DoD's $8.79M Second Floor Renovation Contract Awarded to Arctic Peak LLC
Contract Overview
Contract Amount: $8,787,164 ($8.8M)
Contractor: Arctic Peak LLC
Awarding Agency: Department of Defense
Start Date: 2024-07-22
End Date: 2026-04-22
Contract Duration: 639 days
Daily Burn Rate: $13.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: B 2187 SECOND FLOOR RENOVATION
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $8.8 million to ARCTIC PEAK LLC for work described as: B 2187 SECOND FLOOR RENOVATION Key points: 1. Contract awarded for building construction services. 2. Arctic Peak LLC is the sole contractor. 3. The contract is for a firm-fixed-price definitive contract. 4. The project is located in Virginia.
Value Assessment
Rating: questionable
The contract value of $8.79M for a building renovation appears high without further context on scope and complexity. Benchmarking against similar renovation projects of this size is difficult without more detailed specifications.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Taxpayers may be paying a premium due to the sole-source nature of the award. The renovation project could impact facility operations and personnel during its execution. Ensuring the quality and timely completion of the renovation is crucial for the Department of the Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for cost overruns due to lack of competitive pressure.
- Contract duration is significant for a renovation project.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Project is for a specific renovation need within the Department of Defense.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on infrastructure needs and economic conditions. Benchmarks are difficult without specific project details.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if subcontracting opportunities were explored.
Oversight & Accountability
Oversight will be critical to ensure the sole-source renovation is completed on time, within budget, and meets all specified requirements. The Department of the Navy is responsible for monitoring contract performance.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award raises concerns about fair pricing.
- Lack of competition may lead to suboptimal value for taxpayer funds.
- Potential for scope creep or cost increases during the renovation.
- Contract duration is lengthy, increasing risk of delays or unforeseen issues.
Tags
commercial-and-institutional-building-co, department-of-defense, va, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.8 million to ARCTIC PEAK LLC. B 2187 SECOND FLOOR RENOVATION
Who is the contractor on this award?
The obligated recipient is ARCTIC PEAK 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 $8.8 million.
What is the period of performance?
Start: 2024-07-22. End: 2026-04-22.
What specific factors necessitated a sole-source award for this renovation project, and were all avenues for competition exhausted?
The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' suggesting a sole-source award. Without further details, it's unclear if this was due to unique requirements, urgency, or other factors. A thorough review would be needed to confirm if competitive options were genuinely unavailable or if the justification for sole-sourcing was robust.
How does the $8.79M cost compare to similar building renovation projects of comparable scope and complexity within the Department of Defense or other federal agencies?
Benchmarking this $8.79M renovation cost is challenging without detailed project specifications, square footage, and the nature of the work (e.g., structural, MEP, finishes). However, for a significant renovation, this figure could be within a reasonable range if extensive upgrades are involved. A comparative analysis with similar projects would be necessary for a definitive assessment.
What are the key performance indicators and milestones for this renovation, and what mechanisms are in place to ensure effective oversight and accountability?
The contract has a duration of 639 days, ending in April 2026. Key performance indicators would likely include adherence to the construction schedule, quality of workmanship, and compliance with building codes and specifications. The Department of the Navy's contracting officer and technical representatives are responsible for oversight, with potential for site inspections and progress reviews.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042124R0077
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2553 DULLES VIEW DR, HERNDON, VA, 20171
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,787,164
Exercised Options: $8,787,164
Current Obligation: $8,787,164
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-07-22
Current End Date: 2026-04-22
Potential End Date: 2026-04-22 00:00:00
Last Modified: 2025-12-17
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