MEGEN CONSTRUCTION CO INC awarded $18.87M for Commercial and Institutional Building Construction by the Department of the Army

Contract Overview

Contract Amount: $18,874,360 ($18.9M)

Contractor: Megen Construction CO Inc

Awarding Agency: Department of Defense

Start Date: 2009-12-23

End Date: 2012-02-06

Contract Duration: 775 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CDC PN 64652/74514

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79906

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to MEGEN CONSTRUCTION CO INC for work described as: CDC PN 64652/74514 Key points: 1. The contract value of $18.87 million represents a significant investment in construction services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. The contract duration of 775 days allows for substantial project execution. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The award was made to MEGEN CONSTRUCTION CO INC, a Texas-based firm. 6. This contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

The contract value of $18.87 million for construction services needs further benchmarking against similar projects to fully assess value for money. Without specific details on the scope of work, it's challenging to compare unit costs or overall pricing against market rates. The fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator if the price was set competitively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests a competitive bidding process was initiated. The presence of 15 bidders indicates a healthy level of interest and potential for price discovery. However, the 'exclusion of sources' clause warrants further investigation to understand if any specific capabilities or types of firms were intentionally excluded, which could impact the breadth of competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The participation of 15 bidders suggests that the government likely received multiple competitive offers, increasing the likelihood of a fair market price being secured.

Public Impact

The primary beneficiaries are likely the Department of the Army and its personnel, who will receive the constructed facilities. The services delivered involve the construction of commercial and institutional buildings, crucial for military infrastructure. The geographic impact is centered in Texas, where the contractor is based and likely where the construction will take place. Workforce implications include job creation for construction workers, engineers, and project managers in the Texas region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work was not precisely defined, despite the firm fixed-price contract.
The 'exclusion of sources' in the competition type could limit the pool of qualified bidders and potentially impact price.
Performance risks associated with construction projects, such as delays, unforeseen site conditions, or material shortages.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
A significant number of bidders (15) suggests a competitive award process.
The contract is for a defined period, allowing for structured project management.

Sector Analysis

The Commercial and Institutional Building Construction sector is a vital part of the U.S. economy, encompassing a wide range of projects from office buildings to specialized facilities. Federal spending in this area supports military readiness, government operations, and public services. The NAICS code 236220 specifically covers the construction of nonresidential buildings, excluding manufacturing facilities. Benchmarking this contract's value against similar-sized federal construction projects would provide further context on its market alignment.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. This suggests that the contract was likely awarded to a larger firm, and the impact on the small business ecosystem would depend on whether MEGEN CONSTRUCTION CO INC engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army project management office. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally facilitated through contract award databases, though specific project details and oversight reports may not always be publicly accessible.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Federal Building Construction
Department of Defense Facilities

Risk Flags

Potential for scope creep if not managed tightly.
Contractor financial stability risk.
Performance risk related to construction timelines and quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to MEGEN CONSTRUCTION CO INC. CDC PN 64652/74514

Who is the contractor on this award?

The obligated recipient is MEGEN CONSTRUCTION CO 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 $18.9 million.

What is the period of performance?

Start: 2009-12-23. End: 2012-02-06.

What specific type of commercial or institutional building was constructed under this contract?

The provided data does not specify the exact type of commercial or institutional building constructed. The NAICS code 236220 covers a broad range of nonresidential structures. To determine the specific building type, one would need to consult the contract's statement of work or related documentation. This information is crucial for understanding the project's purpose, scale, and potential impact on military operations or community infrastructure.

How does the per-square-foot construction cost of this project compare to industry benchmarks?

The provided data does not include the total square footage of the constructed building, nor does it offer specific cost breakdowns that would allow for a per-square-foot cost calculation. Therefore, a direct comparison to industry benchmarks is not possible with the given information. To perform such an analysis, details on the building's size and the contractor's detailed cost submissions would be required. This would enable a comparison against average construction costs for similar building types in the Texas region.

What were the key performance indicators (KPIs) for MEGEN CONSTRUCTION CO INC on this project?

The provided data does not detail the specific Key Performance Indicators (KPIs) established for MEGEN CONSTRUCTION CO INC. Typically, construction contracts include metrics related to schedule adherence, quality of work, safety compliance, and adherence to budget (especially relevant for fixed-price contracts where the contractor manages costs). The contract's performance would be evaluated against these KPIs by the Department of the Army's project managers throughout the 775-day duration.

Were there any significant delays or cost overruns during the contract period, and how were they managed?

The provided data does not contain information on whether there were significant delays or cost overruns during the contract period. As this is a firm fixed-price contract, any cost overruns would typically be borne by MEGEN CONSTRUCTION CO INC. However, delays could still occur and might be subject to contract clauses regarding extensions or penalties. A review of contract performance reports or modification history would be necessary to ascertain the project's execution history.

What is MEGEN CONSTRUCTION CO INC's track record with federal construction contracts of similar size and scope?

The provided data identifies MEGEN CONSTRUCTION CO INC as the contractor but does not offer details on their historical performance with federal contracts. To assess their track record, one would need to examine past federal contract awards and performance evaluations for this company. This would involve searching databases like the Federal Procurement Data System (FPDS) or SAM.gov for previous awards, contract modifications, and any reported issues or commendations related to their project execution.

How did the final award price compare to the initial estimated cost or the bids received from other competitors?

The data indicates that 15 bids were received, suggesting a competitive process. However, it does not provide the initial estimated cost or the specific bid amounts from each competitor. Therefore, a direct comparison of the final award price ($18.87 million) to the estimated cost or the range of bids is not possible. Understanding the bid spread would offer insight into the competitiveness of the final negotiated price.

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: W912DY09R0015

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11130 ASHBURN RD, CINCINNATI, OH, 45240

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,874,360

Exercised Options: $18,874,360

Current Obligation: $18,874,360

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY09D0065

IDV Type: IDC

Timeline