Navy operations support center contract awarded to NVE-HHI JV for over $24.8 million

Contract Overview

Contract Amount: $24,822,276 ($24.8M)

Contractor: Nve-Hhi JV

Awarding Agency: Department of Defense

Start Date: 2021-11-04

End Date: 2024-08-30

Contract Duration: 1,030 days

Daily Burn Rate: $24.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NAVY OPERATIONS SUPPORT CENTER

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $24.8 million to NVE-HHI JV for work described as: NAVY OPERATIONS SUPPORT CENTER Key points: 1. The contract value of $24.8 million represents a significant investment in facility operations and maintenance. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. The contract duration of 1030 days (approx. 2.8 years) provides a stable period for service delivery. 4. Fixed-price contract type generally shifts performance risk to the contractor. 5. The contract falls under commercial and institutional building construction, a broad sector with diverse market participants. 6. The awardee, NVE-HHI JV, is a joint venture, which can bring specialized capabilities but also introduces partnership dynamics. 7. The contract is for operations support, implying ongoing facility management and maintenance services.

Value Assessment

Rating: fair

The contract value of $24.8 million for 1030 days of operations support appears within a reasonable range for large-scale facility management. Benchmarking against similar contracts for institutional building operations in similar geographic regions would provide a more precise value assessment. The firm fixed-price structure suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator of value if managed effectively. However, without detailed scope of work and performance metrics, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive bidding process where all responsible sources were initially considered. The presence of 12 bidders (no) suggests a healthy level of interest and competition for this requirement. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: A competitive award process like this helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are the personnel and operations supported by the facilities managed under this contract. Services delivered include essential operations and maintenance for commercial and institutional buildings. The geographic impact is localized to the area where the Navy operations support center is located in Utah. Workforce implications include employment opportunities for construction, maintenance, and operational support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if the scope of work is not tightly defined and managed under the firm fixed-price contract.
Performance variability among joint venture partners could impact service delivery quality.
Dependence on a single joint venture for critical operations support may pose a risk if the JV faces internal challenges.

Positive Signals

The full and open competition process with 12 bidders suggests a robust market response and potential for competitive pricing.
The firm fixed-price contract type shifts cost risk to the contractor, incentivizing efficient performance.
The joint venture structure may bring specialized expertise to bear on complex facility operations.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which encompasses a wide range of services related to the upkeep and operation of non-residential structures. The market for facility management and operations support is substantial, with numerous providers ranging from large corporations to specialized service firms. This contract represents a typical government procurement for essential base operations, fitting within the broader defense spending landscape for infrastructure and facility maintenance.

Small Business Impact

The data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. There is no explicit information on subcontracting plans for small businesses. The absence of a small business set-aside suggests that the primary focus was on obtaining the best overall value through full and open competition, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army, overseeing the Navy's operations support center. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to meet defined performance standards. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities may not be publicly detailed.

Related Government Programs

Base Operations Support Services
Facility Maintenance and Repair Contracts
Commercial Building Operations
Government Construction Projects
Department of Defense Infrastructure

Risk Flags

Potential for performance issues if joint venture partners have conflicting priorities or capabilities.
Risk of scope creep if contract requirements are not precisely defined and managed.
Dependence on a single entity for critical facility operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to NVE-HHI JV. NAVY OPERATIONS SUPPORT CENTER

Who is the contractor on this award?

The obligated recipient is NVE-HHI 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 $24.8 million.

What is the period of performance?

Start: 2021-11-04. End: 2024-08-30.

What is the historical spending pattern for operations support at this specific Navy facility?

Analyzing historical spending for this Navy operations support center would require accessing prior contract awards for similar services at this location. Without that specific data, it's difficult to establish a precise historical trend. However, the current award of over $24.8 million for approximately 2.8 years suggests a substantial and ongoing requirement for facility operations. Government spending on base operations and maintenance is a consistent component of defense budgets, often subject to fluctuations based on infrastructure needs, modernization efforts, and overall fiscal policy. Comparing this award to previous contracts of similar scope and duration would reveal whether spending has increased, decreased, or remained stable over time.

How does the awarded price compare to market rates for similar commercial and institutional building construction and operations services?

Benchmarking this $24.8 million contract against market rates for similar services is challenging without a detailed breakdown of the scope of work and specific services provided. However, the fact that it was awarded under full and open competition with 12 bidders suggests that the pricing likely reflects competitive market conditions. Firm fixed-price contracts generally aim to align with market expectations while shifting risk to the contractor. To perform a precise comparison, one would need to analyze industry cost data for facility management, maintenance, and operational support in the Utah region, considering factors like labor costs, material prices, and overhead. The number of bidders indicates that multiple companies found the opportunity attractive at the proposed price points.

What are the key performance indicators (KPIs) expected under this contract, and how are they monitored?

Key Performance Indicators (KPIs) for an operations support contract typically revolve around facility uptime, response times for maintenance requests, energy efficiency, safety compliance, and overall tenant satisfaction. While the specific KPIs are not detailed in the provided data, they would be contractually defined in the Statement of Work (SOW). Monitoring these KPIs is usually the responsibility of the Contracting Officer's Representative (COR) or a similar government oversight official. Performance is often assessed through regular reports submitted by the contractor, site inspections, and feedback mechanisms from facility users. Failure to meet KPIs can result in contractually stipulated remedies, such as performance deductions or even termination.

What is the track record of NVE-HHI JV in performing similar government contracts?

Assessing the track record of NVE-HHI JV requires examining their past performance on similar government contracts, particularly those involving facility operations and maintenance for large institutions. As a joint venture, its performance history would be a composite of the individual partners' experiences and their collaborative efforts. Information on past performance, including client satisfaction, adherence to schedule and budget, and quality of work, is typically available through government databases like the Contractor Performance Assessment Reporting System (CPARS). A review of CPARS data would provide insights into their reliability, technical capabilities, and overall suitability for managing this significant operations support contract.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type, while competitive, can introduce specific risks. It implies that an initial broad solicitation may have excluded certain categories of sources for specific reasons (e.g., security, specialized capabilities), followed by a full and open competition among the remaining eligible sources. The risk lies in ensuring that the exclusion criteria were justified and did not unduly limit competition, potentially leading to a less optimal outcome than a truly unrestricted competition. Additionally, the complexity of managing a multi-stage procurement process can sometimes lead to delays or administrative challenges. However, the presence of 12 bidders suggests that the exclusion did not significantly deter market participation in this instance.

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: TWO STEP

Solicitation ID: W9123820R0058

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11507 N 6090 W, HIGHLAND, UT, 84003

Business Categories: Category Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,160,289

Exercised Options: $24,870,717

Current Obligation: $24,822,276

Actual Outlays: $1,023,789

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline