Dormitory renovation contract awarded to Outside Box LLC for over $24.5M, with a 3-year performance period

Contract Overview

Contract Amount: $24,571,957 ($24.6M)

Contractor: Outside BOX LLC

Awarding Agency: Department of Defense

Start Date: 2025-10-31

End Date: 2028-01-12

Contract Duration: 803 days

Daily Burn Rate: $30.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SEE SPECIFICATIONS: SECTION 01 11 00 SUMMARY OF WORK JBC 12/21 PART 1 GENERAL 1.1 WORK COVERED BY CONTRACT DOCUMENTS 1.1.1 PROJECT DESCRIPTION THE WORK INCLUDES COMPLETE RENOVATION OF DORMITORY BUILDING 304, ETC.

Place of Performance

Location: GOOSE CREEK, BERKELEY County, SOUTH CAROLINA, 29445

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $24.6 million to OUTSIDE BOX LLC for work described as: SEE SPECIFICATIONS: SECTION 01 11 00 SUMMARY OF WORK JBC 12/21 PART 1 GENERAL 1.1 WORK COVERED BY CONTRACT DOCUMENTS 1.1.1 PROJECT DESCRIPTION THE WORK INCLUDES COMPLETE RENOVATION OF DORMITORY BUILDING 304, ETC. Key points: 1. The contract's value of over $24.5 million represents a significant investment in infrastructure modernization. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. The firm-fixed-price contract type generally shifts performance risk to the contractor. 4. The project involves the complete renovation of Dormitory Building 304, addressing critical facility needs. 5. The contract is positioned within the broader Defense sector, specifically supporting Air Force housing. 6. The duration of 803 days suggests a complex and substantial renovation effort.

Value Assessment

Rating: good

The total contract value of $24,571,957 is substantial for a single dormitory renovation. Benchmarking against similar large-scale institutional building construction projects is necessary for a precise value-for-money assessment. However, the firm-fixed-price nature of the contract suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator for the government if managed effectively. The contract was awarded after exclusion of sources, which warrants further investigation into the justification for this approach.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, specific sources were excluded. The number of bidders is not explicitly stated in the provided data, but the 'exclusion of sources' suggests a potentially limited competitive pool compared to a truly unrestricted full and open competition. This approach can sometimes lead to less aggressive pricing if the excluded sources represent significant market players.

Taxpayer Impact: The exclusion of sources, even within an otherwise open competition framework, may limit the potential for the most competitive pricing, potentially impacting taxpayer value if fewer bidders resulted in higher offers.

Public Impact

Military personnel residing in Dormitory Building 304 will benefit from modernized and improved living quarters. The services delivered include the complete renovation of a key dormitory facility. The geographic impact is localized to the specific Air Force installation in South Carolina where the dormitory is located. The project will likely involve a construction workforce, potentially creating temporary employment opportunities in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in a competition, even if intended to be open, raises concerns about the breadth of competition and potential for optimal pricing.
The substantial contract value requires diligent oversight to ensure adherence to scope and budget.
The long performance period (803 days) increases the risk of unforeseen issues or changes in requirements.

Positive Signals

The firm-fixed-price contract type transfers cost overrun risk to the contractor.
The project addresses critical infrastructure needs, improving living conditions for service members.
The renovation is being undertaken by the Department of Defense, a major federal entity with established procurement processes.

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 sector often supports military readiness, housing, and other institutional facilities. The market size for federal construction is substantial, with agencies like the Department of Defense being major clients. This specific contract represents a targeted investment in facility modernization, aligning with broader government efforts to maintain and upgrade aging infrastructure.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this contract. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the best value through the chosen competition method, rather than specifically targeting small business utilization. Further review of the contract documents would be needed to ascertain any indirect small business impacts or subcontracting plans.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, a component of the Department of Defense. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified renovation within the agreed-upon price. Transparency is typically facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Military Housing Construction
Dormitory Modernization Projects
Federal Building Renovations
Department of Defense Infrastructure Spending

Risk Flags

Limited competition due to source exclusion
Potential for cost overruns if scope is not tightly managed
Long performance period increases risk exposure
Contractor performance history needs verification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 million to OUTSIDE BOX LLC. SEE SPECIFICATIONS: SECTION 01 11 00 SUMMARY OF WORK JBC 12/21 PART 1 GENERAL 1.1 WORK COVERED BY CONTRACT DOCUMENTS 1.1.1 PROJECT DESCRIPTION THE WORK INCLUDES COMPLETE RENOVATION OF DORMITORY BUILDING 304, ETC.

Who is the contractor on this award?

The obligated recipient is OUTSIDE BOX LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

Start: 2025-10-31. End: 2028-01-12.

What is the track record of Outside Box LLC with federal contracts, particularly in construction and renovation?

A thorough review of Outside Box LLC's federal contract history is essential to assess their performance and reliability. This would involve examining past contract awards, performance evaluations (such as Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. Understanding their experience with similar-sized projects, especially dormitory or institutional renovations, would provide valuable insight into their capacity and expertise. A positive track record with timely delivery and within-budget performance on comparable federal projects would increase confidence in their ability to execute this current contract successfully. Conversely, a history of issues could signal potential risks.

How does the awarded price compare to similar dormitory renovation projects undertaken by the Department of Defense or other federal agencies?

To benchmark the value for money, the awarded price of $24,571,957 needs to be compared against similar federal dormitory renovation projects. This comparison should consider factors such as the square footage renovated, the scope of work (e.g., structural, MEP, finishes), the geographic location (which impacts labor and material costs), and the year of award. Analyzing data from similar contracts awarded by the Air Force, other branches of the DoD, or agencies like the General Services Administration (GSA) can reveal whether this price is competitive. A higher-than-average cost per square foot or per room could indicate potential overpricing or a more complex scope than initially apparent, while a lower cost might suggest efficient procurement or a less extensive renovation.

What specific risks are associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award, and how are they mitigated?

The primary risk associated with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is a potentially reduced level of competition, which could lead to less favorable pricing for the government. If significant potential bidders were excluded without clear justification, the government might not receive the most competitive offers. Mitigation strategies include ensuring the exclusion criteria are well-documented, justified, and legally sound, and that the remaining pool of bidders is still sufficiently diverse to foster price discovery. The agency should also conduct thorough price analysis on the received proposals to ensure the awarded price represents fair market value despite the limited competition.

What are the key performance indicators (KPIs) for this dormitory renovation project, and how will project effectiveness be measured?

Key performance indicators for this dormitory renovation project would likely include adherence to the project schedule (803 days), completion of all specified renovation tasks as outlined in the 'SUMMARY OF WORK,' and meeting quality standards for materials and workmanship. Effectiveness will be measured by the successful handover of a fully functional and modernized dormitory building that meets current safety and habitability codes. Post-occupancy evaluations by the end-user (Air Force personnel) regarding satisfaction with the renovated facilities and the absence of significant post-completion defects will also be crucial. Performance metrics may also include adherence to budget, though the firm-fixed-price nature shifts direct cost overrun risk.

What has been the historical spending trend for dormitory renovations or similar construction projects at this specific Air Force installation or within the Air Force broadly?

Analyzing historical spending for dormitory renovations at this specific Air Force installation and across the Air Force provides context for the current contract's value. If spending on similar projects has been consistently high, it might indicate a systemic need for infrastructure upgrades or higher regional costs. Conversely, if this contract's value is an outlier, it warrants closer examination of the scope, complexity, or procurement process. Understanding past spending patterns can help identify trends, potential cost-saving opportunities, or areas where costs have escalated, informing future budgeting and procurement strategies for facility maintenance and upgrades.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1428 FLOYD AVE, RICHMOND, VA, 23220

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $24,571,957

Exercised Options: $24,571,957

Current Obligation: $24,571,957

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA441823D0005

IDV Type: IDC

Timeline