The Polote Corp awarded $20.7M for Volar Barracks Renovations, a project with a 716-day duration

Contract Overview

Contract Amount: $20,743,992 ($20.7M)

Contractor: THE Polote Corp

Awarding Agency: Department of Defense

Start Date: 2011-09-22

End Date: 2013-09-07

Contract Duration: 716 days

Daily Burn Rate: $29.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: VOLAR BARRACKS RENOVATIONS

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28307

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $20.7 million to THE POLOTE CORP for work described as: VOLAR BARRACKS RENOVATIONS Key points: 1. The contract value of $20.7 million for barracks renovations appears to be within a reasonable range for a project of this scope and duration. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy, potentially balancing broad market access with specific requirements. 3. The firm-fixed-price contract type shifts risk to the contractor, which can lead to cost certainty for the government. 4. The project's duration of 716 days indicates a significant undertaking, requiring substantial contractor resources and management. 5. The North Carolina location suggests a focus on regional construction markets for this Department of the Army project. 6. The absence of small business set-aside flags indicates this contract was not specifically targeted for small business participation.

Value Assessment

Rating: good

The $20.7 million contract for Volar Barracks Renovations, awarded to The Polote Corp, represents a significant investment in military infrastructure. Benchmarking against similar large-scale construction projects for barracks, this price point appears competitive, especially considering the 716-day duration which implies extensive work. The firm-fixed-price structure provides cost predictability for the Department of the Army. Without specific cost breakdowns or detailed scope comparisons, a precise value-for-money assessment is challenging, but the competitive bidding process likely contributed to a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was intended to be broad, certain sources were excluded. This suggests a potential need for specialized capabilities or prior performance that narrowed the field. With 3 bidders, the competition level was moderate, which can still yield competitive pricing, but may not be as robust as a truly unrestricted full and open competition with a larger number of participants. The exclusion of sources warrants further investigation into the specific rationale.

Taxpayer Impact: A moderate level of competition, even with exclusions, generally benefits taxpayers by encouraging competitive pricing. However, the exclusion of potential bidders could limit the downward pressure on prices.

Public Impact

Military personnel stationed at Volar Barracks will benefit from improved living conditions and updated facilities. The project delivers essential construction and renovation services, enhancing the operational readiness and quality of life for service members. The geographic impact is concentrated in North Carolina, supporting the local economy through construction activities and employment. Workforce implications include job creation for construction workers, project managers, and support staff in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in the competition process could limit overall market engagement and potentially impact long-term cost-effectiveness.
The firm-fixed-price contract, while beneficial for cost certainty, places significant risk on the contractor; unforeseen issues could lead to disputes or quality compromises if not managed diligently.
The substantial duration of 716 days increases the potential for cost overruns due to inflation or material price fluctuations, despite the fixed-price nature.

Positive Signals

The award to The Polote Corp suggests a contractor with demonstrated capabilities in large-scale construction projects.
The firm-fixed-price contract type is a positive signal for budget predictability and risk transfer to the contractor.
The moderate competition among 3 bidders indicates that the contract attracted multiple interested parties, suggesting a viable market for this type of work.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses a wide range of projects, from office buildings to specialized facilities like military barracks. The market size for federal construction is substantial, driven by the need to maintain and upgrade government infrastructure. This specific project contributes to the ongoing efforts by the Department of Defense to ensure adequate and modern facilities for its personnel. Comparable spending benchmarks would typically involve analyzing the cost per square foot or cost per bed for similar barracks renovation projects across different military branches and geographic locations.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses indicated by the provided data (e.g., 'sb': false). This means that opportunities for small businesses would likely arise through the prime contractor's own subcontracting decisions rather than through a mandated set-aside. The impact on the small business ecosystem is therefore indirect, depending on The Polote Corp's procurement practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management 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 within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract performance or closeout.

Related Government Programs

Military Barracks Construction
Department of Defense Facilities Modernization
General Building Construction Services
Federal Infrastructure Projects

Risk Flags

Potential for cost overruns due to extended duration
Contractor performance risk on large-scale projects
Limited competition due to source exclusion
Risk of material price volatility over project lifespan

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.7 million to THE POLOTE CORP. VOLAR BARRACKS RENOVATIONS

Who is the contractor on this award?

The obligated recipient is THE POLOTE CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2011-09-22. End: 2013-09-07.

What is the track record of The Polote Corp in executing similar large-scale construction contracts for the federal government?

Assessing The Polote Corp's track record requires a review of their past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Without access to these specific performance metrics, it's difficult to definitively gauge their capability. However, being awarded a $20.7 million firm-fixed-price contract for barracks renovations suggests they possess the bonding capacity, financial stability, and technical expertise required for such projects. Further due diligence would involve examining their portfolio of completed projects, client references, and any publicly available information regarding their operational history and project management methodologies.

How does the cost per square foot or per bed for this Volar Barracks renovation compare to industry benchmarks for similar projects?

To compare the cost-effectiveness, we would need detailed project specifications, including the total square footage renovated or the number of beds impacted, and the specific scope of work (e.g., structural repairs, HVAC upgrades, interior finishes). Assuming a hypothetical barracks size and scope, we could then calculate a cost per unit. For instance, if this project renovated 100,000 sq ft, the cost would be $207 per sq ft. This figure would then be benchmarked against national averages for institutional building construction, factoring in regional labor costs and material prices. Barracks renovations can vary widely, but costs exceeding $300-$400 per sq ft might warrant closer scrutiny, while costs below $150-$200 could indicate strong value, assuming comparable quality and scope.

What specific factors led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' process?

The exclusion of sources typically occurs when the agency has specific, justifiable reasons to limit the pool of potential offerors. Common justifications include requirements for highly specialized technology or services, the need for compatibility with existing systems, or prior performance issues with certain contractors. For a barracks renovation, exclusions might relate to unique construction methods, specific environmental remediation requirements, or a need for contractors with proven experience in secure military environments. The contracting officer must document these reasons thoroughly to ensure the exclusion is fair and legally defensible, preventing undue restriction of competition while ensuring project success.

What are the potential risks associated with the 716-day duration of this renovation project under a firm-fixed-price contract?

A 716-day duration for a firm-fixed-price contract presents several risks. Primarily, the contractor assumes the risk of cost escalation for labor, materials, and equipment over this extended period. Unexpected inflation or supply chain disruptions could significantly impact their profit margins or even lead to financial distress if not adequately accounted for in their bid. For the government, the risk lies in potential delays or quality compromises if the contractor struggles to manage the extended timeline and associated costs. Robust project oversight, clear communication channels, and proactive risk management by both parties are crucial to mitigate these potential issues and ensure timely completion within budget.

How has historical spending on barracks renovations by the Department of the Army trended, and does this contract align with those patterns?

Analyzing historical spending on barracks renovations by the Department of the Army would involve examining aggregate data over several fiscal years. Trends might show increasing costs due to inflation, shifts in modernization priorities (e.g., focus on energy efficiency or technology integration), or changes in contracting strategies (e.g., more multi-year contracts or performance-based contracts). This $20.7 million contract for Volar Barracks aligns with the Army's ongoing need to maintain and upgrade its vast inventory of facilities. Its value and duration should be compared against the average project size and timeline for similar renovations to determine if it represents a typical investment or an outlier, potentially indicating unique project complexities or market conditions.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912HN09R0056

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1810 MILLS B LANE BLVD, SAVANNAH, GA, 31405

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,743,992

Exercised Options: $20,743,992

Current Obligation: $20,743,992

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HN10D0061

IDV Type: IDC

Timeline