DoD Awards $26.7M Construction Contract to Outside Box LLC for Innovation Outpost

Contract Overview

Contract Amount: $26,686,975 ($26.7M)

Contractor: Outside BOX LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-28

End Date: 2025-09-30

Contract Duration: 1,098 days

Daily Burn Rate: $24.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONVERT INNOVATION OUTPOST

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to OUTSIDE BOX LLC for work described as: CONVERT INNOVATION OUTPOST Key points: 1. Contract awarded for Commercial and Institutional Building Construction. 2. Outside Box LLC secured the $26.7M definitive contract. 3. Competition was full and open after exclusion of sources. 4. The contract has a duration of 1098 days. 5. Project is located in North Carolina.

Value Assessment

Rating: fair

The contract value of $26.7M for building construction appears within a reasonable range for a project of this scope. However, without specific details on the project's size, complexity, and location, a precise benchmark is difficult. Further analysis of similar DoD construction contracts in North Carolina would be needed for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value. The exclusion of sources suggests specific criteria were met, potentially limiting the pool but still allowing for competition.

Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently. The final price reflects market conditions and contractor proposals, minimizing potential waste.

Public Impact

Local economic impact through construction jobs and material sourcing in North Carolina. Development of a new facility potentially supporting military innovation and research. Potential for improved infrastructure and operational capabilities for the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources.
Potential for cost overruns in construction projects.
Contract duration extends over multiple fiscal years.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type limits cost risk.
Project supports military innovation.

Sector Analysis

The Commercial and Institutional Building Construction sector is a significant area of federal spending, particularly for agencies like the Department of Defense. Benchmarks for construction projects vary widely based on size, location, and specific requirements, but large-scale facilities can easily reach tens of millions of dollars.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (sb: false). While the prime contractor is identified, there is no information on whether they are a small business or if subcontracting opportunities for small businesses are planned or required.

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 reviews, would be in place to ensure compliance with contract terms and quality standards.

Related Government Programs

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

Risk Flags

Potential for limited competition due to source exclusion.
Construction projects are susceptible to unforeseen delays and cost increases.
Long contract duration spanning multiple fiscal years.
Lack of explicit small business subcontracting goals noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to OUTSIDE BOX LLC. CONVERT INNOVATION OUTPOST

Who is the contractor on this award?

The obligated recipient is OUTSIDE BOX 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 $26.7 million.

What is the period of performance?

Start: 2022-09-28. End: 2025-09-30.

What specific criteria led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' method, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, security clearances, or unique qualifications are required that only a limited number of vendors possess. While this can sometimes reduce the number of bidders, the 'full and open' aspect means that any vendor meeting those stringent criteria could compete. The impact on price depends on how many qualified vendors ultimately bid; a highly specialized requirement with few bidders might lead to a higher price than broader competition.

What are the key performance indicators (KPIs) for the 'Innovation Outpost' project, and how will their achievement be measured to assess the effectiveness of this contract?

Effectiveness will likely be measured by the successful completion of the facility within the agreed-upon timeline and budget, meeting all specified construction standards and quality requirements. Beyond physical completion, KPIs might include the facility's readiness for its intended innovative purpose, its capacity to support research and development activities, and its contribution to the DoD's strategic goals for technological advancement. Post-occupancy evaluations could also assess operational efficiency.

Given the firm fixed price contract type, what mechanisms are in place to manage potential scope creep or unforeseen issues that could arise during a multi-year construction project?

A firm fixed price contract places the primary risk of cost overruns on the contractor. However, change order processes are standard for managing unforeseen issues or necessary scope adjustments. Any changes typically require formal modification to the contract, often involving negotiation of price and schedule impacts. Robust project management, clear initial scope definition, and diligent oversight by the contracting officer are crucial to prevent unauthorized scope creep and manage inevitable challenges.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912HN22B4008

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1428 FLOYD AVE, RICHMOND, VA, 23220

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $27,210,152

Exercised Options: $26,686,975

Current Obligation: $26,686,975

Actual Outlays: $4,078,773

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline