DoD's $16.7M contract for building recapitalization awarded to Dawson Enterprises, LLC

Contract Overview

Contract Amount: $16,733,931 ($16.7M)

Contractor: Dawson Enterprises, LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-04

End Date: 2026-10-31

Contract Duration: 696 days

Daily Burn Rate: $24.0K/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: ICCB RECAP REPLACE VARIOUS SYSTEMS NSB KINGS BAY, GA

Place of Performance

Location: KINGS BAY, CAMDEN County, GEORGIA, 31547

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to DAWSON ENTERPRISES, LLC for work described as: ICCB RECAP REPLACE VARIOUS SYSTEMS NSB KINGS BAY, GA Key points: 1. The contract value of $16.7 million represents a significant investment in infrastructure modernization. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. The fixed-price contract type generally transfers risk to the contractor, potentially stabilizing costs. 4. Performance is scheduled over approximately two years, allowing for phased execution and oversight. 5. This contract falls within the broader Defense sector's ongoing efforts to upgrade facilities. 6. The geographic focus on Kings Bay, Georgia, highlights regional infrastructure development priorities.

Value Assessment

Rating: good

The contract value of $16.7 million for building recapitalization appears reasonable given the scope of work, which involves replacing various systems. Benchmarking against similar large-scale construction and renovation projects within the Department of Defense suggests that this figure is within expected ranges for complex facility upgrades. The firm fixed-price structure provides cost certainty, although the final value will depend on the contractor's efficiency and management of unforeseen issues.

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 while the initial process might have involved some exclusions, the final award was made through a broad competitive solicitation. The presence of 4 bidders suggests a healthy level of interest and competition for this type of work. This competitive environment is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through multiple bids, leading to better value for the government.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel stationed at the Kings Bay, Georgia facility, who will gain modernized and functional buildings. The services delivered include the recapitalization of various building systems, crucial for operational readiness and safety. The geographic impact is concentrated in St. Marys, Georgia, supporting local economic activity through construction jobs and related services. Workforce implications include employment opportunities for skilled trades and construction labor in the region during the contract performance period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise during the recapitalization process.
Risk of schedule delays due to contractor performance or supply chain disruptions.
Ensuring compliance with environmental regulations during extensive building system replacements.

Positive Signals

Firm fixed-price contract type mitigates budget uncertainty for the government.
Full and open competition suggests a robust bidding process leading to competitive pricing.
The contractor, Dawson Enterprises, LLC, has experience in government contracting, potentially indicating a lower execution risk.

Sector Analysis

This contract falls within the broader construction and facilities management sector, a critical component of government operations. The Department of Defense, as a major client, consistently invests in maintaining and upgrading its vast real estate portfolio. Spending in this area is influenced by factors such as aging infrastructure, evolving operational requirements, and national security priorities. Comparable spending benchmarks would typically involve analyzing other large-scale renovation and construction contracts awarded by federal agencies for similar types of facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited unless Dawson Enterprises, LLC voluntarily engages small businesses as subcontractors. Further analysis of subcontracting plans would be needed to fully assess the impact on small business participation.

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 contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Military Construction
Federal Building and Infrastructure Modernization Programs
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for scope creep due to unforeseen building conditions.
Contractor performance risk on complex system replacements.
Schedule adherence given the project duration and complexity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to DAWSON ENTERPRISES, LLC. ICCB RECAP REPLACE VARIOUS SYSTEMS NSB KINGS BAY, GA

Who is the contractor on this award?

The obligated recipient is DAWSON ENTERPRISES, 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 $16.7 million.

What is the period of performance?

Start: 2024-12-04. End: 2026-10-31.

What is Dawson Enterprises, LLC's track record with similar large-scale federal construction projects?

Dawson Enterprises, LLC has a history of performing federal construction contracts, including projects for various branches of the military and other government agencies. While specific details on projects of this exact scale and complexity require deeper database analysis, their presence in the federal contracting space suggests familiarity with government procurement processes and requirements. A review of past performance evaluations and contract close-outs would provide a more granular understanding of their capabilities, on-time delivery rates, and adherence to budget on comparable projects. This information is crucial for assessing their suitability and potential risks associated with the current $16.7 million contract.

How does the $16.7 million contract value compare to similar building recapitalization projects within the Department of Defense?

The $16.7 million contract value for building recapitalization at Kings Bay, GA, needs to be benchmarked against similar projects within the Department of Defense (DoD) to assess its value for money. Factors such as the scope of work (e.g., HVAC, electrical, plumbing systems), building size, age, and specific modernization requirements significantly influence costs. Preliminary comparisons suggest that this figure is within a reasonable range for substantial facility upgrades. However, a detailed analysis would involve comparing it to contracts for similar building types (e.g., barracks, administrative buildings, maintenance facilities) and geographic locations, considering the year of award and the specific systems being replaced. Without more granular data on comparable projects, it's challenging to definitively state if it represents exceptional value or is on the higher end.

What are the primary risks associated with this firm fixed-price contract for building recapitalization?

The primary risks associated with this firm fixed-price contract for building recapitalization, despite its cost certainty for the government, lie in potential unforeseen issues that could impact the contractor. These include the discovery of latent defects or structural problems within the existing buildings that were not apparent during the initial inspection, leading to scope creep and potential change orders. Environmental hazards (e.g., asbestos, lead paint) could also necessitate additional remediation work. Furthermore, the contractor faces risks related to material cost fluctuations and labor availability, especially for specialized trades. While the fixed price aims to cap the government's expenditure, significant unforeseen challenges could lead to contractor default or disputes if not managed proactively through robust contract administration and clear communication.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for construction projects?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance the benefits of broad competition with specific procurement needs. It typically involves an initial phase where certain sources might be excluded based on predefined criteria (e.g., specific capabilities, past performance, or security requirements), followed by a full and open competition among the remaining eligible sources. This approach can be effective in ensuring competitive pricing by allowing multiple qualified bidders to compete, driving down costs through market forces. However, the effectiveness is contingent on the justification for the initial exclusion of sources; if the exclusion is too broad or not well-justified, it could inadvertently limit competition and potentially lead to higher prices than a truly unrestricted full and open competition. The presence of 4 bidders in this case suggests a reasonable level of competition was achieved.

What are the historical spending patterns for building recapitalization at Naval Base Kings Bay?

Analyzing historical spending patterns for building recapitalization at Naval Base Kings Bay is crucial for contextualizing the current $16.7 million contract. This involves examining past contracts awarded for similar renovation and system replacement projects at this specific installation over several fiscal years. Key metrics to review would include the total amount spent annually on facility upgrades, the types of systems most frequently addressed, the average contract value, and the primary contractors involved. Understanding these patterns can reveal trends in infrastructure needs, identify recurring issues, and provide a baseline for assessing whether the current investment is consistent with, or a significant departure from, historical spending levels. It can also highlight potential areas where deferred maintenance may have led to the current need for extensive recapitalization.

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: N6945020R0871

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 900 FORT STREET MALL STE 1850, HONOLULU, HI, 96813

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,733,931

Exercised Options: $16,733,931

Current Obligation: $16,733,931

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $10,497,205

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945022D0004

IDV Type: IDC

Timeline