Naval Air Station Key West contract awarded to WEB, LLC for $14.29M for construction services

Contract Overview

Contract Amount: $14,292,520 ($14.3M)

Contractor: WEB, LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-26

End Date: 2027-11-23

Contract Duration: 819 days

Daily Burn Rate: $17.5K/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: SOUTHERN MARSH AT NAVAL AIR STATION KEY WEST, FL.

Place of Performance

Location: KEY WEST, MONROE County, FLORIDA, 33040

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $14.3 million to WEB, LLC for work described as: SOUTHERN MARSH AT NAVAL AIR STATION KEY WEST, FL. Key points: 1. Contract value of $14.29M for construction services at Naval Air Station Key West. 2. WEB, LLC awarded the contract, indicating a specific contractor's role in defense infrastructure. 3. The contract duration spans over two years, suggesting a significant project scope. 4. Awarded under full and open competition after exclusion of sources, implying a competitive process with specific justifications. 5. The project falls under Commercial and Institutional Building Construction, a key sector for facility maintenance and development. 6. Firm Fixed Price contract type suggests predictable costs for the government. 7. The contract is a Delivery Order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $14.29M for commercial and institutional building construction appears reasonable for a project of this duration and scope at a naval installation. Benchmarking against similar construction projects for federal facilities would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government. Without specific details on the scope of work, a direct per-unit cost comparison is challenging, but the overall award seems aligned with typical defense construction expenditures.

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 open, certain sources were excluded, likely due to specific requirements or prior relationships. The presence of 3 bidders suggests a moderate level of competition. The exclusion of sources warrants further investigation to ensure it did not unduly limit competition and potentially impact price discovery.

Taxpayer Impact: While competition was present, the exclusion of certain sources may have limited the number of potential bidders, potentially impacting the government's ability to secure the lowest possible price. Taxpayers benefit from competition, but the specifics of this exclusion need to be understood to fully assess the value achieved.

Public Impact

The primary beneficiaries are the Department of the Navy and Naval Air Station Key West, receiving upgraded or maintained facilities. Services delivered include commercial and institutional building construction, crucial for operational readiness and personnel support. The geographic impact is localized to Key West, Florida, supporting military operations in the region. Workforce implications include employment opportunities for construction workers and related trades in the Florida area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources.
Risk of scope creep or change orders in construction projects.
Dependence on a single contractor (WEB, LLC) for a significant duration.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Awarded to a single contractor, potentially streamlining project management.
Project located at a critical naval installation, ensuring strategic importance.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital segment of the construction industry that supports government infrastructure. Federal spending in this area is substantial, encompassing the maintenance, repair, and new construction of facilities across various agencies, particularly within the Department of Defense. Comparable spending benchmarks would involve analyzing other construction contracts awarded by the Navy or other military branches for similar types of facilities and project scopes.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration or set-aside for this specific contract. This suggests that the contract was likely awarded to a larger firm capable of handling the project's scale. There is no explicit mention of subcontracting requirements for small businesses, which could limit opportunities for smaller firms to participate in this particular project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Navy. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified construction services. Transparency is generally maintained through contract award databases, though specific project details and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) contracts
Department of Defense construction projects
Military base infrastructure development
Commercial Building Construction contracts

Risk Flags

Potential for limited competition due to source exclusion.
Construction project risks (e.g., unforeseen conditions, cost overruns for contractor).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.3 million to WEB, LLC. SOUTHERN MARSH AT NAVAL AIR STATION KEY WEST, FL.

Who is the contractor on this award?

The obligated recipient is WEB, 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 $14.3 million.

What is the period of performance?

Start: 2025-08-26. End: 2027-11-23.

What is the specific scope of work for this construction contract at Naval Air Station Key West?

The provided data indicates the contract is for 'Commercial and Institutional Building Construction' at Naval Air Station Key West, FL. However, the precise scope of work is not detailed. This could encompass a wide range of activities, such as the construction of new buildings, renovation of existing structures, repair of facilities, or infrastructure upgrades. Without a detailed Statement of Work (SOW), it is difficult to ascertain the exact nature and complexity of the project. Further information would be needed from the contract award documents or agency solicitations to understand the specific deliverables, materials, and timelines associated with this $14.29 million contract.

How does the awarded amount of $14.29 million compare to similar construction projects at naval installations?

Comparing the $14.29 million award to similar construction projects requires access to a broader dataset of federal contracts. However, for a project spanning over two years (819 days) at a significant naval installation, this amount appears to be within a reasonable range for substantial construction or renovation work. Projects involving new building construction, major renovations, or significant infrastructure upgrades at military bases can easily reach multi-million dollar figures. To provide a precise benchmark, one would need to analyze contracts with similar North American Industry Classification System (NAICS) codes (e.g., 236220) awarded by the Department of the Navy or other Department of Defense agencies over a comparable timeframe and for facilities of similar size and complexity.

What are the potential risks associated with a firm fixed-price contract for construction?

Firm Fixed Price (FFP) contracts are generally favored by the government for cost control, as the price is set and not subject to adjustment based on the contractor's cost experience. However, for construction projects, FFP contracts can introduce risks for the contractor. If the contractor underestimates costs, encounters unforeseen site conditions, or experiences material price escalations, they bear the brunt of the loss. Conversely, if the contractor significantly overestimates, the government may pay a premium. For the government, the primary risk with FFP is that the contractor may cut corners on quality to protect their profit margin if costs rise unexpectedly. Robust oversight and clear specifications are crucial to mitigate these risks.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for this contract?

This contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggests a nuanced procurement process. Initially, the solicitation was intended for full and open competition. However, specific sources were excluded from consideration. This exclusion must be justified by the agency, often due to reasons like the need for a specific capability, a unique requirement, or prior performance history that makes certain contractors unsuitable or unnecessary to solicit. While it aims for broad competition among eligible parties, the exclusion implies that not all potential offerors were considered, which could potentially limit the range of proposals and prices received compared to a truly unrestricted full and open competition.

What is the significance of this contract being a Delivery Order?

The designation of this award as a 'Delivery Order' (aw: DELIVERY ORDER) typically means it is a task order issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. IDIQ contracts establish terms and conditions, including pricing structures and performance expectations, for a range of potential future work. Delivery Orders then specify the exact quantity, delivery schedule, and price for a particular requirement within the scope of the parent IDIQ. This approach allows agencies to procure services or supplies efficiently over time without needing to conduct a full, separate competition for each individual task. It implies that WEB, LLC likely holds a broader IDIQ contract with the Department of the Navy.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8134 OLD KEENE MILL RD STE 200, SPRINGFIELD, VA, 22152

Business Categories: Asian Pacific American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $14,292,520

Exercised Options: $14,292,520

Current Obligation: $14,292,520

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945022D0009

IDV Type: IDC

Timeline