DoD awards $17.5M for swing space facility construction, raising questions about competition and value

Contract Overview

Contract Amount: $17,484,009 ($17.5M)

Contractor: JBW Group LLC

Awarding Agency: Department of Defense

Start Date: 2025-06-04

End Date: 2030-06-04

Contract Duration: 1,826 days

Daily Burn Rate: $9.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: INTERIM STABLES SWING SPACE FACILITY

Place of Performance

Location: FORT MYER, ARLINGTON County, VIRGINIA, 22211

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.5 million to JBW GROUP LLC for work described as: INTERIM STABLES SWING SPACE FACILITY Key points: 1. The contract's value of $17.5 million for swing space construction appears significant, warranting a closer look at cost-effectiveness. 2. The 'NOT AVAILABLE FOR COMPETITION' award status suggests limited market engagement, potentially impacting price discovery. 3. The firm-fixed-price contract type offers cost certainty but relies heavily on accurate initial estimates. 4. The duration of 1826 days (5 years) indicates a substantial, long-term construction project. 5. The facility is designated for 'INTERIM STABLES SWING SPACE', implying a temporary or specialized need. 6. The contract is managed by the Department of the Army, a major component of the DoD. 7. The project is located in Virginia, a state with significant federal contracting activity.

Value Assessment

Rating: questionable

Benchmarking the $17.5 million cost for a 5-year swing space facility is challenging without detailed specifications and scope. However, the lack of competition suggests that the government may not have secured the most competitive pricing. Comparing this to similar construction projects for interim facilities, especially those that underwent full and open competition, would be crucial to assess if this price represents fair market value. The firm-fixed-price nature provides budget predictability, but the absence of competitive pressure could lead to inflated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that the contracting agency identified a specific reason to bypass the standard competitive bidding process. This could be due to a sole-source justification, a specific urgent need, or other factors that limited the pool of potential bidders. The lack of multiple bidders means that the government did not benefit from the price reductions and innovation that typically arise from a competitive environment.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the government did not leverage market forces to drive down costs. This award mechanism warrants scrutiny to ensure the public interest was fully protected.

Public Impact

The primary beneficiaries are likely military personnel or units requiring temporary operational space, ensuring mission continuity. The services delivered include the construction of a commercial and institutional building, specifically for interim stables swing space. The geographic impact is localized to Virginia, where the facility will be constructed. Workforce implications may include construction jobs in the Virginia area during the project's five-year duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and suboptimal resource allocation.
The 'NOT AVAILABLE FOR COMPETITION' status requires thorough justification to ensure it was a last resort.
The long duration of the contract could expose the project to cost overruns if not managed effectively.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government, assuming accurate initial scope definition.
The Department of the Army's award suggests a direct need for operational support within its infrastructure.
The project's focus on swing space addresses potential gaps in existing facilities, supporting military readiness.

Sector Analysis

The construction sector is a significant area of federal spending, encompassing a wide range of projects from infrastructure to specialized facilities. This contract falls under commercial and institutional building construction. The Department of Defense is a major client within this sector, frequently requiring specialized facilities to support its global operations. Benchmarking this specific 'swing space' construction against other similar interim facility projects within the DoD or other federal agencies could provide further insight into its cost-effectiveness.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, is not provided in the available data. The absence of this information makes it difficult to assess the impact on the small business ecosystem. Typically, large construction contracts offer opportunities for small businesses through subcontracting, but without specific details, this potential benefit remains unquantified.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. Transparency regarding the justification for the sole-source award and ongoing project progress reports would be key accountability measures. The Inspector General for the Department of Defense may have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense Construction Contracts
Army Facilities Management
Swing Space and Temporary Facilities
Commercial and Institutional Building Construction

Risk Flags

Lack of Competition
Potential for Overpricing
Insufficient Justification for Sole Source
Long Contract Duration Risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.5 million to JBW GROUP LLC. INTERIM STABLES SWING SPACE FACILITY

Who is the contractor on this award?

The obligated recipient is JBW GROUP 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 $17.5 million.

What is the period of performance?

Start: 2025-06-04. End: 2030-06-04.

What is the specific justification for awarding this contract on a 'NOT AVAILABLE FOR COMPETITION' basis?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION'. This designation typically implies that the agency determined that only one responsible source was available or that an exception to the general policy of full and open competition applied. Common justifications include specific technical requirements that only one contractor can meet, urgent and compelling needs where competition is impractical, or if the contract is a follow-on to a previous sole-source award. Without further documentation from the Department of the Army, the precise reason remains unspecified. This lack of transparency is a concern for taxpayers, as it prevents independent verification that competitive alternatives were fully explored and that the government secured the best possible value.

How does the $17.5 million cost compare to similar swing space construction projects within the DoD?

Direct comparison of the $17.5 million cost for this 'INTERIM STABLES SWING SPACE FACILITY' is difficult without detailed project specifications, square footage, and specific construction requirements. However, the absence of competition is a significant factor suggesting potential overpricing. Typically, a competitive bidding process would yield multiple proposals, allowing the agency to select the most cost-effective option. If this facility is intended for a standard operational need, $17.5 million over five years could be substantial. A review of similar, competitively awarded construction projects for interim facilities within the Department of Defense, considering regional construction cost indices and project scope, would be necessary to establish a reliable benchmark and assess value for money.

What are the potential risks associated with a 5-year firm-fixed-price contract for construction?

A 5-year firm-fixed-price (FFP) contract for construction offers cost certainty to the government, as the contractor assumes the risk of cost overruns. However, several risks can still emerge. If the initial scope of work was not thoroughly defined or if unforeseen site conditions arise, the contractor may seek change orders, which can increase the total cost. For a long-duration project like this, inflation and material cost volatility could impact the contractor's profitability and potentially lead to disputes or quality compromises if not managed proactively. Furthermore, the contractor might be incentivized to cut corners on quality to maintain profit margins over such an extended period, necessitating robust government oversight and quality assurance measures.

What is the historical spending pattern for 'INTERIM STABLES SWING SPACE FACILITY' construction by the Department of the Army?

Historical spending data for 'INTERIM STABLES SWING SPACE FACILITY' construction by the Department of the Army is not readily available in the provided data. This specific contract is for $17.5 million over five years. To understand historical patterns, one would need to analyze past contracts for similar facilities, noting their scope, duration, cost, and procurement method. A trend analysis could reveal if spending on such facilities is increasing, if sole-source awards are common for this type of need, or if costs have escalated over time. Without this historical context, it's challenging to determine if this $17.5 million award is an anomaly or part of a larger, established spending trend.

What oversight mechanisms are in place to ensure the effective use of funds for this contract?

Oversight for this contract would primarily involve the Department of the Army's contracting officers and project managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Given the long duration and significant value, regular progress reviews, site inspections, and quality assurance checks are essential. The Department of Defense's Inspector General (IG) also plays a crucial oversight role, empowered to investigate allegations of fraud, waste, or abuse. Transparency in reporting project milestones and expenditures would further enhance accountability. The firm-fixed-price nature of the contract shifts some financial risk to the contractor, but diligent oversight is still paramount to ensure the facility is built to specification and on budget.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DR25RA016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3501 HORACE AVE, FORT WORTH, TX, 76244

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,447,324

Exercised Options: $17,484,009

Current Obligation: $17,484,009

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline