DoD's $25.1M Building 247 Renovation Awarded to Herman/JCG Co JV Under Full and Open Competition

Contract Overview

Contract Amount: $25,145,082 ($25.1M)

Contractor: Herman/Jcg CO JV

Awarding Agency: Department of Defense

Start Date: 2014-09-30

End Date: 2017-04-06

Contract Duration: 919 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION RENOVATION PROJECT BLDG 247

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to HERMAN/JCG CO JV for work described as: CONSTRUCTION RENOVATION PROJECT BLDG 247 Key points: 1. The project involved construction and renovation of Building 247, totaling over $25 million. 2. Awarded to Herman/JCG Co JV, indicating a joint venture's capability in large-scale construction. 3. The contract type was Firm Fixed Price, which shifts cost risk to the contractor. 4. Competition was 'Full and Open Competition After Exclusion of Sources', suggesting a specific reason for initial exclusion. 5. The project duration was 919 days, indicating a significant, long-term undertaking.

Value Assessment

Rating: fair

The contract value of $25.1M for a 919-day construction project appears within a reasonable range for a significant renovation. Benchmarking against similar large-scale institutional building construction projects would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The competition method 'Full and Open Competition After Exclusion of Sources' is unusual. It implies an initial restriction followed by a broader competition, which could impact price discovery if the initial exclusion was not fully justified or if the subsequent competition was limited in scope.

Taxpayer Impact: The final price reflects the outcome of the competition, but the 'exclusion of sources' aspect warrants scrutiny to ensure maximum taxpayer value was achieved.

Public Impact

Military infrastructure upgrades directly impact operational readiness and personnel well-being. Construction projects create jobs and stimulate local economies. The long duration suggests a complex project with potential for delays and cost overruns if not managed effectively. Transparency in the 'exclusion of sources' process is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Unclear rationale for 'Exclusion of Sources' in competition.
Long project duration (919 days) increases risk of cost escalation.
Lack of small business participation noted.

Positive Signals

Firm Fixed Price contract shifts cost risk to contractor.
Awarded to a joint venture, potentially leveraging diverse expertise.
Project addresses a specific need for Building 247 renovation.

Sector Analysis

This project falls under Commercial and Institutional Building Construction, a sector critical for government infrastructure. Spending benchmarks for similar DoD construction projects would be necessary for a detailed value assessment, but the $25.1M figure suggests a substantial investment.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). For future projects of this scale, exploring opportunities for small business subcontracting could enhance economic impact and competition.

Oversight & Accountability

The 'Full and Open Competition After Exclusion of Sources' requires careful oversight to ensure the exclusion was justified and that the subsequent competition yielded the best value. Monitoring the project's progress against its 919-day duration is also key.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential lack of robust competition due to initial source exclusion.
Extended project duration increases risk of cost escalation and delays.
No indication of small business involvement.
Lack of detailed justification for the procurement process.
Contract awarded in 2014, potential for outdated cost benchmarks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to HERMAN/JCG CO JV. CONSTRUCTION RENOVATION PROJECT BLDG 247

Who is the contractor on this award?

The obligated recipient is HERMAN/JCG CO JV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $25.1 million.

What is the period of performance?

Start: 2014-09-30. End: 2017-04-06.

What was the specific justification for excluding sources prior to the 'Full and Open Competition' phase, and did this impact the final contract price?

The justification for excluding sources initially is not provided in the data. This procedural step could potentially limit the pool of bidders and influence price discovery. Without further information, it's difficult to definitively state the price impact, but such exclusions warrant scrutiny to ensure they serve a legitimate purpose and do not unduly restrict competition or inflate costs for taxpayers.

Given the 919-day duration and firm fixed price, what are the primary risks associated with cost overruns or performance delays for this renovation project?

The primary risks include unforeseen site conditions, material price volatility, labor shortages, and potential scope creep. While the firm fixed price shifts cost risk to the contractor, significant delays or performance issues could still lead to disputes, claims, or contract modifications, impacting the government's ultimate cost and the project's timely completion for operational needs.

How does the $25.1M cost for renovating Building 247 compare to similar institutional building construction projects undertaken by the Department of the Army or DoD?

A direct comparison requires detailed project specifications (scope, size, complexity, location) and current market rates. However, $25.1M for a nearly 3-year renovation project suggests a significant undertaking. Benchmarking against similar projects, considering factors like square footage, type of renovation (e.g., structural, MEP, finishes), and regional construction cost indices, would be necessary to determine if this represents good value.

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: TWO STEP

Solicitation ID: W912DY14R0099

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10366 ROSELLE ST STE A, SAN DIEGO, CA, 92121

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $25,145,082

Exercised Options: $25,145,082

Current Obligation: $25,145,082

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline