DoD awards $15.8M construction contract to V. Lopez Jr. & Sons for facility upgrades in California

Contract Overview

Contract Amount: $15,836,653 ($15.8M)

Contractor: V. Lopez JR. & Sons General Engineering Contractors, Inc

Awarding Agency: Department of Defense

Start Date: 2025-08-15

End Date: 2027-03-25

Contract Duration: 587 days

Daily Burn Rate: $27.0K/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: BAKERSFIELD VMS

Place of Performance

Location: BAKERSFIELD, KERN County, CALIFORNIA, 93307

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to V. LOPEZ JR. & SONS GENERAL ENGINEERING CONTRACTORS, INC for work described as: BAKERSFIELD VMS Key points: 1. Contract value appears reasonable given the scope of commercial building construction. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration of 587 days indicates a substantial project timeline. 4. The contract is a definitive contract, often used for ongoing requirements. 5. Fixed-price contract type helps mitigate cost overrun risks for the government. 6. The awardee has a track record in general engineering and construction.

Value Assessment

Rating: good

The contract value of $15.8 million for commercial and institutional building construction seems aligned with industry standards for projects of this nature. Benchmarking against similar Department of the Army construction contracts in California would provide a more precise value-for-money assessment. The firm fixed-price structure 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

The contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely solicited and evaluated. The presence of 4 bids suggests a healthy level of competition for this project, which typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: The competitive bidding process for this construction project is beneficial for taxpayers, as it likely resulted in a lower overall cost compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel stationed in California, who will receive upgraded facilities. The contract will deliver essential construction and general engineering services. The geographic impact is localized to California, specifically where the facilities are located. The project will likely create or sustain jobs within the construction sector in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the 587-day duration and complexity of construction projects.
Ensuring adherence to all environmental and safety regulations during construction is crucial.

Positive Signals

Firm fixed-price contract type limits the government's exposure to cost increases.
Full and open competition suggests a robust selection process.
The contractor, V. Lopez Jr. & Sons, has experience in general engineering and construction.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220), a significant segment of the construction industry. Federal spending in this area supports the maintenance and modernization of government facilities. Comparable spending benchmarks would involve analyzing other large-scale construction projects awarded by the Department of Defense or other federal agencies for similar facility types and geographic regions.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of small business subcontracting requirements or specific benefits to the small business ecosystem from this particular award, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Army, likely through contracting officers and project managers. Accountability measures will include adherence to contract terms, performance standards, and delivery schedules. Transparency is facilitated by public contract databases, though specific project details and ongoing oversight activities may not be fully public.

Related Government Programs

Department of Defense Construction Contracts
General Building Construction Services
Federal Facility Modernization Projects

Risk Flags

Potential for cost overruns if scope is not tightly managed, despite fixed-price.
Risk of schedule delays common in large construction projects.
Ensuring compliance with all environmental and safety regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to V. LOPEZ JR. & SONS GENERAL ENGINEERING CONTRACTORS, INC. BAKERSFIELD VMS

Who is the contractor on this award?

The obligated recipient is V. LOPEZ JR. & SONS GENERAL ENGINEERING CONTRACTORS, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2025-08-15. End: 2027-03-25.

What is the track record of V. Lopez Jr. & Sons General Engineering Contractors, Inc. with federal contracts, particularly with the Department of Defense?

V. Lopez Jr. & Sons General Engineering Contractors, Inc. has a history of performing construction and engineering services. While specific details on their entire federal contract history require deeper database analysis, their award by the Department of the Army for this significant project suggests they meet the qualifications and experience necessary for such work. Further investigation into their past performance ratings, any past disputes, and the types and values of previous federal contracts would provide a more comprehensive understanding of their reliability and capabilities.

How does the awarded amount of $15.8 million compare to similar construction projects for the Department of Defense in California?

A precise comparison requires access to a database of similar federal construction projects in California, including their scope, duration, and final awarded values. However, $15.8 million for a definitive contract involving commercial and institutional building construction, with a duration of 587 days, appears to be within a reasonable range for substantial facility upgrades or new construction. Factors such as specific site conditions, complexity of the build, and prevailing labor and material costs in the specific California region would influence the final price. Benchmarking against projects of similar size and complexity awarded by the Army or other DoD components in the same fiscal year would offer a more robust assessment.

What are the primary risks associated with this definitive contract, and how are they being mitigated?

The primary risks associated with this definitive contract include potential schedule delays due to unforeseen site conditions, weather, or supply chain issues, and the possibility of scope creep if requirements are not clearly defined. Mitigation strategies are in place through the firm fixed-price contract type, which places the financial risk of cost overruns on the contractor. The 587-day duration allows for a structured project timeline, and the Department of the Army's oversight will monitor progress and manage any necessary change orders. Clear contract specifications and regular progress reviews are also key mitigation tools.

What is the expected impact of this contract on the local economy and workforce in California?

This contract is expected to have a positive impact on the local economy and workforce in California. The $15.8 million award will likely stimulate economic activity through the procurement of materials and services from local suppliers. Furthermore, the construction project itself will create employment opportunities for skilled and unskilled labor within the region, including tradespeople, engineers, and project managers. The duration of the contract suggests sustained employment for the project's lifecycle.

How does the 'full and open competition after exclusion of sources' method affect the overall value and efficiency of this contract?

The 'full and open competition after exclusion of sources' method is a variation of full and open competition designed to ensure broad participation while potentially streamlining the initial solicitation process. By excluding specific sources, the agency might be targeting a particular subset of capable contractors or addressing specific pre-qualification criteria. The fact that it was still 'full and open' implies that all responsible sources meeting the criteria were allowed to compete. This approach generally promotes price discovery and competition, leading to better value for the government, provided the exclusion criteria were justified and did not unduly limit competition.

What are the key performance indicators (KPIs) likely being used to evaluate the contractor's performance on this project?

Key performance indicators for this construction contract would likely include adherence to the project schedule, quality of workmanship, compliance with safety regulations, and effective cost management within the fixed-price framework. The Department of the Army will monitor progress against milestones, conduct site inspections to ensure quality standards are met, and review project documentation. Meeting these KPIs is crucial for the contractor to receive timely payments and maintain a positive performance record for future federal contract opportunities.

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: W912LA25BA001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1639 E DONOVAN RD, SANTA MARIA, CA, 93454

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,836,653

Exercised Options: $15,836,653

Current Obligation: $15,836,653

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline