DoD's $31M Stennis Space Center project awarded to Birmingham Industrial Construction, LLC for building upgrades

Contract Overview

Contract Amount: $31,066,152 ($31.1M)

Contractor: Birmingham Industrial Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-19

End Date: 2027-04-13

Contract Duration: 571 days

Daily Burn Rate: $54.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BID-BUILD (DBB) GOVERNMENT PRINTING OFFICE (GPO) AND NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA) BUILDING 9101 EXPANSIONS, INTERIOR UPGRADES, AND ROOF REPLACEMENT, AT STENNIS SPACE CENTER, MISSISSIPPI.

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC for work described as: DESIGN-BID-BUILD (DBB) GOVERNMENT PRINTING OFFICE (GPO) AND NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA) BUILDING 9101 EXPANSIONS, INTERIOR UPGRADES, AND ROOF REPLACEMENT, AT STENNIS SPACE CENTER, MISSISSIPPI. Key points: 1. Value for money assessed through competitive bidding, aiming for cost-effectiveness in construction services. 2. Competition dynamics indicate a full and open process, suggesting a robust market for these services. 3. Risk indicators include project duration and fixed-price contract type, which can shift cost overruns to the contractor. 4. Performance context relies on contractor's ability to execute complex building upgrades within the specified timeline. 5. Sector positioning places this contract within the broader commercial and institutional building construction market.

Value Assessment

Rating: good

The contract value of approximately $31 million for building expansions, interior upgrades, and roof replacement appears reasonable given the scope of work at a federal facility. Benchmarking against similar large-scale construction projects for government entities suggests that pricing is likely competitive, especially considering the full and open competition. The firm-fixed-price contract type further indicates an expectation of cost control, with the contractor bearing the brunt of potential overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests that while the intent was broad competition, specific criteria or circumstances led to the exclusion of certain potential bidders. With 4 bidders, the competition level is moderate, providing some price discovery but potentially not the full market leverage seen in truly unrestricted full and open competitions. Further details on the exclusion criteria would clarify the extent of competition.

Taxpayer Impact: A moderate level of competition helps ensure that taxpayer funds are used efficiently by driving down prices. However, understanding the reasons for excluding certain sources is crucial to confirm that the best possible value was obtained for the government.

Public Impact

The primary beneficiaries are NASA and the Department of Defense, ensuring improved infrastructure at Stennis Space Center. Services delivered include significant building expansions, interior modernizations, and essential roof replacement, enhancing facility functionality and longevity. The geographic impact is localized to Stennis Space Center in Mississippi, supporting critical federal research and development operations. Workforce implications include job creation for construction trades and related support personnel in the region during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large construction projects, requiring diligent oversight.
Reliance on a single contractor for complex, multi-faceted building work.
Weather-related delays are a common risk in construction, especially in the Gulf Coast region.

Positive Signals

Firm-fixed-price contract helps manage budget certainty.
Defined contract duration provides a clear timeline for project completion.
Moderate competition suggests a reasonable selection process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal spending in this area often supports critical infrastructure for agencies like NASA and DoD. Comparable spending benchmarks for similar facility upgrades at large government installations can range from tens to hundreds of millions of dollars, depending on scale and complexity. This $31 million project appears to be a mid-range investment for facility modernization.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, Birmingham Industrial Construction, LLC, may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess this impact.

Oversight & Accountability

Oversight for this project will likely be managed by the Department of the Army contracting and engineering divisions, given the agency and location. Accountability measures are embedded in the firm-fixed-price contract, performance schedules, and quality control requirements. Transparency is facilitated through federal contract databases, though detailed project-specific oversight reports may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

NASA Facility Modernization Programs
DoD Base Infrastructure Improvements
Federal Building Construction Contracts
Stennis Space Center Operations Support

Risk Flags

Potential for cost overruns if contractor's estimates are inaccurate under FFP.
Risk of quality compromises if contractor faces financial pressure.
Dependency on contractor's ability to manage complex construction schedule.
Possible impact of unforeseen site conditions on schedule and cost.
Adequacy of justification for excluding certain sources from competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC. DESIGN-BID-BUILD (DBB) GOVERNMENT PRINTING OFFICE (GPO) AND NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA) BUILDING 9101 EXPANSIONS, INTERIOR UPGRADES, AND ROOF REPLACEMENT, AT STENNIS SPACE CENTER, MISSISSIPPI.

Who is the contractor on this award?

The obligated recipient is BIRMINGHAM INDUSTRIAL CONSTRUCTION, 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 $31.1 million.

What is the period of performance?

Start: 2025-09-19. End: 2027-04-13.

What is the track record of Birmingham Industrial Construction, LLC with federal contracts, particularly in large-scale building projects?

Birmingham Industrial Construction, LLC has a history of federal contract awards, primarily within the Department of Defense and other federal agencies. Their experience often includes construction and renovation projects, aligning with the scope of this contract. While specific details on past performance metrics for similar-sized projects would require deeper database analysis, their award suggests they meet the necessary qualifications for undertaking significant federal building work. Reviewing past performance evaluations and any documented issues on previous contracts would provide a more comprehensive understanding of their reliability and execution capabilities.

How does the $31 million cost compare to similar NASA or DoD building upgrade projects?

The $31 million cost for Building 9101 expansions, interior upgrades, and roof replacement at Stennis Space Center is within a typical range for substantial facility modernization projects at federal installations. Large-scale construction and renovation contracts for government entities can vary widely, but projects involving significant structural work, interior overhauls, and essential system replacements often fall into the multi-million dollar category. Benchmarking against projects of similar scope (e.g., upgrading research facilities, administrative buildings, or specialized operational structures) at other NASA centers or DoD bases would provide a more precise comparison. Factors like geographic location, specific technical requirements, and prevailing labor costs influence these figures.

What are the primary risks associated with a firm-fixed-price contract for a project of this duration (571 days)?

For a firm-fixed-price (FFP) contract of this duration, the primary risk shifts significantly to the contractor. Birmingham Industrial Construction, LLC assumes the responsibility for cost overruns resulting from poor estimating, unforeseen site conditions (beyond what's contractually defined as excusable), or increased material and labor costs. The government benefits from cost certainty. However, risks for the government include potential contractor attempts to cut corners on quality to maintain profit margins, or contractor default if they mismanage costs severely. Diligent government oversight is crucial to ensure quality standards are met and the project stays on schedule despite the FFP structure.

What does 'Full and Open Competition After Exclusion of Sources' imply about the competition level and potential value for taxpayers?

This procurement method, 'Full and Open Competition After Exclusion of Sources,' indicates that the solicitation was made available to all responsible prospective sources, but specific sources were excluded based on predefined criteria. This suggests a deliberate decision to narrow the field, perhaps due to specialized requirements or past performance issues with certain contractors. While it aims for broad competition, the exclusion means it's not the absolute widest possible competition. The value for taxpayers depends heavily on the justification for the exclusions; if valid, it could still yield competitive pricing. However, if exclusions were arbitrary, it might limit price discovery and potentially lead to higher costs than a truly unrestricted competition.

Are there any historical spending patterns at Stennis Space Center for similar building infrastructure projects?

Analyzing historical spending patterns at Stennis Space Center for similar building infrastructure projects would provide valuable context. This involves examining past contracts for facility upgrades, new construction, or major repairs at the center over several fiscal years. Key metrics to look for include the number of bids received on comparable projects, the final awarded prices versus initial estimates, and the types of contractors (large vs. small business) that have secured such work. Understanding these patterns can reveal trends in cost efficiency, market competitiveness, and the typical scale of infrastructure investments at the facility, helping to assess whether the current $31 million award is consistent with historical norms or represents an outlier.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9127824R0052

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 105 CORPORATE WOODS CIR, ALABASTER, AL, 35007

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $34,766,487

Exercised Options: $31,066,152

Current Obligation: $31,066,152

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline