Navy awards $48.6M for NAVSEA HQ building recovery, a significant investment in infrastructure resilience

Contract Overview

Contract Amount: $48,583,333 ($48.6M)

Contractor: CH2M Hill Constructors, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-01-31

End Date: 2015-01-31

Contract Duration: 365 days

Daily Burn Rate: $133.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NAVSEA HQ BUILDING RECOVERY RESTORATION

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $48.6 million to CH2M HILL CONSTRUCTORS, INC. for work described as: NAVSEA HQ BUILDING RECOVERY RESTORATION Key points: 1. The contract value represents a substantial commitment to restoring critical naval headquarters facilities. 2. Competition dynamics for this large-scale construction project are crucial for ensuring cost-effectiveness. 3. Performance risks are inherent in large restoration projects, requiring robust oversight. 4. The project's success is tied to the timely and quality completion of essential building repairs. 5. This contract falls within the broader Defense sector's infrastructure maintenance and repair spending.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of restoration. However, $48.6 million for a headquarters building recovery suggests a significant undertaking. Comparing it to similar large-scale construction and renovation projects within the federal government would provide better context for value for money. The firm-fixed-price structure aims to control costs, but the ultimate value depends on the quality and completeness of the restoration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to yield better pricing and a wider range of qualified contractors. The number of bids received and the spread of those bids would offer further insight into the level of competition and its impact on price discovery.

Taxpayer Impact: A full and open competition for a project of this magnitude is beneficial for taxpayers as it promotes a competitive environment, potentially driving down costs and ensuring the government receives the best value for its investment.

Public Impact

Naval Sea Systems Command (NAVSEA) personnel will benefit from a restored and functional headquarters. The contract delivers essential building restoration and recovery services. The geographic impact is concentrated in Washington D.C., the location of NAVSEA headquarters. The project will likely involve a significant construction workforce, providing employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise during restoration.
Delays in project completion could impact NAVSEA's operational readiness.
Ensuring the quality of materials and workmanship in a large-scale restoration is critical.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type helps to control costs and manage budget.
The project addresses critical infrastructure needs for a key naval command.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Federal spending in this area often supports the maintenance, repair, and modernization of government facilities. The market size for federal construction contracts is substantial, with significant annual outlays. This specific contract represents a notable investment in restoring a critical piece of defense infrastructure.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. While the prime contractor is CH2M HILL CONSTRUCTORS, INC., there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the restoration project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy, likely through contracting officers and project managers. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases, though detailed project progress reports may not always be publicly available.

Related Government Programs

NAVSEA Facilities Management
Department of Defense Construction Projects
Federal Building Restoration Contracts
Naval Infrastructure Modernization

Risk Flags

Potential for scope creep in restoration projects.
Risk of unforeseen structural issues impacting timeline and budget.
Ensuring contractor quality and adherence to specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.6 million to CH2M HILL CONSTRUCTORS, INC.. NAVSEA HQ BUILDING RECOVERY RESTORATION

Who is the contractor on this award?

The obligated recipient is CH2M HILL CONSTRUCTORS, 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 $48.6 million.

What is the period of performance?

Start: 2014-01-31. End: 2015-01-31.

What specific events or conditions necessitated the 'recovery restoration' of the NAVSEA HQ building?

The provided data does not specify the exact cause for the 'recovery restoration' of the NAVSEA HQ building. Such events could range from natural disasters (e.g., fire, flood, storm damage) to structural failures, or significant wear and tear requiring extensive renovation. Understanding the specific cause is crucial for assessing the scope of work, potential risks, and the appropriateness of the awarded contract value. Further investigation into public records or agency reports related to the NAVSEA HQ building's condition around the contract award date would be necessary to ascertain the precise circumstances.

How does the $48.6 million contract value compare to the typical cost of similar large-scale building restoration projects for federal agencies?

Without detailed project specifications, a direct comparison of the $48.6 million contract value to similar projects is difficult. However, this figure represents a substantial investment for a single building's restoration. Large-scale federal building renovations or disaster recovery projects can range from tens to hundreds of millions of dollars, depending on the building's size, complexity, age, and the extent of damage or required upgrades. Factors such as location (e.g., high-cost urban areas), specialized structural requirements, and the need for rapid completion can significantly influence costs. Benchmarking against projects of comparable scope and scale within the Department of Defense or other federal agencies would provide a more accurate assessment of whether this value is within the expected range.

What are the primary risks associated with this firm-fixed-price contract for building restoration, and how are they mitigated?

The primary risk with a firm-fixed-price (FFP) contract, especially for a restoration project where unforeseen issues can arise, is that the contractor may incur losses if costs exceed the agreed-upon price. Conversely, the government risks paying a premium if the contractor's initial estimate was high. Mitigation strategies typically involve a well-defined scope of work in the contract, clear specifications, and robust government oversight. Contingency clauses or allowances within the FFP structure can address unforeseen conditions, though these must be carefully managed. The contractor's incentive under an FFP is to control costs efficiently to maximize profit, but this must be balanced with maintaining quality standards, which are enforced through government inspection and acceptance criteria.

What is the track record of CH2M HILL CONSTRUCTORS, INC. in handling large-scale federal building restoration or construction projects?

CH2M HILL CONSTRUCTORS, INC. (now part of Jacobs) has a significant history of undertaking large-scale engineering, procurement, and construction projects for government and private sector clients. Their portfolio includes major infrastructure, environmental, and facilities projects. While specific details on their performance for this particular NAVSEA HQ restoration contract are not provided in the summary data, their general experience suggests a capacity to manage complex projects. A deeper dive into their contract history, including past performance evaluations, any reported disputes, and the scale of previously completed similar projects, would be necessary to fully assess their track record for this specific type of work.

How does the duration of the contract (365 days) align with the scope of a headquarters building recovery and restoration project?

A 365-day duration for a headquarters building recovery and restoration project of this magnitude ($48.6 million) suggests an aggressive timeline. Depending on the extent of the damage or required renovations, such projects can often extend beyond a year, especially if they involve complex structural work, hazardous material abatement, or extensive system upgrades (HVAC, electrical, plumbing). The firm-fixed-price nature of the contract implies a defined scope that the contractor believes can be completed within this timeframe. However, the government will need to exercise diligent oversight to ensure quality is not sacrificed for speed and to manage any potential delays that could arise from unforeseen circumstances.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CH2M Hill Companies, Ltd. (UEI: 027620574)

Address: 9189 S JAMAICA ST, ENGLEWOOD, CO, 80112

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $63,628,104

Exercised Options: $63,628,104

Current Obligation: $48,583,333

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6247013D6019

IDV Type: IDC

Timeline