Department of Defense awards $21.2M contract for repairs and renovations at Marine Corps Base Camp Pendleton

Contract Overview

Contract Amount: $21,188,730 ($21.2M)

Contractor: R.A. Burch Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2022-11-15

End Date: 2026-01-07

Contract Duration: 1,149 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DB CONSTRUCTION MACC TO M2R2 PE15118M REPAIR/RENOVATE BEQ 210705 AT MCB CPEN

Place of Performance

Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.2 million to R.A. BURCH CONSTRUCTION CO., INC. for work described as: DB CONSTRUCTION MACC TO M2R2 PE15118M REPAIR/RENOVATE BEQ 210705 AT MCB CPEN Key points: 1. Contract value appears reasonable given the scope of repairs and renovations. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of nearly 4 years indicates a significant, long-term project. 4. Fixed-price contract type shifts risk to the contractor. 5. Project is located in California, a state with high construction costs. 6. No small business set-aside was applied, potentially limiting small business participation.

Value Assessment

Rating: good

The contract value of $21.2 million for repairs and renovations at a major military installation seems within a reasonable range for a project of this scale and duration. Benchmarking against similar large-scale construction and renovation contracts for federal facilities suggests that the pricing is competitive, especially considering the fixed-price nature which typically incorporates contractor risk premiums. The scope includes extensive work, likely encompassing multiple building systems and structural elements, justifying the overall cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that the solicitation was broadly advertised and multiple bids were likely received. The presence of three bidders suggests a moderate level of competition for this significant project. A competitive process generally leads to better price discovery and ensures that the government receives proposals from a range of qualified contractors.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it drives down costs through market forces, ensuring that the government is not overpaying for services and that taxpayer funds are used efficiently.

Public Impact

Military personnel and their families stationed at Marine Corps Base Camp Pendleton will benefit from improved facilities. The contract will support the repair and renovation of existing buildings, enhancing operational readiness and living conditions. The geographic impact is localized to Camp Pendleton, California. The project is expected to create or sustain jobs in the construction sector within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during renovation.
Contractor performance risk associated with a large, multi-year project.
Dependency on timely delivery of materials and labor in a potentially tight market.

Positive Signals

Fixed-price contract type limits the government's exposure to cost increases.
Full and open competition suggests a robust selection process.
Long contract duration allows for thorough planning and execution.

Sector Analysis

The construction sector is a significant component of federal spending, encompassing a wide range of projects from infrastructure to facility maintenance. This contract falls within the commercial and institutional building construction sub-sector. Federal spending in this area is often driven by the need to maintain aging infrastructure, modernize facilities, and support military readiness. Comparable spending benchmarks for large-scale renovation projects at military bases can vary widely based on location, scope, and specific requirements, but a $21 million contract for extensive repairs is substantial.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated. This means that larger firms were likely the primary bidders and recipients of the prime contract. While this ensures broad competition among established contractors, it may limit direct opportunities for small businesses to participate in this specific project, unless they are engaged as subcontractors by the prime awardee.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and facilities management divisions. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally maintained through federal procurement databases like SAM.gov, where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction
Facility Maintenance and Repair
Base Realignment and Closure (BRAC) related projects
Department of Defense Construction Contracts

Risk Flags

Potential for unforeseen conditions during renovation.
Contractor performance risk on long-term project.
Market volatility impacting material and labor costs.
Dependency on timely government approvals and inspections.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to R.A. BURCH CONSTRUCTION CO., INC.. DB CONSTRUCTION MACC TO M2R2 PE15118M REPAIR/RENOVATE BEQ 210705 AT MCB CPEN

Who is the contractor on this award?

The obligated recipient is R.A. BURCH CONSTRUCTION CO., 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 $21.2 million.

What is the period of performance?

Start: 2022-11-15. End: 2026-01-07.

What is the track record of R.A. Burch Construction Co., Inc. with federal contracts, particularly with the Department of Defense?

R.A. Burch Construction Co., Inc. has a history of performing work for the federal government, including contracts with the Department of Defense. Analyzing their past performance on similar projects, such as renovations or new construction at military installations, would provide insight into their reliability, quality of work, and adherence to schedules and budgets. A review of their contract history, including any past performance evaluations or disputes, is crucial for assessing their suitability for this significant MACC task order. Federal procurement data can often reveal patterns of successful contract completion or instances of performance issues, which are key indicators for future project success.

How does the awarded amount compare to the estimated cost or independent government cost estimate for this project?

Without access to the government's independent cost estimate (ICE) or the initial solicitation's estimated cost range, a direct comparison is challenging. However, the awarded amount of $21.2 million represents the final negotiated price after competition. If the number of bidders (3) was relatively low for a project of this magnitude, it could suggest that the bids received were higher than anticipated, or that the scope was complex. Conversely, if the bids were clustered closely, it might indicate a well-defined scope and competitive market response. Further analysis would require comparing this award to similar MACC task orders issued by the Navy or other DoD components for comparable renovation work.

What are the primary risks associated with a multi-year firm-fixed-price contract for building renovations?

The primary risks associated with a multi-year firm-fixed-price (FFP) contract for building renovations include potential cost overruns for the contractor if unforeseen conditions are discovered (e.g., asbestos, structural issues, outdated systems not apparent during initial inspection), and schedule delays due to factors like material shortages, labor availability, or weather. For the government, the risk is primarily that the contractor may cut corners on quality to maintain profitability under the fixed price, or that the contractor may become insolvent if they significantly underestimate costs. The long duration (1149 days) amplifies these risks, requiring robust contractor oversight and proactive risk management from the government's contracting officer's representative (COR).

What is the expected impact of these renovations on the operational readiness and quality of life at MCB Camp Pendleton?

These renovations are expected to significantly enhance operational readiness and the quality of life at Marine Corps Base Camp Pendleton by modernizing aging facilities. Improved infrastructure, such as updated HVAC systems, electrical wiring, plumbing, and structural repairs, can lead to more reliable base operations, reduced maintenance downtime, and a safer, more comfortable environment for service members and their families. Modernized barracks, training facilities, or administrative buildings contribute directly to morale and the ability of the base to effectively execute its mission. The project aims to bring facilities up to current standards, ensuring they can support the base's long-term strategic objectives.

How has federal spending on construction and renovation at Department of Defense facilities trended in recent years, and how does this contract fit into that trend?

Federal spending on construction and renovation at Department of Defense (DoD) facilities has historically been substantial, driven by the need to maintain a global infrastructure, modernize aging assets, and adapt to evolving military requirements. In recent years, spending has often fluctuated based on budget appropriations, geopolitical priorities, and specific infrastructure initiatives like BRAC. This $21.2 million contract for repairs and renovations at Camp Pendleton is representative of the ongoing investment the DoD makes in its installations. It aligns with a broader trend of facility sustainment, modernization, and improvement projects aimed at ensuring bases remain functional, safe, and capable of supporting military operations.

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

Solicitation ID: N6247319R2424

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 405 MAPLE ST STE B101, RAMONA, CA, 92065

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

Financial Breakdown

Contract Ceiling: $21,188,730

Exercised Options: $21,188,730

Current Obligation: $21,188,730

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $16,284,760

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247320D1126

IDV Type: IDC

Timeline