Balfour Beatty Construction awarded $38.3M for Fort Benning barracks, highlighting construction sector spending

Contract Overview

Contract Amount: $38,344,000 ($38.3M)

Contractor: Balfour Beatty Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-28

End Date: 2011-04-01

Contract Duration: 550 days

Daily Burn Rate: $69.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FORT BENNING RECEPTION STATION BARRACKS

Place of Performance

Location: FORT BENNING, MUSCOGEE County, GEORGIA, 31905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $38.3 million to BALFOUR BEATTY CONSTRUCTION, LLC for work described as: FORT BENNING RECEPTION STATION BARRACKS Key points: 1. Contract value represents a significant investment in military infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration of 550 days indicates a substantial construction timeline. 5. Geographic focus on Georgia impacts regional construction employment and resources.

Value Assessment

Rating: fair

The contract value of $38.3 million for barracks construction at Fort Benning appears within a reasonable range for a project of this scale. However, without specific details on the scope of work, square footage, and amenities included, a precise value-for-money assessment is challenging. Benchmarking against similar military barracks projects would provide a clearer picture of whether the pricing reflects competitive market rates for construction services in the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 3 bidders participating, the competition level suggests a moderate degree of market interest. This level of competition is generally favorable for price discovery, as it encourages bidders to offer competitive pricing to secure the contract.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Military personnel stationed at Fort Benning will benefit from improved housing facilities. The project delivers essential construction services for military readiness and troop welfare. The geographic impact is concentrated in Georgia, supporting local construction jobs and businesses. Workforce implications include employment opportunities for skilled trades and construction labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Delays in project completion could impact troop housing availability.
Quality of construction needs to be rigorously monitored to ensure long-term durability.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding environment.
Project addresses a critical need for improved military housing infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending on military construction projects like this contributes to the overall demand for construction services, influencing market dynamics and resource allocation. Comparable spending benchmarks for similar military infrastructure projects would provide further context on the scale and pricing of this award.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the prime contractor, Balfour Beatty Construction, LLC, may not be obligated to engage small businesses for a significant portion of the work, potentially limiting opportunities for the small business construction ecosystem on this specific project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and project managers within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, which incentivizes the contractor to adhere to the agreed-upon budget. Transparency is generally facilitated through contract award databases, though detailed project progress reports may not always be publicly accessible.

Related Government Programs

Military Barracks Construction
Department of Defense Facilities
Construction Services Contracts
Fort Benning Infrastructure Projects

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting military readiness.
Quality control and assurance during construction.
Management of subcontractors and material sourcing.
Compliance with military-specific building codes and standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.3 million to BALFOUR BEATTY CONSTRUCTION, LLC. FORT BENNING RECEPTION STATION BARRACKS

Who is the contractor on this award?

The obligated recipient is BALFOUR BEATTY CONSTRUCTION, 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 $38.3 million.

What is the period of performance?

Start: 2009-09-28. End: 2011-04-01.

What is the track record of Balfour Beatty Construction, LLC with similar federal construction projects?

Balfour Beatty Construction, LLC has a substantial history of engaging in large-scale federal construction projects, particularly within the Department of Defense. Their portfolio often includes military housing, training facilities, and infrastructure upgrades. Analyzing their past performance on similar projects, including any history of cost overruns, schedule delays, or quality issues, would provide valuable insight into their capability to execute this Fort Benning barracks contract successfully. Reviewing contract award data and performance evaluations for previous projects can help assess their reliability and expertise in delivering complex military construction requirements within budget and on time.

How does the awarded amount compare to the estimated cost or budget for this project?

The awarded amount of $38.34 million provides a benchmark against which the government's initial budget or estimate for the Fort Benning barracks project can be compared. If the awarded amount is significantly lower than the government's estimate, it could indicate successful cost competition or potentially an underestimated initial budget. Conversely, if the award is close to or exceeds the estimate, it might suggest that the initial budgeting was accurate or that competitive pressures were less intense than anticipated. Without access to the government's independent cost estimate, a definitive assessment of value relative to budget is not possible, but the award amount itself serves as the definitive cost agreed upon for the project's completion.

What are the primary risk indicators associated with this type of construction contract?

Key risk indicators for this firm fixed-price construction contract include potential for unforeseen site conditions (e.g., soil issues, hazardous materials), fluctuations in material costs if not adequately hedged by the contractor, labor availability and cost escalations, and design complexities that may lead to change orders. The duration of 550 days also presents a risk of extended exposure to market volatility. Furthermore, the specific requirements of military barracks construction, such as security protocols and specialized facilities, can introduce unique risks. The government's risk is primarily related to the contractor's ability to deliver the project within the fixed price and schedule, while the contractor's risk lies in accurately estimating and managing all project costs and potential contingencies.

How effective is full and open competition in ensuring value for money for military construction projects?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including military construction. By allowing all responsible sources to bid, it fosters a competitive environment that drives down prices and encourages innovation. The presence of 3 bidders in this case suggests a reasonable level of competition, which should have pressured Balfour Beatty Construction, LLC to submit a competitive bid. However, the effectiveness is also dependent on the clarity of the solicitation requirements, the evaluation criteria, and the government's ability to accurately assess proposals. In some specialized construction areas, the number of qualified bidders might be limited, potentially reducing the competitive pressure.

What is the historical spending trend for barracks construction at Fort Benning or similar Army installations?

Analyzing historical spending on barracks construction at Fort Benning and comparable Army installations provides crucial context for evaluating the $38.34 million award. Trends in construction costs, project sizes, and the number of contracts awarded over time can reveal patterns of investment and potential changes in pricing due to inflation, material availability, or demand. Understanding whether this award is consistent with, higher than, or lower than previous projects of similar scope and complexity at other installations can help determine if the current price represents good value. This historical data is essential for benchmarking and identifying any anomalies or significant shifts in spending.

What are the implications of a firm fixed-price contract for managing project scope and potential change orders?

A firm fixed-price (FFP) contract, like the one awarded to Balfour Beatty Construction, LLC, places the primary risk of cost overruns on the contractor. This structure incentivizes the contractor to manage costs efficiently and complete the project within the agreed-upon price. However, it also means that any changes to the project scope after the contract is awarded typically require a formal change order process, which can involve negotiation of additional costs and time extensions. The government must carefully define the scope of work upfront to minimize the need for changes. If changes are unavoidable, the FFP structure can sometimes lead to more contentious negotiations over pricing compared to cost-reimbursement contracts, but it provides greater cost certainty for the government overall.

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: W9126G07R0122

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Balfour Beatty PLC (UEI: 210042081)

Address: 3924 PENDER DR STE 100, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $38,344,000

Exercised Options: $38,344,000

Current Obligation: $38,344,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G08D0052

IDV Type: IDC

Timeline