DoD Awards $110M to Balfour Beatty for Construction Services in Virginia
Contract Overview
Contract Amount: $109,972,509 ($110.0M)
Contractor: Balfour Beatty Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2007-06-13
End Date: 2010-11-28
Contract Duration: 1,264 days
Daily Burn Rate: $87.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: LOGU
Place of Performance
Location: NORFOLK, NORFOLK (CITY) County, VIRGINIA, 23510
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $110.0 million to BALFOUR BEATTY CONSTRUCTION, LLC for work described as: LOGU Key points: 1. Significant contract value of $109.97M awarded to Balfour Beatty Construction, LLC. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans over three years, indicating a substantial, long-term project. 4. The sector is Commercial and Institutional Building Construction, a key area for infrastructure development.
Value Assessment
Rating: good
The contract value of $109.97M is substantial. Without specific unit cost data or a direct comparison to similar projects, a precise value assessment is difficult. However, the firm fixed-price structure suggests cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and allows the government to obtain the best value. The use of this method suggests multiple bidders likely participated, driving down costs.
Taxpayer Impact: The competitive nature of the award is expected to yield favorable pricing for taxpayers, ensuring efficient use of public funds for essential construction services.
Public Impact
Supports military infrastructure and readiness through construction services. Provides employment opportunities within the construction sector in Virginia. Impacts local economies through subcontracts and material procurement.
Waste & Efficiency Indicators
Waste Risk Score: 87 / 10
Warning Flags
- Contract duration of 1264 days may lead to potential cost overruns if not managed effectively.
- Lack of specific performance metrics makes it difficult to assess efficiency beyond price.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- Firm fixed price contract provides cost predictability.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which is vital for government infrastructure. Spending in this sector can fluctuate based on defense needs and modernization efforts. Benchmarks would typically compare cost per square foot or project complexity.
Small Business Impact
The data indicates the primary awardee is Balfour Beatty Construction, LLC, a large business. There is no explicit information on subcontracting to small businesses within this award, which could be an area for further review to ensure small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would involve monitoring project progress, quality, and adherence to contract terms to ensure taxpayer funds are used effectively and responsibly.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is lengthy (1264 days).
- No explicit mention of small business subcontracting.
- Limited detail on specific construction deliverables.
- Potential for cost escalation if unforeseen issues arise, despite fixed price.
Tags
commercial-and-institutional-building-co, department-of-defense, va, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $110.0 million to BALFOUR BEATTY CONSTRUCTION, LLC. LOGU
Who is the contractor on this award?
The obligated recipient is BALFOUR BEATTY CONSTRUCTION, 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 $110.0 million.
What is the period of performance?
Start: 2007-06-13. End: 2010-11-28.
What specific types of construction services were included in this $110M contract, and how do they align with the Army's strategic infrastructure goals?
The contract, NAICS 236220, covers general commercial and institutional building construction. While specific project details are not provided, such contracts typically encompass new construction, renovation, and repair of facilities like barracks, administrative buildings, training centers, or support structures essential for military operations and personnel well-being.
Given the firm fixed-price nature, what mechanisms are in place to manage potential scope creep or unforeseen challenges that could impact the final cost to the government?
Firm fixed-price contracts place the cost risk on the contractor. However, the government typically retains oversight to ensure work aligns with the defined scope. Change order processes are usually stringent, requiring justification and potentially supplemental funding if scope changes are approved, but the goal is to avoid them.
How does the $109.97M award compare to typical spending for similar large-scale construction projects within the Department of the Army or DoD?
Without specific project scope and location context, a direct comparison is challenging. However, $110M is a significant sum, indicative of a major construction undertaking. Benchmarking would involve analyzing cost per square foot, project complexity, and duration against other similar military construction projects awarded over the past few years.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: W9123607R0007
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Balfour Beatty PLC (UEI: 210042081)
Address: 3924 PENDER DR, FAIRFAX, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $109,972,509
Exercised Options: $109,972,509
Current Obligation: $109,972,509
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-06-13
Current End Date: 2010-11-28
Potential End Date: 2010-11-28 00:00:00
Last Modified: 2010-09-13
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