DoD Awards $36.7M Construction Contract to Nordic Industries Inc. for California Site Work
Contract Overview
Contract Amount: $36,722,867 ($36.7M)
Contractor: Nordic Industries Inc
Awarding Agency: Department of Defense
Start Date: 2022-04-25
End Date: 2024-07-31
Contract Duration: 828 days
Daily Burn Rate: $44.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: LAR C2: YEAR 2 SITE 2-2 & 2-3
Place of Performance
Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95825
Plain-Language Summary
Department of Defense obligated $36.7 million to NORDIC INDUSTRIES INC for work described as: LAR C2: YEAR 2 SITE 2-2 & 2-3 Key points: 1. The contract value of $36.7M is significant for heavy civil engineering construction. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 828 days indicates a substantial, long-term project. 4. The project is located in California, a high-cost construction environment.
Value Assessment
Rating: fair
The contract value of $36.7M for 828 days of work appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows all qualified contractors to bid, theoretically driving down costs through market forces.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the construction services rendered.
Public Impact
Supports critical infrastructure development for the Department of Defense. Creates construction jobs and economic activity in California. Ensures operational readiness through facility upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns on long-duration construction projects.
- Geographic concentration in California may limit future competition.
- Dependence on a single contractor for a large project.
Positive Signals
- Awarded through full and open competition.
- Clear contract type (Firm Fixed Price) limits cost uncertainty.
- Defined start and end dates provide project clarity.
Sector Analysis
This contract falls under the 'Other Heavy and Civil Engineering Construction' sector. Spending in this sector is crucial for national infrastructure and defense readiness. Benchmarks for similar large-scale civil engineering projects vary widely based on scope and location.
Small Business Impact
The data indicates this was a full and open competition, and the award was made to Nordic Industries Inc. There is no specific information provided regarding small business participation or subcontracting goals within this award.
Oversight & Accountability
The contract is managed by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for federal construction contracts would apply, including site inspections and progress reporting.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large contract value.
- Long contract duration.
- Potential for unforeseen site conditions.
- Concentration in a high-cost state (California).
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.7 million to NORDIC INDUSTRIES INC. LAR C2: YEAR 2 SITE 2-2 & 2-3
Who is the contractor on this award?
The obligated recipient is NORDIC INDUSTRIES 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 $36.7 million.
What is the period of performance?
Start: 2022-04-25. End: 2024-07-31.
What specific construction tasks are included in 'Site 2-2 & 2-3' to justify the $36.7M cost?
The contract details for 'LAR C2: YEAR 2 SITE 2-2 & 2-3' are not fully elaborated in the provided data. However, given the sector and contract value, it likely encompasses significant earthwork, foundation construction, utility installation, and potentially structural elements for military facilities. A detailed statement of work would be required for a precise cost breakdown.
What are the primary risks associated with this firm-fixed-price construction contract?
The primary risks with a firm-fixed-price contract, despite its cost certainty for the government, lie with the contractor. If unforeseen site conditions, material cost escalations, or labor shortages occur, Nordic Industries Inc. may face reduced profit margins or financial strain. The government's risk is primarily related to the contractor's ability to deliver quality work on time.
How effectively does this contract contribute to the Department of Defense's mission objectives?
This contract directly supports the Department of Defense's mission by ensuring the necessary infrastructure is in place for operational readiness. Upgrading or constructing facilities at specific sites is fundamental to housing personnel, equipment, and supporting training exercises. The successful completion of this project is therefore crucial for maintaining and enhancing military capabilities.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: W9123822B0006
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1437 FURNEAUX RD, OLIVEHURST, CA, 95961
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,722,867
Exercised Options: $36,722,867
Current Obligation: $36,722,867
Actual Outlays: $14,445,111
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-04-25
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 00:00:00
Last Modified: 2025-07-15
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