USMC awards $15.4M for OCONUS secured facilities construction, with ADDON SERVICES LLC as prime

Contract Overview

Contract Amount: $15,420,112 ($15.4M)

Contractor: Addon Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-07-22

Contract Duration: 660 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY24 USMC SECURED FACILITIES COMPLEX OCONUS. MINOR CONSTRUCTION

Plain-Language Summary

Department of Defense obligated $15.4 million to ADDON SERVICES LLC for work described as: FY24 USMC SECURED FACILITIES COMPLEX OCONUS. MINOR CONSTRUCTION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for minor construction, indicating a focus on specific facility enhancements rather than large-scale projects. 3. The duration of 660 days points to a moderately complex project requiring sustained effort. 4. The prime contractor, ADDON SERVICES LLC, will be responsible for delivering the specified construction services. 5. Fixed-price contract type suggests that cost risks are largely borne by the contractor. 6. The award falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific scope of 'minor construction' and OCONUS labor costs. However, the total award amount of $15.4 million for a project spanning nearly two years is within a typical range for specialized construction services. Without comparable project details or detailed cost breakdowns, a precise value-for-money assessment is challenging. The fixed-price nature of the contract shifts cost overrun risk to the contractor, which can be a positive indicator for the government if the contractor is experienced and efficient.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders suggests a healthy level of interest and competition for this type of construction work. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices through market forces, ensuring that the government secures construction services at a competitive rate.

Public Impact

The primary beneficiaries are the United States Marine Corps, which will receive enhanced secured facilities. Services delivered include minor construction and potentially related support activities for OCONUS facilities. The geographic impact is concentrated in overseas locations where the USMC operates. Workforce implications may include the employment of construction labor, project managers, and support staff, both locally and potentially from the US.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price fluctuations occur, despite the fixed-price nature.
Ensuring quality control and adherence to specifications for overseas construction projects can be challenging.
Logistical complexities associated with procuring materials and labor for OCONUS operations.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type aligns incentives for cost control with the contractor.
The contractor has a defined period to complete the work, allowing for structured project management.

Sector Analysis

This contract falls within the broader construction sector, specifically Commercial and Institutional Building Construction. The market for such services, particularly for government overseas facilities, is specialized and often involves navigating complex logistical and security requirements. Comparable spending benchmarks would typically be found in other Department of Defense contracts for similar minor construction or renovation projects at OCONUS locations, though specific details are often proprietary.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and there is no information regarding subcontracting plans (st, sn are empty). This suggests that the prime contract was awarded to a larger entity, and opportunities for small businesses would primarily depend on the prime contractor's subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant contracting command within the Department of the Army, which awarded the contract on behalf of the USMC. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases, though detailed project specifics and oversight reports may not always be publicly accessible.

Related Government Programs

USMC Minor Construction Projects
OCONUS Facility Maintenance and Repair
Department of Defense Construction Contracts
Commercial and Institutional Building Construction

Risk Flags

Potential for cost overruns due to OCONUS logistical challenges.
Quality control risks in remote construction environments.
Schedule delays due to unforeseen site conditions or geopolitical factors.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to ADDON SERVICES LLC. FY24 USMC SECURED FACILITIES COMPLEX OCONUS. MINOR CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is ADDON 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 $15.4 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-07-22.

What is the specific scope of 'minor construction' covered by this contract?

The term 'minor construction' in federal contracting typically refers to projects that are smaller in scale and complexity compared to major new construction or extensive renovations. This can include activities such as interior alterations, repairs, upgrades to existing systems (e.g., HVAC, electrical), minor additions, or site improvements. For this specific USMC contract, the exact scope would be detailed in the Statement of Work (SOW) or Performance Work Statement (PWS) attached to the award. Without access to these documents, it's difficult to ascertain the precise nature of the work, but it likely involves targeted improvements to secured facilities rather than building entirely new structures.

How does the $15.4 million award compare to similar OCONUS minor construction contracts?

Comparing this $15.4 million award requires access to a database of similar OCONUS minor construction contracts, including their scope, duration, and location. However, as a general benchmark, construction projects in overseas locations often incur higher costs due to logistical challenges, import duties, specialized labor requirements, and security considerations. A project duration of approximately 22 months (660 days) suggests a moderate level of complexity. Without specific comparable data points, it's challenging to definitively state if this award represents excellent, fair, or concerning value. The fixed-price nature, however, implies the government has negotiated a ceiling cost.

What are the primary risks associated with executing construction contracts in OCONUS locations?

Executing construction contracts in Overseas Contingency Operations (OCONUS) locations presents several unique risks. These include significant logistical challenges in transporting materials, equipment, and personnel; potential political instability or security threats in the region; varying labor laws and availability; currency exchange rate fluctuations; and differing environmental or building code standards. Furthermore, ensuring adequate quality control and oversight from a distance can be more complex. The fixed-price nature of this contract shifts some financial risk to the contractor, but risks related to schedule delays due to unforeseen OCONUS-specific issues remain.

What is ADDON SERVICES LLC's track record with federal construction contracts?

To assess ADDON SERVICES LLC's track record, one would need to examine their past performance on federal contracts, particularly those involving construction and OCONUS work. This involves reviewing contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or claims. A positive track record with similar projects would indicate a lower risk for this current award. Conversely, a history of performance issues or contract terminations would raise concerns about the contractor's ability to successfully execute this $15.4 million project within the specified timeframe and budget.

How does the number of bidders (6) influence the pricing and outcome for taxpayers?

Having six bidders for this contract is generally a positive sign for taxpayers. A higher number of bidders typically indicates robust competition, which pressures contractors to offer more competitive pricing to win the award. This competitive environment helps ensure that the government is not overpaying for the services. It also increases the likelihood that the selected contractor will deliver high-quality work at a fair price, as they are motivated by the prospect of future work and maintaining a good performance record. Fewer bidders might suggest limited market interest or barriers to entry, potentially leading to higher prices.

What are the implications of the 'FIRM FIXED PRICE' contract type for cost control?

A Firm Fixed Price (FFP) contract type means that the contractor is obligated to complete the work for a predetermined, fixed price, regardless of the actual costs incurred. This places the primary responsibility for managing costs and absorbing any cost overruns on the contractor. For taxpayers, this is generally advantageous as it provides cost certainty and protects against unexpected increases in project expenses. However, contractors may build in higher contingency amounts into their initial bids to account for potential risks, which could result in a higher base price compared to other contract types if risks are perceived to be high.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY21R0005

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27789 MOUND RD STE 200, WARREN, MI, 48092

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $29,249,728

Exercised Options: $15,420,112

Current Obligation: $15,420,112

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY22D0045

IDV Type: IDC

Timeline