Navy awards $18.8M contract for USNA feeder cable replacement to JADE CREEK CONSTRUCTION LLC

Contract Overview

Contract Amount: $18,836,863 ($18.8M)

Contractor: Jade Creek Construction LLC

Awarding Agency: Department of Defense

Start Date: 2021-12-14

End Date: 2026-09-21

Contract Duration: 1,742 days

Daily Burn Rate: $10.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE MV FEEDER CABLES USNA

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21402

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to JADE CREEK CONSTRUCTION LLC for work described as: REPLACE MV FEEDER CABLES USNA Key points: 1. Contract value appears reasonable given the scope of infrastructure work. 2. Sole-source award limits price discovery and potential for competitive savings. 3. Long contract duration (over 4 years) may introduce cost escalation risks. 4. Fixed-price contract shifts some performance risk to the contractor. 5. Project is critical for maintaining essential utilities at the Naval Academy. 6. Geographic concentration in Maryland limits broader economic impact.

Value Assessment

Rating: fair

The contract value of $18.8 million for replacing feeder cables at the U.S. Naval Academy is difficult to benchmark without detailed project specifications. However, for a project of this nature, involving significant underground utility work and a multi-year timeline, the cost appears within a plausible range. The fixed-price nature of the contract suggests an attempt to control costs, but the lack of competition means there's no direct comparison to assess if this represents the best possible value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor, JADE CREEK CONSTRUCTION LLC, was solicited. This significantly limits the opportunity for competitive bidding, which typically drives down prices and encourages innovation. Without a competitive process, it is challenging to determine if the awarded price reflects the most cost-effective solution available in the market.

Taxpayer Impact: The lack of competition means taxpayers may not have received the benefit of a lower price that could have been achieved through a bidding process. This could result in a higher overall expenditure for this essential infrastructure project.

Public Impact

The primary beneficiaries are the U.S. Naval Academy and its operations, ensuring reliable power supply. Services delivered include the replacement of critical electrical feeder cables, a vital infrastructure upgrade. The geographic impact is localized to the U.S. Naval Academy campus in Annapolis, Maryland. Workforce implications include employment opportunities for construction labor and specialized trades during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration increases exposure to potential cost overruns or scope creep.
Lack of detailed public information on the specific technical requirements and justification for sole-source award.

Positive Signals

Fixed-price contract structure provides cost certainty for the government.
Project addresses critical infrastructure needs, ensuring operational continuity for the Naval Academy.
Contract awarded to a company with experience in construction, though specific past performance on similar projects is not detailed.

Sector Analysis

The construction sector, particularly commercial and institutional building construction, is a significant area of federal spending. This contract falls within the broader category of infrastructure development and maintenance. Federal spending in this sector often involves large-scale projects with long lead times and complex logistical requirements. Benchmarking this specific contract is difficult without more granular data on the scope of work, but it represents a typical investment in maintaining aging federal facilities.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. The prime contractor, JADE CREEK CONSTRUCTION LLC, is not explicitly identified as a small business in the provided data. Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited due to the sole-source nature and lack of detailed public justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Infrastructure Projects
Military Base Utility Modernization
Federal Construction Contracts

Risk Flags

Sole-source award raises concerns about potential lack of competition and optimal pricing.
Long contract duration (over 4 years) increases risk of cost escalation and contractor performance issues.
Limited public information on the justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to JADE CREEK CONSTRUCTION LLC. REPLACE MV FEEDER CABLES USNA

Who is the contractor on this award?

The obligated recipient is JADE CREEK CONSTRUCTION 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 $18.8 million.

What is the period of performance?

Start: 2021-12-14. End: 2026-09-21.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal Acquisition Regulation (FAR) 6.302 outlines circumstances under which a contract may be awarded without full and open competition, such as when only one responsible source is available or when the agency is authorized or required by statute. Without further documentation from the Department of the Navy, the precise justification (e.g., unique capabilities of JADE CREEK CONSTRUCTION LLC, urgent and compelling need, or specific statutory authority) remains unclear. This lack of transparency limits the ability to assess the necessity of a sole-source award and whether competitive alternatives were adequately explored.

How does the contract's fixed-price structure mitigate risk for the government?

A Firm Fixed Price (FFP) contract, like the one awarded here, establishes a ceiling price that the contractor must not exceed. This structure shifts the primary risk of cost overruns to the contractor. If JADE CREEK CONSTRUCTION LLC incurs higher-than-expected costs due to material price increases, labor shortages, or unforeseen site conditions, they are responsible for absorbing those additional expenses, provided the scope of work remains unchanged. This provides the government with significant cost certainty, as the total payment is fixed unless the contract terms are formally modified. However, it can also incentivize contractors to cut corners on quality if not adequately monitored.

What is the historical spending pattern for feeder cable replacement at the U.S. Naval Academy?

The provided data does not include historical spending patterns for feeder cable replacement specifically at the U.S. Naval Academy. To assess historical spending, one would need to analyze past contracts awarded by the Department of the Navy or NAVFAC for similar infrastructure projects at this location. This would involve searching contract databases for keywords related to 'feeder cables,' 'electrical infrastructure,' 'utility replacement,' and filtering by the specific installation. Understanding past expenditures, contract durations, and competition levels for similar work would provide valuable context for evaluating the current $18.8 million award.

What is the track record of JADE CREEK CONSTRUCTION LLC on federal contracts?

The provided data does not include specific details on the track record of JADE CREEK CONSTRUCTION LLC with federal contracts beyond this award. To assess their track record, one would need to research their past performance on other government contracts, looking at factors such as on-time delivery, quality of work, adherence to budget, and any past disputes or contract terminations. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) could provide insights, if available and accessible. Without this information, it's difficult to gauge their reliability and experience on similar projects.

Are there any comparable commercial or institutional building construction contracts of similar value and scope?

Without detailed specifications of the 'REPLACE MV FEEDER CABLES USNA' project, finding precise comparable commercial or institutional building construction contracts is challenging. However, projects involving the replacement of critical underground electrical infrastructure in established facilities, especially those with security or operational constraints like a military academy, typically involve significant costs. Factors such as the length of cable runs, depth of excavation, need for specialized equipment, and coordination with ongoing operations influence pricing. A general benchmark for large-scale utility replacement projects can range from several million to tens of millions of dollars, depending heavily on the specific site conditions and technical requirements.

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

Solicitation ID: N4008021R9506

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation, Inc.,

Address: 10126 RESIDENCY RD STE #200, MANASSAS, VA, 20110

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: $18,836,863

Exercised Options: $18,836,863

Current Obligation: $18,836,863

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $7,650,120

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline