DoD's $34.6M Humphreys Engineer Center Training Facility contract awarded to Manhattan Construction Company

Contract Overview

Contract Amount: $34,581,681 ($34.6M)

Contractor: Manhattan Construction Company LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2025-05-31

Contract Duration: 1,339 days

Daily Burn Rate: $25.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SOCOM HUMPHREYS ENGINEER CENTER TRAINING SUPPORT FACILITY

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.6 million to MANHATTAN CONSTRUCTION COMPANY LLC for work described as: SOCOM HUMPHREYS ENGINEER CENTER TRAINING SUPPORT FACILITY Key points: 1. The contract value of $34.6 million for a training facility suggests a significant investment in infrastructure. 2. Awarded under full and open competition, this contract indicates a potentially competitive bidding process. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially stabilizing project expenses. 4. The project duration of over three years points to a complex construction undertaking. 5. The absence of small business set-aside flags a potential area for review regarding broader economic participation. 6. The contract's focus on building construction aligns with the broader defense infrastructure development needs.

Value Assessment

Rating: good

The contract value of $34.6 million for a training facility appears within a reasonable range for large-scale construction projects of this nature. Benchmarking against similar Department of Defense construction contracts for training facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for cost control, assuming the initial scope was well-defined. Without specific cost breakdowns or comparable project data, a definitive assessment of pricing efficiency is challenging, but the competitive award suggests a degree of market validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. With six bidders participating, the competition level appears healthy, which typically fosters better price discovery and potentially more competitive pricing for the government. The number of bidders suggests that the market for this type of construction service is sufficiently robust to support multiple interested parties.

Taxpayer Impact: A competitive bidding process like this generally benefits taxpayers by driving down costs and ensuring the government receives fair market value for its investment in infrastructure.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will utilize the new training facility. The contract delivers essential infrastructure for military training and readiness. The project's geographic impact is centered in Virginia, supporting local construction employment. The construction phase will likely involve a significant number of skilled tradespeople and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-duration construction projects, impacting final cost and timeline.
Ensuring adherence to stringent military construction standards and quality control throughout the project lifecycle.
Managing potential supply chain disruptions or material cost fluctuations inherent in large construction projects.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Awarded through full and open competition, indicating a robust bidding environment.
The contractor, Manhattan Construction Company, likely has a track record in large-scale construction projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The defense sector represents a significant client base for construction firms undertaking large-scale infrastructure projects. Comparable spending benchmarks for military training facilities can vary widely based on size, complexity, and location, but a $34.6 million award suggests a substantial facility. The market for such projects is often characterized by a mix of large, established construction companies and specialized subcontractors.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data does not indicate any specific subcontracting requirements for small businesses. This suggests that the primary award went to a large business. Further review would be needed to determine if subcontracting opportunities exist within the awarded contract to engage the small business ecosystem effectively. The absence of a set-aside may limit direct opportunities for small businesses to secure prime contract roles on this specific project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially through contracting officers and project managers. Accountability measures would include adherence to the contract terms, performance milestones, and quality standards. Transparency is facilitated by the public nature of contract awards, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Program
Defense Infrastructure Projects
Training and Readiness Facilities
Department of Defense Facilities Management

Risk Flags

Long project duration increases exposure to market fluctuations.
Potential for scope creep in large construction projects.
Need for rigorous quality assurance on military construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.6 million to MANHATTAN CONSTRUCTION COMPANY LLC. SOCOM HUMPHREYS ENGINEER CENTER TRAINING SUPPORT FACILITY

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 $34.6 million.

What is the period of performance?

Start: 2021-09-30. End: 2025-05-31.

What is the track record of Manhattan Construction Company on similar federal construction projects?

Manhattan Construction Company has a significant history of undertaking large-scale construction projects, including those for government and institutional clients. While specific details on their past federal contracts for military training facilities would require a deeper dive into federal procurement databases, their involvement in a $34.6 million Department of Defense project suggests a demonstrated capability. Their portfolio often includes complex projects requiring adherence to strict specifications and timelines. A review of past performance evaluations and any reported issues on previous government contracts would provide a more comprehensive understanding of their reliability and quality of work in the federal space.

How does the $34.6 million contract value compare to similar training facility construction projects for the DoD?

The $34.6 million contract value for the Humphreys Engineer Center Training Support Facility appears to be within a typical range for substantial military construction projects. However, direct comparisons are complex due to variations in facility size, scope of work, technological integration, and geographic location, all of which influence cost. For instance, a basic barracks facility would cost significantly less than a specialized training simulator complex. Benchmarking against projects awarded in the same fiscal year or recent years, with similar square footage and functional requirements, would offer a more precise comparison. Without such granular data, it's reasonable to consider this a significant investment, indicative of a facility with considerable scope and complexity.

What are the primary risk indicators associated with this firm-fixed-price construction contract?

The primary risk indicator for a firm-fixed-price (FFP) contract, while generally favorable for cost control, lies in the potential for contractor-driven scope creep or change orders if the initial requirements are not perfectly defined. If the contractor encounters unforeseen site conditions or material cost escalations beyond what was reasonably anticipated, they bear the financial burden, which could lead to pressure to cut corners on quality if not closely monitored. Additionally, the long duration (1339 days) increases the risk of market volatility in material prices and labor availability. Robust oversight and clear communication channels are crucial to mitigate these risks and ensure the project stays on track and within the agreed-upon scope and quality standards.

What is the expected effectiveness of the completed training facility in enhancing military readiness?

The effectiveness of the completed training facility in enhancing military readiness is directly tied to its design, functionality, and the specific training programs it will support. As a dedicated training support facility, it is intended to provide a controlled and specialized environment for personnel development, skill acquisition, and tactical scenario practice. Its success will be measured by its ability to facilitate realistic training, improve operational proficiency, and ultimately contribute to the overall preparedness and effectiveness of the units utilizing it. The investment suggests a strategic need for enhanced training capabilities, implying a positive impact on readiness if the facility meets its intended purpose and operational requirements.

How has federal spending on similar construction projects evolved over the past five years?

Federal spending on similar construction projects, particularly within the Department of Defense, has generally remained robust, driven by modernization efforts, infrastructure upkeep, and evolving operational needs. While specific figures for 'training support facilities' are not readily available as a distinct category, overall military construction spending fluctuates based on congressional appropriations, strategic priorities, and the lifecycle of existing infrastructure. Trends may show increased investment in facilities incorporating advanced technology, energy efficiency, and resilience. Factors like geopolitical events and budget cycles significantly influence the volume and value of such contracts awarded annually.

What is the potential impact of this contract on the local economy in Virginia?

This $34.6 million contract is expected to have a positive impact on the local economy in Virginia through job creation and increased economic activity. The construction phase will require a workforce comprising various skilled trades, laborers, project managers, and support staff, generating direct employment. Furthermore, the influx of spending on materials, equipment, and local services will benefit regional businesses, including suppliers, transportation providers, and hospitality services. The long-term impact includes the provision of a critical facility that supports military operations and personnel stationed in the area, potentially contributing to the region's strategic importance and associated economic benefits.

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

Solicitation Procedures: TWO STEP

Solicitation ID: W912DR21R0027

Offers Received: 6

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: $36,345,681

Exercised Options: $34,581,681

Current Obligation: $34,581,681

Actual Outlays: $340,421

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline