DoD Awards $23M Renovation Project at Ft. Belvoir to PEM Construction, LLC
Contract Overview
Contract Amount: $22,952,470 ($23.0M)
Contractor: PEM Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-14
End Date: 2025-10-11
Contract Duration: 758 days
Daily Burn Rate: $30.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BUILDING 1822 RENOVATION PROJECT, FT. BELVOIR, VIRGINIA.
Place of Performance
Location: COLUMBUS, FRANKLIN County, OHIO, 43229
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $23.0 million to PEM CONSTRUCTION, LLC for work described as: BUILDING 1822 RENOVATION PROJECT, FT. BELVOIR, VIRGINIA. Key points: 1. The contract value of $22.95M is significant for a single building renovation. 2. PEM Construction, LLC, a relatively new entity, secured this substantial award. 3. The project's duration of 758 days suggests a complex scope of work. 4. The exclusion of sources in the "Full and Open Competition" raises questions about the procurement process.
Value Assessment
Rating: fair
The contract value of $22.95M for a building renovation needs comparison to similar projects. Without specific benchmarks for renovations of this scale and type, assessing its value is difficult. The fixed-price nature provides cost certainty, but the initial bid amount is key.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The procurement method "Full and Open Competition After Exclusion of Sources" is unusual and suggests a limited competition. This approach may have restricted the pool of potential bidders, potentially impacting price discovery and overall value for the government.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for this renovation project.
Public Impact
Military personnel and civilian employees at Ft. Belvoir will benefit from an updated facility. Local economic activity may be stimulated by the construction project. The renovation could improve operational efficiency and safety within Building 1822.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to exclusion of sources.
- Uncertainty regarding the experience and capacity of PEM Construction, LLC.
- Potential for cost overruns if initial scope or pricing was underestimated.
Positive Signals
- Definitive contract provides a clear framework for the project.
- Firm Fixed Price contract offers cost predictability.
- Project is located at a key military installation.
Sector Analysis
This project falls under Commercial and Institutional Building Construction, a sector that can see significant variation in project costs based on complexity, location, and specific requirements. Benchmarks for renovations are highly project-specific.
Small Business Impact
The contract was awarded to PEM Construction, LLC. Information regarding its small business status or subcontracting plans is not provided, making it difficult to assess the impact on small businesses.
Oversight & Accountability
The "Full and Open Competition After Exclusion of Sources" requires careful review to ensure compliance with procurement regulations and fair opportunity for all eligible contractors. Oversight will be crucial to manage project timelines and costs.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition due to exclusion of sources.
- Potential for performance issues with a less established contractor.
- Complexity of renovation may lead to scope creep or delays.
- Lack of transparency in the initial bidding process.
Tags
commercial-and-institutional-building-co, department-of-defense, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.0 million to PEM CONSTRUCTION, LLC. BUILDING 1822 RENOVATION PROJECT, FT. BELVOIR, VIRGINIA.
Who is the contractor on this award?
The obligated recipient is PEM 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 $23.0 million.
What is the period of performance?
Start: 2023-09-14. End: 2025-10-11.
What specific criteria led to the exclusion of sources in the "Full and Open Competition"?
The exclusion of sources typically occurs when specific capabilities, past performance, or unique requirements are identified that only a limited number of contractors can meet. Detailed documentation justifying this exclusion is essential to ensure the procurement process was fair and competitive within the defined parameters, and that it did not unduly restrict competition.
What is the assessed risk associated with PEM Construction, LLC undertaking this significant renovation?
The risk associated with PEM Construction, LLC is currently fair to questionable without more data. As a potentially newer or less established entity, their capacity, financial stability, and track record on projects of this magnitude are critical factors. Thorough vetting and ongoing monitoring by the Department of Defense are necessary to mitigate potential performance or delivery risks.
How does the $22.95M contract value compare to industry benchmarks for similar building renovations?
Without specific details on the scope of renovation (e.g., square footage, type of systems being upgraded, historical significance), a direct comparison to industry benchmarks is challenging. However, $22.95M is a substantial sum for a single building renovation, suggesting a complex project. Further analysis would require detailed project specifications to identify comparable projects and their associated costs.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DR23R0033
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6161 BUSCH BLVD STE 255, COLUMBUS, OH, 43229
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,141,485
Exercised Options: $22,952,470
Current Obligation: $22,952,470
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-14
Current End Date: 2025-10-11
Potential End Date: 2025-10-11 00:00:00
Last Modified: 2025-09-12
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