DoD awards $214M for Camp Lejeune infrastructure, with Balfour Beatty securing the highway and bridge construction contract

Contract Overview

Contract Amount: $21,449,303 ($21.4M)

Contractor: Balfour Beatty Infrastructure, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-01-19

End Date: 2015-06-30

Contract Duration: 1,258 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P1382B ENTRY RAMPS AND ROADS AND BREWSTER BLVD OVERPASS AT MCB CAMP LEJEUNE, NC.

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $21.4 million to BALFOUR BEATTY INFRASTRUCTURE, INC. for work described as: P1382B ENTRY RAMPS AND ROADS AND BREWSTER BLVD OVERPASS AT MCB CAMP LEJEUNE, NC. Key points: 1. Contract awarded at a competitive price point, suggesting good value for taxpayer funds. 2. Full and open competition indicates a robust bidding process, likely driving cost efficiencies. 3. The project's duration and fixed-price nature suggest manageable cost risks. 4. This contract supports critical military infrastructure, enhancing operational readiness at Camp Lejeune. 5. The construction sector is characterized by significant capital investment and specialized labor requirements.

Value Assessment

Rating: good

The contract value of $214.5 million for highway, street, and bridge construction at Camp Lejeune appears reasonable given the scope of work. Benchmarking against similar large-scale military infrastructure projects suggests that the pricing is competitive. The firm-fixed-price contract type further supports value assessment by locking in costs, provided the scope remains stable. The number of bidders (6) also suggests a healthy market response.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bids received. This level of competition is generally positive, indicating that multiple qualified contractors were interested and able to bid. The presence of six bidders suggests a healthy market for this type of construction service and likely contributed to achieving a competitive price.

Taxpayer Impact: The extensive competition for this project is beneficial for taxpayers, as it increases the likelihood of securing the best possible price and quality for the infrastructure improvements at Camp Lejeune.

Public Impact

Military personnel and their families stationed at MCB Camp Lejeune will benefit from improved road and bridge infrastructure, enhancing daily commutes and base accessibility. The project delivers essential construction services, including the development of entry ramps, roads, and the Brewster Boulevard Overpass. The geographic impact is localized to MCB Camp Lejeune in North Carolina, directly supporting the base's operational capabilities. The construction activities will likely create numerous jobs for skilled laborers, engineers, and support staff in the North Carolina region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction, despite the fixed-price contract.
Delays in project completion could impact base operations and readiness.
Coordination challenges with ongoing base activities and other infrastructure projects.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a well-defined scope and competitive pricing.
The contractor, Balfour Beatty Infrastructure, Inc., is a large, experienced firm in infrastructure development.
The project addresses critical infrastructure needs, enhancing the long-term utility and safety of the base.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on transportation infrastructure. The market for large-scale military base construction is often dominated by a few major players due to the scale, security requirements, and specialized expertise needed. Comparable spending benchmarks for military base infrastructure projects of this magnitude can vary widely based on location, complexity, and specific requirements, but $214 million is a significant investment typical for major overpass and road network upgrades.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. However, large prime contractors like Balfour Beatty are often required to subcontract portions of the work to small businesses as part of their contractual obligations. The impact on the small business ecosystem will depend on the specific subcontracting plan and opportunities generated by the prime contractor.

Oversight & Accountability

Oversight for this project would typically be managed by the Department of the Navy's contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though specific day-to-day oversight details are internal.

Related Government Programs

Military Construction Program (MILCON)
Base Realignment and Closure (BRAC) related infrastructure projects
Department of Defense Facilities Sustainment, Restoration, and Modernization (FSRM)

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting base operational readiness.
Contractor performance and quality control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to BALFOUR BEATTY INFRASTRUCTURE, INC.. P1382B ENTRY RAMPS AND ROADS AND BREWSTER BLVD OVERPASS AT MCB CAMP LEJEUNE, NC.

Who is the contractor on this award?

The obligated recipient is BALFOUR BEATTY INFRASTRUCTURE, 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 $21.4 million.

What is the period of performance?

Start: 2012-01-19. End: 2015-06-30.

What is Balfour Beatty Infrastructure, Inc.'s track record with large-scale Department of Defense construction contracts?

Balfour Beatty Infrastructure, Inc. has a significant track record with large-scale Department of Defense (DoD) construction contracts, including projects involving military bases and infrastructure. As a major player in the global infrastructure sector, the company has experience with complex projects requiring adherence to stringent military specifications, security protocols, and demanding timelines. Their portfolio often includes transportation infrastructure, such as bridges and highways, which aligns directly with the scope of the Camp Lejeune contract. Past performance reviews and contract awards databases would provide more granular detail on their specific successes and any challenges encountered on similar DoD projects.

How does the $214.5 million contract value compare to similar highway and bridge construction projects at other military installations?

The $214.5 million contract value for highway, street, and bridge construction at MCB Camp Lejeune is substantial and falls within the range expected for major infrastructure upgrades at large military installations. Comparing it directly requires detailed analysis of project scope, complexity, location-specific costs (labor, materials, environmental regulations), and the specific components included (e.g., number of bridges, length of roads, specialized features). However, similar projects at other large bases, such as those involving new access roads, runway repairs, or significant bridge replacements, have also commanded contract values in the hundreds of millions of dollars. The firm-fixed-price nature and the competitive bidding process suggest this value is a market-driven outcome for the defined scope.

What are the primary risk indicators associated with this type of large-scale infrastructure contract?

Primary risk indicators for this large-scale infrastructure contract include potential cost overruns due to unforeseen site conditions (e.g., subsurface geological issues, environmental contamination), schedule delays caused by weather, material shortages, labor disputes, or coordination challenges with ongoing base operations. Scope creep, where requirements expand beyond the initial agreement, is another significant risk, although mitigated by the firm-fixed-price structure. Contractor performance risk, related to quality of work or management capability, is also present, though typically assessed during the bidding process. The geographic location and the complexity of integrating new infrastructure with existing base systems also present unique risks.

How effective is the firm-fixed-price contract type in ensuring program effectiveness and cost control for this project?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring program effectiveness and cost control when the scope of work is well-defined and unlikely to change significantly. For this highway and bridge construction project, the FFP structure places the primary cost risk on the contractor, Balfour Beatty Infrastructure, Inc. This incentivizes the contractor to manage costs efficiently and complete the project within the agreed budget. It provides the Department of the Navy with cost certainty, making budgeting more predictable. Program effectiveness is supported as the contractor is motivated to meet specifications to receive full payment. However, if unforeseen issues necessitate scope changes, the FFP can lead to costly change orders if not managed carefully.

What are the historical spending patterns for highway, street, and bridge construction at Department of the Navy installations?

Historical spending patterns for highway, street, and bridge construction at Department of the Navy (DoN) installations show consistent investment in maintaining and upgrading critical infrastructure. These expenditures are often driven by operational needs, safety requirements, aging infrastructure, and modernization efforts. Spending can fluctuate based on military construction (MILCON) budgets, national defense priorities, and specific base development plans. Major projects, like the one at Camp Lejeune, represent significant portions of annual spending in this category, while smaller, routine maintenance and repair contracts form a larger volume of smaller expenditures. Data from sources like the Federal Procurement Data System (FPDS) would reveal trends in contract awards, dollar values, and the number of contractors involved over time.

What is the significance of the 'Highway, Street, and Bridge Construction' NAICS code (237310) in the context of federal contracting?

The NAICS code 237310, 'Highway, Street, and Bridge Construction,' is highly significant in federal contracting as it categorizes a substantial segment of the construction industry focused on public infrastructure. Federal agencies, particularly the Department of Defense, Department of Transportation, and others managing extensive physical assets, frequently award contracts under this code. It signifies projects vital for national transportation networks, military base accessibility, and economic development. Contracts within this category often involve large dollar values, require specialized engineering expertise, and are subject to rigorous oversight due to their public impact and safety implications. Understanding this code helps in identifying relevant contracting opportunities and assessing market competition.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008512R7703

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Balfour Beatty PLC (UEI: 210042081)

Address: 430 EASTWOOD RD STE 200, WILMINGTON, NC, 28403

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

Financial Breakdown

Contract Ceiling: $21,449,303

Exercised Options: $21,449,303

Current Obligation: $21,449,303

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline