DoD Awards $27.75M Warehouse Construction Contract to STG Pacific, LLC at JBLM
Contract Overview
Contract Amount: $27,752,900 ($27.8M)
Contractor: STG Pacific, LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-26
End Date: 2027-05-02
Contract Duration: 583 days
Daily Burn Rate: $47.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: AWARD TO CONSTRUCT SUPPLY STORAGE ACTIVITY (SSA) WAREHOUSE LOCATED AT JOINT BASE LEWIS MCCHORD (JBLM) WASHINGTON.
Place of Performance
Location: JOINT BASE LEWIS MCCHORD, PIERCE County, WASHINGTON, 98433
Plain-Language Summary
Department of Defense obligated $27.8 million to STG PACIFIC, LLC for work described as: AWARD TO CONSTRUCT SUPPLY STORAGE ACTIVITY (SSA) WAREHOUSE LOCATED AT JOINT BASE LEWIS MCCHORD (JBLM) WASHINGTON. Key points: 1. The contract is for constructing a supply storage activity warehouse at Joint Base Lewis-McChord. 2. STG Pacific, LLC was awarded the contract following full and open competition. 3. The project aims to enhance supply chain infrastructure for the Department of the Army. 4. The firm-fixed-price contract has a duration of 583 days.
Value Assessment
Rating: good
The contract value of $27.75 million for a warehouse of this size and complexity appears reasonable. Benchmarking against similar construction projects in the region would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources,' indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades, which should improve operational efficiency and potentially reduce long-term costs.
Public Impact
Enhances military logistics and supply chain capabilities at a major Army installation. Supports construction industry jobs and economic activity in Washington state. Improves storage capacity and operational readiness for the Department of the Army.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction cost overruns.
- Delays in project completion impacting operational readiness.
- Environmental impact during construction phase.
Positive Signals
- Competitive bidding process likely secured a fair price.
- Modernized infrastructure will improve long-term efficiency.
- Supports economic activity through construction.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense is substantial, driven by the need for modern facilities to support military operations and personnel.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure compliance and accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays.
- Risk of cost overruns in construction.
- Dependency on specific contractor capabilities.
- Environmental compliance during construction.
Tags
commercial-and-institutional-building-co, department-of-defense, wa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.8 million to STG PACIFIC, LLC. AWARD TO CONSTRUCT SUPPLY STORAGE ACTIVITY (SSA) WAREHOUSE LOCATED AT JOINT BASE LEWIS MCCHORD (JBLM) WASHINGTON.
Who is the contractor on this award?
The obligated recipient is STG PACIFIC, 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 $27.8 million.
What is the period of performance?
Start: 2025-09-26. End: 2027-05-02.
What is the estimated cost per square foot for this warehouse construction, and how does it compare to industry benchmarks?
The provided data does not include the square footage of the warehouse, making a per-square-foot cost calculation impossible. To assess value, this metric would need to be obtained and compared against regional and national benchmarks for similar institutional building construction projects.
What are the specific risks associated with the 'exclusion of sources' clause in the competition method, and how were they mitigated?
The 'exclusion of sources' clause, while still part of a full and open competition, suggests specific requirements or circumstances led to excluding certain potential bidders. Mitigation would involve a clear justification for the exclusion, ensuring it was based on technical capability or other objective criteria, and that the remaining pool still allowed for robust competition to achieve fair pricing.
How will the new warehouse facility contribute to the overall operational effectiveness and readiness of Joint Base Lewis-McChord?
The new warehouse is intended to modernize and expand supply storage capacity, directly impacting the logistical backbone of JBLM. Improved storage efficiency, better inventory management, and potentially enhanced security for supplies will contribute to increased operational readiness and the ability to support ongoing missions more effectively.
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: TWO STEP
Solicitation ID: W912DW25R0015
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3700 CENTERPOINT DR, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $27,752,900
Exercised Options: $27,752,900
Current Obligation: $27,752,900
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-26
Current End Date: 2027-05-02
Potential End Date: 2027-05-02 00:00:00
Last Modified: 2025-12-17
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