DoD Awards $30.5M Construction Contract to MVL Builders for Beirut Naval Base
Contract Overview
Contract Amount: $30,463,739 ($30.5M)
Contractor: MVL Builders JV LLC
Awarding Agency: Department of Defense
Start Date: 2024-02-03
End Date: 2027-04-17
Contract Duration: 1,169 days
Daily Burn Rate: $26.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: RESTORE BEIRUT NAVAL BASE
Plain-Language Summary
Department of Defense obligated $30.5 million to MVL BUILDERS JV LLC for work described as: RESTORE BEIRUT NAVAL BASE Key points: 1. The contract is for heavy and civil engineering construction. 2. MVL Builders JV LLC is the sole awardee. 3. The contract is a firm fixed price definitive contract. 4. The project duration is 1169 days.
Value Assessment
Rating: fair
The award amount of $30.5 million for heavy and civil engineering construction appears within a reasonable range for a project of this nature. However, without specific project scope details and comparable project data, a precise valuation is difficult. The benchmark of $26.06 million suggests potential overspending.
Cost Per Unit: $26,060
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing. The award to a single entity suggests MVL Builders JV LLC was the most advantageous offer.
Taxpayer Impact: The firm fixed price contract aims to control costs, but the final price will be $30.5 million, impacting taxpayer funds for infrastructure development.
Public Impact
Supports U.S. military infrastructure abroad. Creates construction jobs and economic activity. Potential impact on local Lebanese economy. Ensures operational readiness of naval facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential cost overrun indicated by benchmark.
- Limited transparency on specific construction elements.
- Geopolitical risks in Lebanon.
Positive Signals
- Firm fixed price contract limits cost escalation.
- Full and open competition promotes fairness.
- Long-term infrastructure investment.
Sector Analysis
This contract falls under the heavy and civil engineering construction sector, which is a significant area of government spending for infrastructure and base support. Benchmarks for similar projects can vary widely based on location, complexity, and materials.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reporting, should be in place to ensure compliance and quality.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Award price significantly exceeds benchmark.
- Lack of detailed scope of work.
- Geopolitical risks in the operating environment.
- Potential for unforeseen site conditions.
- Limited information on small business participation.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.5 million to MVL BUILDERS JV LLC. RESTORE BEIRUT NAVAL BASE
Who is the contractor on this award?
The obligated recipient is MVL BUILDERS JV 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 $30.5 million.
What is the period of performance?
Start: 2024-02-03. End: 2027-04-17.
What specific construction tasks are included in the $30.5 million contract for the Beirut Naval Base?
The provided data classifies the work under NAICS code 237990 (Other Heavy and Civil Engineering Construction) but lacks specific details on the construction tasks. This could range from structural repairs, utility upgrades, dock construction, or new facility development. Understanding the scope is crucial for assessing value and potential risks.
How does the awarded price of $30.5 million compare to the benchmark of $26.06 million, and what factors might explain the difference?
The awarded price is approximately 17% higher than the provided benchmark. This difference could be attributed to various factors including inflation, specific material costs, unforeseen site conditions, specialized labor requirements, or a more comprehensive scope of work than the benchmark project. A detailed cost breakdown would be necessary for a precise comparison.
What are the primary risks associated with executing a large construction project for a naval base in Beirut, Lebanon?
Key risks include geopolitical instability in the region, potential supply chain disruptions, currency fluctuations, local labor availability and regulations, and security concerns for personnel and equipment. Environmental factors and adherence to U.S. military construction standards in a foreign context also present challenges.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering 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: W912ER24R0005
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2722 E MICHIGAN AVE STE 228, LANSING, MI, 48912
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,463,739
Exercised Options: $30,463,739
Current Obligation: $30,463,739
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-02-03
Current End Date: 2027-04-17
Potential End Date: 2027-04-17 00:00:00
Last Modified: 2025-05-23
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