National Guard construct readiness center awarded for $18.7M, supporting training and administrative needs in Michigan

Contract Overview

Contract Amount: $18,684,757 ($18.7M)

Contractor: Nlgc JV LLC

Awarding Agency: Department of Defense

Start Date: 2025-06-01

End Date: 2026-06-15

Contract Duration: 379 days

Daily Burn Rate: $49.3K/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: THIS WILL BE A SPECIALLY DESIGNED NATIONAL GUARD CONSTRUCT READINESS CENTER OF PERMANENT CONSTRUCTION THAT SUPPORT THE TRAINING AND ADMINISTRATIVE NEEDS, AND LOGISTICAL REQUIREMENTS OF THE MI ARNG AT GRAYLING MI.

Place of Performance

Location: GRAYLING, CRAWFORD County, MICHIGAN, 49738

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to NLGC JV LLC for work described as: THIS WILL BE A SPECIALLY DESIGNED NATIONAL GUARD CONSTRUCT READINESS CENTER OF PERMANENT CONSTRUCTION THAT SUPPORT THE TRAINING AND ADMINISTRATIVE NEEDS, AND LOGISTICAL REQUIREMENTS OF THE MI ARNG AT GRAYLING MI. Key points: 1. Contract value of $18.7M for a construct readiness center indicates significant investment in military infrastructure. 2. The project aims to support training, administrative, and logistical requirements for the Michigan Army National Guard. 3. A definitive contract type suggests a clear scope and established terms for the construction project. 4. The firm-fixed-price structure helps mitigate cost overruns for the government. 5. The project duration of 379 days points to a substantial construction undertaking. 6. The contract is for commercial and institutional building construction, a common category for federal infrastructure.

Value Assessment

Rating: good

The contract value of $18.7 million for a construct readiness center appears reasonable given the scope of supporting training, administrative, and logistical needs for a state's National Guard unit. Benchmarking against similar large-scale military construction projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type is generally favorable for controlling costs on projects with well-defined requirements, suggesting a good faith effort to secure a predictable price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be broad, certain sources were excluded for specific reasons, potentially related to specialized capabilities or security. The number of bidders is not specified, but this procurement method suggests a more controlled competition than a purely full and open process. This could lead to less aggressive pricing compared to a scenario with numerous bidders.

Taxpayer Impact: The limited competition may result in a higher price for taxpayers than if a wider range of contractors had been able to bid without exclusions.

Public Impact

The Michigan Army National Guard will benefit from enhanced training, administrative, and logistical facilities. The project will deliver a new permanent construction facility designed for readiness. The geographic impact is concentrated in Grayling, Michigan, supporting local military operations. The construction will likely create temporary jobs in the local area during the project duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if excluded sources were critical for competitive pricing.
Risk of schedule delays inherent in large-scale construction projects.
Ensuring the final construction meets all specified training and logistical requirements.

Positive Signals

Firm-fixed-price contract helps control budget.
Clear project scope for readiness center construction.
Supports critical National Guard operational needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal construction market. Federal spending in this area supports a wide range of facilities, from administrative offices to specialized training centers. The market size for federal construction is substantial, with agencies like the Department of Defense consistently investing in infrastructure to maintain operational readiness and modernize facilities. This project aligns with broader trends of investing in state-level National Guard readiness infrastructure.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests the prime contractor, NLGC JV LLC, is likely a larger entity or a joint venture. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this significant construction project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, with potential involvement from the National Guard Bureau. Accountability measures are embedded in the firm-fixed-price contract, requiring the contractor to deliver the specified facility within the agreed-upon cost. Transparency is typically maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Guard Readiness Centers
Military Construction Projects
Department of Defense Facilities
Commercial Building Construction

Risk Flags

Limited competition may impact price competitiveness.
Potential for cost overruns if unforeseen issues arise in construction.
Ensuring contractor meets all quality and performance specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to NLGC JV LLC. THIS WILL BE A SPECIALLY DESIGNED NATIONAL GUARD CONSTRUCT READINESS CENTER OF PERMANENT CONSTRUCTION THAT SUPPORT THE TRAINING AND ADMINISTRATIVE NEEDS, AND LOGISTICAL REQUIREMENTS OF THE MI ARNG AT GRAYLING MI.

