DoD Awards $327M for J Plant Renovation to Serco Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $327,336,444 ($327.3M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2024-08-01
End Date: 2028-07-29
Contract Duration: 1,458 days
Daily Burn Rate: $224.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: J PLANT RENOVATION
Plain-Language Summary
Department of Defense obligated $327.3 million to SERCO INC for work described as: J PLANT RENOVATION Key points: 1. Significant investment in industrial facility modernization. 2. Competition method suggests potential for competitive pricing. 3. Contract type (FFP) shifts risk to contractor. 4. Industrial building construction sector sees substantial contract award.
Value Assessment
Rating: good
The contract value of $327.3M for a 4-year renovation project appears substantial. Benchmarking against similar large-scale industrial construction projects would be necessary for a precise assessment, but the scale suggests a significant undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers, leveraging market forces to achieve value for the significant investment.
Public Impact
Modernization of critical industrial infrastructure. Potential for job creation in the construction sector. Ensures continued operational capability for the facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Scope creep potential in large renovation projects.
- Contractor performance risk over a 4-year duration.
- Unforeseen site conditions impacting cost and schedule.
Positive Signals
- Clear contract type (FFP) for cost control.
- Full and open competition drives value.
- Defined period of performance.
Sector Analysis
This contract falls within the Industrial Building Construction sector, which is crucial for maintaining and upgrading government facilities. Spending in this sector can fluctuate based on infrastructure needs and modernization priorities.
Small Business Impact
While awarded to Serco Inc., the contract details do not specify subcontracting goals for small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The award under full and open competition suggests a structured procurement process. Oversight will be critical to manage performance, cost, and schedule adherence throughout the project's lifecycle.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Risk of schedule delays impacting operational readiness.
- Contractor performance and quality assurance.
- Complexity of large-scale industrial renovations.
Tags
industrial-building-construction, department-of-defense, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $327.3 million to SERCO INC. J PLANT RENOVATION
Who is the contractor on this award?
The obligated recipient is SERCO 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 $327.3 million.
What is the period of performance?
Start: 2024-08-01. End: 2028-07-29.
What is the historical cost performance of Serco Inc. on similar large-scale construction contracts?
Assessing Serco Inc.'s past performance on comparable industrial renovation projects is crucial. Reviewing their track record for cost overruns, schedule delays, and quality issues on similar-sized contracts will provide insight into their reliability and potential risks for this $327M award.
Are there specific environmental or safety regulations that could impact the renovation timeline and budget?
Industrial renovation projects, especially those involving older facilities, often encounter unforeseen environmental or safety challenges. A thorough review of applicable regulations and potential remediation needs is essential to accurately forecast the total cost and timeline, mitigating risks of delays and budget increases.
How does the awarded price compare to independent cost estimates for this type of facility renovation?
Comparing the $327M award to independent government or industry cost estimates is vital for validating value. Significant deviations could indicate either an exceptionally good deal achieved through competition or potential underestimation of the project's true cost, warranting further scrutiny.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DS24R0004
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12930 WORLDGATE DR, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $327,336,444
Exercised Options: $327,336,444
Current Obligation: $327,336,444
Actual Outlays: $3,451,592
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,039,608
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-08-01
Current End Date: 2028-07-29
Potential End Date: 2028-07-29 00:00:00
Last Modified: 2025-09-30
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