DLA Aviation Operations Center Construction Contract Awarded for $89.5M to Manhattan Construction Company
Contract Overview
Contract Amount: $89,493,586 ($89.5M)
Contractor: Manhattan Construction Company LLC
Awarding Agency: Department of Defense
Start Date: 2020-01-02
End Date: 2024-01-24
Contract Duration: 1,483 days
Daily Burn Rate: $60.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN-BID-BUILD CONSTRUCTION CONTRACT FOR A 281,075 SQUARE FOOT DLA AVIATION OPERATIONS CENTER DSCR IN RICHMOND VA
Place of Performance
Location: RICHMOND, RICHMOND CITY County, VIRGINIA, 23218
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $89.5 million to MANHATTAN CONSTRUCTION COMPANY LLC for work described as: DESIGN-BID-BUILD CONSTRUCTION CONTRACT FOR A 281,075 SQUARE FOOT DLA AVIATION OPERATIONS CENTER DSCR IN RICHMOND VA Key points: 1. The contract is for a large-scale (281,075 sq ft) facility for DLA Aviation. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The project duration is substantial at 1483 days, indicating complexity. 4. The firm-fixed-price contract type aims to control costs for the government.
Value Assessment
Rating: good
The contract value of $89.5M for a 281,075 sq ft facility appears reasonable given the scope and complexity of a design-bid-build operations center. Benchmarking against similar large-scale government construction projects would provide a more precise assessment.
Cost Per Unit: $318/sq ft
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive bidding process is expected to have yielded a fair price, maximizing taxpayer value for this significant infrastructure investment.
Public Impact
Enhances DLA Aviation's operational capabilities in Richmond, VA. Supports regional economic activity through construction jobs and material sourcing. Represents a significant investment in military infrastructure modernization.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Long project duration could lead to cost overruns if not managed effectively.
- Potential for scope creep in a design-bid-build project.
Positive Signals
- Firm-fixed-price contract helps mitigate cost uncertainty.
- Full and open competition suggests a competitive award.
- Significant investment in critical DLA infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Government spending in this sector is substantial, driven by infrastructure needs, military base upgrades, and public facility development. Benchmarks vary widely based on project type and location.
Small Business Impact
While the prime contractor is Manhattan Construction Company LLC, the contract details do not specify any subcontracting goals or participation by small businesses. Further investigation into subcontracting plans would be necessary to assess small business impact.
Oversight & Accountability
The Department of the Army awarded this contract, implying oversight from that agency. The firm-fixed-price nature of the contract provides a degree of cost control, but ongoing monitoring of progress and adherence to design specifications is crucial for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration
- Potential for scope creep
- Complexity of design-bid-build
- Lack of specified small business participation
Tags
commercial-and-institutional-building-co, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $89.5 million to MANHATTAN CONSTRUCTION COMPANY LLC. DESIGN-BID-BUILD CONSTRUCTION CONTRACT FOR A 281,075 SQUARE FOOT DLA AVIATION OPERATIONS CENTER DSCR IN RICHMOND VA
Who is the contractor on this award?
The obligated recipient is MANHATTAN CONSTRUCTION COMPANY LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $89.5 million.
What is the period of performance?
Start: 2020-01-02. End: 2024-01-24.
What is the estimated cost savings achieved through the full and open competition process for this contract?
Quantifying exact savings from full and open competition is challenging without a baseline of sole-source or limited competition estimates. However, the process itself is designed to drive down costs by encouraging multiple bids. The number of bids received and the variance between them would offer insight into the competitive pressure applied, indirectly indicating potential savings compared to a less competitive scenario.
What are the primary risks associated with the 1483-day duration of this construction project?
The extended duration of 1483 days presents several risks, including potential escalation of material and labor costs over time, increased exposure to changing regulatory requirements, and the possibility of design obsolescence before completion. Furthermore, prolonged project timelines can strain contractor resources and increase the likelihood of unforeseen site conditions or environmental challenges emerging.
How effectively does the firm-fixed-price contract mitigate cost risks for the government on this large-scale project?
The firm-fixed-price (FFP) contract is a strong tool for mitigating cost risks, as it shifts the burden of cost overruns to the contractor. For this $89.5M project, the FFP structure provides budget certainty for the government, provided the scope is well-defined. However, risks remain if the contractor underbid or if significant, unforeseen scope changes are required.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9123620R2005
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rooney Holdings, Inc.
Address: 3330 WASHINGTON BLVD STE 300, ARLINGTON, VA, 22201
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $89,963,586
Exercised Options: $89,493,586
Current Obligation: $89,493,586
Actual Outlays: $2,940,596
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-01-02
Current End Date: 2024-01-24
Potential End Date: 2024-01-24 00:00:00
Last Modified: 2025-12-12
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