DoD's $16.8M Naval Facility Reconstruction Project Awarded to Walga Ross Group 3 JV

Contract Overview

Contract Amount: $16,810,730 ($16.8M)

Contractor: Walga Ross Group 3 JV

Awarding Agency: Department of Defense

Start Date: 2022-09-19

End Date: 2025-05-02

Contract Duration: 956 days

Daily Burn Rate: $17.6K/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: B928 ASTC JAX SRM PROJECT, FACILITY RECONSTRUCTION

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32212

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to WALGA ROSS GROUP 3 JV for work described as: B928 ASTC JAX SRM PROJECT, FACILITY RECONSTRUCTION Key points: 1. Contract value of $16.8M for facility reconstruction indicates significant investment in infrastructure. 2. Awarded to a joint venture, suggesting a focus on leveraging specialized capabilities or small business participation. 3. The contract duration of 956 days points to a complex and lengthy reconstruction effort. 4. Fixed-price contract type aims to control costs, but requires careful scope management. 5. Geographic location in Florida may indicate specific regional infrastructure needs or military base requirements. 6. The project falls under commercial and institutional building construction, a broad but essential sector for facility maintenance and upgrades.

Value Assessment

Rating: good

The contract value of approximately $16.8 million for facility reconstruction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects for the Department of Defense suggests that costs are within expected ranges. The firm fixed-price nature of the contract provides cost certainty, assuming the scope is well-defined and managed effectively. Without specific details on the reconstruction tasks, a precise value-for-money assessment is challenging, but the award to a joint venture might indicate a competitive bidding process that drove a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific criteria or exclusions were applied, potentially limiting the pool of eligible bidders. The presence of 3 bidders suggests a moderate level of competition. The exclusion of certain sources warrants further investigation to understand if it impacted the overall competitiveness and potentially the final price.

Taxpayer Impact: The limited competition, even after an initial broad solicitation, may have resulted in a higher price for taxpayers compared to a scenario with more active bidders. Understanding the rationale behind the source exclusion is crucial for assessing the impact on cost efficiency.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Navy, gaining upgraded or reconstructed facilities essential for operations. The project delivers critical facility reconstruction services, likely improving infrastructure resilience and functionality at a naval installation. The geographic impact is concentrated in Florida, supporting regional military readiness and potentially local economic activity through construction. Workforce implications include employment opportunities for skilled construction labor in the Florida region during the project's 956-day duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of reconstruction is not precisely defined and managed under the fixed-price contract.
The 'exclusion of sources' in the competition process raises questions about the extent of true market competition and potential price impacts.
Reliance on a joint venture may introduce complexities in management and accountability if not structured effectively.
The long duration of the contract (956 days) increases the risk of unforeseen challenges, material price fluctuations, or changes in requirements.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government, assuming effective scope management.
Awarding to a joint venture can foster collaboration and bring specialized expertise to complex reconstruction projects.
The project addresses critical infrastructure needs for the Department of Defense, enhancing operational capabilities.
The competition, though limited, still involved multiple bidders, suggesting some level of market engagement.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. This sector encompasses the building, alteration, and repair of nonresidential structures. Federal spending in this area is crucial for maintaining and upgrading government facilities, including military bases, administrative buildings, and research centers. Comparable spending benchmarks would involve analyzing other large-scale construction and renovation projects awarded by the Department of Defense and other federal agencies for similar types of facilities.

Small Business Impact

The data indicates that small business participation (sb) is false, and the contract was not a small business set-aside (ss). This suggests that the primary awardee, Walga Ross Group 3 JV, may or may not include small businesses within its joint venture structure. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this project. The absence of a specific small business set-aside implies that the competition was not primarily aimed at boosting small business prime contracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The firm fixed-price nature necessitates close monitoring of project milestones and deliverables to ensure compliance with the contract terms. Transparency is facilitated through contract award databases, but detailed project progress reports are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the execution of the contract.

Related Government Programs

Department of Defense Military Construction
Naval Facilities Engineering Command Projects
Federal Building and Infrastructure Projects
Government Facility Renovation Contracts

Risk Flags

Limited Competition Concerns
Potential for Scope Creep
Contract Duration Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to WALGA ROSS GROUP 3 JV. B928 ASTC JAX SRM PROJECT, FACILITY RECONSTRUCTION

Who is the contractor on this award?

The obligated recipient is WALGA ROSS GROUP 3 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 $16.8 million.

What is the period of performance?

Start: 2022-09-19. End: 2025-05-02.

What is the specific nature of the facility reconstruction required under this contract?

The contract description 'B928 ASTC JAX SRM PROJECT, FACILITY RECONSTRUCTION' suggests a project focused on repairing, renovating, or rebuilding existing facilities at an unspecified Naval Air Station Jacksonville (JAX) site. The 'SRM' likely refers to Sustainment, Restoration, and Modernization efforts. Without further details, it's difficult to ascertain the exact scope, such as whether it involves structural repairs, system upgrades (HVAC, electrical, plumbing), demolition and new construction, or a combination thereof. The $16.8 million value and 956-day duration imply a substantial undertaking, potentially involving multiple buildings or significant portions of a larger facility critical to naval operations.

How does the $16.8 million contract value compare to similar facility reconstruction projects within the Department of Defense?

The $16.8 million contract value for facility reconstruction is a significant but not extraordinary amount for a large-scale DoD project. Benchmarking requires comparing it to similar projects in terms of scope (e.g., building size, type of reconstruction), duration, and location. For instance, major barracks renovations, hangar upgrades, or administrative building modernizations within the DoD can range from several million to tens of millions of dollars. Given the 956-day duration, this project likely involves extensive work. A preliminary comparison suggests this value is within the expected range for substantial facility work, but a more precise benchmark would necessitate identifying comparable projects with detailed scope descriptions and award values.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' contracting method?

This contracting method, while aiming for broad competition initially, introduces risks by excluding certain potential bidders. The primary risk is that the exclusion may have unnecessarily limited the competitive pool, potentially leading to a higher price for the government than if all qualified sources had been allowed to compete. It also raises questions about the transparency and fairness of the procurement process. If the exclusions were not well-justified or based on arbitrary criteria, it could lead to protests and delays. Understanding the specific reasons for excluding sources is critical to assessing whether this method truly served the government's best interest in achieving optimal value and competition.

What is the significance of the contract being awarded to a joint venture (Walga Ross Group 3 JV)?

Awarding a contract to a joint venture (JV) like Walga Ross Group 3 JV often signifies a strategic approach by the government or the contractors themselves. JVs are formed by two or more companies to pool resources, expertise, and capabilities to undertake a project they might not be able to handle individually. For the government, it can provide access to specialized skills, enhance capacity, and potentially meet small business subcontracting goals if one partner is a small business. For the contractors, it allows them to bid on larger projects, share risks, and leverage complementary strengths. The specific composition of Walga Ross Group 3 JV would determine the exact benefits and potential management dynamics.

How does the 956-day contract duration impact project risk and cost management?

A contract duration of 956 days (approximately 2.6 years) for facility reconstruction introduces several risks and cost management considerations. Longer durations increase the likelihood of encountering unforeseen site conditions, material price escalations, labor shortages, or changes in regulatory requirements. Under a firm fixed-price contract, the contractor bears the risk of cost overruns due to these factors, which they may have already factored into their initial bid price, potentially making it higher. Effective project management, including robust scheduling, proactive risk mitigation, and clear change order processes, is crucial to keeping the project on track and within budget over such an extended period.

What are the implications of the contract type being 'Firm Fixed Price' for this reconstruction project?

The 'Firm Fixed Price' (FFP) contract type is generally favored by the government for construction projects when the scope of work is well-defined and risks can be reasonably assessed. For this $16.8 million facility reconstruction, FFP provides the greatest cost certainty to the Department of Defense. The contractor assumes the primary risk for cost overruns resulting from inefficiencies or unforeseen conditions, provided the scope doesn't change. Conversely, the contractor has a strong incentive to control costs and maximize efficiency to achieve a higher profit margin. However, if the scope is ambiguous or changes frequently, it can lead to disputes or the contractor building in significant contingency into their price, potentially making it less competitive.

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: N6945020R0871

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 407 S PENNSYLVANIA AVE STE 140, JOPLIN, MO, 64801

Business Categories: Category Business, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,810,730

Exercised Options: $16,810,730

Current Obligation: $16,810,730

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,655,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945022D0008

IDV Type: IDC

Timeline