DoD's $2.7M construction contract for Caribbean projects awarded without competition

Contract Overview

Contract Amount: $2,692,613 ($2.7M)

Contractor: PED Concepts Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-04

End Date: 2026-12-04

Contract Duration: 365 days

Daily Burn Rate: $7.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF 6 INDIVIDUAL PROJECTS FOR ANTIGUA AND TRINIDAD

Plain-Language Summary

Department of Defense obligated $2.7 million to PED CONCEPTS INC. for work described as: CONSTRUCTION OF 6 INDIVIDUAL PROJECTS FOR ANTIGUA AND TRINIDAD Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The fixed-price contract type offers some cost certainty but lacks competitive pressure. 3. Limited competition may lead to higher prices than if multiple bids were considered. 4. The contract duration of one year is relatively short for construction projects. 5. The specific nature of the six projects in Antigua and Trinidad is not detailed, impacting performance assessment. 6. No small business set-aside was applied, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: questionable

Benchmarking the value of this $2.7 million contract is challenging due to the lack of competitive bids and specific project details. Without comparable contract data or market rates for similar construction work in Antigua and Trinidad, it's difficult to definitively assess if the pricing is fair. The sole-source award means there was no opportunity to leverage competition to drive down costs, which is a primary indicator of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source procurement method, meaning only one contractor, PED CONCEPTS INC., was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities or urgent needs), they generally result in less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these construction services. Without competing bids, there's no market validation of the proposed costs, increasing the risk of overpayment.

Public Impact

The Department of Defense will benefit from the completion of six construction projects in Antigua and Trinidad. These projects are expected to support military infrastructure or operational needs in the Caribbean region. The geographic impact is concentrated in Antigua and Trinidad, potentially involving local labor and material sourcing. The contract does not specify workforce implications, but construction projects typically create employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings.
Lack of detailed project scope makes it difficult to assess value and performance.
No small business participation noted, potentially excluding smaller firms from subcontracting opportunities.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Contract duration is defined, allowing for clear project timelines.
Awarded by the Department of Defense, indicating a focus on strategic infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The global construction market is substantial, with significant government spending allocated to infrastructure and facilities. This specific award, though relatively small at $2.7 million, represents a niche investment in the Caribbean region for defense-related facilities. Comparable spending benchmarks would typically involve analyzing other DoD construction contracts in similar geographic areas or for similar types of facilities.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. The sole-source nature of the award further limits the direct involvement of small businesses unless they are subcontractors to the prime contractor. This could mean missed opportunities for small businesses to participate in government construction projects and contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a sole-source award, scrutiny might be higher to ensure the justification for non-competition is valid and that the contractor is meeting the terms of the firm fixed-price agreement. Transparency is limited by the lack of public bid information, and specific Inspector General jurisdiction would depend on the nature of any potential issues arising from contract performance.

Related Government Programs

Department of Defense Construction Contracts
Naval Facilities Engineering Command Projects
Caribbean Region Infrastructure Development
Sole-Source Construction Awards

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on project scope and specific deliverables.
Potential for cost overruns due to lack of competition.
No explicit small business participation or subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.7 million to PED CONCEPTS INC.. CONSTRUCTION OF 6 INDIVIDUAL PROJECTS FOR ANTIGUA AND TRINIDAD

Who is the contractor on this award?

The obligated recipient is PED CONCEPTS INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2025-12-04. End: 2026-12-04.

What is the specific justification for awarding this construction contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED' and is a 'DELIVERY ORDER' under a larger undefined contract. Without further details on the specific justification code or the nature of the requirement, it's impossible to determine the exact reason for the sole-source award. Common justifications include urgency, lack of available competition, or a unique capability held by the sole contractor. For a construction project of this nature, potential reasons could include specialized expertise required for the specific site conditions in Antigua and Trinidad, or a critical and time-sensitive need that precluded a lengthy competitive process. Further investigation into the contract file or agency procurement records would be necessary to ascertain the precise justification.

How does the $2.7 million cost compare to similar construction projects in the Caribbean region?

Directly comparing the $2.7 million cost to similar construction projects in the Caribbean is difficult without more specific details about the scope of the six individual projects. Factors such as the type of construction (e.g., barracks, administrative buildings, specialized facilities), size (square footage), materials used, and specific site challenges in Antigua and Trinidad significantly influence costs. Furthermore, the 'NOT COMPETED' status means there was no competitive bidding to establish a market-based price. To perform a meaningful comparison, one would need to identify comparable DoD or other government construction projects in the same geographic vicinity with similar project scopes and durations, and then analyze their awarded values and cost breakdowns.

What are the potential risks associated with a sole-source construction contract of this size?

The primary risk associated with a sole-source construction contract is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bids, the government may end up paying more than necessary. Other risks include reduced innovation, as the contractor may have less incentive to propose cost-saving alternatives. There's also a risk of contractor complacency regarding quality or schedule adherence, as the lack of competition limits the immediate threat of losing future work. Furthermore, if the sole-source justification is weak or later found to be invalid, it could lead to protests and potential contract disputes, causing delays and additional costs.

What is the track record of PED CONCEPTS INC. with federal construction contracts?

Information regarding the track record of PED CONCEPTS INC. with federal construction contracts is not provided in the given data. To assess their performance history, one would typically need to consult federal procurement databases like SAM.gov or FPDS-NG to review past awards, contract values, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. A positive track record with similar projects, especially those involving international or remote locations, would increase confidence in their ability to successfully execute this contract. Conversely, a history of poor performance or cost overruns on previous federal contracts would be a significant concern.

What are the implications of the one-year duration for these six construction projects?

A one-year duration for six distinct construction projects suggests that each project is likely to be relatively small in scope or that the projects are phased to occur sequentially within that year. This short timeframe could imply a need for rapid deployment or completion of specific, time-sensitive infrastructure needs. However, it also presents potential challenges. Coordinating six separate projects, even if small, within a single year, especially in potentially remote locations like Antigua and Trinidad, requires efficient project management. It might also mean that the scope of each project is limited, potentially impacting the overall long-term utility or complexity of the facilities being built. The firm fixed-price nature combined with a tight deadline could increase pressure on the contractor.

How does the lack of small business subcontracting requirements impact the small business ecosystem?

The absence of specific small business subcontracting requirements in this sole-source contract means that opportunities for small businesses to participate in this particular project are likely limited to whatever subcontracting PED CONCEPTS INC. voluntarily chooses to offer. This can be a missed opportunity for small businesses in the construction trades or related services to gain experience, revenue, and build their federal contracting portfolio. For agencies aiming to meet small business utilization goals, sole-source awards without subcontracting plans can hinder progress. It suggests that the primary focus of this contract is on the direct delivery by the prime contractor, rather than leveraging the broader small business industrial base.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6945025RDC34

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10752 DEERWOOD PARK BLVD, JACKSONVILLE, FL, 32246

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small 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: $2,692,613

Exercised Options: $2,692,613

Current Obligation: $2,692,613

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945025D0018

IDV Type: IDC

Timeline