DLA DDTP BLDGS 7 & Renovations contract awarded to Doyon Management Services for over $28M

Contract Overview

Contract Amount: $28,297,960 ($28.3M)

Contractor: Doyon Management Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-11-01

End Date: 2026-06-10

Contract Duration: 586 days

Daily Burn Rate: $48.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DLA DDTP BLDGS 7 & RENOVATIONS

Place of Performance

Location: TOBYHANNA, MONROE County, PENNSYLVANIA, 18466

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $28.3 million to DOYON MANAGEMENT SERVICES, LLC for work described as: DLA DDTP BLDGS 7 & RENOVATIONS Key points: 1. Contract value appears reasonable given the scope of building renovations. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm fixed-price type, which shifts cost risk to the contractor. 4. The duration of 586 days indicates a substantial project timeline. 5. The contract is for commercial and institutional building construction. 6. The award was a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of approximately $28.3 million for building renovations and construction appears to be within a reasonable range for a project of this scale. Benchmarking against similar large-scale renovation projects within the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that pricing was established upfront, and the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded for specific reasons, potentially related to prior performance, specialized capabilities, or other pre-qualification criteria. The number of bidders is not specified, but the 'limited' competition level suggests that the pricing may not have benefited from the widest possible market engagement.

Taxpayer Impact: While full and open competition aims for the best value, the exclusion of sources could potentially limit the number of competitive bids, possibly impacting the lowest achievable price for taxpayers.

Public Impact

The primary beneficiaries are likely the Department of Defense (DoD) and its associated personnel who will utilize the renovated facilities. The services delivered include significant building renovations and construction, improving infrastructure. The geographic impact is localized to the facility where the renovations are taking place, indicated by 'PENNSYLVANIA'. The project will likely have implications for the construction workforce, creating jobs for skilled tradespeople and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'renovations' is not clearly defined and managed.
Risk of schedule delays impacting facility availability.
Dependence on the performance and financial stability of Doyon Management Services, LLC.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition, even with exclusions, generally promotes competitive pricing.
The award is a delivery order, suggesting it's part of an existing, potentially vetted, contract vehicle.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector often supports infrastructure modernization and facility maintenance across various agencies. Comparable spending benchmarks would involve analyzing the average cost per square foot for similar renovation projects undertaken by federal entities or large commercial organizations.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside. This suggests the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, Doyon Management Services, LLC, but are not mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program/project managers within the Department of the Army and DLA. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified work within budget. Transparency is facilitated through contract award databases, 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

Department of Defense Facilities Maintenance
Military Construction Projects
General Services Administration (GSA) Building Contracts
Army Corps of Engineers Construction Contracts

Risk Flags

Potential for scope creep if renovation details are not precisely defined.
Risk of contractor performance issues impacting project timeline or quality.
Limited competition may have resulted in a less competitive price.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.3 million to DOYON MANAGEMENT SERVICES, LLC. DLA DDTP BLDGS 7 & RENOVATIONS

Who is the contractor on this award?

The obligated recipient is DOYON MANAGEMENT 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 $28.3 million.

What is the period of performance?

Start: 2024-11-01. End: 2026-06-10.

What is the track record of Doyon Management Services, LLC with federal contracts, particularly in building renovation?

A review of Doyon Management Services, LLC's federal contract history would be necessary to assess their track record. This would involve examining past performance evaluations, the types and values of previous contracts, and any history of disputes or contract terminations. For this specific contract, understanding their experience with similar-sized renovation projects, their on-time and on-budget completion rates, and client satisfaction feedback would be crucial. Without access to detailed performance data, it's difficult to definitively assess their capabilities and reliability for this significant project.

How does the awarded amount compare to similar building renovation projects within the Department of Defense?

To benchmark the $28.3 million award, we would need to compare it against similar Department of Defense (DoD) building renovation projects completed within the last 2-3 years. Key comparison factors include the square footage renovated, the complexity of the work (e.g., structural, MEP, finishes), the geographic location (which impacts labor and material costs), and the contract type. If similar projects of comparable scope and complexity were awarded at significantly lower or higher price points, it would indicate whether this contract represents a particularly good or poor value. Data from contract databases like FPDS or SAM.gov would be essential for this analysis.

What are the primary risks associated with a firm fixed-price contract for a large-scale renovation project?

The primary risk with a firm fixed-price (FFP) contract for a large-scale renovation is that the contractor may cut corners on quality or materials to maintain profitability if unforeseen issues arise or costs escalate beyond their initial estimates. While the FFP structure shifts cost risk to the contractor, it can also incentivize them to minimize scope or quality if not rigorously overseen. Another risk is that the initial price might be inflated to account for potential contractor risks, leading to a higher baseline cost for the government. Effective government oversight and clear contract specifications are critical to mitigate these risks.

What is the expected impact of this renovation on the operational readiness or capacity of the DLA facility?

The expected impact of this renovation on the DLA facility's operational readiness or capacity depends heavily on the specific nature of the 'renovations' and the facility's function. If the renovations are aimed at modernizing critical infrastructure, improving energy efficiency, enhancing safety features, or expanding usable space, the impact would likely be positive, leading to improved operational efficiency, reduced maintenance costs, and potentially increased capacity. Conversely, if the renovations cause significant disruptions or are not aligned with the facility's core mission requirements, there could be temporary negative impacts on readiness or capacity during the construction period.

How has federal spending on building construction and renovation changed over the past five years, and how does this contract fit into that trend?

Federal spending on building construction and renovation has generally seen fluctuations over the past five years, influenced by infrastructure initiatives, agency modernization efforts, and budget appropriations. While specific aggregate data requires detailed analysis, there has been a consistent need for facility upgrades across government. This $28.3 million contract for DLA facilities represents a significant investment within this ongoing trend. Its award aligns with the government's commitment to maintaining and improving its physical infrastructure. Understanding the broader spending trends would help contextualize whether this award is part of an increasing, decreasing, or stable investment pattern in facility modernization.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912HP18R6000

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4601 PRESIDENTS DR STE 230, LANHAM, MD, 20706

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

Financial Breakdown

Contract Ceiling: $28,742,304

Exercised Options: $28,297,960

Current Obligation: $28,297,960

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HP21D6001

IDV Type: IDC

Timeline