Department of the Army awards $34.3M contract for CCAD REPAIR BUILDING 8 PHASE E to Mountain Point, LLC

Contract Overview

Contract Amount: $34,312,946 ($34.3M)

Contractor: Mountain Point, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2028-02-03

Contract Duration: 1,952 days

Daily Burn Rate: $17.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CCAD REPAIR BUILDING 8 PHASE E

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $34.3 million to MOUNTAIN POINT, LLC for work described as: CCAD REPAIR BUILDING 8 PHASE E Key points: 1. The contract's value of $34.3 million for building repair suggests a significant investment in infrastructure. 2. The award to a single entity, Mountain Point, LLC, warrants scrutiny regarding the procurement process and potential for competition. 3. The firm fixed-price contract type indicates that cost risks are largely borne by the contractor, which can incentivize efficiency. 4. The extended duration of the contract (over 1900 days) suggests a complex or long-term project. 5. The absence of specific performance metrics in the provided data makes it difficult to assess value for money directly. 6. The contract's focus on building repair positions it within the broader construction and facilities maintenance sector for the military.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable projects for CCAD Building 8. The $34.3 million price tag for a building repair phase suggests a substantial scope of work. However, without details on the specific repairs, materials, and labor involved, a precise value-for-money assessment is difficult. Comparing it to similar large-scale military facility repair contracts could provide context, but the unique nature of each project limits direct comparisons. The firm fixed-price structure generally aims to control costs, but the overall price needs to be evaluated against the expected lifespan and functional improvements of the repaired building.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. Sole-source awards are typically justified when only one vendor can provide the required goods or services, often due to unique capabilities, existing infrastructure, or urgent needs. The lack of competition in this instance means that the government did not benefit from the price discovery and innovation that typically arises from a competitive bidding process. This procurement method requires strong justification to ensure the government is still receiving fair and reasonable pricing.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers compared to competitively bid contracts, as the absence of multiple bidders may reduce pressure on the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel who will utilize the repaired Building 8. The contract delivers essential repair and maintenance services for a critical military facility. The geographic impact is localized to the specific military installation where Building 8 is located. The contract will likely involve a workforce of construction professionals, tradespeople, and project managers, potentially including local labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
The extended contract duration could introduce risks related to cost escalation if not managed effectively.
Limited transparency due to sole-source award makes it harder to verify the necessity and cost-effectiveness of the contract.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor, potentially leading to better cost control.
The award to a specific contractor suggests they possess the necessary qualifications and capacity for this specialized repair work.
Investment in facility repair indicates a commitment to maintaining and improving essential military infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on repair and maintenance of government facilities. The federal government is a significant consumer of construction services, with substantial annual spending on infrastructure, maintenance, and new builds across various agencies. This contract represents a portion of that spending, aimed at ensuring the operational readiness and longevity of military assets. Comparable spending benchmarks would involve analyzing other large-scale repair and renovation contracts awarded by the Department of Defense or other federal agencies for similar types of buildings.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Mountain Point, LLC, may still choose to subcontract portions of the work to small businesses as part of their overall business strategy or if specific expertise is required. The absence of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were not prioritized.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. Accountability measures would be embedded in the contract terms, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Military Construction
Facilities Maintenance and Repair
Government Building Contracts
Department of Defense Infrastructure Projects

Risk Flags

Sole-source award
Lack of competition
Extended contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.3 million to MOUNTAIN POINT, LLC. CCAD REPAIR BUILDING 8 PHASE E

Who is the contractor on this award?

The obligated recipient is MOUNTAIN POINT, 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 $34.3 million.

What is the period of performance?

Start: 2022-09-30. End: 2028-02-03.

What is the track record of Mountain Point, LLC in performing similar large-scale building repair contracts for the federal government?

Assessing the track record of Mountain Point, LLC requires a review of their past performance on federal contracts, particularly those involving significant building repair or construction. Information on past performance can often be found in federal procurement databases, such as the Federal Procurement Data System (FPDS) or SAM.gov. Key indicators to examine include the number and value of previously awarded contracts, client agency feedback (if available), any history of contract disputes or terminations, and the successful completion of projects within scope, schedule, and budget. A contractor with a strong history of successful, on-time, and within-budget project delivery for similar work would be considered a lower risk. Conversely, a history of performance issues could indicate potential risks for this current contract.

How does the awarded price of $34.3 million compare to similar building repair projects within the Department of the Army or other federal agencies?

To benchmark the $34.3 million price, one would need to identify comparable federal building repair contracts. This involves searching procurement databases for projects of similar size, scope (e.g., structural repairs, HVAC upgrades, roofing), building type (e.g., barracks, administrative buildings, hangars), and geographic location. Factors such as the age and condition of the facility, the complexity of the required work, and prevailing labor and material costs in the region are crucial for a fair comparison. If similar projects were competitively bid and awarded at significantly lower prices, it could suggest that this sole-source contract may not represent optimal value for money. Conversely, if comparable projects had higher costs due to similar complexities or market conditions, the price might be considered reasonable.

What are the specific risks associated with a sole-source award for a contract of this magnitude and duration?

The primary risk of a sole-source award for a $34.3 million contract with a duration of over 1900 days is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the most favorable price. Additionally, there's a risk that the sole-source contractor may not be as incentivized to innovate or maintain the highest levels of efficiency as they might be in a competitive environment. The extended duration also introduces risks related to potential cost overruns if market prices for materials or labor increase significantly and the contract terms do not adequately address such fluctuations. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations to mitigate these risks.

What are the expected outcomes or performance standards for the CCAD REPAIR BUILDING 8 PHASE E project?

The expected outcomes and performance standards for the CCAD REPAIR BUILDING 8 PHASE E project would be detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Typically, these documents outline the specific repair tasks to be completed, the quality standards for the work (e.g., adherence to building codes, material specifications), the schedule for completion of various phases, and the final acceptance criteria. Performance standards might include metrics related to structural integrity, functionality of repaired systems (e.g., HVAC, electrical), safety compliance, and the overall condition of the building post-repair. The government would likely have designated personnel responsible for inspecting the work and verifying that all contractual requirements and performance standards have been met before final payment is made.

How does this contract fit into the broader context of military infrastructure maintenance and modernization spending by the Department of the Army?

This contract for CCAD REPAIR BUILDING 8 PHASE E represents a component of the Department of the Army's overall spending on maintaining and modernizing its vast infrastructure. Military installations require continuous investment to ensure facilities are safe, functional, and capable of supporting operational readiness. Spending in this area can fluctuate based on budget allocations, the assessed condition of existing infrastructure, and strategic priorities for modernization or expansion. Contracts like this one address deferred maintenance or necessary upgrades to ensure buildings remain viable assets. Analyzing this contract's value in relation to the Army's total infrastructure budget and its specific repair and maintenance allocations provides context on its relative significance.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9126G22R0044

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7050 INFANTRY RIDGE RD, MANASSAS, VA, 20109

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,312,946

Exercised Options: $34,312,946

Current Obligation: $34,312,946

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline