DoD Awards $21.5M for Langley Eustis Access Control Point Construction

Contract Overview

Contract Amount: $21,489,993 ($21.5M)

Contractor: Nisou Enterprises Inc

Awarding Agency: Department of Defense

Start Date: 2025-03-17

End Date: 2027-07-14

Contract Duration: 849 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF NEW ACCESS CONTROL POINT AT THE MAIN GATE OF JOINT BASE LANGLEY EUSTIS, VIRGINIA.

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to NISOU ENTERPRISES INC for work described as: CONSTRUCTION OF NEW ACCESS CONTROL POINT AT THE MAIN GATE OF JOINT BASE LANGLEY EUSTIS, VIRGINIA. Key points: 1. Significant investment in base infrastructure security. 2. NISOU ENTERPRISES INC secures major construction contract. 3. Potential for cost overruns or delays in large-scale construction. 4. Construction sector sees continued government spending.

Value Assessment

Rating: fair

The contract value of $21.5 million for a new access control point appears substantial. Benchmarking against similar military construction projects would be necessary to determine if this price is competitive, as specific comparable data is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted the pool of potential bidders, potentially impacting price discovery and overall value for the government.

Taxpayer Impact: Taxpayers are funding a significant infrastructure upgrade for military base security. The limited competition raises questions about whether the most cost-effective solution was secured.

Public Impact

Enhances security and operational efficiency at a major military installation. Supports local economy through construction jobs and material procurement. Potential for long-term maintenance and operational costs associated with the new facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have inflated costs.
Construction projects are susceptible to delays and unforeseen issues.
Small business participation is not indicated.

Positive Signals

Addresses critical base security needs.
Firm fixed price contract provides cost certainty.
Long-term asset for Joint Base Langley Eustis.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Government spending in this area is often driven by infrastructure upgrades, modernization efforts, and security enhancements for federal facilities.

Small Business Impact

The data indicates that small business participation was not a factor in this award, as the 'sb' field is false. This suggests the prime contractor is likely a larger entity, and opportunities for small businesses may be limited to subcontracting roles.

Oversight & Accountability

The award is managed by the Department of the Army, a component of the Department of Defense. Oversight will likely involve contract management teams ensuring adherence to specifications, timelines, and budget, with potential for audits.

Related Government Programs

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

Risk Flags

Limited competition raises cost concerns.
Construction projects carry inherent risks of delays and cost overruns.
Lack of explicit small business set-aside or participation.
Potential for scope creep or change orders during the project lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to NISOU ENTERPRISES INC. CONSTRUCTION OF NEW ACCESS CONTROL POINT AT THE MAIN GATE OF JOINT BASE LANGLEY EUSTIS, VIRGINIA.

Who is the contractor on this award?

The obligated recipient is NISOU ENTERPRISES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2025-03-17. End: 2027-07-14.

What specific factors led to the exclusion of other sources in this 'full and open competition after exclusion of sources' award, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical requirements, security clearances, or unique capabilities are mandated, limiting the eligible bidder pool. While intended to ensure specialized needs are met, this can reduce competition, potentially leading to higher prices than a truly open competition. Further documentation would be needed to detail the specific justifications for excluding other sources in this instance.

What are the key performance indicators and risk mitigation strategies in place to manage the $21.5 million construction project and ensure it stays within budget and schedule?

Effective project management for a $21.5 million construction contract typically involves detailed scheduling, regular progress reporting, quality control inspections, and robust risk management plans. Key performance indicators would likely include on-time completion of milestones, adherence to quality standards, and budget variance analysis. Risk mitigation strategies might encompass contingency planning for weather delays, material shortages, or unforeseen site conditions.

How does the construction of this new access control point align with broader Department of Defense security modernization initiatives and what is the expected long-term operational benefit?

The new access control point likely aligns with DoD initiatives to enhance physical security and streamline entry/exit procedures at military installations. Expected long-term benefits include improved force protection, better traffic flow management, and integration with advanced surveillance and identification technologies, contributing to overall base security posture and operational readiness.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W9123624B2006

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 37279 ASPEN DR, FARMINGTON HILLS, MI, 48335

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $21,530,797

Exercised Options: $21,530,797

Current Obligation: $21,489,993

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline