Naval Base San Diego building conversion contract awarded to Bethel-Webcor Pacific JV for over $47.5 million

Contract Overview

Contract Amount: $47,527,210 ($47.5M)

Contractor: Bethel-Webcor Pacific JV

Awarding Agency: Department of Defense

Start Date: 2019-07-15

End Date: 2021-06-21

Contract Duration: 707 days

Daily Burn Rate: $67.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RM18-1655 CONVERT PORTION OF BLDG 3304 FOR MARITIME SKILLS TRAINING CENTER AT NAVAL BASE SAN DIEGO, SAN DIEGO, CA

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $47.5 million to BETHEL-WEBCOR PACIFIC JV for work described as: RM18-1655 CONVERT PORTION OF BLDG 3304 FOR MARITIME SKILLS TRAINING CENTER AT NAVAL BASE SAN DIEGO, SAN DIEGO, CA Key points: 1. The contract value of over $47.5 million for building conversion suggests a significant investment in infrastructure. 2. The project involves construction services, indicating a need for specialized labor and materials. 3. The duration of the project (707 days) points to a complex undertaking requiring careful planning and execution. 4. The firm-fixed-price contract type aims to control costs, but potential for change orders exists. 5. The award to a joint venture may indicate a need for combined expertise or capacity. 6. The project's location in San Diego, CA, suggests a focus on regional maritime training needs.

Value Assessment

Rating: fair

The contract value of $47.5 million for converting a portion of Building 3304 at Naval Base San Diego appears substantial for a construction project of this nature. Benchmarking against similar large-scale facility conversions within the Department of Defense or other federal agencies would be necessary for a precise value-for-money assessment. The firm-fixed-price contract type suggests an effort to establish a clear cost ceiling, but the complexity of building conversion can sometimes lead to unforeseen issues that impact final costs. Without detailed cost breakdowns or comparisons to industry standards for similar square footage conversions, it is difficult to definitively assess if the price represents excellent value.

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 4 bidders (no) suggests a moderate level of competition for this project. While full and open competition is generally preferred for ensuring the best value, the specific number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing, whereas a lower number might suggest fewer viable options or less intense bidding.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and increasing the likelihood of securing the best possible value for the government's investment.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who will utilize the new Maritime Skills Training Center. The project delivers a converted building space to support specialized maritime training programs. The geographic impact is concentrated at Naval Base San Diego, California, enhancing local training capabilities. Workforce implications include the creation of construction jobs during the project's execution and the long-term employment of instructors and support staff for the training center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the complexities inherent in building conversions.
Risk of schedule delays impacting the operational readiness of the training facility.
Dependence on the joint venture's ability to effectively manage resources and subcontractors.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type helps to establish cost certainty.
The project addresses a specific training need for maritime skills, indicating strategic investment.
The contractor, Bethel-Webcor Pacific JV, is likely selected based on demonstrated capabilities for such projects.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building of non-residential structures like educational facilities, government buildings, and specialized training centers. Federal spending in construction is often driven by infrastructure upgrades, modernization efforts, and the need for specialized facilities to support military and civilian operations. Comparable spending benchmarks would involve analyzing other large-scale renovation or new construction projects awarded by the Department of Defense or other federal agencies for similar types of facilities.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses explicitly mentioned in the provided data. The award to a joint venture, Bethel-Webcor Pacific JV, suggests a large prime contractor or a consortium of larger entities. This means that opportunities for small businesses would primarily arise through the prime contractor's subcontracting choices, rather than through direct set-aside awards. The impact on the small business ecosystem depends on the prime contractor's commitment to engaging small businesses for materials, specialized labor, or support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Navy. Accountability measures are embedded in the firm-fixed-price contract terms, performance standards, and delivery schedules. Transparency is generally facilitated through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance or closeout.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Contracts
Department of Defense Military Construction Projects
Federal Building Renovation and Conversion Projects
Maritime Training and Education Infrastructure

Risk Flags

Potential for cost growth in fixed-price contracts for complex renovations.
Risk of schedule delays impacting training facility readiness.
Dependence on joint venture partner performance and coordination.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.5 million to BETHEL-WEBCOR PACIFIC JV. RM18-1655 CONVERT PORTION OF BLDG 3304 FOR MARITIME SKILLS TRAINING CENTER AT NAVAL BASE SAN DIEGO, SAN DIEGO, CA

Who is the contractor on this award?

The obligated recipient is BETHEL-WEBCOR PACIFIC JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $47.5 million.

What is the period of performance?

Start: 2019-07-15. End: 2021-06-21.

What is the track record of Bethel-Webcor Pacific JV in completing similar large-scale construction projects for the federal government?

Assessing the track record of Bethel-Webcor Pacific JV requires a detailed review of their past performance on federal contracts, particularly those involving building conversions or specialized facility construction. Information on past performance, including adherence to schedule, budget, quality standards, and any disputes or claims, would be available through sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). A joint venture's history can be complex, as it may reflect the combined experience of its constituent companies. Understanding their experience with projects of similar scale and complexity, especially within a military installation environment, is crucial for evaluating their capability to successfully execute this contract.

How does the awarded price of $47.5 million compare to industry benchmarks for similar building conversion projects?

A precise comparison of the $47.5 million award to industry benchmarks for similar building conversion projects is challenging without more specific project details, such as the square footage converted, the extent of structural modifications, and the level of interior fit-out required. However, general benchmarks for commercial and institutional building construction can provide a rough estimate. Factors like location (San Diego, a high-cost area), the specific requirements for a maritime skills training center (e.g., specialized labs, simulation rooms), and the age and condition of Building 3304 would influence the cost per square foot. A detailed cost analysis would involve comparing the contractor's proposed cost breakdown against established cost estimating guides and recent contract awards for comparable projects within the federal or commercial sectors.

What are the primary risks associated with converting an existing building for a specialized training center, and how are they mitigated in this contract?

The primary risks in converting an existing building include unforeseen structural issues, the presence of hazardous materials (like asbestos or lead paint), outdated building systems (electrical, plumbing, HVAC) requiring extensive upgrades, and potential conflicts with ongoing base operations. Mitigation strategies in this contract likely include thorough site investigations prior to award, detailed design specifications addressing potential issues, and the firm-fixed-price contract type which incentivizes the contractor to manage risks within the agreed-upon budget. The contract's duration of 707 days also allows for a structured approach to addressing these complexities. Performance bonds and insurance requirements further protect the government against contractor default or liability.

What is the expected effectiveness of the Maritime Skills Training Center once completed, in terms of improving naval readiness or personnel development?

The effectiveness of the Maritime Skills Training Center hinges on its ability to provide realistic, up-to-date training that directly translates to improved naval readiness and personnel development. The conversion of Building 3304 aims to create a dedicated, modern facility that can accommodate advanced simulators, classrooms, and practical training spaces tailored to specific maritime roles. Its effectiveness will be measured by factors such as the number of personnel trained, the proficiency levels achieved by trainees, the reduction in training time or costs compared to previous methods, and ultimately, the impact on operational performance and safety at sea. The Navy's strategic goals for maritime skills development will dictate the specific metrics for assessing the center's success.

How does the historical spending on similar building conversion or facility upgrade projects at Naval Base San Diego compare to this award?

Analyzing historical spending on similar projects at Naval Base San Diego requires access to detailed contract databases that track awards by installation and project type. Without this specific historical data, it's difficult to provide a direct comparison. However, large naval bases like San Diego frequently undergo infrastructure upgrades and facility modernizations. Spending patterns would likely reflect priorities in operational support, training facilities, housing, and maintenance. A contract of $47.5 million for a significant building conversion would be considered a substantial investment, potentially aligning with major modernization initiatives or the expansion of critical training capabilities. Comparing this award to previous construction or renovation contracts at the base would reveal trends in project scale, cost, and focus areas.

What are the implications of awarding this contract to a joint venture versus a single entity?

Awarding this contract to a joint venture, Bethel-Webcor Pacific JV, can have several implications. Joint ventures are often formed to combine the unique strengths, resources, and expertise of multiple companies, potentially enabling them to bid on and execute larger or more complex projects than they could individually. For this specific project, it might mean that the combined capabilities of Bethel and Webcor Pacific are deemed best suited for the conversion of Building 3304. This structure can also facilitate risk sharing among the partners. From the government's perspective, it ensures access to a broader range of skills and potentially greater capacity. However, it can also introduce complexities in communication, management, and accountability compared to contracting with a single entity.

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: N6247316R1868

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2605 DENALI ST STE 202, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,527,210

Exercised Options: $47,527,210

Current Obligation: $47,527,210

Actual Outlays: $16,877,403

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247318D5856

IDV Type: IDC

Timeline