DoD Awards $19M Design-Build Contract for Joint Base McGuire-Dix-Lakehurst Barracks Restoration

Contract Overview

Contract Amount: $18,990,750 ($19.0M)

Contractor: Eastern Construction & Electric Inc

Awarding Agency: Department of Defense

Start Date: 2023-12-15

End Date: 2026-06-14

Contract Duration: 912 days

Daily Burn Rate: $20.8K/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: DESIGN-BUILD FULL FACILITY RESTORATION FOR AN OFFICER EDUCATING SYSTEM BUILDING, BARRACKS BUILDING 5406 AT JOINT BASE MCGUIRE-DIX-LAKEHURST, NEW JERSEY

Place of Performance

Location: FORT DIX, BURLINGTON County, NEW JERSEY, 08640

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to EASTERN CONSTRUCTION & ELECTRIC INC for work described as: DESIGN-BUILD FULL FACILITY RESTORATION FOR AN OFFICER EDUCATING SYSTEM BUILDING, BARRACKS BUILDING 5406 AT JOINT BASE MCGUIRE-DIX-LAKEHURST, NEW JERSEY Key points: 1. The contract focuses on the full restoration of Barracks Building 5406, a critical facility for officer education. 2. Eastern Construction & Electric Inc. secured the award, indicating potential market concentration or specific capabilities. 3. The project's firm-fixed-price structure aims to control costs, but the 'after exclusion of sources' competition method warrants scrutiny. 4. This project falls within the Commercial and Institutional Building Construction sector, a significant area of federal spending.

Value Assessment

Rating: fair

The award amount of $18.99M for a design-build barracks restoration appears within a reasonable range for a project of this scope and complexity, though specific benchmarks for similar military construction are not readily available. The firm-fixed-price contract type suggests an effort to establish a clear cost ceiling.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition was intended, certain sources may have been excluded, potentially limiting the breadth of competition and impacting price discovery. Further details on the exclusion rationale are needed.

Taxpayer Impact: The firm-fixed-price contract aims to provide cost certainty for taxpayers. However, the limited competition could potentially lead to a higher price than if full and open competition had been fully realized.

Public Impact

Improved living and training conditions for military officers at Joint Base McGuire-Dix-Lakehurst. Supports the operational readiness and infrastructure maintenance of a key military installation. Potential for job creation in the New Jersey region through construction activities. Ensures the long-term usability of essential military housing infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about optimal price discovery.
Lack of small business participation noted.
Contract duration is substantial, increasing risk of cost overruns or delays.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Design-build approach can streamline project delivery.
Project addresses critical infrastructure needs.

Sector Analysis

This project falls under Commercial and Institutional Building Construction, a sector that consistently sees significant federal investment for military installations, government facilities, and research centers. Benchmarks for similar military barracks construction projects are highly variable based on location, size, and specific requirements.

Small Business Impact

The data indicates that small businesses were not involved in this contract (sb: false). This is a missed opportunity to support small business growth and may indicate a lack of targeted outreach or that the project's scale and requirements were not conducive to small business participation.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is the awarding agency. Oversight will be crucial to ensure the project adheres to the design-build scope, timeline, and budget, particularly given the limited competition and long duration.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition may have resulted in a suboptimal price.
No small business participation.
Long project duration increases risk exposure.
Potential for unforeseen site conditions in facility restoration.
Contract type (FFP) places significant risk on contractor for cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to EASTERN CONSTRUCTION & ELECTRIC INC. DESIGN-BUILD FULL FACILITY RESTORATION FOR AN OFFICER EDUCATING SYSTEM BUILDING, BARRACKS BUILDING 5406 AT JOINT BASE MCGUIRE-DIX-LAKEHURST, NEW JERSEY

Who is the contractor on this award?

The obligated recipient is EASTERN CONSTRUCTION & ELECTRIC 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 $19.0 million.

What is the period of performance?

Start: 2023-12-15. End: 2026-06-14.

What specific criteria led to the exclusion of certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and how was the chosen contractor's price determined to be fair an

The rationale for excluding specific sources is critical for understanding the true level of competition. Agencies typically exclude sources based on factors like past performance, technical capabilities, or specific pre-qualification requirements. A thorough review of the contract file would be necessary to ascertain these details and confirm that the price negotiated, even with limited bidders, represents value for the government.

Given the 912-day duration and firm-fixed-price nature, what risk mitigation strategies are in place to manage potential cost escalations due to unforeseen site conditions or material price volatility

While a firm-fixed-price contract shifts cost risk to the contractor, long durations and complex projects like facility restoration can still present challenges. Mitigation strategies might include detailed site investigations prior to award, robust contingency planning within the contractor's bid, and clear contract clauses addressing unforeseen conditions and material escalation, though the latter is less common in FFP.

How will the effectiveness of the restored barracks be measured post-completion to ensure it meets the educational and living standards required for officers, and what mechanisms are in place for long

Effectiveness measurement typically involves post-occupancy evaluations, user feedback surveys, and inspections to confirm the facility meets design specifications and operational needs. Long-term management relies on the base's facilities engineering department, with maintenance schedules and performance standards defined by the Army to ensure sustained usability and prevent future degradation.

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: TWO STEP

Solicitation ID: W912QR23R0007

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18 GEORGETOWN RD, WRIGHTSTOWN, NJ, 08562

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,745,099

Exercised Options: $18,990,750

Current Obligation: $18,990,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline