DoD Awards $18.2M for Five Safe Rooms to Cycle Construction Company

Contract Overview

Contract Amount: $18,238,579 ($18.2M)

Contractor: Cycle Construction Company, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2007-12-18

End Date: 2008-05-16

Contract Duration: 150 days

Daily Burn Rate: $121.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FIVE SAFE ROOMS

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to CYCLE CONSTRUCTION COMPANY, L.L.C. for work described as: FIVE SAFE ROOMS Key points: 1. Contract awarded for essential safety infrastructure. 2. Competition method suggests potential for price discovery. 3. No small business participation noted. 4. Construction sector spending context is relevant.

Value Assessment

Rating: fair

The contract value of $18.2M for five safe rooms appears high, especially considering the relatively short duration. Benchmarking against similar specialized construction projects would be necessary to confirm value.

Cost Per Unit: $3,647,715.80

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted the pool of bidders, potentially impacting price discovery and overall value.

Taxpayer Impact: Taxpayer funds are utilized for critical safety infrastructure. The limited competition raises questions about whether the best possible price was achieved.

Public Impact

Enhances safety for military personnel in potentially hazardous environments. Supports infrastructure resilience within military installations. Investment in security measures for critical facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have inflated costs.
No small business participation.
High per-unit cost for safe rooms.

Positive Signals

Addresses critical safety needs.
Contract awarded to a specific construction firm.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector. Spending in this sector can vary significantly based on infrastructure needs, project complexity, and geographic location. The benchmark for specialized safe room construction is not readily available.

Small Business Impact

The contract explicitly states that small business participation was not a factor (sb: false). This indicates that the prime contractor, Cycle Construction Company, L.L.C., is likely not a small business, and no subcontracting opportunities for small businesses were mandated or reported.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract management by the awarding agency to ensure timely delivery and adherence to specifications.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

High per-unit cost.
Limited competition raises value concerns.
Lack of small business participation.
Short contract duration for significant infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to CYCLE CONSTRUCTION COMPANY, L.L.C.. FIVE SAFE ROOMS

Who is the contractor on this award?

The obligated recipient is CYCLE CONSTRUCTION COMPANY, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.2 million.

What is the period of performance?

Start: 2007-12-18. End: 2008-05-16.

What specific threat mitigation capabilities do these safe rooms provide, and how does their cost align with the level of protection offered?

The data does not specify the threat mitigation capabilities of the safe rooms. The cost of $18.2M for five rooms, averaging over $3.6M each, suggests a high level of protection, potentially against significant threats like extreme weather or ballistic events. However, without detailed specifications or threat assessments, it's difficult to definitively assess if the pricing is commensurate with the provided security.

Could the 'limited competition' clause have led to a higher price than if full and open competition had been pursued?

Yes, 'limited competition' inherently restricts the number of potential bidders compared to 'full and open competition.' When fewer companies are vying for a contract, the competitive pressure to offer the lowest price is reduced. This can lead to higher costs for the government, as the chosen contractor may not have faced the same level of price reduction incentives as they would in a broader bidding environment.

What is the long-term operational and maintenance cost associated with these specialized safe rooms, and has this been factored into the overall value assessment?

The provided data focuses solely on the initial award cost and duration. Information regarding the long-term operational and maintenance expenses for these safe rooms is not included. A comprehensive value assessment should ideally incorporate these lifecycle costs to understand the total financial commitment and ensure sustained effectiveness and affordability over the lifespan of the infrastructure.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912P806R0162

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: #6 EAST THIRD STREET, KENNER, LA, 70062

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $18,238,579

Exercised Options: $18,238,579

Current Obligation: $18,238,579

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P806D0087

IDV Type: IDC

Timeline