DoD Awards $50.4M Construction Contract to EMCOR Government Services for 5-Year Project

Contract Overview

Contract Amount: $50,381,872 ($50.4M)

Contractor: Emcor Government Services, Inc

Awarding Agency: Department of Defense

Start Date: 2019-01-15

End Date: 2024-01-14

Contract Duration: 1,825 days

Daily Burn Rate: $27.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE YEAR

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $50.4 million to EMCOR GOVERNMENT SERVICES, INC for work described as: BASE YEAR Key points: 1. The contract, valued at $50.4 million, covers commercial and institutional building construction. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The 5-year duration suggests a significant, long-term project for the Department of the Army. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract's value of $50.4 million over five years averages approximately $10 million annually. This appears reasonable for large-scale construction projects, but a precise benchmark requires comparison with similar, geographically relevant contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting multiple bidders participated. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, maximizing taxpayer value for the construction services.

Public Impact

Supports military infrastructure and readiness through construction services. Provides employment opportunities within the construction sector. Ensures facilities meet operational requirements for the Department of the Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise in construction.
Dependence on contractor's ability to meet quality and timeline standards.
Limited visibility into specific construction project details.

Positive Signals

Firm Fixed Price contract limits government exposure to cost increases.
Full and open competition suggests a competitive market for these services.
Long-term contract provides stability for project execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for maintaining and upgrading government facilities, with benchmarks varying significantly based on project scope, location, and complexity.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

Awarded by the Department of the Army, oversight would typically involve contract officers and technical representatives ensuring compliance with terms and quality standards. The firm fixed price structure incentivizes contractor performance.

Related Government Programs

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

Risk Flags

Potential for scope creep if project requirements are not clearly defined.
Risk of contractor default or performance issues.
Dependency on specific materials and labor availability.
Geopolitical or economic factors impacting construction costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.4 million to EMCOR GOVERNMENT SERVICES, INC. BASE YEAR

Who is the contractor on this award?

The obligated recipient is EMCOR GOVERNMENT SERVICES, 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 $50.4 million.

What is the period of performance?

Start: 2019-01-15. End: 2024-01-14.

What is the average annual cost per square foot for similar construction projects in Virginia?

Determining the average cost per square foot for similar construction projects in Virginia requires access to a database of comparable contracts, factoring in project type, age, and specific amenities. Without this data, a precise benchmark is unavailable. However, general industry data suggests costs can range widely, from $200 to over $600 per square foot depending on the complexity and materials used.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

Key performance indicators for this construction contract likely include adherence to project timelines, quality of workmanship, safety compliance, and meeting technical specifications outlined in the contract. Performance is typically measured through regular site inspections, progress reports submitted by the contractor, and feedback from end-users of the completed facilities.

What is the potential impact of inflation on the firm fixed price contract over its five-year duration?

While a firm fixed price contract is designed to protect the government from cost increases, significant inflation over a five-year period could impact the contractor's profitability. If the contractor underestimated future cost escalations for labor and materials, they might face reduced margins. However, the contract structure itself shields the government from direct price hikes due to inflation.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9127816R0030

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Miller Electric Company

Address: 2800 CRYSTAL DR STE 600, ARLINGTON, VA, 22202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,651,219

Exercised Options: $50,381,872

Current Obligation: $50,381,872

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127818D0095

IDV Type: IDC

Timeline