Department of the Army awards $8.9M contract for exterior and interior construction to NLGC JV LLC

Contract Overview

Contract Amount: $8,902,123 ($8.9M)

Contractor: Nlgc JV LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-05

End Date: 2026-04-19

Contract Duration: 622 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BN HQ 900 43 AMOG EXTERIOR CONSTRUCTION AND INTERIOR

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $8.9 million to NLGC JV LLC for work described as: BN HQ 900 43 AMOG EXTERIOR CONSTRUCTION AND INTERIOR Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a definitive contract, which can sometimes indicate less defined scope or evolving requirements. 4. The project is located in North Carolina, potentially impacting local construction workforce and material sourcing. 5. The firm-fixed-price structure aims to control costs for the government. 6. The contract duration of 622 days indicates a substantial construction timeline.

Value Assessment

Rating: good

The contract value of $8.9 million for exterior and interior construction seems aligned with typical project costs for similar scope and scale within the Department of Defense. Benchmarking against other large-scale building construction contracts awarded by the Army or other branches would provide a more precise value-for-money assessment. The firm-fixed-price type suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple potential bidders were solicited and allowed to submit proposals. The presence of four bidders (no=4) suggests a healthy level of competition for this project, which typically leads to more competitive pricing and better value for the government. The specific exclusion of sources prior to the full and open competition phase warrants further investigation to understand if it was justified.

Taxpayer Impact: The competitive bidding process for this construction project is beneficial for taxpayers as it likely drove down the final contract price through multiple offers. A competitive environment encourages contractors to offer their best pricing and terms to secure the award.

Public Impact

The primary beneficiary of this contract is the Department of the Army, which will receive updated or new exterior and interior construction for its facilities. The services delivered include general construction, encompassing both external building work and internal renovations or fit-outs. The geographic impact is concentrated in North Carolina, where the construction will take place, potentially creating local jobs and utilizing local resources. The workforce implications include employment opportunities for construction workers, tradespeople, and project management professionals in the North Carolina region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' prior to full and open competition needs clarification to ensure no potential bidders were unfairly excluded.
The definitive contract type (aw='DEFINITIVE CONTRACT') can sometimes be associated with less defined requirements, potentially leading to scope creep or change orders if not managed carefully.

Positive Signals

The use of 'full and open competition' indicates a robust bidding process, likely resulting in competitive pricing.
The 'firm fixed price' contract type (pt='FIRM FIXED PRICE') shifts cost overrun risk to the contractor, benefiting the government.
The award to NLGC JV LLC, a joint venture, may indicate a strategy to leverage specialized expertise or capacity for this project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (na='236220'), a significant segment of the broader construction industry. Federal spending in this sector supports the maintenance, upgrade, and expansion of government facilities. Comparable spending benchmarks would involve analyzing the average cost per square foot or per project for similar military construction projects awarded by the Department of Defense or other federal agencies over the past few years.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). As such, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, NLGC JV LLC, may still choose to subcontract portions of the work to small businesses as part of their overall project execution strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and project managers within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which penalizes the contractor for cost overruns. Transparency regarding contract performance and any modifications would typically be available through federal procurement databases, though specific project details might be limited due to security or proprietary concerns.

Related Government Programs

Military Construction
Facility Maintenance and Repair
General Building Construction
Department of Defense Contracts
Construction Services

Risk Flags

Potential for scope creep due to definitive contract type.
Justification for 'exclusion of sources' prior to full and open competition needs review.
Contractor performance history requires verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.9 million to NLGC JV LLC. BN HQ 900 43 AMOG EXTERIOR CONSTRUCTION AND INTERIOR

Who is the contractor on this award?

The obligated recipient is NLGC 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 $8.9 million.

What is the period of performance?

Start: 2024-08-05. End: 2026-04-19.

What is the track record of NLGC JV LLC in performing similar federal construction contracts?

Information regarding the specific track record of NLGC JV LLC in performing similar federal construction contracts is not directly provided in the data. A thorough assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government projects. This would involve searching databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) for projects awarded to NLGC JV LLC or its constituent members. Understanding their experience with projects of comparable size, complexity, and type (e.g., exterior and interior construction for military facilities) is crucial for evaluating their capability to successfully execute this current contract.

How does the awarded price compare to market rates for similar construction services in North Carolina?

To compare the awarded price of $8.9 million to market rates for similar construction services in North Carolina, one would need to benchmark against regional construction cost indices and recent project data. This involves analyzing factors such as cost per square foot, labor rates, material costs, and overhead specific to the North Carolina market. Given that this is a definitive contract awarded under full and open competition, the price is likely competitive. However, a detailed comparison would require access to industry cost databases and analysis of similar projects recently completed in the same geographic area to determine if the price is advantageous or if there is potential for cost savings.

What are the primary risks associated with a definitive contract for construction services?

A primary risk associated with definitive contracts, especially for construction, is the potential for scope creep if requirements are not clearly defined upfront or if they evolve significantly during the contract period. This can lead to change orders, increased costs, and extended timelines, even with a firm-fixed-price structure. Another risk is the contractor's ability to manage unforeseen site conditions or material availability issues, which could impact project delivery. Effective project management, clear communication, and robust oversight are critical to mitigating these risks and ensuring the successful completion of the construction project within the defined parameters.

What is the historical spending pattern for exterior and interior construction by the Department of the Army?

Historical spending patterns for exterior and interior construction by the Department of the Army are substantial, reflecting the continuous need to maintain, upgrade, and build military facilities. The Army typically awards numerous contracts annually across various regions and for diverse construction needs, ranging from barracks and training facilities to administrative buildings and specialized infrastructure. Analyzing past spending data would reveal trends in contract values, types of construction projects prioritized, and geographic distribution of awards. This contract of $8.9 million represents one component of this broader spending, and its value should be considered in the context of the Army's overall annual construction budget and procurement strategies.

What are the implications of the 'exclusion of sources' clause in the contract award process?

The 'exclusion of sources' clause, when used prior to 'full and open competition,' suggests that certain potential sources were identified and then excluded from the solicitation process for specific, justifiable reasons. These reasons could include national security concerns, proprietary technology, or the need for specialized capabilities that only a limited number of entities possess. While it precedes full and open competition, the subsequent full and open competition implies that among the remaining eligible sources, a competitive process was indeed conducted. However, the justification for the initial exclusion is critical to ensure fairness and prevent anti-competitive practices. Without further details on the rationale, it raises a flag regarding the breadth of initial competition.

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: W912HN24B3005

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7310 WOODWARD AVE STE 512, DETROIT, MI, 48202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $20,799,257

Exercised Options: $8,904,742

Current Obligation: $8,902,123

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline