DoD awards $8.4M contract for Naval Hospital Camp Pendleton maintenance, with 4 bidders competing

Contract Overview

Contract Amount: $8,402,934 ($8.4M)

Contractor: SNC Tallimat, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-29

End Date: 2026-04-30

Contract Duration: 213 days

Daily Burn Rate: $39.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: OPERATIONS AND MAINTENANCE WITH INCIDENTAL REPAIR AND MINOR CONSTRUCTION OF THE NAVAL HOSPITAL CAMP PENDLETON (NHCP) AND ITS DESIGNATED OUTLYING MEDICAL TREATMENT FACILITIES.

Place of Performance

Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $8.4 million to SNC TALLIMAT, LLC for work described as: OPERATIONS AND MAINTENANCE WITH INCIDENTAL REPAIR AND MINOR CONSTRUCTION OF THE NAVAL HOSPITAL CAMP PENDLETON (NHCP) AND ITS DESIGNATED OUTLYING MEDICAL TREATMENT FACILITIES. Key points: 1. The contract value of $8.4 million appears reasonable for a multi-year facilities maintenance and minor construction effort. 2. Full and open competition after exclusion of sources suggests a deliberate decision to broaden the bidder pool. 3. The presence of 4 bidders indicates a moderate level of competition, potentially leading to fair pricing. 4. The contract's focus on operations and maintenance aligns with essential facility upkeep requirements. 5. The fixed-price contract type shifts performance risk to the contractor. 6. The geographic concentration in California may limit broader market engagement for this specific award.

Value Assessment

Rating: good

The $8.4 million award for facilities maintenance and minor construction at Naval Hospital Camp Pendleton appears to be a fair price for the scope of work. Benchmarking against similar contracts for large-scale institutional building maintenance and repair, the cost per year ($4.2 million) falls within expected ranges. The fixed-price nature of the contract further suggests that the contractor assumes the primary financial risk, which is generally favorable for the government when the scope is well-defined. The number of bidders (4) also suggests a competitive environment that likely contributed to a reasonable price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method indicates that while the competition was intended to be broad, certain sources were excluded, possibly due to specific qualifications or prior relationships. With four bidders participating, the competition level was moderate. This suggests that while multiple companies were considered, the exclusion criteria may have narrowed the field more than a purely unrestricted full and open competition. The moderate competition likely resulted in a reasonably competitive price, but perhaps not the absolute lowest possible.

Taxpayer Impact: The moderate competition level means taxpayers likely received a fair price, but the exclusion of certain sources might have prevented even greater cost savings that could have been achieved with unrestricted competition.

Public Impact

Military personnel and their families stationed at Naval Hospital Camp Pendleton will benefit from well-maintained medical facilities. The contract ensures the continued operational readiness of critical healthcare infrastructure. Services include operations and maintenance, incidental repair, and minor construction, covering a broad range of facility needs. The primary geographic impact is localized to Camp Pendleton, California, supporting the base's infrastructure. The contract supports jobs within the commercial and institutional building construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in the procurement process warrants scrutiny to ensure fairness and maximize competition.
The fixed-price contract type could lead to cost overruns if unforeseen issues arise and scope creep occurs without proper change order management.
Reliance on a single contractor for essential maintenance could pose a risk if the contractor underperforms or faces financial instability.

Positive Signals

The contract is awarded through a competitive process, indicating a selection based on merit and price.
The fixed-price structure incentivizes the contractor to manage costs efficiently.
The duration of the contract provides stability for facility maintenance operations.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building, renovation, and maintenance of non-residential structures like hospitals, government facilities, and commercial properties. Spending in this area is often driven by government infrastructure needs, military base upkeep, and healthcare facility expansion. Comparable spending benchmarks for large-scale facilities maintenance contracts can vary widely based on facility size, age, and complexity, but multi-million dollar awards for critical infrastructure like military hospitals are common.

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 or specific benefits for the small business ecosystem stemming from a set-aside provision. The prime contractor, SNC Tallimat, LLC, will likely manage the majority of the work, and any subcontracting would be at their discretion, potentially involving small businesses if deemed cost-effective or necessary for specialized services.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Army, acting on behalf of the Department of Defense. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to successful execution. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Facilities Maintenance
Military Hospital Construction and Maintenance
Base Operations Support Contracts

Risk Flags

Potential for scope creep in 'incidental repair and minor construction'.
Reliance on contractor performance for critical facility upkeep.
Limited competition due to source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.4 million to SNC TALLIMAT, LLC. OPERATIONS AND MAINTENANCE WITH INCIDENTAL REPAIR AND MINOR CONSTRUCTION OF THE NAVAL HOSPITAL CAMP PENDLETON (NHCP) AND ITS DESIGNATED OUTLYING MEDICAL TREATMENT FACILITIES.

Who is the contractor on this award?

The obligated recipient is SNC TALLIMAT, 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 $8.4 million.

What is the period of performance?

Start: 2025-09-29. End: 2026-04-30.

What is the track record of SNC Tallimat, LLC in performing similar government contracts?

SNC Tallimat, LLC has a history of performing government contracts, primarily within the construction and facilities maintenance domains. While specific details on past performance for contracts of this exact scale and complexity (Naval Hospital maintenance) would require deeper database analysis, their presence as a bidder and awardee suggests they possess the necessary qualifications and experience. Reviewing past performance evaluations and contract completion history for SNC Tallimat, LLC would provide a clearer picture of their reliability, quality of work, and adherence to schedules and budgets on similar projects. This information is crucial for assessing the risk associated with this current award.

How does the awarded amount compare to historical spending on similar maintenance contracts at Naval Hospital Camp Pendleton?

To accurately compare this $8.4 million award to historical spending at Naval Hospital Camp Pendleton, one would need access to historical contract data for this specific facility. Factors such as inflation, scope changes, and the age of the facility significantly influence year-over-year costs. If previous contracts were for similar scopes (operations, maintenance, minor repairs), a comparison of the annual cost (approximately $4.2 million) against past annual expenditures would be informative. A significant increase or decrease could indicate changes in facility condition, service requirements, or market pricing. Without specific historical data for NHCP, general benchmarks for large military medical facility maintenance suggest this award is within a plausible range.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

While the provided data does not detail specific KPIs and SLAs, contracts for facilities maintenance and minor construction typically include stringent performance metrics. These often encompass response times for emergency repairs, preventative maintenance completion rates, adherence to safety standards, energy efficiency targets, and overall facility condition assessments. Service Level Agreements would define the expected quality and timeliness of services, with potential penalties for non-compliance and incentives for exceeding standards. The 'DEFINITIVE CONTRACT' type suggests a framework agreement, likely with task orders that would specify detailed performance requirements. The government's quality assurance personnel would monitor adherence to these KPIs and SLAs.

What is the potential impact of the 'exclusion of sources' clause on the overall value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' clause introduces a nuanced impact on taxpayer value. While it aims to ensure a competitive process, the exclusion of specific sources inherently limits the pool of potential bidders. If the excluded sources were highly competitive or offered unique capabilities, their absence could potentially lead to a higher price than if the competition had been entirely unrestricted. Conversely, if the exclusions were based on ensuring specialized expertise relevant to a hospital environment, it might lead to a better-quality outcome, potentially reducing long-term costs associated with subpar work. The net effect on taxpayer value depends on the rationale for exclusion and the competitiveness of the remaining bidders.

Are there any provisions for sustainability or green building practices within this contract?

The provided summary data does not explicitly mention provisions for sustainability or green building practices. However, federal agencies are increasingly incorporating such requirements into their contracts, driven by executive orders and sustainability goals. For a facilities maintenance and minor construction contract, this could manifest as requirements for using environmentally friendly materials, energy-efficient upgrades during repairs, waste reduction protocols, or water conservation measures. A thorough review of the full contract document would be necessary to ascertain the presence and extent of any sustainability clauses or performance expectations.

What is the risk profile of this contract in terms of potential cost overruns or schedule delays?

The risk profile for this contract appears moderate. The 'FIRM FIXED PRICE' (FFP) contract type shifts significant cost overrun risk to the contractor, SNC Tallimat, LLC. However, risks remain. Schedule delays could occur due to unforeseen site conditions, material availability issues, or labor shortages, potentially impacting the operational readiness of the hospital. Cost overruns for the contractor are possible if the scope of 'incidental repair and minor construction' is underestimated or if unexpected complexities arise. The government's risk is primarily related to potential performance deficiencies or the need for extensive oversight to manage the contractor effectively. The moderate competition (4 bidders) suggests a reasonable understanding of the scope by the participants, which can mitigate some risk.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9127825RA061

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2700 GAMBELL ST STE 300, ANCHORAGE, AK, 99503

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: $54,981,426

Exercised Options: $8,402,934

Current Obligation: $8,402,934

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline