DoD Awards $701.7M Construction Contract to Balfour Beatty for ECB4 Design & Construction
Contract Overview
Contract Amount: $701,720,362 ($701.7M)
Contractor: Balfour Beatty Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2022-05-01
End Date: 2026-05-11
Contract Duration: 1,471 days
Daily Burn Rate: $477.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ECB4 DESIGN & CONSTRUCTION
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $701.7 million to BALFOUR BEATTY CONSTRUCTION, LLC for work described as: ECB4 DESIGN & CONSTRUCTION Key points: 1. Significant contract value of over $701 million awarded. 2. Balfour Beatty Construction, LLC is the sole awardee. 3. Contract falls under Full and Open Competition. 4. Project duration is 1471 days, indicating a long-term commitment.
Value Assessment
Rating: fair
The contract is a Firm Fixed Price award, which provides cost certainty. However, without specific cost breakdowns or benchmarks for similar large-scale institutional building construction, 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 competitive bidding process. This method generally promotes price discovery and aims for the best value for the government.
Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently for this large construction project.
Public Impact
Impacts military infrastructure development within the Department of Defense. Potential for job creation in the construction sector in Maryland. Long-term project may influence local economic activity and resource allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for value assessment.
- No explicit mention of small business participation.
- Long project duration could introduce risks related to material costs and labor availability.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type offers cost predictability.
- Significant investment in critical infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense is substantial, often driven by infrastructure modernization and expansion needs.
Small Business Impact
The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). Further investigation may be needed to understand if subcontracting opportunities were mandated or pursued.
Oversight & Accountability
The award is managed by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for large construction contracts are expected to be in place to monitor progress and ensure compliance.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- No small business participation noted.
- Long project duration increases risk exposure.
- Lack of detailed cost breakdown hinders value assessment.
- Potential for cost overruns due to fixed-price nature over extended period.
Tags
commercial-and-institutional-building-co, department-of-defense, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $701.7 million to BALFOUR BEATTY CONSTRUCTION, LLC. ECB4 DESIGN & CONSTRUCTION
Who is the contractor on this award?
The obligated recipient is BALFOUR BEATTY CONSTRUCTION, 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 $701.7 million.
What is the period of performance?
Start: 2022-05-01. End: 2026-05-11.
What is the benchmark cost per square foot for similar institutional building construction projects of this scale?
Determining a precise benchmark cost per square foot for a project of this magnitude and specific nature (ECB4 Design & Construction) is challenging without detailed project specifications. However, typical costs for large institutional buildings can range widely, from $300 to over $800 per square foot, depending on complexity, materials, location, and specific design requirements. Further analysis would require access to the project's scope of work and comparable project data.
What are the specific risks associated with a 1471-day duration for a fixed-price construction contract?
A long duration like 1471 days for a fixed-price contract introduces risks such as potential escalation in material and labor costs beyond initial projections, which the contractor must absorb. Unforeseen site conditions, regulatory changes, or supply chain disruptions can also impact the schedule and budget. Contractor performance degradation over time and the need for sustained project management oversight are also key considerations.
How effectively does 'Full and Open Competition' ensure optimal value for this $701M construction project?
Full and Open Competition is designed to maximize value by allowing all responsible sources to submit bids, fostering a competitive environment that ideally drives down prices and encourages innovation. For a project of this scale, the effectiveness hinges on the clarity of the solicitation, the number and quality of bids received, and the evaluation criteria used. A robust competition increases the likelihood that the government secures the best combination of price, technical capability, and performance.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DR20R0003
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3180 FAIRVIEW PARK DR STE 200, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $707,813,253
Exercised Options: $707,813,253
Current Obligation: $701,720,362
Actual Outlays: $74,200,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-05-01
Current End Date: 2026-05-11
Potential End Date: 2026-05-11 00:00:00
Last Modified: 2025-10-21
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