Department of Defense awards $17.2M contract for commercial building construction to GLOBAL ENGINEERING & CONSTRUCTION, LLC

Contract Overview

Contract Amount: $17,159,759 ($17.2M)

Contractor: Global Engineering & Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2005-09-30

End Date: 2010-07-30

Contract Duration: 1,764 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80913

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $17.2 million to GLOBAL ENGINEERING & CONSTRUCTION, LLC for work described as: Key points: 1. Contract awarded under firm-fixed-price terms, indicating predictable costs for the government. 2. The contract duration of 1764 days suggests a significant, long-term project. 3. Awarded by the Department of the Army, a major component of the DoD. 4. The North American Industry Classification System (NAICS) code 236220 points to general commercial and institutional building construction. 5. This contract represents a substantial investment in infrastructure development. 6. The contractor, GLOBAL ENGINEERING & CONSTRUCTION, LLC, has secured a significant federal award.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more specific details on the scope of work and the type of commercial and institutional building construction involved. Without comparable projects or detailed cost breakdowns, it is difficult to definitively assess value for money. However, a firm-fixed-price contract generally provides cost certainty. The total award amount of $17.2 million over approximately 4.8 years suggests a moderate-sized project.

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 offers. This typically leads to a more competitive bidding process, potentially resulting in better pricing and terms for the government. The fact that it was fully competed suggests that the agency sought the best value from the widest possible pool of qualified contractors.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it promotes a level playing field and encourages competitive pricing, maximizing the value of federal dollars spent.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel who will utilize the constructed facilities. The contract delivers services related to commercial and institutional building construction. The geographic impact is likely concentrated in Colorado, where the contractor is located, or at the specific military installation where construction occurs. The contract supports jobs within the construction sector, benefiting skilled trades and related industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond the initial fixed-price agreement.
Dependence on the contractor's ability to deliver quality construction within the specified timeline.
Risk of delays due to unforeseen site conditions or regulatory hurdles.
Potential for disputes over contract interpretation or performance.

Positive Signals

Firm-fixed-price contract structure provides cost certainty.
Awarded through full and open competition, suggesting a competitive selection process.
Long contract duration allows for phased construction and potential learning curve efficiencies.
Contractor's location in Colorado may indicate regional expertise or presence.

Sector Analysis

The construction sector is a significant part of the federal procurement landscape, encompassing a wide range of projects from small renovations to large-scale infrastructure development. This contract falls under general commercial and institutional building construction, a broad category that includes offices, training facilities, and other non-military specific structures. Federal spending in this area is often driven by the need to maintain, upgrade, or expand existing facilities or to construct new ones to support agency missions. Comparable spending benchmarks would depend heavily on the specific type and size of the building being constructed.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if GLOBAL ENGINEERING & CONSTRUCTION, LLC chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem. However, large prime contracts often flow down to smaller firms for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program/project managers within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified work within budget. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of Defense Facilities Construction
General Services Administration (GSA) Building Construction
Military Construction Projects
Federal Building and Renovation Contracts

Risk Flags

Potential for scope creep impacting final cost if not managed tightly.
Dependence on contractor's financial stability and capacity for a long-term project.
Risk of delays due to unforeseen environmental or site conditions.
Need for robust quality assurance and oversight to ensure compliance with standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 million to GLOBAL ENGINEERING & CONSTRUCTION, LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is GLOBAL ENGINEERING & 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 $17.2 million.

What is the period of performance?

Start: 2005-09-30. End: 2010-07-30.

What specific type of commercial and institutional building was constructed under this contract?

The provided data indicates the contract falls under NAICS code 236220, which covers 'Commercial and Institutional Building Construction.' This is a broad category that can include a wide range of structures such as office buildings, warehouses, educational facilities, healthcare facilities, and other types of commercial or institutional buildings. However, the specific nature of the building (e.g., barracks, administrative offices, training center) is not detailed in the provided summary data. Further investigation into the contract's statement of work or associated documentation would be necessary to identify the precise type of facility constructed.

How does the $17.2 million award compare to typical construction contract values for the Department of the Army?

The $17.2 million award is a moderate-sized contract within the Department of the Army's construction portfolio. The Army undertakes a vast array of construction projects, ranging from minor repairs and renovations costing thousands of dollars to major infrastructure developments and new facility constructions that can run into hundreds of millions or even billions of dollars. A $17.2 million project likely represents the construction of a significant facility, such as an administrative building, a medium-sized barracks complex, or a specialized training facility. Its value is substantial enough to warrant full and open competition but not so large as to be considered a mega-project.

What are the key performance indicators (KPIs) or milestones associated with this contract?

Specific Key Performance Indicators (KPIs) and milestones for this contract are not detailed in the provided summary data. However, for a firm-fixed-price construction contract of this nature, typical KPIs would likely include adherence to the project schedule, quality of workmanship meeting specified standards (e.g., building codes, military specifications), safety compliance on the construction site, and completion of defined project phases or deliverables. Milestones would usually correspond to the completion of foundational work, structural erection, interior finishing, and final handover of the completed facility. The contracting officer and project managers would monitor these aspects throughout the contract duration.

What is the track record of GLOBAL ENGINEERING & CONSTRUCTION, LLC with federal contracts, particularly with the Department of Defense?

The provided data indicates that GLOBAL ENGINEERING & CONSTRUCTION, LLC was awarded this specific contract by the Department of the Army. To assess their overall track record, one would need to examine their complete federal contract history, including past performance on other DoD contracts or contracts with different federal agencies. This would involve looking at factors such as their history of on-time delivery, quality of work, adherence to budget (especially relevant for fixed-price contracts), and any history of disputes or contract terminations. A comprehensive review of their past performance would provide insight into their reliability and capability as a federal contractor.

Are there any known risks or challenges associated with this particular construction project or contractor?

Without specific details on the project's location, scope, or the contractor's specific performance history on similar projects, it is difficult to identify unique risks. However, general risks inherent in large construction projects include potential for unforeseen site conditions (e.g., soil issues, hazardous materials), weather delays, supply chain disruptions for materials, labor shortages, and changes in regulatory requirements. For this contractor, risks would also depend on their financial stability, management capacity, and past performance on similar-sized and complex projects. The firm-fixed-price nature of the contract shifts much of the cost risk to the contractor, but scope creep or significant unforeseen issues could still lead to challenges.

How does the duration of this contract (1764 days) align with typical construction project timelines for similar federal facilities?

A duration of 1764 days, which is approximately 4.8 years, is a substantial timeframe for a construction project. This duration suggests that the project is likely complex, involving significant scope, potentially multiple phases, or requiring extensive planning, design, and execution. For large-scale federal facilities, such as new headquarters buildings, major training complexes, or extensive infrastructure upgrades, durations of several years are not uncommon. Shorter durations might be typical for smaller renovations or straightforward building constructions. The length of this contract indicates a significant undertaking by the Department of the Army.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 1314 SOUTH CENTRAL AVENUE,, KENT, WA, 09

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA8703D0011

IDV Type: IDC

Timeline