideration. Ensuring adequate quality control and adherence to specifications throughout the construction process will be critical to mitigating performance risks.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally considered effective in managing costs for construction projects where the scope of work is well-defined and risks can be reasonably anticipated. Under an FFP contract, the contractor assumes the primary responsibility for cost overruns, providing a strong incentive for efficient project management and cost control. This shifts significant financial risk from the government to the contractor. However, if the initial price was set too low due to aggressive bidding or inadequate cost estimation by the contractor, it could lead to quality compromises or disputes. For the government, the FFP structure provides cost certainty, assuming the scope remains unchanged.

What is the historical spending pattern for similar construction projects at Naval Support Activity Souda Bay?

Historical spending patterns for similar construction projects at Naval Support Activity Souda Bay are not provided in the current data. To analyze this, one would need to examine past contracts awarded for infrastructure development, facility upgrades, or construction at this specific base. This would involve looking at the frequency, value, and types of construction contracts awarded over several years. Understanding previous spending levels and the types of projects undertaken would help contextualize the current $35.8 million award and assess whether it aligns with historical investment trends or represents a significant increase or decrease in construction activity at the base.

What are the implications of awarding this contract under 'full and open competition' with only three bidders?

Awarding this contract under 'full and open competition' with three bidders suggests that the procurement process was accessible to all qualified sources, which is a positive indicator for fairness and transparency. However, having only three bidders might imply a less competitive market for this specific type of construction service in that region, or perhaps the project's complexity and requirements limited the number of interested parties. While competition is present, a larger number of bidders typically drives prices down more effectively. Therefore, the government may not have achieved the lowest possible price, but the process itself likely ensured a reasonable selection based on the offers received.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6247021R0005

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: JUMEIRAH LAKE TOWERS, DUBAI

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $39,324,008

Exercised Options: $35,779,216

Current Obligation: $35,779,216

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline