DoD Awards $25.4M Task Order for NAMRU-6 Building Revitalization to Palgag Building Technologies
Contract Overview
Contract Amount: $25,369,584 ($25.4M)
Contractor: Palgag Building Technologies Ltd
Awarding Agency: Department of Defense
Start Date: 2018-09-26
End Date: 2025-12-31
Contract Duration: 2,653 days
Daily Burn Rate: $9.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NAMRU-6 BUILDING 1 REVITALIZATION - TASK ORDER
Plain-Language Summary
Department of Defense obligated $25.4 million to PALGAG BUILDING TECHNOLOGIES LTD for work described as: NAMRU-6 BUILDING 1 REVITALIZATION - TASK ORDER Key points: 1. The task order represents a significant investment in facility modernization for the Department of Defense. 2. Competition details are limited, but the awardee has experience in construction. 3. Potential risks include project delays or cost overruns given the multi-year duration. 4. The sector is commercial and institutional building construction, crucial for operational readiness.
Value Assessment
Rating: fair
The contract value of $25.4 million for a multi-year revitalization project appears within a reasonable range for large-scale construction. However, without specific benchmarks for similar NAMRU-6 facility upgrades, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a Firm Fixed Price contract aims to control costs, but the duration and scope could still present challenges.
Taxpayer Impact: Taxpayers are impacted through funding for essential military research facilities. The competitive award aims to ensure value for money, but ongoing monitoring is needed to prevent cost escalation.
Public Impact
Enhances critical research infrastructure for the Navy Medical Research Command. Supports operational capabilities and personnel working at the NAMRU-6 facility. Potential for job creation within the construction sector during the project lifecycle.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (over 7 years) increases risk of scope creep and cost escalation.
- Fixed price contract may not fully account for unforeseen construction challenges.
- Limited information on specific revitalization scope makes risk assessment difficult.
Positive Signals
- Awarded under full and open competition, indicating potential for competitive pricing.
- Firm Fixed Price contract provides cost certainty if scope is well-defined.
- Task order supports critical military research infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this area is vital for maintaining and upgrading government facilities, including research installations like NAMRU-6, ensuring operational readiness and capacity.
Small Business Impact
The data indicates this was a delivery order, and it is unclear if small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army, under the DoD, is responsible for oversight. The multi-year nature of the task order necessitates continuous monitoring of progress, budget adherence, and quality to ensure accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk.
- Potential for cost overruns despite fixed price.
- Limited scope details hinder full risk assessment.
- Dependence on a single awardee for a long-term project.
Tags
commercial-and-institutional-building-co, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.4 million to PALGAG BUILDING TECHNOLOGIES LTD. NAMRU-6 BUILDING 1 REVITALIZATION - TASK ORDER
Who is the contractor on this award?
The obligated recipient is PALGAG BUILDING TECHNOLOGIES LTD.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $25.4 million.
What is the period of performance?
Start: 2018-09-26. End: 2025-12-31.
What specific revitalization tasks are included in this task order, and how do they align with NAMRU-6's long-term strategic goals?
The task order details are not fully provided, but it is for the 'NAMRU-6 BUILDING 1 REVITALIZATION'. This likely includes structural repairs, system upgrades (HVAC, electrical, plumbing), and potentially modernization of laboratory or office spaces. Alignment with strategic goals would depend on NAMRU-6's operational needs and modernization plans for its facilities.
What are the primary risks associated with a 7-year fixed-price construction contract for a research facility, and how are they being mitigated?
Key risks include unforeseen site conditions, material cost fluctuations, and potential design changes impacting the fixed price. Mitigation strategies typically involve detailed initial site assessments, contingency planning within the budget, robust change order management processes, and close contractor collaboration to address issues proactively.
How does the $25.4 million investment compare to typical revitalization costs for similar-sized research facilities within the DoD or other federal agencies?
Benchmarking is challenging without specific details on the scope and condition of Building 1. However, for large-scale institutional building revitalization over several years, $25.4 million can be a reasonable figure, especially if it involves significant system overhauls or structural work. A comparative analysis with recently completed similar projects would provide a clearer picture.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9127815R0045
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: HATZAR GAASH, KIBBUTZ GAASH
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $25,369,584
Exercised Options: $25,369,584
Current Obligation: $25,369,584
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9127817D0096
IDV Type: IDC
Timeline
Start Date: 2018-09-26
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-10-29
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