Balfour Beatty Construction awarded $19.5M for Fort Bragg tactical equipment facility, highlighting construction sector activity

Contract Overview

Contract Amount: $19,495,546 ($19.5M)

Contractor: Balfour Beatty Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2011-06-24

End Date: 2013-01-04

Contract Duration: 560 days

Daily Burn Rate: $34.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 108TH ADA TACTICAL EQUIPMENT MAINTENANCE FACILITY AND SUPPLY SUPPORT ACTIVITY, FORT BRAGG, NC.

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $19.5 million to BALFOUR BEATTY CONSTRUCTION, LLC for work described as: 108TH ADA TACTICAL EQUIPMENT MAINTENANCE FACILITY AND SUPPLY SUPPORT ACTIVITY, FORT BRAGG, NC. Key points: 1. Contract value of $19.5M for a tactical equipment facility suggests significant investment in military infrastructure. 2. The firm fixed-price contract type indicates a defined cost for the government, reducing cost overrun risk. 3. A duration of 560 days points to a substantial construction project requiring extensive planning and execution. 4. The project's focus on tactical equipment maintenance implies a critical role in supporting military readiness. 5. Awarded by the Department of the Army, this contract aligns with broader defense spending priorities. 6. The North Carolina location places the project within a region with established construction industry presence.

Value Assessment

Rating: good

The contract value of $19.5 million for a tactical equipment maintenance facility appears reasonable for a project of this scale and complexity, especially given the firm fixed-price nature which caps government expenditure. Benchmarking against similar military construction projects for specialized facilities would provide a more precise value assessment, but the amount is within expected ranges for significant infrastructure development. The contractor, Balfour Beatty Construction, LLC, has a substantial presence in large-scale construction, suggesting they can deliver value for this investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 5 bidders, as suggested by the 'no' field, points to a healthy level of competition for this project. This competitive environment generally benefits the government by driving down prices and encouraging higher quality proposals, ensuring a better value for taxpayer dollars.

Taxpayer Impact: Full and open competition ensures that the government explores a wide range of potential contractors, leading to more competitive pricing and potentially better terms for taxpayers. The active bidding process helps prevent inflated costs that might arise from less competitive scenarios.

Public Impact

Military personnel at Fort Bragg will benefit from improved facilities for maintaining tactical equipment, enhancing operational readiness. The construction of a new facility will create temporary employment opportunities for skilled trades and laborers in North Carolina. The project directly supports the operational capabilities of the 108th ADA (Air Defense Artillery) Battalion. Enhanced maintenance capabilities can lead to increased reliability and longevity of critical military equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting readiness timelines.
Ensuring adherence to strict military specifications for specialized equipment storage and maintenance.
Managing the logistical challenges of construction at an active military installation.

Positive Signals

Firm fixed-price contract mitigates cost escalation risks for the government.
Full and open competition suggests a robust selection process and competitive pricing.
Contractor's experience in large-scale construction projects indicates a higher likelihood of successful delivery.

Sector Analysis

The construction sector, particularly for government and defense projects, is a significant market. This contract falls within the commercial and institutional building construction sub-sector. The Department of Defense is a major client for construction firms, awarding numerous contracts for infrastructure, barracks, training facilities, and specialized operational buildings. The market size for defense construction is substantial, driven by modernization efforts and the need to maintain existing infrastructure across numerous global installations.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is Balfour Beatty Construction, LLC, a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements outlined in the contract, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. The firm fixed-price nature of the contract provides a degree of financial oversight by setting a ceiling on costs. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing oversight and accountability measures are not publicly detailed in this summary.

Related Government Programs

Military Construction, Army
Tactical Vehicle Maintenance Facilities
Defense Infrastructure Projects
Fort Bragg Construction Contracts

Risk Flags

Potential for cost overruns if scope changes significantly.
Risk of delays impacting military operational readiness.
Ensuring compliance with highly specific military construction standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to BALFOUR BEATTY CONSTRUCTION, LLC. 108TH ADA TACTICAL EQUIPMENT MAINTENANCE FACILITY AND SUPPLY SUPPORT ACTIVITY, FORT BRAGG, NC.

