Department of the Army awards $157.6M contract for construction services, highlighting firm fixed-price terms
Contract Overview
Contract Amount: $15,755,696 ($15.8M)
Contractor: Nationview/Bhate JV III, LLC
Awarding Agency: Department of Defense
Start Date: 2009-05-29
End Date: 2011-10-31
Contract Duration: 885 days
Daily Burn Rate: $17.8K/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: CDC SIZE LARGE, AGES 6-10 YRS PN 59804
Place of Performance
Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $15.8 million to NATIONVIEW/BHATE JV III, LLC for work described as: CDC SIZE LARGE, AGES 6-10 YRS PN 59804 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 885 days indicates a significant, multi-year project. 3. Firm Fixed Price (FFP) contract type aims to control costs and provide predictability. 4. The award was made to NATIONVIEW/BHATE JV III, LLC, a joint venture. 5. The contract falls under Commercial and Institutional Building Construction NAICS code. 6. Awarded by the Department of the Army, indicating a defense-related construction need.
Value Assessment
Rating: good
The contract's value of $157.6 million for construction services over approximately 2.4 years appears within a reasonable range for large-scale projects of this nature. Without specific details on the scope of work, direct comparisons are challenging. However, the firm fixed-price structure suggests an effort to manage costs effectively. Benchmarking against similar large-scale institutional or commercial building projects awarded by the Department of Defense would provide a more precise value assessment.
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 implies that while initial sources might have been considered, the final award was made after a broad solicitation. The presence of 4 bidders indicates a degree of competition. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, potentially benefiting the government.
Taxpayer Impact: The competitive nature of this award suggests that taxpayer dollars were likely used efficiently, as multiple firms vied for the contract, driving down potential costs through price discovery.
Public Impact
The primary beneficiaries are the Department of the Army and its personnel, who will receive the improved or new facilities. The contract delivers essential construction services, likely for building or renovating facilities critical to military operations. The geographic impact is localized to Kentucky (ST: KY, SN: KENTUCKY), where the construction will take place. The project will likely create or sustain jobs in the construction sector within Kentucky and potentially surrounding areas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope of work expands beyond initial estimates, despite the FFP structure.
- Dependence on the performance and capacity of the joint venture, NATIONVIEW/BHATE JV III, LLC, for timely and quality completion.
- Risks associated with construction projects, such as unforeseen site conditions or material availability issues.
Positive Signals
- The firm fixed-price contract type provides cost certainty for the government.
- Award through full and open competition suggests a robust vetting of potential contractors.
- The joint venture structure may bring together specialized expertise for complex construction needs.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. The Department of Defense is a major client for construction services, frequently awarding large contracts for infrastructure and facility development. Spending in this sector is influenced by government infrastructure needs, modernization efforts, and base realignments. Comparable benchmarks would include other large-scale construction projects for federal agencies, particularly within the defense sector.
Small Business Impact
The contract indicates that small business participation was not a primary set-aside criterion, as 'ss' is false and 'sb' is false. This suggests the contract was not specifically targeted for small businesses. However, the prime contractor, a joint venture, may engage small businesses as subcontractors to fulfill specific aspects of the construction work, contributing to the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services within the agreed budget. Transparency is facilitated through contract award databases, though detailed project progress reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Construction Contracts
- Federal Building and Infrastructure Projects
- Army Corps of Engineers Construction Awards
- Firm Fixed Price Construction Contracts
Risk Flags
- Potential for scope creep impacting fixed price
- Contractor performance risk
- Unforeseen site conditions
Tags
construction, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, large-contract, commercial-and-institutional-building, kentucky, joint-venture
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.8 million to NATIONVIEW/BHATE JV III, LLC. CDC SIZE LARGE, AGES 6-10 YRS PN 59804
Who is the contractor on this award?
The obligated recipient is NATIONVIEW/BHATE JV III, 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 $15.8 million.
What is the period of performance?
Start: 2009-05-29. End: 2011-10-31.
What is the specific nature of the construction services being provided under this contract?
The contract falls under the NAICS code 236220 for Commercial and Institutional Building Construction. While the specific details of the construction services are not provided in the abbreviated data, this classification typically includes the construction of non-residential buildings such as commercial buildings, industrial buildings, and public institutions. Given the awarding agency is the Department of the Army, the project likely involves the construction, renovation, or repair of military facilities, barracks, administrative buildings, or support structures critical to base operations.
How does the awarded amount of $157.6 million compare to similar construction projects by the Department of the Army?
The $157.6 million award is a substantial sum, indicative of a large-scale construction project. The Department of the Army frequently awards contracts in this range for major infrastructure and facility development. For instance, projects involving the construction of new barracks complexes, training facilities, or significant upgrades to existing infrastructure can easily reach or exceed this value. A precise comparison would require analyzing the scope of work, location, and specific type of facility being built, as well as the prevailing market conditions at the time of award for similar projects within the Department of Defense.
What are the potential risks associated with a firm fixed-price contract for a project of this magnitude?
While firm fixed-price (FFP) contracts are designed to provide cost certainty, they carry inherent risks, particularly for large, complex projects like this one. The primary risk is that the contractor may underestimate costs, leading to reduced profit margins or potential financial strain if unforeseen issues arise. For the government, the risk is that the contractor may cut corners on quality to maintain profitability, or that the initial price may not reflect true market value if competition was limited or flawed. Unforeseen site conditions, material price escalations (though often mitigated by FFP), or changes in project scope can also create challenges that are difficult to manage within a fixed price.
What does the 'full and open competition after exclusion of sources' designation imply about the bidding process?
This designation suggests a nuanced approach to competition. Initially, certain sources or types of contractors may have been excluded, perhaps due to specific requirements or prior solicitations. However, the contract was ultimately awarded following a broad solicitation ('full and open competition') where all responsible sources were permitted to submit offers. This implies that while there might have been an initial filtering or a specific context for the procurement, the final selection process aimed for maximum competition among eligible bidders, aiming to secure the best value for the government.
What is the significance of the contract being awarded to a joint venture?
Awarding a contract to a joint venture, such as NATIONVIEW/BHATE JV III, LLC, often signifies that the project requires a combination of specialized skills, resources, or bonding capacity that might be difficult for a single firm to provide alone. Joint ventures allow companies to pool their strengths, share risks, and bid on larger, more complex projects. For the government, this can mean access to a broader range of expertise and a potentially more robust execution capability. It also presents an opportunity for smaller firms to partner with larger ones to compete for significant federal contracts.
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: W912DY08R0004
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1608 13TH AVE S STE 225, BIRMINGHAM, AL, 90
Business Categories: Category Business, Emerging Small Business, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $15,755,696
Exercised Options: $15,755,696
Current Obligation: $15,755,696
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY08D0025
IDV Type: IDC
Timeline
Start Date: 2009-05-29
Current End Date: 2011-10-31
Potential End Date: 2011-10-31 00:00:00
Last Modified: 2011-05-16
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