DoD awards $4.66M contract for Beale AFB visitor center construction and renovation

Contract Overview

Contract Amount: $4,660,266 ($4.7M)

Contractor: D7, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-26

End Date: 2026-01-02

Contract Duration: 829 days

Daily Burn Rate: $5.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT NEW VISITOR CONTROL CENTER/RENOVATE EXISTING, BEALE AFB.

Place of Performance

Location: BEALE AFB, YUBA County, CALIFORNIA, 95903

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $4.7 million to D7, LLC for work described as: CONSTRUCT NEW VISITOR CONTROL CENTER/RENOVATE EXISTING, BEALE AFB. Key points: 1. Contract awarded to D7, LLC for construction and renovation services. 2. Project aims to enhance visitor control and facilities at Beale Air Force Base. 3. The contract is a firm-fixed-price definitive contract, indicating clear cost expectations. 4. Project duration is estimated at 829 days, spanning over two years. 5. The award was not subject to full and open competition. 6. This contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

The contract value of $4.66 million for a visitor control center and renovation appears within a reasonable range for a federal construction project of this scope. However, without specific details on the scope of work, square footage, or complexity of renovations, a precise value-for-money assessment is challenging. Benchmarking against similar projects at other Air Force bases or comparable federal construction contracts would provide a clearer picture of whether the pricing is competitive. The firm-fixed-price structure suggests the government has a defined budget, but it also places the cost risk on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one contractor is capable of performing the work, or in specific circumstances where competition is not feasible or advantageous. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government compared to a fully competed contract. The specific reasons for the sole-source award would need further investigation to understand the justification.

Taxpayer Impact: The absence of competition for this contract means taxpayers did not benefit from potential cost savings that could arise from multiple bids. The government accepted the price proposed by D7, LLC without the pressure of competitive offers.

Public Impact

The primary beneficiaries are personnel and visitors at Beale Air Force Base, who will experience improved security and facilities. The contract delivers construction and renovation services for a critical infrastructure component. The geographic impact is localized to Beale AFB in California. The project will likely involve local construction labor and potentially impact small businesses through subcontracting opportunities, although no small business set-aside was noted.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competed contract.
Sole-source awards require strong justification to ensure fair pricing and prevent potential waste.
The firm-fixed-price contract shifts cost overrun risk to the contractor, which could be factored into the initial price.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
Awarding to a single contractor may expedite the project if they are uniquely qualified or already on-site.
The project addresses a specific need for infrastructure improvement at a military installation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry that supports government facilities. Federal spending in this area often involves specialized requirements for security, durability, and compliance with government standards. The market size for federal construction is substantial, with agencies like the Department of Defense consistently investing in infrastructure upgrades and new builds. This contract represents a specific instance of that broader spending trend, focusing on a critical support function for an air base.

Small Business Impact

The contract data indicates that this was not a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to D7, LLC, a company that may or may not be a small business itself. Without specific subcontracting plans or set-aside requirements, the direct impact on the small business ecosystem is unclear. Further investigation into D7, LLC's subcontracting practices would be needed to assess any indirect benefits or opportunities for small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, with specific contracting officers and project managers responsible for monitoring progress, quality, and adherence to terms. As a construction contract, it would be subject to standard federal acquisition regulations and potentially oversight from the Department of Defense's Inspector General if any irregularities or concerns arise. Transparency would be enhanced by public reporting of contract milestones and performance, though detailed oversight mechanisms are not specified in the provided data.

Related Government Programs

Military Base Construction
Federal Building Renovations
Department of Defense Facilities Management
Visitor Control Systems
Air Force Infrastructure Projects

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns if contractor underestimated risks in FFP contract.
Limited public information on contractor's past performance.
Scope of work details are not publicly available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.7 million to D7, LLC. CONSTRUCT NEW VISITOR CONTROL CENTER/RENOVATE EXISTING, BEALE AFB.

