DoD awards $22.5M contract for Letterkenny Army Depot fire station construction

Contract Overview

Contract Amount: $22,493,382 ($22.5M)

Contractor: Goldbelt Operations Support Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-31

End Date: 2026-09-10

Contract Duration: 771 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FIRE STATION AT LETTERKENNY ARMY DEPOT IN CHAMBERSBURG, PENNSYLVANIA

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $22.5 million to GOLDBELT OPERATIONS SUPPORT SERVICES LLC for work described as: FIRE STATION AT LETTERKENNY ARMY DEPOT IN CHAMBERSBURG, PENNSYLVANIA Key points: 1. Contract awarded to Goldbelt Operations Support Services LLC for construction services. 2. The contract is a firm-fixed-price definitive contract. 3. Construction is slated for completion by September 2026. 4. The project aims to enhance safety and operational capabilities at the depot. 5. This award represents a significant investment in military infrastructure. 6. The contract was awarded under full and open competition.

Value Assessment

Rating: good

The contract value of $22.5 million for a fire station at an army depot appears reasonable given the scope of construction for a specialized facility. Benchmarking against similar government construction projects for critical infrastructure, the price falls within expected ranges. While specific cost breakdowns are not provided, the firm-fixed-price nature suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded following full and open competition after exclusion of sources, indicating a robust bidding process. Five bids were received, suggesting a healthy level of interest and competition among qualified contractors. This competitive environment is generally favorable for achieving competitive pricing and ensuring that the government receives a fair market value for the services rendered.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through multiple bids. This process helps prevent inflated pricing and promotes a level playing field for capable businesses.

Public Impact

The primary beneficiaries are the personnel and operations at Letterkenny Army Depot, who will gain enhanced fire protection services. The project will deliver a new, modern fire station facility. The geographic impact is localized to Chambersburg, Pennsylvania, supporting the regional economy through construction jobs. Workforce implications include employment opportunities for construction labor and specialized trades during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness if unforeseen issues arise.
Ensuring compliance with all environmental and safety regulations during construction is critical.
Long-term maintenance costs of the new facility are not detailed in this award.

Positive Signals

Award to a single contractor streamlines project management and execution.
Firm-fixed-price contract shifts cost risk to the contractor.
Completion of a critical infrastructure upgrade enhances base safety and security.

Sector Analysis

This contract falls within the Construction sector, specifically for commercial and institutional buildings. The market for government construction, particularly for military installations, is substantial, driven by the need for modern, secure, and functional facilities. Comparable spending benchmarks for similar-sized infrastructure projects on military bases can vary widely based on location, complexity, and specific requirements, but a $22.5 million investment for a fire station is a significant undertaking.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Goldbelt Operations Support Services LLC may engage small businesses as subcontractors, there is no explicit requirement or set-aside mentioned in the provided data. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and project management offices responsible for Letterkenny Army Depot. Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to deliver the specified facility within budget. Transparency is generally maintained through contract award announcements and public contract databases, though detailed project oversight reports may not be publicly available.

Related Government Programs

Military Construction Projects
Department of Defense Facilities Management
Army Installation Support Contracts
Emergency Services Infrastructure

Risk Flags

Potential for schedule delays
Cost overruns (mitigated by FFP)
Quality control issues
Environmental compliance risks
Security access challenges on military installation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to GOLDBELT OPERATIONS SUPPORT SERVICES LLC. FIRE STATION AT LETTERKENNY ARMY DEPOT IN CHAMBERSBURG, PENNSYLVANIA

Who is the contractor on this award?

The obligated recipient is GOLDBELT OPERATIONS SUPPORT SERVICES 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 $22.5 million.

What is the period of performance?

Start: 2024-07-31. End: 2026-09-10.

What is the track record of Goldbelt Operations Support Services LLC in completing similar government construction projects on time and within budget?

A review of past performance for Goldbelt Operations Support Services LLC would be necessary to assess their track record. This would involve examining contract histories for similar-sized construction projects, particularly those involving specialized facilities like fire stations or critical infrastructure on military installations. Key metrics to evaluate include on-time completion rates, adherence to budget, quality of work, and any history of disputes or contract modifications. Without access to detailed performance data, it is difficult to definitively assess their reliability for this specific project. However, the award under full and open competition suggests they met initial qualification criteria.

How does the awarded amount compare to the estimated cost or independent government cost estimate for this fire station project?

The provided data does not include the government's independent cost estimate or the initial bid range. To assess value, this contract amount of $22.5 million should be compared against such estimates. If the awarded price is significantly below the estimate, it could indicate strong competition or potential underestimation of scope. Conversely, if it's at or above the estimate, it warrants closer scrutiny of the scope and pricing. The fact that five bids were received suggests a competitive market, which typically drives prices towards the lower end of estimates.

What are the specific risks associated with constructing a fire station on an active military installation?

Constructing a fire station on an active military installation presents several unique risks. These include potential disruptions to ongoing base operations, stringent security protocols that can impact construction timelines and access, and the need to coordinate with existing infrastructure and utilities. Environmental considerations, such as hazardous materials or protected lands, may also add complexity. Furthermore, ensuring the safety of construction personnel while operating in a potentially high-risk environment requires robust safety management plans. The firm-fixed-price nature of the contract helps mitigate financial risks for the government, but schedule and operational risks remain.

What is the expected impact of this new fire station on the overall emergency response capabilities at Letterkenny Army Depot?

The construction of a new fire station is expected to significantly enhance emergency response capabilities at Letterkenny Army Depot. A modern facility typically incorporates updated equipment, improved living quarters for firefighters, and better training areas, all contributing to faster and more effective response times. It should provide a dedicated, state-of-the-art base for fire suppression, emergency medical services, and hazardous materials response, thereby improving the safety and readiness of the installation and its personnel. The specific improvements will depend on the design and equipment specified for the new station.

What has been the historical spending trend for fire station construction or similar infrastructure projects at this specific Army depot?

The provided data does not contain historical spending information for Letterkenny Army Depot or for fire station construction specifically. To analyze historical spending patterns, one would need to access contract databases and search for previous awards related to infrastructure development, facility construction, or emergency services at this location. Understanding past investments can provide context for the current $22.5 million award, indicating whether it represents a typical expenditure, a significant increase, or a backlog of deferred maintenance and upgrades. Without this historical data, it's challenging to place the current contract within a long-term investment context.

Are there any specific performance metrics or key performance indicators (KPIs) tied to the successful completion and operational readiness of this fire station?

The provided award data does not detail specific performance metrics or KPIs for the fire station's construction and operational readiness. Typically, government construction contracts include clauses for acceptance based on adherence to design specifications, building codes, and functional testing. For operational readiness, KPIs might relate to response times, equipment functionality, and personnel training, which would likely be defined in separate operational agreements or post-construction evaluations rather than the construction contract itself. The firm-fixed-price nature implies successful completion according to specifications is the primary deliverable.

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: W912DR24R0002

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13900 LINCOLN PARK DR, HERNDON, VA, 20171

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,493,382

Exercised Options: $22,493,382

Current Obligation: $22,493,382

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline