Naval Medical Center Portsmouth Awards $25.4M Construction Contract for Sterile Processing Department

Contract Overview

Contract Amount: $25,429,951 ($25.4M)

Contractor: Global Engineering & Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-28

End Date: 2023-08-25

Contract Duration: 1,792 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF REMEDIATION/REPAIR CONSTRUCTION FOR STERILE PROCESSING DEPT (SPD), NAVAL MEDICAL CENTER PORTSMOUTH (NMCP), VA

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23704

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to GLOBAL ENGINEERING & CONSTRUCTION, LLC for work described as: IGF::OT::IGF REMEDIATION/REPAIR CONSTRUCTION FOR STERILE PROCESSING DEPT (SPD), NAVAL MEDICAL CENTER PORTSMOUTH (NMCP), VA Key points: 1. The contract awarded to Global Engineering & Construction, LLC is for remediation and repair construction. 2. The project duration is 1792 days, indicating a significant, long-term undertaking. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The contract type is Firm Fixed Price, which helps control costs for the government.

Value Assessment

Rating: good

The contract value of $25.4M for construction services appears reasonable given the project's scope and duration. Benchmarking against similar large-scale medical facility construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive environment generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing the value of taxpayer dollars spent on this essential medical facility upgrade.

Public Impact

Enhances critical healthcare infrastructure at a major naval medical center. Supports the operational readiness and patient care capabilities of the facility. Represents a significant investment in public health and military readiness. The long duration suggests a complex project with potential for extended disruption if not managed effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (1792 days) increases risk of cost overruns and schedule delays.
Potential for unforeseen site conditions in a medical facility requiring remediation.
Reliance on a single awardee for a long-term, critical project.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type helps control costs.
Project addresses critical healthcare infrastructure needs.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector is often driven by infrastructure upgrades and maintenance, particularly for large public facilities like medical centers. Benchmarks for similar projects would depend on scale, complexity, and location.

Small Business Impact

While the award was made to Global Engineering & Construction, LLC, the data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Defense, through its contracting mechanisms, is responsible for overseeing this project. The long duration necessitates robust oversight to ensure adherence to schedule, budget, and quality standards, potentially involving the agency's Inspector General.

Related Government Programs

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

Risk Flags

Long contract duration increases risk.
Potential for unforeseen site conditions.
Complexity of medical facility construction.
Dependence on a single contractor for an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to GLOBAL ENGINEERING & CONSTRUCTION, LLC. IGF::OT::IGF REMEDIATION/REPAIR CONSTRUCTION FOR STERILE PROCESSING DEPT (SPD), NAVAL MEDICAL CENTER PORTSMOUTH (NMCP), VA

Who is the contractor on this award?

The obligated recipient is GLOBAL ENGINEERING & 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 $25.4 million.

What is the period of performance?

Start: 2018-09-28. End: 2023-08-25.

What specific remediation and repair activities are included in the scope of work for the Sterile Processing Department?

The provided data does not detail the specific remediation and repair activities. A thorough review of the contract's Statement of Work (SOW) would be necessary to understand the precise requirements, such as upgrades to ventilation, plumbing, electrical systems, or structural modifications needed to meet current standards for sterile processing.

What are the key performance indicators (KPIs) and milestones for this project, and how will performance be measured?

The contract data does not specify the KPIs or milestones. Performance measurement would typically involve regular progress reports, site inspections, adherence to the project schedule, quality control checks, and compliance with the contract terms. The agency's contracting officer's representative (COR) would be responsible for monitoring these aspects.

What is the contingency plan for potential delays or cost increases given the project's long duration and the nature of construction?

Contingency planning for a project of this magnitude would likely involve contractual provisions for change orders, a defined process for addressing unforeseen conditions, and potentially allocated contingency funds. The government's project management team would need to actively monitor risks and implement mitigation strategies throughout the project lifecycle.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY16R0005

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4904 LAKE WASHINGTON BLVD NE, RENTON, WA, 98056

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,429,951

Exercised Options: $25,429,951

Current Obligation: $25,429,951

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $18,202,119

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY17D0023

IDV Type: IDC

Timeline