DoD's $11.9M FY26 MILCON Project P-732 at NNSY awarded to MN-BMCD ML Joint Venture

Contract Overview

Contract Amount: $11,946,549 ($11.9M)

Contractor: Mn-Bmcd ML Joint Venture

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2026-09-30

Contract Duration: 733 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY26 MILCON PROJECT P-732 NNSY

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23510

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to MN-BMCD ML JOINT VENTURE for work described as: FY26 MILCON PROJECT P-732 NNSY Key points: 1. Contract awarded via full and open competition, suggesting a robust bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. Project duration of 733 days indicates a significant, multi-year undertaking. 4. The engineering services category (NAICS 541330) is critical for infrastructure development. 5. Awarded by the Department of the Navy, highlighting a specific defense infrastructure need. 6. The contract is not set aside for small businesses, implying larger prime contractors were expected.

Value Assessment

Rating: good

The contract value of $11.9 million for engineering services appears reasonable for a multi-year military construction project. Benchmarking against similar large-scale engineering contracts for naval facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overrun risks for the government, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method typically fosters a competitive environment, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the category suggests a market with specialized engineering firms capable of handling large defense projects.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are the Department of the Navy and its operational readiness through improved infrastructure at the Norfolk Naval Shipyard (NNSY). The project will deliver essential engineering services for military construction, likely involving design, planning, and oversight of facility upgrades or new builds. The geographic impact is concentrated in Virginia, supporting the significant naval presence in the region. Workforce implications may include employment opportunities for engineers, project managers, and support staff within the prime contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large construction projects if not managed tightly.
Dependence on the contractor's ability to meet complex engineering and construction timelines.
Risk of unforeseen site conditions impacting project schedule and cost, despite fixed-price.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process that could yield favorable terms.
Awarded to a joint venture (MN-BMCD ML JOINT VENTURE), potentially bringing combined expertise.
Project duration is clearly defined, allowing for structured planning and execution.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting military construction (MILCON) for the Department of Defense. The market for defense engineering services is substantial, driven by the need to maintain and modernize military infrastructure globally. Comparable spending benchmarks would involve analyzing other large-scale MILCON projects awarded by the Navy or other branches, considering factors like project scope, location, and complexity.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it indicate specific subcontracting goals for small businesses in the provided data. This suggests that the prime contractor is likely a larger entity or a joint venture of larger firms. The absence of explicit small business provisions means that opportunities for small businesses may be limited to indirect subcontracting roles, depending on the prime contractor's procurement practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified engineering services by the deadline. Transparency is generally maintained through contract award databases, though detailed project progress reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Military Construction
Naval Facilities Engineering Command Contracts
Engineering and Architectural Services
Defense Infrastructure Projects

Risk Flags

Potential for cost overruns if contractor underestimates scope.
Risk of schedule delays due to unforeseen site conditions or regulatory changes.
Quality control concerns inherent in large construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to MN-BMCD ML JOINT VENTURE. FY26 MILCON PROJECT P-732 NNSY

Who is the contractor on this award?

The obligated recipient is MN-BMCD ML JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.9 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-09-30.

What is the track record of MN-BMCD ML JOINT VENTURE in executing similar large-scale military construction engineering contracts?

Assessing the track record of MN-BMCD ML JOINT VENTURE requires a detailed review of their past performance on contracts of similar size, scope, and complexity, particularly within the Department of Defense or other federal agencies. Information on past performance, including on-time delivery, budget adherence, quality of work, and any disputes or claims, would be crucial. A joint venture's history can be complex, involving the combined experience of its constituent companies. Without specific contract history data for this joint venture, it's difficult to definitively assess their capabilities. However, the award suggests they met the pre-qualification criteria set forth in the solicitation for this $11.9 million project.

How does the awarded amount of $11.9 million compare to the estimated cost or budget for this specific FY26 MILCON Project P-732?

The provided data indicates the awarded amount is $11,496,549.37. To determine if this represents good value, it needs to be compared against the government's independent government cost estimate (IGCE) or the contractor's proposed price before negotiation. If the award is significantly below the IGCE, it suggests strong competition and potentially favorable pricing. Conversely, if it's close to or exceeds the IGCE, further scrutiny might be warranted. Without access to the IGCE or pre-negotiation data, a definitive value assessment is challenging. However, the fact that it was awarded under full and open competition suggests the price was deemed acceptable within the competitive framework.

What are the primary risks associated with the firm-fixed-price contract type for this engineering services project?

While firm-fixed-price (FFP) contracts offer cost certainty to the government, they can shift significant risk to the contractor. For this engineering services project, the primary risks for the contractor include underestimating the labor hours, material costs, or complexity involved in the engineering design and planning phases. Unforeseen technical challenges or changes in regulatory requirements during the project lifecycle could lead to cost overruns for the contractor, potentially impacting their financial stability or willingness to bid on future government contracts. For the government, the risk lies in the contractor potentially cutting corners on quality to maintain profitability, although robust quality assurance measures should mitigate this.

What is the expected effectiveness of this MILCON project in enhancing naval operations at NNSY?

The effectiveness of FY26 MILCON Project P-732 hinges on the specific nature of the engineering services being provided. If the project involves upgrading critical infrastructure, such as dry docks, piers, or support facilities, its effectiveness would be measured by improved operational capacity, reduced maintenance downtime, enhanced safety, or increased efficiency at the Norfolk Naval Shipyard (NNSY). The project's success will depend on the quality of the engineering design, the efficiency of the subsequent construction (if applicable), and how well the new or upgraded facilities meet the evolving needs of the naval fleet. The long-term benefit is a more capable and resilient shipyard infrastructure.

How has spending on engineering services for military construction by the Department of the Navy trended in recent fiscal years?

Analyzing recent spending trends for engineering services in military construction by the Department of the Navy (DoN) would provide context for the $11.9 million award. This involves examining historical contract data for similar projects, looking at the total obligated amounts, the number of contracts awarded, and the average contract values. Significant increases or decreases in spending could indicate shifts in infrastructure priorities, budget allocations, or market conditions. Understanding these trends helps assess whether the current award is consistent with historical patterns or represents a notable deviation, potentially driven by specific modernization efforts or infrastructure deficiencies.

What are the potential implications of awarding this contract to a joint venture versus a single large prime contractor?

Awarding this contract to a joint venture (MN-BMCD ML JOINT VENTURE) can have several implications. Joint ventures are often formed to combine specialized expertise, financial capacity, or to meet specific socio-economic requirements (though not applicable here as it's not an SMB set-aside). For the government, it can bring a broader range of skills to the project. However, it can also introduce complexities in management, communication, and accountability compared to a single entity. The government must ensure clear lines of responsibility are established. For taxpayers, the effectiveness and efficiency of the joint venture's management will ultimately influence project cost and delivery.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 W MAIN ST STE 3000, NORFOLK, VA, 23510

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,946,549

Exercised Options: $11,946,549

Current Obligation: $11,946,549

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $449,883

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008522D0047

IDV Type: IDC

Timeline