Navy awards $60.7M for Littoral Innovation Facility, Gilbane Federal to lead construction

Contract Overview

Contract Amount: $60,737,350 ($60.7M)

Contractor: Gilbane Federal

Awarding Agency: Department of Defense

Start Date: 2023-01-10

End Date: 2026-06-23

Contract Duration: 1,260 days

Daily Burn Rate: $48.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P407 LITTORAL INNOVATION AND PROTOTYPING FACILITY

Place of Performance

Location: PANAMA CITY BEACH, BAY County, FLORIDA, 32407

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $60.7 million to GILBANE FEDERAL for work described as: P407 LITTORAL INNOVATION AND PROTOTYPING FACILITY Key points: 1. Contract value represents a significant investment in naval innovation infrastructure. 2. Full and open competition suggests a robust market response and potential for competitive pricing. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Project duration of 1260 days indicates a complex, multi-year construction effort. 5. Geographic focus on Florida aligns with key naval training and operational areas. 6. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, suggesting potential for future task orders.

Value Assessment

Rating: good

The contract value of $60.7 million for a littoral innovation and prototyping facility appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for specialized government facilities suggests that this figure is within expected ranges. The firm fixed-price structure implies that the contractor has assessed risks and costs, and the price reflects this assessment. Without specific details on the facility's size and complexity, a precise per-unit cost comparison is difficult, but the overall award seems aligned with industry standards for such projects.

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 bids. The award to Gilbane Federal suggests they offered the best value among the competing proposals. The presence of 5 bids (implied by 'no': 5) demonstrates a healthy level of competition for this significant construction project, which typically leads to more favorable pricing for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives competitive pricing and high-quality services.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel, who will utilize the facility for innovation and prototyping. The facility will support the development and testing of new technologies and strategies for littoral warfare. The project's geographic impact is concentrated in Florida, likely benefiting the local economy through job creation and subcontractor opportunities. The construction phase will create temporary jobs in the construction sector, while the operational phase may lead to long-term employment for specialized personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Schedule delays could impact the Navy's innovation timelines.
Ensuring the facility meets all specialized technical requirements for prototyping will be critical.

Positive Signals

Firm fixed-price contract mitigates cost uncertainty for the government.
Full and open competition suggests a strong pool of qualified bidders.
Delivery order under an IDIQ vehicle allows for flexibility and potential future tasking.
Experienced contractor (Gilbane Federal) likely brings proven construction management capabilities.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, specifically for specialized government facilities. The market for large-scale government construction projects is competitive, with major players like Gilbane Federal often vying for significant awards. This project likely fits within the broader defense construction market, supporting the Navy's strategic objectives for technological advancement and operational readiness in littoral environments. Comparable spending benchmarks for similar-sized innovation or research facilities can vary widely based on location, complexity, and specific technological requirements.

Small Business Impact

While this contract was awarded under full and open competition and does not explicitly mention a small business set-aside, large prime contractors like Gilbane Federal are often required to meet small business subcontracting goals. The extent to which small businesses will participate will depend on the subcontracting plan negotiated as part of the award. This could provide opportunities for local small businesses in Florida to engage in specialized construction trades or material supply.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and project management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the facility according to specifications and schedule. Transparency is generally maintained through contract award announcements and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Contracts
Department of Defense Research and Development Facilities
Littoral Combat Ship (LCS) Program Support Facilities
Naval Innovation and Readiness Initiatives

Risk Flags

Potential for schedule slippage
Risk of unforeseen site conditions impacting cost
Ensuring adherence to specialized technical specifications

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.7 million to GILBANE FEDERAL. P407 LITTORAL INNOVATION AND PROTOTYPING FACILITY

Who is the contractor on this award?

The obligated recipient is GILBANE FEDERAL.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $60.7 million.

What is the period of performance?

Start: 2023-01-10. End: 2026-06-23.

What is Gilbane Federal's track record with similar large-scale Department of Defense construction projects?

Gilbane Federal has a substantial track record of executing large-scale construction projects for the Department of Defense and other federal agencies. They have experience in building a variety of facilities, including research laboratories, training centers, and operational support buildings. Their past performance on similar projects, often involving complex requirements and stringent deadlines, suggests a capacity to manage the scope and technical demands of the P407 Littoral Innovation and Prototyping Facility. Reviewing their project history, including any past performance evaluations or awards, would provide further insight into their reliability and expertise in delivering high-quality defense infrastructure.

How does the $60.7 million award compare to the estimated cost for similar innovation facilities?

The $60.7 million award for the P407 Littoral Innovation and Prototyping Facility is a significant investment, but its value is best assessed by comparing it to similar specialized government facilities. Factors such as square footage, specific technological integration (e.g., advanced simulation labs, testing bays), and geographic location heavily influence costs. While a direct per-square-foot comparison is difficult without detailed facility specifications, this award appears to be within the typical range for constructing advanced research and development or prototyping centers for military branches. The full and open competition, resulting in 5 bids, suggests market validation of the pricing structure.

What are the primary risks associated with this firm fixed-price construction contract?

The primary risks associated with this firm fixed-price construction contract, despite its benefit of cost certainty for the government, lie with the contractor, Gilbane Federal. These risks include potential cost overruns if unforeseen site conditions or material price escalations occur beyond what was factored into their bid. Schedule delays are another significant risk, which could arise from labor shortages, supply chain disruptions, or complex construction challenges. The government's main risk is ensuring the contractor delivers a facility that meets all specified technical requirements and performance standards for innovation and prototyping. Robust oversight and clear communication channels are crucial to mitigating these risks.

How effective is the full and open competition process likely to be in ensuring value for this project?

The full and open competition process is highly likely to ensure value for this project. By allowing all responsible sources to bid, the Department of the Navy maximizes the potential for receiving competitive proposals. The fact that five bids were submitted indicates a healthy market interest and a competitive environment. This competition typically drives down prices, encourages innovation in proposed solutions, and incentivizes bidders to offer their best value proposition to win the contract. The government can then select the offer that best balances cost, technical merit, and past performance, thereby securing optimal value for taxpayer dollars.

What is the historical spending pattern for similar naval innovation or prototyping facilities?

Historical spending patterns for similar naval innovation or prototyping facilities show considerable variability, largely dependent on the scale, technological sophistication, and specific mission requirements of the facility. Larger, more complex centers designed for advanced research, testing, and integration of cutting-edge technologies can range from tens of millions to hundreds of millions of dollars. Smaller, more specialized prototyping labs might fall into the multi-million dollar range. The $60.7 million awarded to Gilbane Federal for the P407 facility aligns with the mid-to-upper range for specialized naval infrastructure projects focused on technological development and readiness, reflecting the critical nature of such investments.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6945020R0097

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1655 GRANT ST 12TH FL, CONCORD, CA, 94520

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $63,183,610

Exercised Options: $60,737,350

Current Obligation: $60,737,350

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945021D0056

IDV Type: IDC

Timeline