DoD's $13.6M Reno Construction Contract Awarded to JBW Group LLC for Nevada Facilities

Contract Overview

Contract Amount: $13,646,403 ($13.6M)

Contractor: JBW Group LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-30

End Date: 2027-12-22

Contract Duration: 813 days

Daily Burn Rate: $16.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: B1706 RENO CONSTRUCTION

Place of Performance

Location: NELLIS AFB, CLARK County, NEVADA, 89191

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to JBW GROUP LLC for work described as: B1706 RENO CONSTRUCTION Key points: 1. The contract value of $13.6 million appears to be a significant investment for a single construction project. 2. The award to JBW Group LLC warrants scrutiny regarding their capacity and past performance on similar-sized projects. 3. The 'NOT AVAILABLE FOR COMPETITION' status raises immediate questions about the justification for limited competition. 4. The firm fixed-price contract type suggests cost certainty for the government, but the lack of competition may have inflated the price. 5. The project's duration of 813 days indicates a substantial undertaking requiring careful project management and oversight. 6. The geographic focus on Nevada (SN: NEVADA) suggests a specific regional need for these construction services.

Value Assessment

Rating: questionable

Benchmarking the value of this $13.6 million construction contract is challenging without specific details on the scope of work. However, the lack of competition suggests that the government may not have achieved the best possible price. Comparing this to similar commercial and institutional building construction contracts awarded by the Department of the Army or other DoD entities would be necessary to assess if the pricing is competitive. The firm fixed-price nature provides cost certainty, but the absence of competitive bidding could mean taxpayers are paying a premium.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' (NAF) status, indicating that the solicitation was not publicly advertised or competed among multiple bidders. The specific justification for this sole-source award is not provided in the data. Typically, NAF awards are made when only one responsible source is available or when urgent and compelling circumstances exist. The lack of competition means there was no direct price comparison or market pressure to drive down costs.

Taxpayer Impact: The absence of a competitive bidding process for this $13.6 million contract means taxpayers may have paid more than they would have in a fully competed scenario. Without multiple bids, the government had limited leverage to negotiate the lowest possible price.

Public Impact

The primary beneficiaries of this contract are the Department of Defense and potentially military personnel or civilian employees stationed at the Nevada facilities requiring construction. The services delivered involve commercial and institutional building construction, likely encompassing new builds, renovations, or infrastructure improvements. The geographic impact is concentrated in Nevada, potentially supporting local economic activity through construction jobs and material sourcing. Workforce implications could include employment opportunities for construction workers, project managers, engineers, and support staff in the Nevada region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
The sole-source nature requires a strong justification from the agency to ensure it was truly necessary.
Limited transparency into the selection process for JBW Group LLC.
Potential for scope creep or cost overruns if not managed tightly, despite the fixed-price nature.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The contract is awarded to JBW Group LLC, suggesting they met the agency's requirements.
The project has a defined end date, implying a structured timeline for completion.

Sector Analysis

The construction sector is a significant area of federal spending, encompassing a wide range of projects from infrastructure to facility maintenance. This contract falls under Commercial and Institutional Building Construction (NAICS 236220). Federal spending in this sector is driven by the needs of various agencies, including the Department of Defense, for building and maintaining facilities. Comparable spending benchmarks would involve analyzing the average cost of similar construction projects awarded by the DoD or other government entities based on size, complexity, and location.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration or set-aside for this particular contract. This means that the prime contractor, JBW Group LLC, is not obligated to meet specific small business subcontracting goals under this award. Consequently, the direct impact on the small business ecosystem from this specific contract's prime award is minimal, although the prime contractor may still engage small businesses as subcontractors at their discretion.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. Accountability measures would be tied to the terms and conditions of the firm fixed-price contract, including performance milestones and quality standards. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance or execution.

Related Government Programs

Department of Defense Facilities Construction
Army Corps of Engineers Construction Contracts
General Services Administration (GSA) Public Buildings Service
Military Construction Projects

Risk Flags

Sole-source award requires strong justification.
Potential for lack of price competition.
Contractor's past performance not detailed.
Scope of work not specified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to JBW GROUP LLC. B1706 RENO CONSTRUCTION

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 $13.6 million.

What is the period of performance?

Start: 2025-09-30. End: 2027-12-22.

What is the specific scope of work for this $13.6 million construction contract awarded to JBW Group LLC?

The provided data identifies the contract under NAICS code 236220 (Commercial and Institutional Building Construction) and specifies the awarding agency as the Department of the Army. However, the precise scope of work, such as whether it involves new construction, renovation, specific types of facilities (e.g., barracks, administrative buildings, training centers), or infrastructure upgrades, is not detailed. Understanding the scope is crucial for a comprehensive value assessment and for comparing it to similar projects. Without this information, it's difficult to determine if the $13.6 million represents a fair price for the services rendered.

What was the justification for awarding this contract on a sole-source basis ('NOT AVAILABLE FOR COMPETITION')?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION' (CT: NOT AVAILABLE FOR COMPETITION), indicating a sole-source award. Federal procurement regulations typically require full and open competition unless specific exceptions apply, such as the existence of only one responsible source, urgent and compelling needs, or specific statutory authorities. The agency awarding this contract, the Department of the Army, would have had to document and justify why competition was not feasible or practical. Without access to that justification, it is impossible to assess the validity of the sole-source determination and whether it served the government's best interest.

What is JBW Group LLC's track record with the Department of Defense or similar federal agencies, particularly on projects of this magnitude?

The provided data lists JBW Group LLC (CO: JBW GROUP LLC) as the contractor for this $13.6 million definitive contract. However, it does not offer details on their past performance, experience, or track record with the Department of Defense or other federal entities. A thorough analysis would require reviewing their contract history, including the size and type of previous projects, client satisfaction ratings, and any instances of performance issues or disputes. This information is critical for assessing the risk associated with awarding a significant contract to this particular company, especially given the lack of competition.

How does the $13.6 million contract value compare to similar commercial and institutional building construction projects in Nevada or for the Department of Defense?

Benchmarking the $13.6 million contract value requires comparing it against similar projects. This would involve analyzing the average cost per square foot, cost per unit (if applicable), or total contract value for other commercial and institutional building construction projects undertaken by the Department of Defense or other federal agencies in Nevada or nationwide. Factors such as project complexity, specific construction types, and prevailing market rates for labor and materials in the region would need to be considered. Without such comparative data, it is difficult to definitively state whether this contract represents good value for money, although the sole-source nature raises concerns.

What are the potential risks associated with a sole-source construction contract of this size and duration?

Sole-source contracts, especially for large projects like this $13.6 million construction effort with a duration of 813 days, carry several inherent risks. The primary risk is the potential for inflated pricing due to the absence of competitive pressure, meaning taxpayers may overpay. There's also a reduced incentive for the contractor to be highly efficient or innovative if they are the only option. Furthermore, without a competitive process to vet multiple potential contractors, there's a risk that the chosen contractor may lack the necessary expertise, resources, or financial stability, potentially leading to delays, cost overruns, or subpar quality, despite the firm fixed-price structure.

What is the historical spending pattern for commercial and institutional building construction by the Department of the Army in Nevada?

The provided data focuses on a single contract award and does not offer historical spending patterns for the Department of the Army in Nevada for commercial and institutional building construction. To analyze historical spending, one would need access to databases or reports detailing previous contracts awarded within this sector and geographic region. This analysis would help determine if this $13.6 million award is an anomaly, part of a larger trend, or consistent with previous investment levels. It would also help contextualize the current award within the broader budget and project pipeline for Army facilities in Nevada.

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: W912DY25RA111

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: $15,459,265

Exercised Options: $13,646,403

Current Obligation: $13,646,403

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline