DoD's $22.5M Paint Contract for Child Care Center Awarded to D. T. Read Steel Co. Inc
Contract Overview
Contract Amount: $22,500,000 ($22.5M)
Contractor: D. T. Read Steel CO Inc
Awarding Agency: Department of Defense
Start Date: 2012-09-29
End Date: 2012-10-29
Contract Duration: 30 days
Daily Burn Rate: $750.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 16
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PAINT CHILD CARE CENTER THROUGHOUT, FACILITY 70
Place of Performance
Location: HAMPTON, HAMPTON (CITY) County, VIRGINIA, 23665
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $22.5 million to D. T. READ STEEL CO INC for work described as: PAINT CHILD CARE CENTER THROUGHOUT, FACILITY 70 Key points: 1. The contract value of $22.5 million for painting services is substantial. 2. Competition was full and open after exclusion of sources, indicating some market engagement. 3. The fixed-price contract type shifts risk to the contractor. 4. The sector is construction/facility maintenance, a common area for government spending.
Value Assessment
Rating: fair
The contract value of $22.5 million for painting services appears high for the stated scope. Benchmarking against similar painting contracts for facilities of this size is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources. While this indicates competition, the exclusion of sources warrants further investigation into the rationale and its impact on price discovery.
Taxpayer Impact: The $22.5 million price tag for painting services represents a significant taxpayer investment that needs to be justified by the scope and quality of work.
Public Impact
Taxpayers are funding a large-scale painting project for a military child care facility. The contract duration of 30 days seems short for a project of this magnitude, raising questions about scope or efficiency. The award to D. T. Read Steel Co. Inc. signifies a specific business benefiting from federal funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for painting services.
- Potential for scope creep or overpricing given the contract amount.
- Limited information on the specific needs of the child care center.
Positive Signals
- Contract awarded through full and open competition.
- Firm fixed price contract shifts cost risk to the contractor.
Sector Analysis
This contract falls within the construction and facility maintenance sector, specifically painting and wall covering. Government spending in this area is consistent, but large individual contract values require scrutiny to ensure efficiency.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed for small businesses in this procurement.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, part of the Department of Defense. Standard oversight mechanisms within the DoD would apply, but specific details on monitoring this contract's execution are not provided.
Related Government Programs
- Painting and Wall Covering Contractors
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High contract value relative to service type.
- Ambiguity in 'exclusion of sources'.
- Short contract duration (30 days) for a large project.
- No small business participation noted.
Tags
painting-and-wall-covering-contractors, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.5 million to D. T. READ STEEL CO INC. PAINT CHILD CARE CENTER THROUGHOUT, FACILITY 70
Who is the contractor on this award?
The obligated recipient is D. T. READ STEEL CO INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $22.5 million.
What is the period of performance?
Start: 2012-09-29. End: 2012-10-29.
Is the $22.5 million contract value appropriate for painting a child care center, and what specific services are included?
The contract value of $22.5 million for painting services appears exceptionally high for a typical child care center, even a large one. Without detailed specifications of the scope of work, materials, and any associated facility upgrades, it is difficult to definitively assess its appropriateness. Further investigation into the project's requirements and comparable industry pricing is crucial to determine if this represents good value for taxpayer money.
What were the specific reasons for excluding certain sources prior to the full and open competition?
The exclusion of sources prior to full and open competition suggests that certain vendors or types of vendors were deemed ineligible or unsuitable for this specific contract. The rationale behind these exclusions is critical for understanding the competitive landscape and ensuring that the final competition was truly fair and effective in achieving the best possible price and performance for the government.
How does the firm fixed price contract structure impact the government's risk and the contractor's incentive for quality?
A firm fixed price (FFP) contract places the primary cost risk on the contractor, incentivizing them to manage expenses efficiently to maximize profit. For the government, this provides cost certainty. However, with FFP contracts, there's a potential risk that contractors might cut corners on quality to maintain profitability, especially if oversight is insufficient. Robust quality assurance measures are therefore essential.
Industry Classification
NAICS: Construction › Building Finishing Contractors › Painting and Wall Covering Contractors
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Solicitation ID: FA480012B0004
Offers Received: 16
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1725 WEST RD, CHESAPEAKE, VA, 90
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,500,000
Exercised Options: $22,500,000
Current Obligation: $22,500,000
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA480012D0009
IDV Type: IDC
Timeline
Start Date: 2012-09-29
Current End Date: 2012-10-29
Potential End Date: 2012-10-29 00:00:00
Last Modified: 2014-10-08
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