DoD awards $25.8M for Camp Shelby construction, including VMS, storage, and parking facilities

Contract Overview

Contract Amount: $25,790,041 ($25.8M)

Contractor: ESA South, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-29

End Date: 2025-12-08

Contract Duration: 1,166 days

Daily Burn Rate: $22.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF A VMS, 2 STORAGE BUILDINGS ADMINISTRATIVE BUILDING AND MILITARY EQUIPMENT PARKING (MEP) LOCATED AT CAMP SHELBY, MISSISSIPPI

Place of Performance

Location: HATTIESBURG, FORREST County, MISSISSIPPI, 39401

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to ESA SOUTH, INC. for work described as: CONSTRUCTION OF A VMS, 2 STORAGE BUILDINGS ADMINISTRATIVE BUILDING AND MILITARY EQUIPMENT PARKING (MEP) LOCATED AT CAMP SHELBY, MISSISSIPPI Key points: 1. Contract focuses on essential infrastructure development at a key military installation. 2. The project scope includes multiple building types and specialized parking. 3. Fixed-price contract type aims to control costs for the government. 4. The award was made under a competitive process, suggesting potential for value. 5. Project duration extends over three years, indicating a significant undertaking. 6. Geographic focus on Mississippi highlights regional economic impact.

Value Assessment

Rating: good

The contract value of $25.8 million for construction services appears reasonable given the scope, which includes a Vehicle Maintenance Shop (VMS), two storage buildings, an administrative building, and Military Equipment Parking (MEP). Benchmarking against similar large-scale military construction projects would provide a more precise value assessment. The firm fixed-price structure is generally favorable for cost control on projects of this nature, assuming the initial scope was well-defined.

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 a competitive process was initiated, though specific details on the exclusion criteria are not provided. The presence of two bidders suggests a degree of competition, which is generally positive for price discovery. However, understanding the reasons for excluding other potential sources is crucial for a complete assessment of the competition's breadth.

Taxpayer Impact: A competitive award process, even with a limited number of bidders, generally leads to better pricing for taxpayers compared to sole-source or non-competitive awards.

Public Impact

Military personnel at Camp Shelby will benefit from improved facilities for vehicle maintenance, storage, and administrative functions. The construction project will deliver new and upgraded infrastructure critical for military operations and readiness. The project's geographic impact is concentrated in Mississippi, supporting local employment and businesses during the construction phase. The construction activities will likely involve a skilled workforce, including tradespeople and project managers, contributing to regional employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a multi-year construction project.
Ensuring timely completion within the allocated budget is a common construction risk.
Quality control and adherence to military specifications require diligent oversight.

Positive Signals

Firm fixed-price contract helps mitigate cost overruns.
Competitive award process suggests a focus on achieving value for money.
Project duration is clearly defined, providing a timeline for delivery.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical infrastructure for government operations, including military bases. 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 sizes.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. While ESA SOUTH, INC. may be a large business, the contract does not explicitly mention subcontracting goals for small businesses. Further analysis would be needed to determine if subcontracting opportunities were made available to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Quality assurance representatives would likely be assigned to monitor construction progress and adherence to specifications. Transparency is facilitated through contract award databases, but detailed project progress reports are usually internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Infrastructure Projects
Department of Defense Construction Contracts
Federal Building Construction
Army Corps of Engineers Projects

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of project delays due to unforeseen site conditions or weather.
Ensuring adequate competition despite source exclusions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to ESA SOUTH, INC.. CONSTRUCTION OF A VMS, 2 STORAGE BUILDINGS ADMINISTRATIVE BUILDING AND MILITARY EQUIPMENT PARKING (MEP) LOCATED AT CAMP SHELBY, MISSISSIPPI

Who is the contractor on this award?

The obligated recipient is ESA SOUTH, 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 $25.8 million.

What is the period of performance?

Start: 2022-09-29. End: 2025-12-08.

What is the track record of ESA SOUTH, INC. with federal contracts, particularly within the Department of Defense?

ESA SOUTH, INC. has a history of receiving federal contracts, primarily with the Department of Defense. A review of federal procurement data indicates multiple awards to the company, often in the construction and facilities maintenance domain. While specific details on past performance metrics like on-time delivery, budget adherence, and quality for previous DoD contracts are not detailed here, the company's continued awards suggest a satisfactory performance history. Further investigation into past contract close-outs and any performance evaluations would provide a more comprehensive understanding of their track record.

How does the awarded amount compare to similar construction projects for military bases?

The $25.8 million award for constructing a VMS, storage buildings, an administrative building, and MEP facilities at Camp Shelby is substantial. To benchmark its value, one would compare it to similar projects at other military installations, considering factors like square footage, complexity of facilities (e.g., specialized environmental controls, security features), and geographic location (which impacts labor and material costs). Without specific comparable project data, it's difficult to definitively state if this represents excellent or fair value. However, the firm fixed-price nature and competitive award suggest an effort to achieve good value.

What are the primary risks associated with this specific construction project?

The primary risks for this project include potential delays due to weather, unforeseen site conditions (e.g., soil issues, existing utilities), and fluctuations in material costs, although the fixed-price contract aims to mitigate the latter. Labor availability and skilled workforce shortages in the Mississippi region could also pose a risk to timely completion. Ensuring strict adherence to military construction standards and specifications is critical, and any deviations could lead to rework and delays. Effective project management and proactive risk mitigation by the contractor and government oversight are essential.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for this type of project?

The 'Full and Open Competition After Exclusion of Sources' method is intended to balance the need for broad competition with specific requirements that might necessitate excluding certain sources. In this case, with two bidders, it suggests that while competition was sought, the exclusion criteria may have limited the pool. The effectiveness in ensuring competitive pricing depends heavily on the justification for the exclusion and the nature of the remaining bidders. If the excluded sources were capable and would have offered competitive bids, the pricing might be less optimal than true full and open competition. However, if the exclusions were justified (e.g., specific technical capabilities required), then the resulting competition among the remaining qualified bidders could still yield fair pricing.

What is the historical spending trend for similar construction projects at Camp Shelby or within the Department of the Army?

Historical spending on similar construction projects at Camp Shelby and within the Department of the Army generally shows significant investment in infrastructure modernization and expansion. Camp Shelby, as a key training and readiness center, likely sees recurring needs for facility upgrades and new construction. Spending trends are influenced by military readiness requirements, congressional appropriations, and specific modernization initiatives. Analyzing past budgets and contract awards for Camp Shelby specifically, and broader Army construction programs, would reveal patterns in project types, average contract values, and the frequency of such awards.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912QR19R0010

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1681 SUCCESS DR, CANTONMENT, FL, 32533

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $27,351,164

Exercised Options: $25,790,041

Current Obligation: $25,790,041

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912QR21D0055

IDV Type: IDC

Timeline