DoD awards $141.8M for Eustis-Langley construction, with Balfour Beatty leading Phase 2 & 3

Contract Overview

Contract Amount: $141,851,444 ($141.9M)

Contractor: Balfour Beatty Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2020-10-13

End Date: 2025-01-22

Contract Duration: 1,562 days

Daily Burn Rate: $90.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF THE BATTALION COMPLEX OPERATIONS BUILDING (PHASE 2) AND HANGAR FACILITY (PHASE 3) AT (JEB) EUSTIS-LANGLEY, NEWPORT NEWS, VIRGINIA.

Place of Performance

Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $141.9 million to BALFOUR BEATTY CONSTRUCTION, LLC for work described as: CONSTRUCTION OF THE BATTALION COMPLEX OPERATIONS BUILDING (PHASE 2) AND HANGAR FACILITY (PHASE 3) AT (JEB) EUSTIS-LANGLEY, NEWPORT NEWS, VIRGINIA. Key points: 1. Contract value of $141.8M for construction services. 2. Full and open competition indicates a competitive bidding process. 3. Firm-fixed-price contract type suggests price certainty for the government. 4. Project spans multiple phases, indicating a phased approach to construction. 5. Contract duration of 1562 days suggests a significant construction timeline. 6. Geographic focus on Virginia for this Department of Defense project.

Value Assessment

Rating: good

The contract value of $141.8 million for the construction of a battalion complex operations building and hangar facility appears reasonable given the scope and duration. Benchmarking against similar large-scale military construction projects in the region would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overruns for the government, contributing to predictable spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a healthy level of competition for this significant construction project. This competitive environment is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down bid prices and ensured the government received competitive offers for the construction services.

Public Impact

The Department of Defense benefits from the construction of essential facilities at Joint Base Eustis-Langley. The project will deliver a battalion complex operations building and a hangar facility. The geographic impact is concentrated in Newport News, Virginia. The construction activities will likely create numerous jobs in the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of unforeseen site conditions requiring change orders.
Coordination challenges between different construction phases.

Positive Signals

Firm-fixed-price contract limits cost escalation.
Full and open competition suggests competitive pricing.
Experienced contractor likely to manage project effectively.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Defense is a major client for large-scale construction projects, often involving specialized facilities like hangars and operational buildings. Spending in this sector is influenced by military readiness needs, infrastructure upgrades, and national security priorities. Comparable spending benchmarks would involve analyzing other large military construction contracts awarded by the Army or other branches.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem through this specific award is likely limited, unless Balfour Beatty Beatty Construction, LLC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified facilities. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Management
Army Corps of Engineers Construction Contracts

Risk Flags

Potential for schedule delays
Risk of cost overruns due to unforeseen conditions
Coordination challenges across project phases

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $141.9 million to BALFOUR BEATTY CONSTRUCTION, LLC. CONSTRUCTION OF THE BATTALION COMPLEX OPERATIONS BUILDING (PHASE 2) AND HANGAR FACILITY (PHASE 3) AT (JEB) EUSTIS-LANGLEY, NEWPORT NEWS, VIRGINIA.

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 $141.9 million.

What is the period of performance?

Start: 2020-10-13. End: 2025-01-22.

What is Balfour Beatty Construction, LLC's track record with similar large-scale DoD construction projects?

Balfour Beatty Construction, LLC has a substantial track record of executing large-scale construction projects, including significant work for the Department of Defense. They have been involved in numerous military construction initiatives, encompassing barracks, training facilities, and infrastructure upgrades. Their experience often includes navigating complex requirements, security protocols, and stringent quality standards typical of defense projects. A review of their past performance on similar firm-fixed-price contracts would indicate their ability to manage scope, schedule, and budget effectively. Their portfolio suggests a capacity to handle projects of this magnitude, though specific performance metrics on prior DoD contracts would offer a more granular assessment of their reliability and efficiency.

How does the $141.8 million contract value compare to similar construction projects at military installations in Virginia?

The $141.8 million contract value for the construction of a battalion complex operations building and hangar facility at Joint Base Eustis-Langley is substantial. To benchmark its value, one would compare it to other recent large-scale military construction projects awarded by the Department of Defense or its branches within Virginia or neighboring states. Factors such as the specific square footage, complexity of the facilities (e.g., specialized hangar requirements), and prevailing construction market conditions at the time of award are critical for a fair comparison. Without access to detailed cost breakdowns or comparable project data, it's challenging to definitively state if this represents exceptional value, but it aligns with the typical investment required for major military infrastructure development.

What are the primary risks associated with a multi-phase construction project of this scale and duration?

Multi-phase construction projects of this scale and duration, like the one at JEB Eustis-Langley, carry inherent risks. Key risks include potential delays in subsequent phases due to issues in earlier ones, leading to schedule slippage and increased costs. Unforeseen site conditions (e.g., soil issues, underground utilities) can necessitate costly change orders. Coordination between different contractors or phases can be complex, potentially leading to conflicts or inefficiencies. Inflationary pressures over the extended project timeline could impact material and labor costs, even with a fixed-price contract if contingencies are not adequately managed. Furthermore, changes in military requirements or funding priorities could affect project scope or continuity.

How effective is a firm-fixed-price contract in managing costs for long-term construction projects?

A firm-fixed-price (FFP) contract is generally effective in managing costs for long-term construction projects by shifting the risk of cost overruns to the contractor. The contractor agrees to a set price, and is responsible for completing the work within that budget. This provides the government with cost certainty and predictability. However, for very long-term projects, there's a risk that the contractor may have underestimated costs or that unforeseen economic conditions (like significant inflation) could strain their ability to deliver without seeking modifications or facing financial difficulty. Effective FFP contracts require a well-defined scope of work upfront to minimize the need for costly change orders, which can erode the fixed-price benefit.

What are the historical spending patterns for construction at Joint Base Eustis-Langley?

Analyzing historical spending patterns at Joint Base Eustis-Langley for construction would involve examining past contract awards for facility upgrades, new construction, and maintenance over several fiscal years. This would reveal trends in the types of projects undertaken, the average contract values, and the primary contracting agencies or methods used. Understanding this history can provide context for the current $141.8 million award, indicating whether it represents a significant increase or is in line with previous investment levels. It could also highlight any recurring issues or successful project delivery methods employed at the 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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9123620R0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11325 RANDOM HILLS RD STE 500, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $141,851,444

Exercised Options: $141,851,444

Current Obligation: $141,851,444

Actual Outlays: $-6,632,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline