DoD's $39.8M Chrome Plating Renovation contract awarded to Greenland Enterprises, Inc. for industrial building construction

Contract Overview

Contract Amount: $39,801,129 ($39.8M)

Contractor: Greenland Enterprises, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-08-23

End Date: 2026-09-30

Contract Duration: 1,864 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CHROME PLATING RENOVATION

Place of Performance

Location: WATERVLIET, ALBANY County, NEW YORK, 12189

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $39.8 million to GREENLAND ENTERPRISES, INC. for work described as: CHROME PLATING RENOVATION Key points: 1. Value for money appears reasonable given the scope of industrial building construction. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of 1864 days indicates a long-term, significant project. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. Project located in New York, potentially impacting local workforce and economy. 6. This contract falls under industrial building construction, a specialized sector.

Value Assessment

Rating: good

The contract value of $39.8 million for industrial building construction over approximately five years seems within a reasonable range for a project of this scale. Benchmarking against similar large-scale renovation or construction projects within the Department of Defense or other federal agencies would provide a more precise assessment of value. The firm-fixed-price contract type suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator for the government if the contractor's bid was competitive and well-researched.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 3 bids received, the competition level suggests a moderately competitive environment. While more bidders could potentially drive prices lower, three bids generally provide a basis for price discovery and allow the agency to select the most advantageous offer based on price and other factors.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by encouraging contractors to offer their best pricing. The presence of multiple bidders reduces the risk of inflated costs that can occur in less competitive environments.

Public Impact

The primary beneficiary is the Department of the Army, which will receive renovated facilities. The services delivered include industrial building construction and renovation. The geographic impact is concentrated in New York, where the project is located. The project is likely to create or sustain jobs in the construction sector in New York. Specialized industrial renovation services are being procured.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1864 days) could lead to scope creep or unforeseen cost increases if not managed tightly.
Firm-fixed-price contracts can sometimes disincentivize contractors from finding more cost-effective solutions once the contract is awarded.
Dependence on a single contractor for a multi-year project carries inherent risks if performance issues arise.

Positive Signals

Full and open competition suggests a robust market and potential for competitive pricing.
The firm-fixed-price contract type transfers cost overrun risk to the contractor.
The contract is for a specific, necessary renovation, addressing a clear need for the Army.

Sector Analysis

The industrial building construction sector is a critical component of the broader construction industry, focusing on specialized facilities for manufacturing, processing, and storage. This contract, valued at approximately $39.8 million, represents a significant investment within this niche. Comparable spending benchmarks would involve looking at other large-scale industrial facility renovations or constructions undertaken by federal agencies, particularly within the Department of Defense, to gauge if the pricing and terms are market-aligned. The market for such specialized construction is often characterized by a limited number of highly qualified firms.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false) or specific small business subcontracting goals indicated (sb=false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Greenland Enterprises, Inc. chooses to engage them. Without explicit set-aside requirements, large businesses are likely to be the primary awardees, and the extent of small business participation will depend on the prime contractor's procurement strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified work within the agreed price. Transparency is generally maintained through contract award databases, though specific project details and performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Facilities Maintenance
Army Corps of Engineers Construction Contracts
Industrial Facility Modernization Programs
Federal Building and Renovation Projects

Risk Flags

Long contract duration
Potential for cost overruns in FFP contracts
Reliance on a single prime contractor for extended period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.8 million to GREENLAND ENTERPRISES, INC.. CHROME PLATING RENOVATION

Who is the contractor on this award?

The obligated recipient is GREENLAND ENTERPRISES, 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 $39.8 million.

What is the period of performance?

Start: 2021-08-23. End: 2026-09-30.

What is the track record of Greenland Enterprises, Inc. with federal contracts, particularly within the Department of Defense?

A review of federal contract databases would be necessary to fully assess Greenland Enterprises, Inc.'s track record. Key metrics to examine would include the number of previous awards, their total value, the agencies they have contracted with, and their performance history. Specifically, looking at their past performance on similar industrial building construction or renovation projects for the Department of Defense would be crucial. Any history of contract disputes, performance issues, or successful project completions would provide valuable context for evaluating their suitability and reliability for this current $39.8 million contract.

How does the awarded price of $39.8 million compare to similar industrial building renovation projects within the Department of Defense over the past five years?

To benchmark the value, one would need to analyze data on comparable industrial building renovation contracts awarded by the Department of Defense or other federal agencies within the last five years. Factors to consider include the square footage renovated, the complexity of the work (e.g., specialized equipment installation, hazardous material abatement), the geographic location (as construction costs vary regionally), and the contract type. If similar projects of comparable scope and complexity were awarded at significantly lower prices, it might indicate that this contract's price is on the higher side. Conversely, if it aligns with or is lower than benchmarks, it suggests reasonable value for money.

What are the primary risks associated with a firm-fixed-price contract for a project of this duration (1864 days)?

The primary risk with a firm-fixed-price (FFP) contract, especially for a long duration like 1864 days, is the potential for the contractor to face unforeseen cost increases that erode their profit margin, potentially leading to performance issues or requests for contract modifications. While FFP shifts cost risk to the contractor, significant changes in material costs, labor availability, or unforeseen site conditions (like discovering hazardous materials) can strain the contractor's ability to complete the work within the agreed price. For the government, the risk lies in potential contractor default or subpar quality if the contractor struggles financially due to these unforeseen circumstances. Robust contract management and clear definition of scope are critical to mitigate these risks.

What is the estimated cost per square foot or per unit of work for this contract, and how does it benchmark against industry standards?

Without specific details on the scope of work beyond 'chrome plating renovation' and 'industrial building construction,' calculating a precise cost per square foot or per unit is challenging. However, if the contract documents specified the total square footage to be renovated or the quantity of specific renovation tasks, this data could be used. For example, if 100,000 square feet were renovated, the cost per square foot would be approximately $398. This figure would then need to be compared against industry cost data for industrial construction and renovation in New York. Specialized renovations like chrome plating facilities might command higher per-square-foot costs due to specific infrastructure requirements (e.g., ventilation, chemical resistance, waste treatment).

How has the Department of the Army's spending on industrial building construction evolved over the past three fiscal years?

Analyzing the Department of the Army's spending trends on industrial building construction over the past three fiscal years would require accessing historical federal procurement data (e.g., from FPDS or USASpending). This analysis would reveal whether spending in this category has been increasing, decreasing, or remaining stable. Understanding these trends provides context for the current $39.8 million award. For instance, a significant increase in spending might indicate a broader modernization initiative, while a decrease could suggest budget constraints or shifting priorities. This contract's value can then be assessed relative to the historical spending patterns.

What are the potential economic impacts on the New York region resulting from this $39.8 million construction contract?

This $39.8 million contract is likely to have a positive economic impact on the New York region. It will directly create jobs for construction workers, tradespeople, project managers, and potentially administrative staff employed by Greenland Enterprises, Inc. and any subcontractors. Indirectly, it will stimulate local economies through increased demand for materials, equipment rentals, and services from local suppliers. Furthermore, the completion of the renovated facilities could enhance the operational capabilities of the Department of the Army in the region, potentially leading to long-term economic benefits or stability associated with military installations.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial 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: W912DS21R0002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2713 MAGRUDER BLVD STE A, HAMPTON, VA, 23666

Business Categories: Category Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $40,782,880

Exercised Options: $39,801,129

Current Obligation: $39,801,129

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline