DLA DDSP Electrical Upgrades contract awarded to JBW GROUP LLC for over $73M

Contract Overview

Contract Amount: $73,073,803 ($73.1M)

Contractor: JBW Group LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-15

End Date: 2028-02-14

Contract Duration: 882 days

Daily Burn Rate: $82.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DLA DDSP ELECTRICAL UPGRADES

Place of Performance

Location: NEW CUMBERLAND, CUMBERLAND County, PENNSYLVANIA, 17070

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $73.1 million to JBW GROUP LLC for work described as: DLA DDSP ELECTRICAL UPGRADES Key points: 1. The contract value of over $73 million for electrical upgrades suggests a significant investment in facility modernization. 2. The award to a single contractor, JBW GROUP LLC, warrants scrutiny regarding the absence of broader competition. 3. The firm-fixed-price contract type aims to control costs, but the absence of competition may limit price discovery. 4. The duration of the contract (882 days) indicates a substantial project timeline for the electrical upgrades. 5. The project is located in Pennsylvania, potentially impacting the local construction workforce and economy. 6. The contract's classification as 'NOT AVAILABLE FOR COMPETITION' raises questions about the justification for limited bidding.

Value Assessment

Rating: questionable

Benchmarking the value of this $73 million contract is challenging without specific details on the scope of electrical upgrades. However, the lack of competition suggests potential for overpayment compared to a fully competed scenario. The firm-fixed-price structure provides some cost certainty, but the absence of multiple bids means there's no direct market comparison to assess if the pricing is truly competitive. Further analysis would require understanding the specific infrastructure needs and the typical costs for similar large-scale electrical modernization projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition procurement. The specific reasons for this designation are not provided, but it implies that only one contractor, JBW GROUP LLC, was solicited or deemed capable of performing the work. This significantly limits price discovery and potentially reduces the incentive for the contractor to offer the most competitive pricing.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process, potentially leading to a higher overall expenditure for the electrical upgrades.

Public Impact

The primary beneficiaries are the Department of Defense (DLA DDSP) through modernized electrical infrastructure, enhancing operational reliability. The services delivered include comprehensive electrical system upgrades, crucial for maintaining critical facilities. The geographic impact is concentrated in Pennsylvania, where the facility is located, potentially creating local employment opportunities. Workforce implications may include demand for skilled electricians and construction labor in the project's vicinity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source awards can reduce transparency and accountability in government spending.
The absence of multiple bids limits the government's ability to secure the best possible value.
Potential for contractor lock-in due to specialized knowledge or equipment required for the upgrades.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
The contract aims to upgrade critical electrical infrastructure, ensuring operational continuity.
The project duration suggests a thorough and potentially high-quality execution of the upgrades.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on electrical system upgrades for a government facility. The market for large-scale electrical construction and modernization is substantial, driven by aging infrastructure and the need for enhanced power reliability and efficiency. Comparable spending benchmarks would typically involve analyzing other large federal or commercial building renovation projects, particularly those involving complex electrical systems. The $73 million value places this contract in the upper tier of such projects.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Consequently, there are likely no direct subcontracting opportunities mandated for small businesses under this award, potentially limiting their involvement in this significant project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and inspection mechanisms. The firm-fixed-price nature of the award implies that the contractor bears the risk for cost overruns, simplifying some aspects of financial oversight. However, the 'NOT AVAILABLE FOR COMPETITION' status necessitates robust oversight to ensure the justification for limited competition was sound and that the awarded price represents fair value. Transparency would be enhanced by public disclosure of the justification for the sole-source award.

Related Government Programs

DLA Facility Modernization Programs
Department of Defense Infrastructure Projects
Federal Building Electrical System Upgrades
Large-Scale Construction Contracts

Risk Flags

Sole-source award justification unclear
Potential for inflated pricing due to lack of competition
Limited small business participation opportunities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.1 million to JBW GROUP LLC. DLA DDSP ELECTRICAL UPGRADES

Who is the contractor on this award?

The obligated recipient is JBW GROUP 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 $73.1 million.

What is the period of performance?

Start: 2025-09-15. End: 2028-02-14.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. However, the specific justification for this determination is not detailed. Typically, sole-source procurements are justified under circumstances such as only one responsible source being available, urgent and compelling needs, or when a specific brand-name item is required. Without further documentation from the agency (e.g., a Justification and Approval document), it is impossible to ascertain the precise rationale. This lack of transparency is a concern, as it prevents independent verification of the necessity for foregoing a competitive process.

How does the awarded amount of over $73 million compare to similar electrical upgrade projects within the Department of Defense?

Direct comparison of the $73 million award to similar electrical upgrade projects within the Department of Defense is difficult without access to a comprehensive database of past contracts with detailed scope information. However, for large-scale facility modernization, especially involving critical infrastructure like electrical systems, such figures are substantial. The absence of competition makes it harder to benchmark against market rates. Generally, larger projects can achieve economies of scale, but sole-source awards often result in higher prices than fully competed contracts. Further analysis would require identifying comparable projects based on facility type, size, and the complexity of the electrical work performed.

What are the potential risks associated with a sole-source award for a project of this magnitude?

The primary risk associated with a sole-source award for a $73 million project is the potential for inflated costs due to the lack of competitive pressure. Without multiple bidders vying for the contract, JBW GROUP LLC may not have been incentivized to offer the lowest possible price. Other risks include reduced transparency in the procurement process, potentially limiting accountability. There's also a risk that the government may not receive the full benefit of innovation or alternative solutions that might have emerged from a competitive bidding environment. Ensuring robust oversight and negotiation is crucial to mitigate these risks.

What is the track record of JBW GROUP LLC in performing similar large-scale electrical upgrade contracts for the federal government?

Information regarding JBW GROUP LLC's specific track record with large-scale electrical upgrade contracts for the federal government is not detailed in the provided data. To assess their capability and past performance, one would need to consult federal procurement databases (like SAM.gov or FPDS) for previous contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or issues. A thorough review of their past projects, including size, complexity, and client satisfaction, is essential to gauge their reliability and expertise for this significant $73 million undertaking.

What are the implications of the firm-fixed-price contract type on cost control for this project?

The firm-fixed-price (FFP) contract type is generally favorable for cost control as it shifts the risk of cost overruns to the contractor, JBW GROUP LLC. The government agrees to pay a set price, regardless of the contractor's actual costs. This provides budget certainty. However, in a sole-source scenario, the initial fixed price itself might be higher than it would be in a competitive environment. While the FFP structure prevents cost increases beyond the agreed-upon price, it does not guarantee that the initial price represents the best possible value achievable through competition. Effective oversight is still needed to ensure the scope is met and quality standards are upheld.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912HP25R6000

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3501 HORACE AVE, FORT WORTH, TX, 76244

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,281,605

Exercised Options: $73,073,803

Current Obligation: $73,073,803

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline