DoD Awards $21.9M Construction Contract for PM735 Modification and Addition

Contract Overview

Contract Amount: $21,900,678 ($21.9M)

Contractor: Peter Vander Werff Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2026-05-11

Contract Duration: 1,319 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: X003 CONSTRUCTION CONTRACT TO MODIFY PM735 AND ADD A NEW ADDITION

Place of Performance

Location: POINT MUGU NAWC, VENTURA County, CALIFORNIA, 93042

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to PETER VANDER WERFF CONSTRUCTION, INC. for work described as: X003 CONSTRUCTION CONTRACT TO MODIFY PM735 AND ADD A NEW ADDITION Key points: 1. Contract awarded to Peter Vander Werff Construction, Inc. for building construction. 2. The contract is a firm fixed price delivery order with a duration of 1319 days. 3. Competition was full and open after exclusion of sources, suggesting a specific justification. 4. The project involves modifying PM735 and adding a new structure. 5. No small business participation was noted in this award.

Value Assessment

Rating: fair

The contract value of $21.9 million for a multi-year construction project appears within a reasonable range for significant building modifications and additions. Benchmarking against similar large-scale commercial and institutional building construction contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method implies that while the competition was intended to be broad, certain sources were excluded, potentially impacting the full spectrum of price discovery and competitive pressure.

Taxpayer Impact: The $21.9 million expenditure represents taxpayer investment in infrastructure. The chosen competition method warrants scrutiny to ensure maximum value was obtained for the public funds.

Public Impact

Military readiness and operational capacity may be enhanced by the facility upgrades. Local economic impact through job creation and material sourcing in California. Potential for long-term facility maintenance costs associated with the new addition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in competition needs clear justification.
Long project duration (over 3 years) increases risk of cost overruns or scope creep.
No small business participation noted.

Positive Signals

Firm fixed price contract limits cost risk for the government.
Delivery order structure allows for phased execution.
Project addresses specific needs for PM735 facility.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for government projects can vary significantly based on infrastructure needs, modernization efforts, and geographic location. Benchmarks for similar DoD construction projects would be relevant.

Small Business Impact

The award data indicates that small businesses were not directly involved as prime contractors in this $21.9 million award. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The 'full and open competition after exclusion of sources' clause requires careful review by oversight bodies to ensure the exclusion was justified and did not unduly limit competition. The long duration of the contract also necessitates ongoing monitoring.

Related Government Programs

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

Risk Flags

Justification for exclusion of sources requires verification.
Long contract duration increases risk of cost escalation.
Potential for unforeseen site conditions impacting schedule and budget.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to PETER VANDER WERFF CONSTRUCTION, INC.. X003 CONSTRUCTION CONTRACT TO MODIFY PM735 AND ADD A NEW ADDITION

Who is the contractor on this award?

The obligated recipient is PETER VANDER WERFF CONSTRUCTION, 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 $21.9 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-05-11.

What specific factors necessitated the exclusion of certain sources in this full and open competition, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical requirements, security clearances, or unique capabilities are mandated, limiting the pool of eligible contractors. While this can ensure specialized needs are met, it may also reduce competitive pressure, potentially leading to a higher price than if a broader competition were feasible. A thorough review of the justification for exclusion is crucial.

Given the 1319-day duration, what are the primary risks to the government regarding cost and schedule for this construction project?

The extended duration presents risks of inflation impacting material and labor costs, potential for unforeseen site conditions requiring change orders, and delays due to weather or supply chain issues. Effective project management, contingency planning, and robust contract oversight are essential to mitigate these risks and keep the project on schedule and within budget.

How will the modifications and addition to PM735 contribute to the Department of the Navy's mission effectiveness?

The modifications and addition to PM735 are expected to enhance the facility's functionality, potentially improving operational efficiency, increasing capacity, or providing updated infrastructure necessary for specific naval operations. The precise contribution depends on the nature of PM735 and how the upgrades directly support its intended purpose and the broader mission objectives.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247319R2424

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 125 W LEXINGTON AVE, EL CAJON, CA, 92020

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,900,678

Exercised Options: $21,900,678

Current Obligation: $21,900,678

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247320D1125

IDV Type: IDC

Timeline