DoD Awards $10.8M Contract for Facility Renovation in West Virginia

Contract Overview

Contract Amount: $10,813,724 ($10.8M)

Contractor: HDD JV

Awarding Agency: Department of Defense

Start Date: 2022-09-15

End Date: 2026-01-12

Contract Duration: 1,215 days

Daily Burn Rate: $8.9K/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: RENOVATE SPACE IN AN EXISTING TWO STORY FACILITY TO SUPPORT RELOCATION OF MAINTENANCE SHOP AND MAINTENANCE ADMINISTRATION FUNCTIONS. ADDITIONAL SPACE WILL BE RENOVATED TO SUPPORT RELOCATION OF SQUADRON OPERATIONS AND BASE OPERATIONS FUNCTIONS.

Place of Performance

Location: MARTINSBURG, BERKELEY County, WEST VIRGINIA, 25405

State: West Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.8 million to HDD JV for work described as: RENOVATE SPACE IN AN EXISTING TWO STORY FACILITY TO SUPPORT RELOCATION OF MAINTENANCE SHOP AND MAINTENANCE ADMINISTRATION FUNCTIONS. ADDITIONAL SPACE WILL BE RENOVATED TO SUPPORT RELOCATION OF SQUADRON OPERATIONS AND BASE OPERATIONS FUNCTIONS. Key points: 1. The contract focuses on renovating existing facilities to support maintenance and operations functions. 2. The project is managed by the Department of the Army under the Department of Defense. 3. The contract type is Firm Fixed Price, indicating a set cost for the work. 4. The sector is Commercial and Institutional Building Construction, a common area for facility upgrades.

Value Assessment

Rating: fair

The contract value of $10.8M for facility renovation appears within a reasonable range for the scope described. Benchmarking against similar construction projects of this size and complexity would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests some limitations were placed on potential bidders, which could impact price discovery. Further details on the exclusion criteria are needed for a complete assessment.

Taxpayer Impact: Taxpayer funds are being used for facility upgrades to improve operational efficiency within the Department of Defense.

Public Impact

Improved infrastructure for military maintenance and operations. Potential for job creation in West Virginia during the renovation period. Ensures facilities meet current operational needs for the base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may lead to higher costs.
  • Scope creep potential in renovation projects.
  • Contract duration extends into 2026, requiring ongoing monitoring.

Positive Signals

  • Supports essential base operations.
  • Firm Fixed Price contract provides cost certainty.
  • Located in West Virginia, potentially benefiting local economy.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is driven by infrastructure needs, facility upgrades, and modernization efforts across government agencies.

Small Business Impact

The data indicates that small business participation (sb: false) was not a stated requirement or outcome for this contract, suggesting a focus on larger prime contractors.

Oversight & Accountability

The Department of the Army is responsible for oversight. The firm fixed price nature of the contract provides some cost control, but monitoring of scope and quality will be crucial.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for cost overruns if scope is not tightly managed.
  • Risk associated with the 'limited' competition affecting price competitiveness.
  • Long project duration increases exposure to unforeseen issues.
  • Dependence on contractor performance for successful project completion.

Tags

commercial-and-institutional-building-co, department-of-defense, wv, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.8 million to HDD JV. RENOVATE SPACE IN AN EXISTING TWO STORY FACILITY TO SUPPORT RELOCATION OF MAINTENANCE SHOP AND MAINTENANCE ADMINISTRATION FUNCTIONS. ADDITIONAL SPACE WILL BE RENOVATED TO SUPPORT RELOCATION OF SQUADRON OPERATIONS AND BASE OPERATIONS FUNCTIONS.

Who is the contractor on this award?

The obligated recipient is HDD JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 2022-09-15. End: 2026-01-12.

What specific factors led to the exclusion of certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, and how did this impact the final price?

The exclusion of sources typically occurs when specific capabilities, past performance, or security clearances are required that only a limited number of contractors possess. This can reduce the number of bidders, potentially leading to less competitive pricing. Without knowing the exact exclusion criteria, it's difficult to definitively state the price impact, but it generally suggests a less robust price discovery process than unrestricted full and open competition.

What are the key performance indicators (KPIs) for this renovation project, and how will their achievement be measured to ensure effectiveness?

Key performance indicators would likely include adherence to the project schedule, completion within the fixed budget, quality of construction meeting specified standards, and successful operationalization of the renovated spaces for maintenance and squadron functions. Measurement would involve regular site inspections, progress reports, milestone reviews, and final acceptance testing by the government.

Given the long contract duration (1215 days), what mechanisms are in place to manage potential cost increases due to inflation or material price volatility?

Although this is a Firm Fixed Price contract, which generally shields the government from price increases, the contract may include clauses addressing unforeseen circumstances or significant market shifts. However, typically, the contractor assumes the risk for such volatilities. The government's primary control is through strict scope management and ensuring the initial pricing accurately reflected anticipated costs.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W50S8V22B0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 DAVIS AVE SW, LEESBURG, VA, 20175

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $10,813,724

Exercised Options: $10,813,724

Current Obligation: $10,813,724

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2022-09-15

Current End Date: 2026-01-12

Potential End Date: 2026-01-12 00:00:00

Last Modified: 2025-10-07

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