DoD awards $33.7M for NATO HQ construction, raising questions on value and small business impact
Contract Overview
Contract Amount: $33,656,782 ($33.7M)
Contractor: Tetra Tech Tesoro, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-12-22
End Date: 2015-10-28
Contract Duration: 1,406 days
Daily Burn Rate: $23.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION/ADDITIONS SUPREME ALLIED COMMANDER TRANSFORMATION HEADQUARTERS BUILDING
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $33.7 million to TETRA TECH TESORO, INC. for work described as: CONSTRUCTION/ADDITIONS SUPREME ALLIED COMMANDER TRANSFORMATION HEADQUARTERS BUILDING Key points: 1. Significant investment in critical infrastructure for NATO. 2. Competition was full and open, suggesting potential for competitive pricing. 3. No small business participation noted, potentially limiting broader economic impact. 4. Project duration was substantial, indicating complex execution.
Value Assessment
Rating: fair
The contract value of $33.7M for a headquarters building appears within a reasonable range for such a specialized project. However, without specific benchmarks for NATO facilities, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which generally promotes competitive pricing and allows a wide range of contractors to bid. This method is expected to yield fair market prices.
Taxpayer Impact: Taxpayer funds are being used for a significant international defense infrastructure project, with the expectation of competitive pricing due to the procurement method.
Public Impact
Supports NATO's operational capabilities by providing a dedicated headquarters. Potential for job creation within the construction sector. Investment in infrastructure could have long-term strategic implications for allied defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long project duration (1406 days).
Positive Signals
- Full and open competition.
- Strategic NATO infrastructure development.
Sector Analysis
Construction spending for institutional buildings, especially for international defense organizations, can vary widely based on location, security requirements, and specific functional needs. Benchmarks are difficult without comparable NATO facility projects.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of small business participation. This represents a missed opportunity to engage smaller firms in a significant federal contract.
Oversight & Accountability
The Department of the Navy managed this contract for the Department of Defense, indicating established oversight processes for major construction projects. Further review would be needed to assess specific accountability measures.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- No small business participation.
- Long contract duration.
- Potential for cost overruns given the project length.
- Lack of specific value-for-money analysis in provided data.
Tags
commercial-and-institutional-building-co, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.7 million to TETRA TECH TESORO, INC.. CONSTRUCTION/ADDITIONS SUPREME ALLIED COMMANDER TRANSFORMATION HEADQUARTERS BUILDING
Who is the contractor on this award?
The obligated recipient is TETRA TECH TESORO, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $33.7 million.
What is the period of performance?
Start: 2011-12-22. End: 2015-10-28.
What was the specific justification for not including small business set-asides in this large construction contract?
The data does not provide a specific justification for the absence of small business set-asides. Typically, such decisions are based on market research indicating a lack of qualified small businesses or the belief that full and open competition will yield better overall value. Further investigation into the contracting officer's rationale would be necessary.
How does the final cost compare to initial estimates for the ACT Headquarters building construction?
The provided data reflects the awarded contract value ($33.7M) but does not include initial cost estimates or any change orders that may have occurred during the project's execution. A comprehensive comparison would require access to the project's full financial history and baseline cost projections.
What are the key performance indicators used to measure the success and effectiveness of this NATO headquarters facility post-construction?
The data focuses on the procurement and construction phase and does not detail post-construction performance metrics. Effectiveness would likely be measured by factors such as operational readiness, facility uptime, security compliance, and user satisfaction among NATO personnel. These are typically tracked by the end-user agency.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N4008508R9602
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tetra Tech, Inc. (UEI: 045224250)
Address: 5250 CHALLEDON DR, VIRGINIA BEACH, VA, 23462
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $33,656,782
Exercised Options: $33,656,782
Current Obligation: $33,656,782
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N4008509D5027
IDV Type: IDC
Timeline
Start Date: 2011-12-22
Current End Date: 2015-10-28
Potential End Date: 2015-10-28 00:00:00
Last Modified: 2019-09-05
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