DoD awards $17M for Langley-Eustis HQ construction; Structural Engineering Group Inc. to lead

Contract Overview

Contract Amount: $17,003,058 ($17.0M)

Contractor: Structural Engineering Group Inc

Awarding Agency: Department of Defense

Start Date: 2024-11-07

End Date: 2026-05-14

Contract Duration: 553 days

Daily Burn Rate: $30.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF BATTALION AND BRIGADE HEADQUARTERS BUILDINGS AT JOINT BASE LANGLEY-EUSTIS, NEWPORT NEWS, VIRGINIA.

Place of Performance

Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to STRUCTURAL ENGINEERING GROUP INC for work described as: CONSTRUCTION OF BATTALION AND BRIGADE HEADQUARTERS BUILDINGS AT JOINT BASE LANGLEY-EUSTIS, NEWPORT NEWS, VIRGINIA. Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract is a definitive contract with a firm fixed price, suggesting cost certainty for the government. 3. Project duration of 553 days indicates a significant construction timeline. 4. The award to Structural Engineering Group Inc. represents a specific investment in military infrastructure. 5. The project is located at Joint Base Langley-Eustis, Virginia, a key military installation. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

Benchmarking the value of this specific construction project is challenging without detailed cost breakdowns and comparable project data. The firm fixed price structure aims to control costs, but the overall value for money depends on the execution and final quality of the delivered facilities. Further analysis would require comparing the per-square-foot cost against similar military construction projects in the region and nationally.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be open, certain sources may have been excluded for specific reasons, potentially limiting the breadth of competition. The number of bidders is not specified, making it difficult to fully assess the competitive landscape and its impact on price discovery.

Taxpayer Impact: The limited competition may mean that taxpayers did not benefit from the lowest possible price that could have been achieved through a broader, unrestricted competition.

Public Impact

Military personnel at Joint Base Langley-Eustis will benefit from improved headquarters facilities. The construction services will be delivered at a major military installation in Virginia. The project will likely have a localized economic impact through job creation and material sourcing in the Newport News area. The construction workforce will be engaged for the duration of the project, contributing to employment in the skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm fixed price.
Risk of schedule delays impacting the operational readiness of the base.
Dependence on the contractor's ability to manage subcontractors effectively.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

Firm fixed price contract provides cost certainty for the government.
Award to a single contractor streamlines management and accountability.
Project is for essential military infrastructure, supporting base operations.
Location within an established military base may reduce some logistical complexities.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for military construction is substantial, driven by the need to maintain and modernize defense infrastructure. Comparable spending benchmarks would involve analyzing the cost per square foot for similar government facilities, factoring in regional labor and material costs. The size of this contract is moderate within the broader landscape of large-scale defense construction projects.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, the direct impact on small businesses is likely limited to potential subcontracting opportunities. The prime contractor, Structural Engineering Group Inc., will determine the extent to which small businesses are engaged in fulfilling project requirements. Further investigation into the subcontracting plan would be necessary to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially through contracting officers and project managers at Joint Base Langley-Eustis. Accountability measures are inherent in the firm fixed price contract, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency may be enhanced through contract award notices and potential public reporting on project milestones, though detailed oversight reports are not specified.

Related Government Programs

Military Construction, Army
Base Realignment and Closure (BRAC) projects
Department of Defense Facilities Modernization
General Building Construction, Repair, and Maintenance

Risk Flags

Potential for limited competition due to source exclusion.
Risk of schedule delays impacting base operations.
Need for robust oversight to ensure quality under FFP contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to STRUCTURAL ENGINEERING GROUP INC. CONSTRUCTION OF BATTALION AND BRIGADE HEADQUARTERS BUILDINGS AT JOINT BASE LANGLEY-EUSTIS, NEWPORT NEWS, VIRGINIA.

Who is the contractor on this award?

The obligated recipient is STRUCTURAL ENGINEERING GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $17.0 million.

What is the period of performance?

Start: 2024-11-07. End: 2026-05-14.

What is the track record of Structural Engineering Group Inc. with Department of Defense contracts?

A review of federal procurement data indicates that Structural Engineering Group Inc. has a history of receiving contracts from various government agencies, including the Department of Defense. While specific details on past performance for similar construction projects would require deeper analysis, their presence in the federal contracting space suggests experience with government requirements. Examining past contract values, performance evaluations, and any history of disputes or contract modifications would provide a more comprehensive understanding of their track record. Without this granular data, it's difficult to definitively assess their suitability beyond the fact that they were selected for this current project.

How does the awarded amount compare to similar military headquarters construction projects?

Direct comparison of the $17 million award to similar military headquarters construction projects is challenging without access to a detailed database of comparable projects, including their scope, size (square footage), location, and specific construction elements. However, $17 million for battalion and brigade headquarters buildings suggests a significant investment. Factors such as the complexity of the design, site preparation requirements, and the specific technological or security features incorporated into the buildings would influence the cost. Benchmarking against projects of similar scale and function within the Department of Defense, adjusted for regional cost variations, would be necessary for a robust comparison.

What are the primary risks associated with this construction contract?

The primary risks associated with this construction contract include potential schedule delays due to unforeseen site conditions, weather, or supply chain disruptions, which could impact the operational readiness of the base. Cost overruns are a risk, even with a firm fixed price, if scope creep occurs or if the initial cost estimates did not fully account for all potential challenges. Contractor performance is another key risk; the quality of construction and adherence to specifications must be closely monitored. Furthermore, ensuring compliance with stringent environmental, safety, and security regulations inherent in military construction projects presents ongoing risks that require diligent oversight.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance the benefits of open competition with specific government needs that might necessitate excluding certain potential bidders. Its effectiveness in ensuring value for taxpayers is variable. If the exclusion is justified and the remaining pool of bidders is still robust, it can lead to competitive pricing. However, if the exclusion significantly limits the number of capable bidders, it could reduce competitive pressure and potentially lead to higher prices than a truly unrestricted competition. The key determinant of value is the number and capability of the bidders that remained after the exclusion.

What is the historical spending trend for similar construction projects at Joint Base Langley-Eustis?

Analyzing historical spending trends for similar construction projects at Joint Base Langley-Eustis would require access to detailed historical contract data for the base. This would involve identifying previous construction contracts for buildings, infrastructure, or renovations at the installation, noting their award amounts, contract types, and durations. Understanding these patterns could reveal whether costs have been increasing or decreasing, the typical scale of projects undertaken, and the prevalence of different contracting methods. Without specific historical data for this base, it's impossible to provide a trend analysis for similar projects.

What are the implications of the firm fixed price (FFP) contract type for this project?

A firm fixed price (FFP) contract type places the primary risk of cost overruns on the contractor. This means that Structural Engineering Group Inc. is obligated to complete the construction of the battalion and brigade headquarters buildings for the agreed-upon price of $17,003,058, regardless of their actual costs. This provides the Department of the Army with significant cost certainty and predictability. For taxpayers, this structure is generally favorable as it caps the government's financial exposure. However, it can also incentivize contractors to cut corners on quality if not adequately monitored, or to bid higher initially to account for potential risks they perceive.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W9123624B2014

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 38997 E COLONIAL HWY, HAMILTON, VA, 20158

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $17,003,058

Exercised Options: $17,003,058

Current Obligation: $17,003,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline