DoD awards $46.7M contract for digital control systems at Naval Medical Center San Diego

Contract Overview

Contract Amount: $46,719,677 ($46.7M)

Contractor: Structsure Projects Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-25

End Date: 2028-09-25

Contract Duration: 1,096 days

Daily Burn Rate: $42.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: B-1 RESTORE DIRECT DIGITAL CONTROL SYSTEM, NAVAL MEDICAL CENTER SAN DIEGO, NAVAL BASE SAN DIEGO, CA

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $46.7 million to STRUCTSURE PROJECTS INC for work described as: B-1 RESTORE DIRECT DIGITAL CONTROL SYSTEM, NAVAL MEDICAL CENTER SAN DIEGO, NAVAL BASE SAN DIEGO, CA Key points: 1. Contract value represents a significant investment in facility modernization. 2. Competition dynamics suggest a potentially competitive bidding process for this project. 3. Fixed-price contract type may offer cost certainty but limits flexibility for scope changes. 4. Project duration of nearly three years indicates a substantial scope of work. 5. Geographic concentration in California may reflect specific regional infrastructure needs. 6. The award falls within the broader construction sector, supporting critical infrastructure.

Value Assessment

Rating: good

The contract value of $46.7 million for digital control systems at the Naval Medical Center San Diego appears reasonable given the scope and duration. Benchmarking against similar large-scale facility modernization projects within the Department of Defense suggests that pricing is within expected ranges. The firm fixed-price structure, while potentially limiting scope adjustments, aims to provide cost predictability for the government. Further analysis would require detailed cost breakdowns and comparison to specific project requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that there were two bids received suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, driving down costs through competitive pricing. However, with only two bidders, the potential for significant cost savings may be limited compared to scenarios with broader participation.

Public Impact

The primary beneficiaries are the Department of the Navy and the personnel and patients of the Naval Medical Center San Diego, who will receive modernized and more reliable facility control systems. The contract will deliver upgraded digital control systems, enhancing the operational efficiency and safety of the medical facility. The geographic impact is concentrated in San Diego, California, supporting critical naval infrastructure in the region. The project is expected to create or sustain jobs within the construction and specialized systems installation sectors in the local California workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bidders could potentially lead to higher prices than if more firms had participated.
The firm fixed-price contract type might pose challenges if unforeseen issues arise during construction, potentially leading to change orders or disputes.

Positive Signals

Awarded under full and open competition, ensuring a broad initial solicitation.
The firm fixed-price contract provides cost certainty for the government, assuming no significant scope changes.
The project addresses critical infrastructure needs at a major naval medical facility.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on the installation of advanced digital control systems for a large federal facility. The market for building automation and control systems is substantial, driven by the need for energy efficiency, security, and operational management in complex buildings. Comparable spending benchmarks for similar modernization projects in federal healthcare facilities can vary widely based on size, complexity, and specific technological requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal unless the prime contractor voluntarily engages small businesses for specialized work. Further investigation into subcontracting plans would be necessary to fully assess the impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and facilities management divisions. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified systems within the agreed budget and timeline. Transparency is generally maintained through contract award databases, though detailed project execution oversight is internal to the agency.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Facility Modernization Projects
Healthcare Infrastructure Improvement Programs
Building Automation System Contracts
Federal Construction Awards

Risk Flags

Limited competition
Potential for scope creep on fixed-price contracts
Cybersecurity risks associated with digital systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.7 million to STRUCTSURE PROJECTS INC. B-1 RESTORE DIRECT DIGITAL CONTROL SYSTEM, NAVAL MEDICAL CENTER SAN DIEGO, NAVAL BASE SAN DIEGO, CA

Who is the contractor on this award?

The obligated recipient is STRUCTSURE PROJECTS 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 $46.7 million.

What is the period of performance?

Start: 2025-09-25. End: 2028-09-25.

What is the track record of StructSure Projects Inc. with Department of Defense contracts, particularly in healthcare facilities?

A review of StructSure Projects Inc.'s contract history with the Department of Defense would be necessary to assess their track record. Specifically, examining past performance on similar projects, such as those involving medical facilities or complex control systems, would provide insight into their capabilities and reliability. Data on past performance evaluations, any history of contract disputes or terminations, and the types of contracts they have previously held (e.g., fixed-price, cost-plus) would be crucial. Understanding their experience with large-scale federal construction and modernization projects is key to evaluating their suitability for this award.

How does the awarded amount compare to the estimated value or budget for this digital control system upgrade?

Without access to the government's initial cost estimates or budget allocations for this project, a direct comparison is challenging. However, the awarded amount of $46.7 million provides a concrete figure for the government's commitment. If the contract was awarded under full and open competition with two bidders, the awarded price is likely a result of the competitive bidding process. Further analysis could involve researching historical spending on similar projects within the Naval Medical Center San Diego or other comparable facilities to establish a benchmark. If the awarded amount is significantly higher or lower than typical project costs, it could warrant further investigation into the scope or pricing.

What are the specific risks associated with implementing digital control systems in a healthcare environment, and how are they mitigated in this contract?

Implementing digital control systems in a healthcare environment presents unique risks, including potential disruptions to critical medical operations, cybersecurity vulnerabilities, and the need for stringent infection control during installation. Mitigation strategies within this contract likely include phased implementation to minimize operational impact, robust cybersecurity protocols specified in the contract, and adherence to strict construction and infection control standards mandated by healthcare regulations. The firm fixed-price nature also incentivizes the contractor to manage these risks efficiently to avoid cost overruns. The duration of the contract (nearly three years) suggests a carefully planned and executed approach to manage these inherent risks.

What is the expected impact of these upgraded systems on the operational efficiency and energy consumption of the Naval Medical Center San Diego?

Upgraded digital control systems are typically designed to enhance operational efficiency and reduce energy consumption. For the Naval Medical Center San Diego, this could translate to improved management of HVAC, lighting, and security systems, leading to more stable environmental conditions crucial for patient care and equipment. Energy savings are often a primary driver for such upgrades, with modern systems offering better monitoring, automation, and optimization capabilities. Quantifying the exact impact would require post-implementation analysis, but the expectation is a measurable improvement in both operational performance and a reduction in utility costs over the lifespan of the new systems.

How has federal spending on facility modernization and digital infrastructure at naval medical facilities trended over the past five years?

Federal spending on facility modernization and digital infrastructure at naval medical facilities has generally seen consistent investment, driven by the need to maintain state-of-the-art healthcare capabilities and ensure operational resilience. Over the past five years, there has been an increasing emphasis on integrating advanced digital technologies, including building automation, cybersecurity enhancements, and data management systems, alongside traditional infrastructure upgrades. Specific figures would require detailed analysis of historical federal procurement data, but the trend indicates a sustained commitment to upgrading these critical assets to meet evolving healthcare demands and technological advancements.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 903 E 104TH ST # 140, KANSAS CITY, MO, 64131

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

Financial Breakdown

Contract Ceiling: $46,719,677

Exercised Options: $46,719,677

Current Obligation: $46,719,677

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247322D1408

IDV Type: IDC

Timeline