Who is the contractor on this award?

The obligated recipient is D7, 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 $4.7 million.

What is the period of performance?

Start: 2023-09-26. End: 2026-01-02.

What is the specific scope of work for the visitor control center construction and renovation?

The provided data indicates the contract is for 'CONSTRUCT NEW VISITOR CONTROL CENTER/RENOVATE EXISTING, BEALE AFB.' However, the granular details of the scope of work, such as the size of the new center, the extent of the renovation to existing facilities, specific security features to be incorporated, or the types of systems to be installed (e.g., access control, screening equipment), are not detailed in the summary data. A comprehensive understanding of the project's requirements would necessitate reviewing the full contract statement of work (SOW) or performance work statement (PWS). This would clarify the complexity and specific deliverables expected from D7, LLC, allowing for a more precise assessment of value and risk.

What is the justification for the sole-source award to D7, LLC?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source award. Federal regulations (like the Federal Acquisition Regulation - FAR) permit sole-source procurements under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need where competition is not feasible. Without access to the specific justification document filed by the Department of the Air Force, the precise reason for awarding this contract solely to D7, LLC remains unknown. Understanding this justification is crucial for assessing whether the government received fair value and if the procurement process was appropriate.

How does the $4.66 million contract value compare to similar federal visitor control center projects?

Benchmarking the $4.66 million contract value requires comparing it to similar projects in terms of scope, size, location, and complexity. Federal visitor control centers can vary significantly in cost depending on factors like square footage, technological integration (e.g., advanced screening, biometric systems), security enhancements, and the extent of new construction versus renovation. A direct comparison to other Air Force base projects or similar Department of Defense facilities would be most relevant. Without access to a database of comparable federal construction contracts with detailed cost breakdowns, it is difficult to definitively state whether $4.66 million represents a high, low, or average cost. However, for a significant facility upgrade or new build at a military installation, this figure falls within a plausible range, though the lack of competition warrants scrutiny.

What are the potential risks associated with a firm-fixed-price contract for this type of project?

A firm-fixed-price (FFP) contract, like the one awarded to D7, LLC, establishes a ceiling price that the contractor must not exceed. For the government, the primary benefit is cost certainty. However, for complex construction projects involving potential unforeseen issues (e.g., hazardous materials discovery, unexpected site conditions, labor shortages), the contractor bears the risk of cost overruns. This can incentivize contractors to build significant contingency into their initial bid price to protect their profit margin. If the contractor underestimates the risks or encounters substantial problems, they may cut corners on quality or seek change orders, potentially leading to disputes or project delays. Therefore, while FFP offers price predictability, it requires careful contractor selection and robust oversight to ensure quality and timely completion.

What is D7, LLC's track record with federal construction contracts, particularly with the Department of Defense?

Information regarding D7, LLC's specific track record with federal construction contracts, especially those awarded by the Department of Defense or the Air Force, is not provided in the summary data. To assess this contractor's reliability, performance history, and experience with similar projects, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A strong track record with relevant agencies and project types would increase confidence in D7, LLC's ability to successfully execute this visitor control center project.

What are the historical spending patterns for visitor control centers or similar facilities at Beale AFB?

The provided data does not include historical spending patterns for visitor control centers or related facilities specifically at Beale Air Force Base. To analyze historical spending, one would need to access federal procurement databases and filter for contracts awarded to Beale AFB within the relevant NAICS codes (e.g., Commercial and Institutional Building Construction) over previous fiscal years. This analysis would reveal the frequency, value, and types of contracts awarded for similar infrastructure projects. Understanding past spending could help contextualize the current $4.66 million award, identify trends, and assess whether this contract represents a significant increase or decrease in investment in such facilities at the base.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1755 TELSTAR DR STE 500, COLORADO SPRINGS, CO, 80920

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,660,266

Exercised Options: $4,660,266

Current Obligation: $4,660,266

Actual Outlays: $830,675

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline