DoD's $30M Blue Grass Chemical Agent Destruction Pilot Plant site prep contract awarded to Medvolt, LLC

Contract Overview

Contract Amount: $30,031,973 ($30.0M)

Contractor: Medvolt, LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-24

End Date: 2022-08-31

Contract Duration: 1,072 days

Daily Burn Rate: $28.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BLUE GRASS CHEMICAL AGENT-DESTRUCTION PILOT PLANT (BGCAPP) STATIC DETONATION CHAMBER (SDC) SITE PREPARATION

Place of Performance

Location: RICHMOND, MADISON County, KENTUCKY, 40475

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to MEDVOLT, LLC for work described as: BLUE GRASS CHEMICAL AGENT-DESTRUCTION PILOT PLANT (BGCAPP) STATIC DETONATION CHAMBER (SDC) SITE PREPARATION Key points: 1. Contract awarded for site preparation at the Blue Grass Chemical Agent Destruction Pilot Plant. 2. The contract value is approximately $30 million. 3. Medvolt, LLC is the sole contractor for this project. 4. The contract duration is over 1000 days, indicating a significant project timeline. 5. The project falls under the Commercial and Institutional Building Construction NAICS code. 6. This is a Firm Fixed Price contract, indicating price certainty for the government.

Value Assessment

Rating: fair

The contract value of $30 million for site preparation at a major chemical agent destruction facility appears to be within a reasonable range for such specialized work. However, without specific benchmarks for similar large-scale industrial site preparations, a precise value-for-money assessment is challenging. The firm fixed-price nature provides cost predictability, but the absence of competitive bidding limits the ability to gauge optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one contractor possesses the unique capabilities, security clearances, or specialized knowledge required for a project. The lack of competition means the government did not benefit from a bidding process to potentially drive down costs or explore a wider range of solutions.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible price, as there was no opportunity for multiple companies to compete and offer lower bids.

Public Impact

The primary beneficiaries are the Department of Defense and its mission to safely destroy chemical agents. The services delivered include site preparation essential for the construction of the Static Detonation Chamber (SDC) at the Blue Grass facility. The geographic impact is localized to the Blue Grass Army Depot in Kentucky. Workforce implications include the creation of construction-related jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Long contract duration could introduce risks related to cost overruns or schedule delays if not managed effectively.
Specialized nature of chemical agent destruction facilities requires stringent safety and security protocols, which can be complex to manage.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Award to a single entity may indicate specialized expertise required for this critical national security mission.
Project directly supports a vital national security objective: the destruction of chemical weapons.

Sector Analysis

The construction sector, particularly for specialized government facilities, often involves complex requirements and significant investment. Projects like the Blue Grass Chemical Agent Destruction Pilot Plant (BGCAPP) are high-stakes endeavors due to the sensitive nature of the materials handled. While specific benchmarks for SDC site preparation are not readily available, large-scale industrial construction contracts can range from tens to hundreds of millions of dollars, depending on scope and complexity.

Small Business Impact

The contract data indicates that small business participation was not a stated requirement or a primary focus for this sole-source award. There is no explicit mention of small business set-asides or subcontracting plans. This suggests that the prime contractor, Medvolt, LLC, is likely responsible for the entire scope of work, potentially limiting opportunities for small businesses to participate in this specific project.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures. Specific accountability measures would be detailed in the contract itself, including performance standards and reporting requirements. Transparency is generally maintained through contract award databases, but detailed operational oversight information is often restricted due to security concerns related to the facility's mission.

Related Government Programs

Chemical Weapons Convention Implementation
Department of Defense Facility Construction
Environmental Remediation and Destruction Projects
Army Corps of Engineers Construction Contracts

Risk Flags

Sole-source award may limit cost savings.
Long contract duration presents potential for schedule and cost risks.
Complexity of chemical agent destruction facilities requires rigorous oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to MEDVOLT, LLC. BLUE GRASS CHEMICAL AGENT-DESTRUCTION PILOT PLANT (BGCAPP) STATIC DETONATION CHAMBER (SDC) SITE PREPARATION

Who is the contractor on this award?

The obligated recipient is MEDVOLT, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.0 million.

What is the period of performance?

Start: 2019-09-24. End: 2022-08-31.

What is the track record of Medvolt, LLC in handling large-scale, sensitive government construction projects?

Information regarding Medvolt, LLC's specific track record on large-scale, sensitive government construction projects, particularly those involving hazardous materials or unique security requirements, is not readily available in the public domain. As this contract was awarded sole-source, it suggests that the Department of Defense may have identified Medvolt, LLC as possessing the necessary qualifications, clearances, or specialized experience. Further investigation into their past performance, client references, and any prior government contracts would be necessary for a comprehensive assessment of their capabilities and reliability in such critical infrastructure projects.

How does the $30 million cost compare to similar site preparation projects for industrial facilities?

Benchmarking the $30 million cost for site preparation at the Blue Grass Chemical Agent Destruction Pilot Plant (BGCAPP) against similar projects is challenging due to the highly specialized nature of the facility. Standard industrial site preparation costs can vary widely based on location, soil conditions, environmental remediation needs, and the scale of the subsequent construction. Given that this project is for a chemical agent destruction facility, it likely involves heightened safety, security, and environmental protocols that could increase costs compared to typical commercial or industrial sites. Without access to detailed cost breakdowns or comparable sole-source contracts for similar sensitive government infrastructure, a precise value comparison is difficult.

What are the primary risks associated with a sole-source award for a project of this magnitude?

The primary risks associated with a sole-source award for a project of this magnitude, such as the BGCAPP site preparation, revolve around potential lack of price competition and reduced incentive for cost efficiency. Without multiple bidders vying for the contract, the government may not achieve the lowest possible price. There's also a risk that the sole-source contractor might have less pressure to innovate or optimize processes compared to a competitive environment. Furthermore, if the chosen contractor encounters unforeseen difficulties or lacks specific expertise, the government has limited alternative options without re-initiating a potentially lengthy and complex procurement process.

What is the expected effectiveness of the site preparation in supporting the overall mission of the BGCAPP?

The effectiveness of the site preparation is critical for the overall success and safety of the Blue Grass Chemical Agent Destruction Pilot Plant (BGCAPP) mission. This phase ensures that the ground is stable, properly graded, and equipped with necessary utilities and access routes to support the construction of the Static Detonation Chamber (SDC). Proper site preparation mitigates risks associated with foundation integrity, drainage, and environmental containment during the subsequent construction and operational phases. A well-executed site preparation phase directly contributes to the safe and efficient construction of the SDC, which is a key component in the ultimate goal of destroying chemical agents.

What has been the historical spending trend for the Blue Grass Chemical Agent Destruction Pilot Plant project?

Historical spending data for the Blue Grass Chemical Agent Destruction Pilot Plant (BGCAPP) project, prior to this specific $30 million site preparation contract, would likely show significant investment over many years. The BGCAPP is a large, complex, and long-term undertaking involving multiple phases and contractors for design, construction, and eventual operation. Analyzing past spending would reveal the overall program cost trajectory, identify major expenditure categories (e.g., design, equipment procurement, construction of various components), and potentially highlight any cost overruns or schedule adjustments that have impacted the program's financial history. This specific contract represents a portion of the overall capital investment required for the facility.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this contract?

While the specific performance metrics or Key Performance Indicators (KPIs) for this $30 million site preparation contract are not detailed in the provided summary data, they would typically be outlined within the contract's Statement of Work (SOW) and performance clauses. For a construction project of this nature, KPIs would likely focus on adherence to schedule, quality of work (e.g., meeting engineering specifications, compliance with safety standards), budget management, and timely completion of milestones. Given the critical nature of the BGCAPP, performance would also be assessed against stringent safety and environmental compliance requirements. The firm fixed-price nature implies that meeting these defined performance standards is paramount.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W52P1J19R0130

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Paskenta Band of Nomlaki Indians

Address: 1600 GENNESSEE ST STE 726, KANSAS CITY, MO, 64102

Business Categories: 8(a) Program Participant, Category Business, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,031,973

Exercised Options: $30,031,973

Current Obligation: $30,031,973

Actual Outlays: $1,217,843

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline