DoD Awards $38.7M for Norfolk Naval Base Construction, Full Competition Used

Contract Overview

Contract Amount: $38,670,162 ($38.7M)

Contractor: Archer Western Contractors, LLC

Awarding Agency: Department of Defense

Start Date: 2011-09-26

End Date: 2015-10-04

Contract Duration: 1,469 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION TO RELOCATE PERSONNEL TO VACATED BUILDINGS AND SPACES OF THE DISESTABLISHED JOINT FORCES COMMAND AT NAVAL STATION NORFOLK AND NAVAL SUPPORT ACTIVITY

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.7 million to ARCHER WESTERN CONTRACTORS, LLC for work described as: DESIGN AND CONSTRUCTION TO RELOCATE PERSONNEL TO VACATED BUILDINGS AND SPACES OF THE DISESTABLISHED JOINT FORCES COMMAND AT NAVAL STATION NORFOLK AND NAVAL SUPPORT ACTIVITY Key points: 1. Significant contract awarded for facility relocation and renovation. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project duration is substantial, indicating a complex undertaking. 4. The contract type is Firm Fixed Price, which transfers risk to the contractor.

Value Assessment

Rating: fair

The award amount of $38.7 million for construction services appears within a reasonable range for a project of this scope and duration. Benchmarking against similar large-scale military construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows all responsible sources to submit bids, fostering a competitive environment that should drive down costs.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price for taxpayers, minimizing potential overspending associated with less competitive procurement methods.

Public Impact

Relocation of personnel and renovation of facilities at major naval installations. Supports the operational readiness and efficiency of the Joint Forces Command. Potential for job creation within the construction sector in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (1469 days) could lead to cost overruns or delays.
Firm Fixed Price contract may not account for unforeseen site conditions or material price fluctuations.

Positive Signals

Full and open competition promotes competitive pricing.
Project supports critical military infrastructure.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, a sector vital for infrastructure development. Spending benchmarks for similar military construction projects are typically high due to scale and security requirements.

Small Business Impact

While the primary contractor is Archer Western Contractors, LLC, the contract does not explicitly state any small business subcontracting goals. Further investigation into subcontracting opportunities would be beneficial.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for oversight. The use of a Firm Fixed Price contract and full and open competition suggests established oversight mechanisms are in place.

Related Government Programs

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

Risk Flags

Long project duration
Firm Fixed Price contract risk
Potential for unforeseen site conditions
Lack of explicit small business subcontracting information

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.7 million to ARCHER WESTERN CONTRACTORS, LLC. DESIGN AND CONSTRUCTION TO RELOCATE PERSONNEL TO VACATED BUILDINGS AND SPACES OF THE DISESTABLISHED JOINT FORCES COMMAND AT NAVAL STATION NORFOLK AND NAVAL SUPPORT ACTIVITY

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN CONTRACTORS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.7 million.

What is the period of performance?

Start: 2011-09-26. End: 2015-10-04.

What specific factors contributed to the long duration of this construction project?

The extended duration of 1469 days likely stems from the complexity of relocating personnel and renovating existing structures within active naval bases. Factors such as phased construction, coordination with ongoing base operations, potential environmental reviews, and the scope of the vacated spaces all contribute to the project timeline. Detailed project plans and phased execution strategies are common for such large-scale military infrastructure projects.

How does the Firm Fixed Price contract mitigate risks for the government in this construction project?

A Firm Fixed Price (FFP) contract shifts the majority of cost risk to the contractor. This means Archer Western Contractors, LLC is responsible for completing the project within the agreed-upon price, regardless of unforeseen cost increases in labor or materials. While this protects the government from budget overruns, it necessitates careful initial pricing and contractor diligence to ensure profitability and project success.

What is the anticipated impact of this construction on the operational efficiency of the Joint Forces Command?

The relocation and renovation of personnel to vacated buildings are intended to consolidate operations and improve the efficiency of the Joint Forces Command. By providing updated and potentially better-suited spaces, the project aims to enhance collaboration, streamline workflows, and modernize the command's infrastructure, ultimately supporting its mission effectiveness and readiness.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008507R0438

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the (UEI: 121476675)

Address: 3715 NORTHSIDE PKWY BG 100 STE 550, ATLANTA, GA, 30327

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $38,670,162

Exercised Options: $38,670,162

Current Obligation: $38,670,162

Subaward Activity

Number of Subawards: 572

Total Subaward Amount: $846,589,377

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008508D9739

IDV Type: IDC

Timeline