Navy awards $20.2M industrial building construction contract to L. C. Gaskins Construction Co., Inc

Contract Overview

Contract Amount: $20,195,356 ($20.2M)

Contractor: L. C. Gaskins Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2006-09-29

End Date: 2008-07-28

Contract Duration: 668 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: OPTION YEAR III CONTRACT PERIOD

Place of Performance

Location: ATLANTIC BEACH, DUVAL County, FLORIDA, 32233

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to L. C. GASKINS CONSTRUCTION CO., INC. for work described as: OPTION YEAR III CONTRACT PERIOD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Fixed-price contract type indicates a defined cost for the services rendered. 3. Contract duration of 668 days suggests a significant construction project. 4. Awarded by the Department of the Navy, a major defense agency. 5. The contract falls under the Industrial Building Construction NAICS code. 6. No indication of small business set-aside or participation. 7. Geographic focus on Florida (st, sn) for this construction project.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of work and market conditions at the time of award. The fixed-price nature provides some cost certainty. However, the raw dollar amount of $20.2 million for industrial building construction over approximately two years requires further analysis to determine if it represents a competitive price relative to similar projects of comparable size and complexity. Without access to detailed cost breakdowns or comparable project data, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific contract. While competition is generally beneficial for price discovery, the actual impact on pricing depends on the number and capability of the bidders relative to the project's requirements. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs and ensuring that the government receives the best possible value for its investment.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive the completed industrial building. The contract delivers essential infrastructure for military operations and support. The geographic impact is localized to Florida, where the construction will take place. The project will likely create temporary employment opportunities for construction workers and related trades in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on specific cost breakdowns makes it difficult to assess true value.
Limited information on the contractor's past performance on similar large-scale industrial construction projects.
Absence of small business subcontracting goals may limit opportunities for smaller firms in the supply chain.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible bidding process.
Fixed-price contract type offers cost predictability for the government.
The contract duration is clearly defined, providing a timeline for project completion.

Sector Analysis

This contract falls within the Industrial Building Construction sector, a segment of the broader construction industry focused on facilities for manufacturing, processing, and storage. The construction market is highly cyclical and influenced by economic conditions, government spending, and private sector investment. Government contracts for industrial facilities are often awarded to support defense, logistics, or research and development activities. Benchmarking this $20.2 million award would require comparison to similar-sized industrial construction projects, considering factors like location, complexity, and specific building requirements.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor is there an explicit indication of small business subcontracting requirements. The award to L. C. Gaskins Construction Co., Inc., a company that may or may not be a small business itself, means that opportunities for small business participation would likely depend on the prime contractor's own subcontracting decisions. Without specific set-aside provisions or subcontracting goals, the direct impact on the small business ecosystem for this particular contract is likely minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Navy contracting activity. Performance monitoring, quality assurance, and compliance with contract terms are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Naval Facilities Engineering Command Contracts
Industrial Facility Development
Government Construction Projects

Risk Flags

Potential for schedule delays due to complexity of industrial construction.
Risk of material cost fluctuations impacting contractor's fixed-price bid.
Limited visibility into contractor's specific experience with this type of facility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to L. C. GASKINS CONSTRUCTION CO., INC.. OPTION YEAR III CONTRACT PERIOD

Who is the contractor on this award?

The obligated recipient is L. C. GASKINS CONSTRUCTION CO., INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2006-09-29. End: 2008-07-28.

What specific type of industrial building is being constructed, and what are its key features?

The provided data indicates the contract is for 'Industrial Building Construction' under NAICS code 236210. However, it does not specify the exact type of industrial building (e.g., warehouse, manufacturing plant, maintenance facility) or its key features. This level of detail is typically found in the contract's statement of work (SOW) or performance work statement (PWS), which are not included in the abbreviated data. Understanding the building's purpose, size, specialized equipment requirements, and environmental considerations would be crucial for a comprehensive analysis of its cost and value.

How does the $20.2 million award compare to the average cost of similar industrial building construction projects by the Department of Defense?

Comparing the $20.2 million award requires access to a database of similar Department of Defense (DoD) industrial building construction projects, including their scope, size, location, and final cost. Without such comparative data, it's difficult to definitively state whether this award is high, low, or average. Factors like inflation, regional construction costs, specific technical requirements (e.g., security, specialized infrastructure), and the competitive landscape at the time of award significantly influence project costs. A thorough benchmark analysis would involve identifying comparable projects awarded within a similar timeframe and geographic region.

What is the track record of L. C. Gaskins Construction Co., Inc. on government contracts, particularly those of similar size and scope?

Information on L. C. Gaskins Construction Co., Inc.'s track record on government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance history, including contract awards, completion records, any past performance evaluations (e.g., CPARS), and any history of disputes or contract terminations. Understanding their experience with industrial building construction, project management capabilities, and financial stability on projects valued around $20 million would be essential to gauge their reliability and capability for this specific contract.

What were the specific evaluation criteria used to select L. C. Gaskins Construction Co., Inc. from the three bidders?

The provided data states the contract was awarded under 'full and open competition' with 3 bidders, but it does not detail the specific evaluation criteria used for selection. Typically, government contracts are awarded based on a combination of factors, which may include technical approach, past performance, management capability, and price. For a fixed-price contract, price often carries significant weight, but technical factors and past performance are also critical, especially for construction projects. The specific weighting of these factors would be outlined in the solicitation documents (e.g., Request for Proposal - RFP).

Are there any known risks associated with this contract, such as potential cost overruns, schedule delays, or performance issues?

The provided data does not explicitly list any risks associated with this contract. However, general risks inherent in large construction projects include potential for unforeseen site conditions, material price fluctuations, labor shortages, weather delays, and design changes. The fixed-price nature of the contract aims to mitigate cost overrun risks for the government, but it places more risk on the contractor. Schedule delays are always a possibility in construction. Performance issues could arise if the contractor lacks adequate resources or expertise. A thorough risk assessment would typically be conducted by the contracting agency prior to and during contract execution.

How has federal spending on industrial building construction, specifically by the Department of the Navy, trended in recent years?

Analyzing recent federal spending trends on industrial building construction by the Department of the Navy would require accessing historical spending data over several fiscal years. This would involve looking at aggregate spending figures for NAICS code 236210 (Industrial Building Construction) awarded by the Navy. Trends could be influenced by geopolitical factors, modernization initiatives, base realignments, and overall defense budget allocations. Without access to this historical data, it's impossible to determine if the $20.2 million award represents an increase, decrease, or stable level of spending in this category.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial 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

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Contractor Details

Address: 7016 DAVIS CREEKRD, JACKSONVILLE, FL, 32256

Business Categories: Category Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,195,356

Exercised Options: $20,195,356

Current Obligation: $20,195,356

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6927203D0004

IDV Type: IDC

Timeline