Overland Corporation awarded $19M for Border Patrol Station Design/Build in Ohio
Contract Overview
Contract Amount: $19,029,444 ($19.0M)
Contractor: Overland Corporation
Awarding Agency: Department of Defense
Start Date: 2010-08-30
End Date: 2012-12-31
Contract Duration: 854 days
Daily Burn Rate: $22.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN/BUILD BORDER PATROL STATION SANDUSKY OH
Place of Performance
Location: SANDUSKY, ERIE County, OHIO, 44870
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $19.0 million to OVERLAND CORPORATION for work described as: DESIGN/BUILD BORDER PATROL STATION SANDUSKY OH Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for a design/build project, indicating a comprehensive scope of work. 3. The fixed-price nature of the contract shifts risk to the contractor. 4. The project duration of 854 days suggests a significant construction timeline. 5. The award is managed by the Department of the Army, part of the broader Department of Defense. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.
Value Assessment
Rating: fair
The contract value of approximately $19 million for a design/build border patrol station appears within a reasonable range for such a project. Benchmarking against similar government construction projects of this scale and complexity is necessary for a definitive value assessment. The firm fixed-price contract structure implies that the contractor bears the cost overrun risk, which can be a positive indicator for the government if managed effectively. However, without detailed cost breakdowns or comparisons to private sector projects, a precise value-for-money determination is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 10 bidders suggests a healthy level of competition for this project. A competitive bidding process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards. The number of bidders provides a good indication that the market was receptive to this opportunity.
Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers by leveraging market forces to drive down costs. The significant number of bidders suggests that the government received multiple proposals, increasing the likelihood of selecting the most cost-effective and technically sound option.
Public Impact
The primary beneficiaries are the U.S. Customs and Border Protection (CBP) and the Department of Homeland Security, who will utilize the new border patrol station. The project delivers a critical infrastructure asset to support border security operations. The geographic impact is localized to Sandusky, Ohio, providing a new facility for federal law enforcement. The construction phase will likely create temporary jobs in the local Ohio workforce. The completed facility will house personnel and resources necessary for border patrol activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
- The long duration of the project increases the risk of material price fluctuations.
- Ensuring timely completion and adherence to design specifications will require diligent oversight.
Positive Signals
- The firm fixed-price contract shifts cost risk to the contractor.
- Full and open competition with 10 bidders suggests a competitive market and potentially good pricing.
- The design/build approach can streamline project delivery by integrating design and construction phases.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. The federal government is a major consumer of construction services, particularly for infrastructure and facilities supporting its various missions. The market for design-build services is competitive, with many firms capable of undertaking projects of this nature. Comparable spending benchmarks for similar federal facilities would provide further context on the value of this award.
Small Business Impact
The contract details do not indicate a specific small business set-aside. Given the full and open competition and the nature of a design/build border patrol station, it is possible that larger, more established construction firms were the primary bidders. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this project.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer's representative (COR) from the relevant agency, likely U.S. Customs and Border Protection or the Department of the Army. The firm fixed-price contract provides a degree of accountability by obligating the contractor to deliver the project within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not publicly detailed.
Related Government Programs
- Border Security Infrastructure Projects
- Federal Law Enforcement Facilities Construction
- Department of Homeland Security Construction Contracts
- Department of Defense Design-Build Contracts
Risk Flags
- Potential for cost escalation due to project duration
- Ensuring design meets evolving operational needs
- Site condition risks in construction
Tags
construction, design-build, full-and-open-competition, firm-fixed-price, department-of-defense, department-of-the-army, border-security, law-enforcement-facilities, ohio, commercial-institutional-building-construction, overland-corporation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.0 million to OVERLAND CORPORATION. DESIGN/BUILD BORDER PATROL STATION SANDUSKY OH
Who is the contractor on this award?
The obligated recipient is OVERLAND CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $19.0 million.
What is the period of performance?
Start: 2010-08-30. End: 2012-12-31.
What is the track record of Overland Corporation in performing similar government design-build contracts?
A review of Overland Corporation's contract history would be necessary to assess their track record on similar government design-build projects. This would involve examining past performance evaluations, any history of contract disputes or terminations, and the successful completion of projects of comparable size and complexity. Understanding their experience with federal construction standards, security requirements, and agency-specific protocols is crucial. Without this specific data, it's difficult to definitively assess their capability and reliability for this particular border patrol station project.
How does the awarded price compare to similar border patrol station construction projects?
To benchmark the value, we would need to compare the $19 million award to similar design-build border patrol stations or federal law enforcement facilities constructed recently. Key comparison factors include square footage, location (which influences labor and material costs), specific security features, and the complexity of the design. If data from the General Services Administration (GSA) or other agencies' construction databases is available, it could provide a basis for comparison. A higher or lower price relative to benchmarks might indicate exceptional value or potential overpricing, respectively.
What are the primary risks associated with this design-build contract?
The primary risks for this design-build contract include potential cost overruns if unforeseen site conditions are encountered during construction, despite the firm fixed-price structure. Delays in design approvals or construction milestones could also pose a risk, potentially impacting the operational readiness of the border patrol station. Ensuring the final facility meets all security and operational requirements of U.S. Customs and Border Protection is paramount. Furthermore, the long project duration (854 days) increases exposure to fluctuations in material costs and labor availability.
How effective is the design-build delivery method for federal border security facilities?
The design-build delivery method can be highly effective for federal border security facilities by consolidating design and construction responsibilities under a single contract. This approach often leads to faster project delivery, reduced potential for disputes between designers and builders, and better cost control, especially with a firm fixed-price agreement. It allows for early contractor input on constructability, potentially optimizing the design for efficiency and cost-effectiveness. However, effective government oversight is critical to ensure the design meets all functional and security requirements.
What has been the historical federal spending on border patrol station construction and design-build projects?
Historical federal spending on border patrol station construction and design-build projects has been substantial, driven by national security priorities and the need for modern infrastructure. Agencies like U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS) consistently allocate significant funds towards building and upgrading facilities along U.S. borders. Spending levels can fluctuate based on geopolitical conditions, congressional appropriations, and specific program initiatives. Analyzing past budgets and contract awards within the Department of Defense and DHS would reveal trends and the typical scale of such investments.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9126G08R0171
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7 MILES SOUTH ARDMORE ON HWY 77, ARDMORE, OK, 73401
Business Categories: Category Business, HUBZone Firm, Not Designated a Small Business, Special Designations, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $19,029,444
Exercised Options: $19,029,444
Current Obligation: $19,029,444
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9126G08D0083
IDV Type: IDC
Timeline
Start Date: 2010-08-30
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2020-09-28
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