Department of the Navy awards $14.5M contract for Kings Bay facility construction to Southeastern Industrial Barlovento JV-2, LLC

Contract Overview

Contract Amount: $14,535,700 ($14.5M)

Contractor: Southeastern Industrial Barlovento JV-2, LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-15

End Date: 2028-02-04

Contract Duration: 781 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RM21-0613 PRODUCTION FACILITIES AT 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 $14.5 million to SOUTHEASTERN INDUSTRIAL BARLOVENTO JV-2, LLC for work described as: RM21-0613 PRODUCTION FACILITIES AT NSB KINGS BAY, GA Key points: 1. Contract value of $14.5 million for construction services. 2. Awarded to Southeastern Industrial Barlovento JV-2, LLC. 3. Contract duration of 781 days. 4. Facility construction located in Kings Bay, Georgia. 5. Procurement method: Full and Open Competition after Exclusion of Sources. 6. Contract type: Firm Fixed Price. 7. Delivery Order under a larger contract vehicle.

Value Assessment

Rating: fair

The contract value of $14.5 million for commercial and institutional building construction appears to be within a reasonable range for a project of this scope, though specific benchmarking is difficult without detailed project specifications. The firm fixed price structure suggests a defined scope and cost control by the Navy. However, the absence of detailed cost breakdowns or comparisons to similar projects makes a definitive value assessment challenging. The benchmark of $1.86 million (br) for similar projects provides some context, suggesting this award is a significant portion of that benchmark.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded from the initial bidding process. The number of bids received (5) suggests some level of competition, but the exclusion of sources may have limited the overall pool of potential offerors. This procurement approach can sometimes lead to less aggressive pricing compared to unrestricted full and open competition.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if all potential sources had been allowed to bid. However, the presence of 5 bidders still provides some price discovery.

Public Impact

The primary beneficiaries are the Department of the Navy and its operations at Naval Submarine Base Kings Bay. The contract will deliver construction services for production facilities. The geographic impact is concentrated in Kings Bay, Georgia. The contract is expected to create or sustain jobs in the construction sector within Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources.
Firm Fixed Price contracts can shift risk to the contractor, potentially leading to higher initial bids to cover contingencies.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Award to a joint venture may indicate capacity building and support for specific business structures.
Delivery Order structure suggests a pre-competed contract vehicle was utilized, potentially streamlining the acquisition process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector is a significant part of the U.S. economy, encompassing a wide range of construction projects for non-residential buildings. Federal spending in this sector often supports infrastructure development, military installations, and government facilities. Comparable spending benchmarks for similar construction projects can vary widely based on size, complexity, and location.

Small Business Impact

The data indicates that small business participation (sb) was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem mandated by this award. However, the winning contractor, Southeastern Industrial Barlovento JV-2, LLC, may engage small businesses as subcontractors depending on their own procurement strategies.

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 type, which requires the contractor to deliver the specified facilities within the agreed-upon cost. Transparency is facilitated by the public nature of federal contract awards, though detailed project oversight reports are not always publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) contracts
Military Construction Projects
Department of Defense Construction Contracts
General Building Construction Services

Risk Flags

Potential for limited competition
Risk of underbidding with FFP contracts
Need for robust oversight due to project scale

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to SOUTHEASTERN INDUSTRIAL BARLOVENTO JV-2, LLC. RM21-0613 PRODUCTION FACILITIES AT NSB KINGS BAY, GA

Who is the contractor on this award?

The obligated recipient is SOUTHEASTERN INDUSTRIAL BARLOVENTO JV-2, 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 $14.5 million.

What is the period of performance?

Start: 2025-12-15. End: 2028-02-04.

What is the track record of Southeastern Industrial Barlovento JV-2, LLC in performing similar construction projects for the federal government?

Information regarding the specific track record of Southeastern Industrial Barlovento JV-2, LLC in performing similar federal construction projects is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government contracts. Joint ventures often bring together entities with diverse experience, but the performance of the JV itself is key. Further investigation into the individual members of the JV and their respective federal contracting histories would be necessary to fully evaluate their capabilities and reliability for this specific project at NSB Kings Bay.

How does the awarded amount of $14.5 million compare to similar facility construction projects at naval bases?

The provided data includes a benchmark value of $1.86 million (br) for comparable projects. The $14.5 million award is significantly higher than this benchmark, suggesting that the 'RM21-0613 PRODUCTION FACILITIES AT NSB KINGS BAY, GA' project is substantially larger or more complex than the average project represented by the benchmark. Without detailed specifications of the 'production facilities' and the scope of work, a precise comparison is difficult. However, the substantial difference indicates this is a major construction undertaking, potentially involving specialized infrastructure or extensive building work beyond typical smaller-scale renovations or constructions.

What are the primary risks associated with this firm fixed price contract for the Department of the Navy?

The primary risk for the Department of the Navy with a Firm Fixed Price (FFP) contract is that the contractor may underbid the project to win the award, leading to potential quality compromises or requests for change orders to recoup costs. While FFP shifts cost overrun risk to the contractor, it can also incentivize them to cut corners if not adequately monitored. Another risk is that the initial bid may not fully account for unforeseen site conditions or material price escalations, potentially leading to disputes or delays if not managed proactively through contract clauses and diligent oversight.

How effective is the 'Full and Open Competition after Exclusion of Sources' procurement method in ensuring value for taxpayers?

The 'Full and Open Competition after Exclusion of Sources' method aims to balance competition with specific needs that might not be met by unrestricted competition. While it allows for multiple bidders, the exclusion of certain sources can limit the competitive landscape. This can potentially lead to higher prices for taxpayers compared to a scenario where all capable vendors could participate. The effectiveness in ensuring value depends heavily on the justification for excluding sources and the number of responsive bidders that remain. If the excluded sources were critical for driving down prices, then value may be compromised. However, if the remaining bidders offer competitive proposals, value can still be achieved.

What is the historical spending pattern for facility construction at Naval Submarine Base Kings Bay?

The provided data does not include historical spending patterns for facility construction at Naval Submarine Base Kings Bay. To analyze this, one would need access to historical contract databases, such as USAspending.gov or agency-specific procurement records, to identify previous awards for construction services at this specific base. This analysis would involve looking at the total dollar amounts awarded, the types of facilities constructed, the frequency of awards, and the contractors involved over several fiscal years to identify trends, significant investments, or changes in spending.

What are the potential implications of the 781-day duration on project costs and completion?

A contract duration of 781 days (approximately 2.1 years) for a $14.5 million construction project suggests a significant undertaking with multiple phases. Longer durations can increase indirect costs for both the contractor (e.g., project management, site overhead) and the government (e.g., oversight, potential delays in realizing facility benefits). However, a longer timeline might also be necessary to ensure quality, accommodate complex construction processes, or mitigate risks associated with large-scale projects. The key is whether this duration is appropriate for the scope of work and if it is managed efficiently to prevent unnecessary cost escalation or schedule slippage.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Southeastern Industrial Barlovento JV

Address: 1234 AIRPORT RD STE 106, DESTIN, FL, 32541

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,535,700

Exercised Options: $14,535,700

Current Obligation: $14,535,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945022D0006

IDV Type: IDC

Timeline