DoD awards $21.1M for barracks construction at Joint Base Myer-Henderson Hall, Virginia

Contract Overview

Contract Amount: $21,155,920 ($21.2M)

Contractor: Teya Enterprises LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-28

End Date: 2026-03-31

Contract Duration: 1,645 days

Daily Burn Rate: $12.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SWING SPACE FOR BARRACKS, JOINT BASE MYER-HENDERSON HALL, VIRGINIA

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.2 million to TEYA ENTERPRISES LLC for work described as: SWING SPACE FOR BARRACKS, JOINT BASE MYER-HENDERSON HALL, VIRGINIA Key points: 1. Contract awarded to TEYA ENTERPRISES LLC for swing space construction. 2. Project duration spans over 1600 days, indicating a significant construction undertaking. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Awarded as a sole-source contract, raising questions about competition and potential cost savings. 5. The project is located in Virginia, impacting the local construction market and workforce. 6. This contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source construction projects. The fixed-price nature provides some cost certainty, but the lack of competition means there's no direct market comparison to assess if the price is optimal. Further analysis would require understanding the specific scope of work and any unique requirements that might justify a sole-source award and its associated cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This suggests that either only one responsible source was available, or the agency determined that a sole-source award was in the government's best interest. The lack of competition limits the government's ability to solicit multiple bids and potentially secure a lower price through a competitive bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from the price discovery mechanisms inherent in a competitive environment.

Public Impact

Military personnel at Joint Base Myer-Henderson Hall will benefit from improved or temporary barracks facilities. The construction services delivered will enhance the living and working conditions on the base. The geographic impact is concentrated in Arlington, Virginia, supporting the local economy through construction jobs. The project will likely involve a skilled construction workforce, potentially including tradespeople and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Long project duration of over 1600 days could introduce risks of cost overruns or delays if not managed effectively.
Lack of transparency in the justification for a sole-source award.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor, providing budget certainty.
Award to TEYA ENTERPRISES LLC, a specific contractor, implies they meet the requirements for this specialized construction.
Project addresses a critical need for swing space at a major military installation.

Sector Analysis

This contract falls within the construction sector, specifically for commercial and institutional buildings. The market for military construction is substantial, driven by the need to maintain and upgrade facilities across numerous bases. Benchmarking this specific contract's value is difficult without more data on similar sole-source barracks construction projects, but the scale suggests a significant investment in base infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. The prime contractor, TEYA ENTERPRISES LLC, will be responsible for fulfilling the contract requirements, and any subcontracting decisions would be at their discretion, not mandated by a small business set-aside provision.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, given the agency's role in awarding the contract. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver the specified construction within the agreed-upon price. Transparency regarding the sole-source justification and project progress would be key areas for oversight.

Related Government Programs

Military Barracks Construction
Base Infrastructure Modernization
Department of Defense Construction Contracts
Firm Fixed Price Construction Awards

Risk Flags

Sole-source award may indicate a lack of competition, potentially leading to higher costs.
Long project duration increases the risk of cost escalation or delays if not managed meticulously.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to TEYA ENTERPRISES LLC. SWING SPACE FOR BARRACKS, JOINT BASE MYER-HENDERSON HALL, VIRGINIA

Who is the contractor on this award?

The obligated recipient is TEYA ENTERPRISES 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 $21.2 million.

What is the period of performance?

Start: 2021-09-28. End: 2026-03-31.

What specific factors led to the sole-source award for this barracks construction project?

The provided data states the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is capable of providing the required goods or services, or when there is a compelling urgency that precludes full and open competition. For construction projects, this could involve highly specialized site conditions, unique architectural requirements, or the need to integrate with existing, proprietary systems. Without further documentation from the Department of the Army, the precise rationale remains unknown, but it implies that a competitive process was deemed impractical or impossible in this instance.

How does the $21.1 million cost compare to similar military construction projects in Virginia?

Directly comparing the $21.1 million cost to similar military construction projects in Virginia is challenging without access to a comprehensive database of comparable contracts, especially sole-source awards. The nature of construction projects varies significantly based on scope, materials, location, and specific requirements. However, for context, major military construction projects can range from tens of millions to hundreds of millions of dollars. The cost per square foot or per bed for barracks construction can serve as a benchmark, but this data is not provided. Given the sole-source nature, a direct price comparison to competitively bid projects would not be appropriate, as competition typically drives prices down. The value assessment would rely more on whether the awarded price aligns with the estimated costs for similar sole-source procurements, if such data were available.

What are the primary risks associated with a Firm Fixed Price contract for a project of this duration?

A Firm Fixed Price (FFP) contract shifts the majority of cost risk to the contractor. For a project with a duration of over 1600 days (approximately 4.5 years), the primary risks for the contractor include unforeseen increases in material costs, labor shortages or wage inflation, and potential changes in regulatory requirements over the extended period. While the FFP contract aims to provide cost certainty for the government, significant contractor financial distress or bankruptcy due to underestimation of these long-term risks could lead to project delays or termination, ultimately impacting the government. The government's risk is generally lower in terms of cost escalation but higher in terms of potential contractor performance issues if the contractor struggles to absorb unforeseen cost increases.

What is the expected impact of this contract on the local construction workforce in Virginia?

This contract is expected to have a positive impact on the local construction workforce in Virginia, particularly in the Northern Virginia region where Joint Base Myer-Henderson Hall is located. The award of a $21.1 million construction project will likely create numerous job opportunities for skilled tradespeople, including carpenters, electricians, plumbers, and heavy equipment operators, as well as project managers, engineers, and support staff. The duration of the project, spanning over 1600 days, suggests sustained employment opportunities throughout its lifecycle. Furthermore, it could stimulate demand for local suppliers of construction materials and equipment, indirectly benefiting other businesses in the construction supply chain.

Are there any historical spending patterns with TEYA ENTERPRISES LLC for similar construction services?

The provided data indicates that TEYA ENTERPRISES LLC is the contractor for this specific award. To assess historical spending patterns, one would need to query federal procurement databases for previous contracts awarded to this entity. Without access to such historical data, it's impossible to determine if TEYA ENTERPRISES LLC has a track record of performing similar military construction services, the value of those past contracts, or their performance history. A thorough analysis would involve examining past awards, contract types, performance reviews, and any reported issues or successes to gauge their experience and reliability in executing projects of this magnitude and type.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DR21R0039

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 E 9TH AVE STE 9B, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,155,920

Exercised Options: $21,155,920

Current Obligation: $21,155,920

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline