Army awards $15.76M for Brigade Headquarters construction, highlighting firm-fixed-price contract

Contract Overview

Contract Amount: $15,757,060 ($15.8M)

Contractor: I. L. Fleming, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-08-27

End Date: 2011-06-28

Contract Duration: 670 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF BRIGADE HEADQUARTERS

Place of Performance

Location: FORT STEWART, LIBERTY County, GEORGIA, 31314

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to I. L. FLEMING, INC. for work described as: CONSTRUCTION OF BRIGADE HEADQUARTERS Key points: 1. The contract utilized a firm-fixed-price structure, aiming to control costs for the Department of the Army. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a specific reason for excluding certain vendors. 3. The contract duration of 670 days indicates a significant construction timeline for the headquarters. 4. The award was made to I. L. Fleming, Inc., a contractor with a history of federal awards. 5. The project falls under the Commercial and Institutional Building Construction NAICS code, placing it within the broader construction sector. 6. The contract was a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this specific construction project is challenging without more detailed cost breakdowns or comparable project data. The firm-fixed-price nature suggests an attempt to cap costs, but the final price relative to the initial estimate or market rates for similar facilities is not readily apparent. Further analysis would require comparing the cost per square foot or per unit of functionality against industry standards for military construction.

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, specific sources were intentionally excluded. The exact reasons for this exclusion are not detailed, but it suggests that only a subset of potential bidders were eligible. The number of bidders is not specified, making it difficult to fully assess the impact on price discovery.

Taxpayer Impact: The exclusion of certain sources, even within a broad competition framework, could potentially limit the number of competitive bids received, which might impact the final price paid by taxpayers.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will utilize the new Brigade Headquarters. The service delivered is the construction of a critical military facility. The geographic impact is localized to the area where the headquarters is being built, likely within Georgia based on the 'GA' state code. The project supports the construction workforce, including laborers, tradespeople, and project managers involved in building the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the 'exclusion of sources' in the competition process.
Potential for limited competition due to source exclusion, impacting price discovery.
Absence of detailed cost breakdowns to fully assess value for money.
Firm-fixed-price contracts can sometimes lead to contractors cutting corners if not adequately overseen.

Positive Signals

Utilized a firm-fixed-price contract to establish cost certainty.
Awarded to a contractor with federal contracting experience.
Project falls under a specific NAICS code, indicating a defined scope of work.
Contract duration is specified, providing a timeline for project completion.

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 area often supports military infrastructure, government facilities, and other large-scale building projects. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar government or commercial buildings, taking into account specific requirements for security, durability, and functionality.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, I. L. Fleming, Inc., would be responsible for managing the entire project, and their subcontracting practices would be determined by their own business strategy and the terms of the prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work for the agreed-upon price. Transparency is limited by the available public data; further details on oversight activities or performance reviews would likely reside within agency records.

Related Government Programs

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

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed cost breakdown for value assessment.
Extended project duration may pose scheduling risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to I. L. FLEMING, INC.. CONSTRUCTION OF BRIGADE HEADQUARTERS

Who is the contractor on this award?

The obligated recipient is I. L. FLEMING, 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 $15.8 million.

What is the period of performance?

Start: 2009-08-27. End: 2011-06-28.

What is the track record of I. L. Fleming, Inc. in securing and completing federal construction contracts?

I. L. Fleming, Inc. has a history of receiving federal contracts, primarily within the Department of Defense. Analyzing their past performance would involve reviewing contract awards, completion records, and any reported issues such as delays, cost overruns, or disputes on previous projects. A deeper dive into their contract portfolio could reveal patterns in the types of construction they undertake, their typical contract values, and their success rate in competitive bidding. Understanding their past performance is crucial for assessing their capability to successfully execute the Brigade Headquarters construction project within the specified timeline and budget.

How does the awarded price of $15.76 million compare to market rates for similar Brigade Headquarters construction projects?

Directly comparing the $15.76 million award to market rates for similar Brigade Headquarters construction is challenging without specific details on the facility's size (square footage), complexity, and location-specific construction costs. However, the firm-fixed-price nature of the contract suggests that the Department of the Army sought to establish a ceiling on costs. To benchmark effectively, one would need to gather data on recently completed military or government headquarters of comparable scale and functionality, considering factors like security requirements, technological integration, and sustainability standards. Industry cost estimating guides and construction cost databases could provide a basis for comparison, but adjustments for the unique demands of military infrastructure are essential.

What are the specific risks associated with a 'full and open competition after exclusion of sources' contract type?

The primary risk associated with 'full and open competition after exclusion of sources' lies in the potential for reduced competition, even if the initial intent was broad. The exclusion of specific sources, for reasons not publicly detailed, could limit the pool of qualified bidders. This reduction in competition might lead to higher prices than if a truly unrestricted open competition were held. Furthermore, if the excluded sources were highly capable or innovative, the government might miss out on potentially better solutions or more cost-effective approaches. Transparency regarding the rationale for exclusion is key to mitigating these risks and ensuring fair market access.

What are the implications of the 670-day duration for the Brigade Headquarters project's effectiveness?

A 670-day duration for the construction of a Brigade Headquarters indicates a substantial project timeline, spanning nearly two years. This extended period implies a complex scope of work, potentially involving significant site preparation, multiple construction phases, and integration of specialized systems. The effectiveness of the project hinges on the contractor's ability to adhere to this schedule, minimizing delays that could impact the Army's operational readiness or deployment plans. Delays could lead to increased costs and a prolonged period where the intended functionality of the headquarters is not yet realized, potentially affecting command and control capabilities.

How does this $15.76 million award fit into the broader historical spending patterns for military construction by the Department of the Army?

This $15.76 million award for a Brigade Headquarters represents a significant but not exceptionally large investment within the Department of the Army's overall construction budget. The Army undertakes numerous construction projects annually, ranging from barracks and training facilities to major command centers and infrastructure upgrades. Analyzing historical spending would involve comparing this award against the average cost of similar facilities, the total annual construction expenditure by the Army, and the frequency of such awards. This particular contract's value suggests a mid-to-large scale project, contributing to the ongoing modernization and maintenance of military infrastructure.

What oversight mechanisms are in place to ensure the quality and timely completion of this construction project?

Oversight for this construction project would typically involve a multi-layered approach. The contracting officer's representative (COR) would be responsible for day-to-day monitoring of progress, quality control, and adherence to contract specifications. The Army Corps of Engineers, or a similar construction management entity, would likely provide technical oversight and ensure compliance with engineering standards. Quality assurance inspections would be conducted at various stages of construction. Furthermore, the firm-fixed-price nature of the contract incentivizes the contractor to manage their own quality control to avoid cost overruns. Any significant deviations or quality issues could trigger contractual remedies.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912HN07R0094

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6228 E OGLETHORPE, MIDWAY, GA, 31320

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, HUBZone Firm, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $15,757,060

Exercised Options: $15,757,060

Current Obligation: $15,757,060

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HN08D0042

IDV Type: IDC

Timeline