Naval Station Guantanamo Bay Housing Renovation Contract Exceeds $29 Million
Contract Overview
Contract Amount: $29,354,241 ($29.4M)
Contractor: Centerra-Sjc II LLC
Awarding Agency: Department of Defense
Start Date: 2019-03-28
End Date: 2026-09-28
Contract Duration: 2,741 days
Daily Burn Rate: $10.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: THE PURPOSE OF THIS CONTRACT IS TO RENOVATE TK HOUSING AREA AT NAVAL STATION GUANTANAMO BAY, CUBA.
Plain-Language Summary
Department of Defense obligated $29.4 million to CENTERRA-SJC II LLC for work described as: THE PURPOSE OF THIS CONTRACT IS TO RENOVATE TK HOUSING AREA AT NAVAL STATION GUANTANAMO BAY, CUBA. Key points: 1. Contract awarded to Centerra-SJC II LLC for significant housing renovation. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project spans nearly 7.5 years, indicating a long-term commitment. 4. The contract type is Firm Fixed Price, providing cost certainty for the government.
Value Assessment
Rating: fair
The contract value of $29.35 million for a 7.5-year renovation project appears substantial. Benchmarking against similar large-scale construction projects would be necessary to definitively assess its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The fixed-price nature further aids in price discovery and control.
Taxpayer Impact: The substantial investment in infrastructure aims to improve living conditions, but the long duration and high cost warrant scrutiny to ensure taxpayer funds are used efficiently.
Public Impact
Improved housing conditions for military personnel and their families at Guantanamo Bay. Potential economic impact on local businesses and workforce involved in the renovation. Long-term infrastructure investment for a strategic military installation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (7.5 years) increases risk of cost overruns and scope creep.
- Geographic location (Guantanamo Bay) may present logistical challenges and higher costs.
- Lack of specific performance metrics or small business participation data.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract provides cost certainty.
- Addresses critical infrastructure needs for military housing.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction. Large-scale renovation projects of this nature, especially for government facilities, often involve significant capital investment and extended timelines, with costs varying widely based on scope and location.
Small Business Impact
The provided data does not indicate any specific set-asides or participation goals for small businesses in this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The Department of the Navy awarded this contract, implying oversight from within the Department of Defense. The long duration necessitates consistent monitoring to ensure adherence to schedule, budget, and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration.
- Potential logistical challenges due to location.
- Lack of detailed cost breakdown for value assessment.
- No explicit mention of small business participation.
Tags
commercial-and-institutional-building-co, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.4 million to CENTERRA-SJC II LLC. THE PURPOSE OF THIS CONTRACT IS TO RENOVATE TK HOUSING AREA AT NAVAL STATION GUANTANAMO BAY, CUBA.
Who is the contractor on this award?
The obligated recipient is CENTERRA-SJC II LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $29.4 million.
What is the period of performance?
Start: 2019-03-28. End: 2026-09-28.
What is the breakdown of costs per housing unit or per square foot, and how does this compare to industry benchmarks for similar renovations?
The total contract value is $29.35 million over approximately 2741 days. Without knowing the number of units or total square footage being renovated, a precise per-unit or per-square-foot cost cannot be calculated. However, this figure represents a significant investment, and a detailed cost analysis against comparable projects would be essential to determine if it represents good value for taxpayer money.
What are the specific risks associated with performing construction in Guantanamo Bay, and how are they being mitigated?
Construction in Guantanamo Bay can involve unique risks such as logistical challenges in material transport, potential environmental considerations, security protocols, and the need for specialized labor. The long duration of this project amplifies these risks. Mitigation strategies likely include robust supply chain management, adherence to strict environmental and security regulations, and potentially higher labor costs factored into the fixed price.
How will the effectiveness of the renovation be measured to ensure it meets the long-term needs of the Navy personnel and their families?
Effectiveness is typically measured through post-occupancy evaluations, resident satisfaction surveys, and inspections to ensure compliance with building codes and Navy standards. For this project, the long duration suggests a phased approach to renovation. Success will depend on meeting quality standards, completing work within the fixed price, and ultimately improving the habitability and functionality of the housing over the intended lifespan.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6945015R1603
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7121 FAIRWAY DR STE 301, PALM BEACH GARDENS, FL, 33418
Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,749,394
Exercised Options: $30,749,394
Current Obligation: $29,354,241
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6945015D1621
IDV Type: IDC
Timeline
Start Date: 2019-03-28
Current End Date: 2026-09-28
Potential End Date: 2026-09-28 00:00:00
Last Modified: 2025-09-28
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