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 $19.5 million.

What is the period of performance?

Start: 2011-06-24. End: 2013-01-04.

What is Balfour Beatty Construction, LLC's track record with similar Department of Defense projects?

Balfour Beatty Construction, LLC has a significant history of undertaking large-scale construction projects for the Department of Defense and other federal agencies. Their portfolio includes a wide range of facilities, from barracks and training centers to specialized operational buildings and infrastructure upgrades. Their experience often encompasses complex projects requiring adherence to stringent military specifications and security protocols. Reviewing their past performance on similar projects, particularly those involving specialized maintenance or storage facilities, would provide further insight into their capabilities and reliability for this specific contract. Publicly available contract databases and the company's own project showcases often detail their involvement in defense construction.

How does the $19.5 million contract value compare to similar tactical equipment maintenance facilities?

The $19.5 million contract value for the 108th ADA Tactical Equipment Maintenance Facility and Supply Support Activity at Fort Bragg is substantial, reflecting the specialized nature and scale of military infrastructure projects. To benchmark this value effectively, comparisons should be made with other recently awarded contracts for similar facilities at different military installations. Factors such as square footage, specific equipment maintenance requirements (e.g., environmental controls, specialized bays), geographic location (which impacts labor and material costs), and the level of technological integration within the facility would influence cost. Without direct comparable data points, it's challenging to definitively state if this represents a high or low cost per square foot or per specialized function, but it aligns with the significant investment typically required for modern military support facilities.

What are the primary risks associated with the construction of this tactical equipment maintenance facility?

The primary risks associated with constructing a tactical equipment maintenance facility include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions, which could impact the operational readiness timelines for the 108th ADA. Ensuring strict adherence to the precise military specifications for the maintenance and storage of sensitive tactical equipment is critical; any deviation could compromise equipment functionality or safety. Furthermore, managing the logistical complexities of construction within an active military base like Fort Bragg presents security and access challenges. The firm fixed-price contract structure, while beneficial for cost control, shifts the risk of cost overruns to the contractor, potentially incentivizing them to cut corners if not adequately monitored, although robust oversight should mitigate this.

How effective is the firm fixed-price contract type in ensuring value for this project?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for projects like the tactical equipment maintenance facility because it establishes a ceiling on the government's financial liability. This means the contractor assumes the primary risk of cost overruns, incentivizing them to manage the project efficiently and within budget. For the government, this provides cost certainty, which is crucial for budget planning and predictability. The effectiveness hinges on the accuracy of the initial cost estimates and the contractor's ability to execute the work as planned. In a competitive bidding environment, the FFP structure encourages contractors to submit realistic bids, further enhancing the likelihood of achieving good value, provided the scope of work is well-defined and changes are managed strictly.

What are the historical spending patterns for similar military infrastructure projects at Fort Bragg?

Historical spending patterns for similar military infrastructure projects at Fort Bragg reveal a consistent and significant investment in facilities supporting troop readiness and equipment maintenance. Over the years, the Department of Defense, through the Army Corps of Engineers and other agencies, has allocated substantial funds for constructing, renovating, and expanding various support facilities, including maintenance depots, training grounds, and logistical hubs. Spending often fluctuates based on national defense priorities, modernization initiatives, and the need to replace aging infrastructure. Analyzing past contracts for vehicle maintenance facilities, supply depots, or specialized operational buildings at Fort Bragg would provide context for the $19.5 million awarded for this tactical equipment facility, indicating whether this amount is typical, higher, or lower than previous investments for comparable projects.

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: W912HN07R0101

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Balfour Beatty PLC (UEI: 210042081)

Address: 3100 MCKINNON, DALLAS, TX, 90

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

Financial Breakdown

Contract Ceiling: $19,495,546

Exercised Options: $19,495,546

Current Obligation: $19,495,546

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $16,220,877

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HN09D0022

IDV Type: IDC

Timeline