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 $18.7 million.

What is the period of performance?

Start: 2025-06-01. End: 2026-06-15.

What is the track record of NLGC JV LLC in completing similar federal construction projects on time and within budget?

Information regarding the specific track record of NLGC JV LLC for federal construction projects is not directly provided in the data. To assess their performance, a review of their past federal contract awards, completion history, and any reported performance issues or accolades would be necessary. This would involve searching federal procurement databases like SAM.gov or FPDS for contracts awarded to NLGC JV LLC, examining contract values, durations, and any associated modifications or disputes. A strong history of successful project delivery would indicate lower risk for this current contract, while a pattern of delays or cost overruns would raise concerns about the contractor's reliability and the potential impact on the Michigan National Guard's readiness.

How does the awarded amount of $18.7 million compare to the estimated cost or benchmark for similar construct readiness centers?

The awarded amount of $18.7 million for the Michigan National Guard construct readiness center requires comparison with similar projects to assess value for money. Without specific benchmark data for readiness centers of comparable size and scope, a precise comparison is difficult. However, the contract value suggests a significant investment. Factors influencing this cost include the size of the facility, specialized training requirements, site preparation needs, and prevailing construction costs in Grayling, Michigan. A detailed cost breakdown from the government's perspective, if available, or comparison with publicly advertised bids for similar projects could reveal if this award represents a competitive price or if it leans towards the higher end of the spectrum.

What are the primary risks associated with a firm-fixed-price contract for a large-scale construction project like this?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty for the government, they carry inherent risks, particularly for large-scale construction. The primary risk is that the contractor may underestimate costs, leading to potential quality compromises, use of substandard materials, or even project abandonment if the contract becomes unprofitable. Conversely, if the contractor significantly overestimates costs due to uncertainty, the government may pay a premium. For this project, risks include unforeseen site conditions, material price fluctuations not adequately accounted for, labor shortages, or design ambiguities that could lead to change orders, potentially increasing the final cost despite the FFP structure. Robust government oversight and clear contract specifications are crucial to mitigate these risks.

What is the expected effectiveness of this new construct readiness center in improving the Michigan National Guard's training and operational capabilities?

The effectiveness of the new construct readiness center hinges on its design meeting the specific training, administrative, and logistical requirements of the Michigan Army National Guard. If the facility is purpose-built to accommodate modern training methodologies, provide adequate administrative space, and support efficient logistical operations, it is expected to significantly enhance the unit's readiness. This includes potentially enabling more realistic simulations, improving equipment storage and maintenance, and streamlining personnel management. The 379-day duration suggests a substantial facility, implying a considerable upgrade from current capabilities. The ultimate measure of effectiveness will be the unit's improved performance in training exercises and real-world operations post-construction.

How has federal spending on military construction and readiness facilities evolved over the past five years, and where does this contract fit in?

Federal spending on military construction and readiness facilities has generally remained robust, driven by modernization efforts, geopolitical demands, and the need to maintain infrastructure across all branches of the armed forces, including the National Guard. While specific figures fluctuate annually based on budget appropriations and strategic priorities, there's a consistent allocation towards ensuring bases and support facilities are adequate. This $18.7 million contract for a construct readiness center in Michigan fits within this ongoing investment pattern. It represents a targeted expenditure to bolster the capabilities of a specific state's National Guard unit, reflecting the broader federal commitment to maintaining a ready and capable reserve force.

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: W912JB24B0001

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: $19,764,647

Exercised Options: $18,684,757

Current Obligation: $18,684,757

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline