DoD awards $29.8M for new lab building, NLGC JV LLC to construct facility in Georgia

Contract Overview

Contract Amount: $29,836,883 ($29.8M)

Contractor: Nlgc JV LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-01

End Date: 2026-08-27

Contract Duration: 969 days

Daily Burn Rate: $30.8K/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: NEW LAB BUIILDING

Place of Performance

Location: TIFTON, TIFT County, GEORGIA, 31793

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $29.8 million to NLGC JV LLC for work described as: NEW LAB BUIILDING Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract with a firm fixed price, indicating cost certainty. 3. Construction is slated for completion by August 2026, with a duration of 969 days. 4. The project is located in Georgia, potentially impacting the local construction workforce. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The award value of $29.8 million falls within a moderate spending range for large construction projects.

Value Assessment

Rating: good

The contract value of $29.8 million for a new laboratory building appears reasonable given the scope of commercial and institutional construction. Benchmarking against similar federal laboratory construction projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government. The award to NLGC JV LLC suggests they offered a competitive price and technical solution.

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,' which typically means that all responsible sources were permitted to submit a bid. The presence of 3 bidders indicates a moderate level of competition for this project. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will utilize the new laboratory facilities. The project will deliver a new laboratory building, enhancing research and development capabilities. The geographic impact is concentrated in Georgia, where the construction will take place. The construction phase will likely create jobs for skilled trades and construction workers in the local Georgia area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting the operational readiness of the new lab.
Risk of unforeseen site conditions requiring change orders and increasing project costs.
Ensuring the final structure meets all specialized laboratory requirements and safety standards.

Positive Signals

Firm fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
Awarded under full and open competition, suggesting a competitive market price was achieved.
The project duration is clearly defined, allowing for structured project management and oversight.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction (NAICS 236220). The federal government is a significant consumer of construction services, awarding billions annually for facilities supporting various missions. This laboratory building project aligns with the government's ongoing need to modernize and expand its infrastructure to support scientific research and operational requirements. Comparable spending benchmarks for similar-sized laboratory or specialized facility construction projects would typically range from tens to hundreds of millions of dollars, depending on complexity and location.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While NLGC JV LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses. Further review of the contract details would be needed to ascertain if subcontracting goals were established or met, which could impact the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army project management office. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the project within the agreed-upon cost. Transparency can be assessed through contract award databases and potentially through agency reporting on project milestones. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Research and Development Facilities
Department of Defense Infrastructure Modernization
Federal Building Construction Contracts

Risk Flags

Potential for scope creep impacting budget and schedule.
Contractor performance risk.
Ensuring compliance with specialized laboratory construction standards.
Adequacy of competition justification if sources were excluded.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.8 million to NLGC JV LLC. NEW LAB BUIILDING

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 $29.8 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-08-27.

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

Information regarding NLGC JV LLC's specific track record with federal construction contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government projects. Federal procurement databases and agency performance rating systems (e.g., Contractor Performance Assessment Reporting System - CPARS) would be the primary sources for this information. Understanding their experience with laboratory construction, project size, and adherence to schedule and budget on prior contracts is crucial for evaluating their capability to successfully execute this $29.8 million project.

How does the awarded price of $29.8 million compare to similar laboratory construction projects funded by the federal government?

Direct comparison of the $29.8 million award for this new lab building requires access to a database of similar federal construction projects, including their scope, size, location, and specific functionalities. Without such a benchmark, it's difficult to definitively state if the price is high or low. However, the award was made under full and open competition with three bidders, suggesting that the price achieved was competitive within the market. Factors like specialized equipment, advanced HVAC systems, and stringent safety requirements for laboratories can significantly influence costs, making direct comparisons challenging without detailed project specifications.

What are the primary risks associated with the construction of a new laboratory facility for the Department of Defense?

Key risks in constructing a new DoD laboratory facility include potential cost overruns due to unforeseen site conditions or complex technical requirements, schedule delays caused by supply chain issues, labor shortages, or permitting challenges, and ensuring the facility meets highly specific operational and security standards. There's also a risk related to the contractor's performance, including quality of work and adherence to safety protocols. Furthermore, changes in research priorities or technological advancements during the multi-year construction period could necessitate design modifications, impacting both cost and timeline. Effective risk mitigation strategies, robust project management, and clear communication channels are essential.

How effective is the firm fixed-price contract type in ensuring value for money for this laboratory construction project?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money for construction projects like this laboratory building, as it shifts the majority of the cost risk to the contractor. The government agrees to a set price, and the contractor is responsible for completing the work within that budget. This incentivizes the contractor to manage costs efficiently and avoid overruns. For the government, it provides budget certainty. However, for FFP contracts to be truly value-driven, the initial price must be fair and reasonable, which is typically achieved through robust competition and thorough cost analysis during the procurement phase. Any deviations or changes to the scope would require formal modification and negotiation.

What are the historical spending patterns for laboratory construction within the Department of Defense or Department of the Army?

Historical spending patterns for laboratory construction within the Department of Defense (DoD) and the Department of the Army show a consistent and significant investment in research, development, and testing infrastructure. These expenditures fluctuate based on modernization needs, emerging threats, and strategic priorities. Major projects often involve substantial capital outlays, ranging from tens to hundreds of millions of dollars, for specialized facilities. Analyzing past budgets and contract awards for similar laboratory construction projects would reveal trends in project scale, average cost per square foot, and the typical duration of such endeavors. This context helps in evaluating the current $29.8 million award as part of a larger, ongoing commitment to maintaining and advancing DoD's scientific and technological capabilities.

What are the implications of the 'after exclusion of sources' clause in the competition type?

The competition type 'Full and Open Competition After Exclusion of Sources' indicates that while the competition was intended to be open, certain potential sources were deliberately excluded from bidding. This exclusion must be justified based on specific criteria, such as national security, unique capabilities, or prior investments made by a particular contractor. While it's still a form of open competition, the exclusion of some entities could potentially limit the breadth of competition and, consequently, the range of pricing and innovation available to the government. The justification for excluding sources is critical for ensuring that the government still achieves the best possible value and that the exclusion was necessary and appropriate.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912HN23B4003

Offers Received: 3

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: $29,836,883

Exercised Options: $29,836,883

Current Obligation: $29,836,883

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline