DoD Awards $169.9M Construction Contract to Circle, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $16,987,525 ($17.0M)

Contractor: Circle, LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-14

End Date: 2025-09-30

Contract Duration: 839 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MRL 460-L

Place of Performance

Location: VICKSBURG, WARREN County, MISSISSIPPI, 39183

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to CIRCLE, LLC for work described as: MRL 460-L Key points: 1. The contract is for construction services, falling under the Other Heavy and Civil Engineering Construction NAICS code. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract has a firm-fixed-price structure, providing cost certainty for the government. 4. The total value is $169.9 million with a duration of 839 days.

Value Assessment

Rating: good

The contract value of $169.9 million for construction services appears reasonable given the scope and duration. Benchmarking against similar large-scale civil engineering projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, maximizing taxpayer value for the construction services rendered.

Public Impact

Supports critical infrastructure development for the Department of Defense. Creates jobs and economic activity in Mississippi, the state where the contract is managed. Ensures the availability of necessary construction capabilities for military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if unforeseen site conditions arise.
  • Dependence on the contractor's ability to meet project timelines and quality standards.

Positive Signals

  • Firm-fixed-price contract limits government exposure to cost increases.
  • Full and open competition suggests a robust selection process.
  • Awarded to a single entity, potentially streamlining project management.

Sector Analysis

This contract falls within the construction sector, specifically heavy and civil engineering. Spending in this sector for the DoD can fluctuate based on infrastructure needs and modernization efforts. Benchmarks for similar large-scale construction projects are typically in the tens to hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, it is unlikely that small businesses were the primary focus of this specific award, though they may participate as subcontractors.

Oversight & Accountability

The Department of the Army's contracting process, including full and open competition, provides a framework for oversight. Monitoring contract performance, adherence to schedule, and quality control will be crucial for ensuring accountability and taxpayer value.

Related Government Programs

  • Other Heavy and Civil Engineering Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Contract duration is lengthy, increasing exposure to potential delays.
  • Reliance on a single contractor for a large project.
  • Potential for unforeseen site conditions impacting cost and schedule.
  • Lack of specific detail on the construction scope within the provided data.

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, ms, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to CIRCLE, LLC. MRL 460-L

Who is the contractor on this award?

The obligated recipient is CIRCLE, 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 $17.0 million.

What is the period of performance?

Start: 2023-06-14. End: 2025-09-30.

What specific types of heavy and civil engineering construction are covered under this contract?

The contract details do not specify the exact nature of the construction. However, the NAICS code 'Other Heavy and Civil Engineering Construction' typically encompasses projects like roads, bridges, dams, pipelines, and other infrastructure not elsewhere classified. Further details would likely be found in the contract's statement of work.

What are the key performance indicators (KPIs) for this contract to ensure successful delivery and taxpayer value?

Key performance indicators would likely include adherence to the project schedule, meeting quality standards for construction, safety compliance on-site, and effective budget management. The firm-fixed-price nature incentivizes the contractor to control costs, while the government will monitor progress against milestones.

How does the $169.9 million award compare to typical spending for similar construction projects within the Department of Defense?

Without specific project details, a direct comparison is challenging. However, $169.9 million is a substantial sum, indicative of a large-scale infrastructure project. The DoD undertakes numerous projects in this value range for base improvements, new facilities, and essential infrastructure upgrades, making this award within a plausible spending bracket.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912EE19R0005

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1204 ENGINEERS RD, BELLE CHASSE, LA, 70037

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,987,525

Exercised Options: $16,987,525

Current Obligation: $16,987,525

Actual Outlays: $3,271,168

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EE20D0008

IDV Type: IDC

Timeline

Start Date: 2023-06-14

Current End Date: 2025-09-30

Potential End Date: 2025-09-30 00:00:00

Last Modified: 2025-10-17

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