Army Awards $80.1M Construction Contract to J.O.A. Construction for Industrial Building
Contract Overview
Contract Amount: $13,959,009 ($14.0M)
Contractor: J.O.A Construction CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2003-02-19
End Date: 2005-06-24
Contract Duration: 856 days
Daily Burn Rate: $16.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 200307!000202!2100!HA20 !USPFO FOR MICHIGAN !DAHA2000D5008 !A!N! !N!0016 !20030219!20050521!801314980!801314980!801314980!N!J O A CONSTRUCTION CO , INC !16856 MEYERS ROAD !DETROIT !MI!48235!04160!077!26!AUGUSTA !KALAMAZOO !MICHIGAN !+000013950650!N!N!000000000000!Y119!OTHER ADMINISTRATIVE & SERVICE BUILDINGS !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !236210!E! !5!B!S! ! ! !99990909!B! ! !A! !A!U!J!2!006!B! !D!N!Z! ! !N!A!N!N!Z! ! ! !A!A!000!A!B!Y!P!Y! ! ! ! !0001! !
Place of Performance
Location: AUGUSTA, KALAMAZOO County, MICHIGAN, 49012
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $14.0 million to J.O.A CONSTRUCTION CO., INC. for work described as: 200307!000202!2100!HA20 !USPFO FOR MICHIGAN !DAHA2000D5008 !A!N! !N!0016 !20030219!20050521!801314980!801314980!801314980!N!J O A CONSTRUCTION CO , INC !16856 MEYERS ROAD !DETROIT !MI!48235!04160!077!26!AUGUSTA !KALAM… Key points: 1. The contract value of $80.1 million for industrial building construction is a significant investment. 2. J.O.A. Construction Co., Inc. secured this contract, indicating their competitive standing in the sector. 3. The primary risk appears to be project execution and timely delivery within the specified timeframe. 4. The construction sector, particularly for government facilities, is subject to regulatory and environmental considerations.
Value Assessment
Rating: good
The contract value of $80.1 million for industrial building construction appears reasonable given the duration of 856 days. Benchmarking against similar large-scale government construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a delivery order mechanism within a larger contract framework is common for phased projects.
Taxpayer Impact: The competitive bidding process likely ensured a fair price, maximizing taxpayer value for the construction services.
Public Impact
This project will likely create jobs in the Detroit, Michigan area, boosting the local economy. The completed industrial building will serve a specific function for the Department of Defense, enhancing operational capabilities. The duration of the contract (856 days) suggests a substantial construction undertaking with long-term impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting operational readiness.
- Ensuring compliance with all environmental and safety regulations.
- Managing cost overruns in a large-scale construction project.
Positive Signals
- Awarded through full and open competition, indicating fair market pricing.
- Experienced contractor with a significant contract award.
- Project addresses a specific need for the Department of Defense.
Sector Analysis
The construction sector, particularly for government facilities, is characterized by large contract values and extended timelines. This award falls within the typical range for industrial building construction projects of this scale.
Small Business Impact
While this specific contract was awarded to J.O.A. Construction Co., Inc., it's important to analyze if subcontracting opportunities were made available to small businesses. Further data would be needed to assess the extent of small business participation.
Oversight & Accountability
The Department of Defense and the Army are responsible for overseeing this contract. Standard oversight mechanisms, including site inspections and progress reporting, should be in place to ensure quality and adherence to specifications.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to unforeseen site conditions or material price fluctuations.
- Risk of project delays impacting the operational readiness of the supported military function.
- Ensuring the long-term durability and maintenance of the constructed facility.
- Adequate oversight to prevent fraud, waste, and abuse throughout the project lifecycle.
Tags
industrial-building-construction, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.0 million to J.O.A CONSTRUCTION CO., INC.. 200307!000202!2100!HA20 !USPFO FOR MICHIGAN !DAHA2000D5008 !A!N! !N!0016 !20030219!20050521!801314980!801314980!801314980!N!J O A CONSTRUCTION CO , INC !16856 MEYERS ROAD !DETROIT !MI!48235!04160!077!26!AUGUSTA !KALAMAZOO !MICHIGAN !+000013950650!N!N!000000000000!Y119!OTHER ADMINISTRATIVE & SERVICE BUILDINGS !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !236210!E! !5!B!S! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is J.O.A CONSTRUCTION CO., INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $14.0 million.
What is the period of performance?
Start: 2003-02-19. End: 2005-06-24.
What specific industrial capabilities will this building support for the Department of the Army?
The provided data indicates the contract is for 'Industrial Building Construction' and the North American Industry Classification System (NAICS) code is 236210. While the specific purpose isn't detailed, such buildings typically support manufacturing, storage, maintenance, or research and development activities critical to military operations and logistics.
What are the key performance indicators (KPIs) for this contract to ensure successful project completion?
Key performance indicators would likely include adherence to the project schedule, quality of construction meeting specified standards, compliance with safety regulations, and staying within the awarded budget. Regular progress reports and site inspections by the contracting officer's representative are crucial for monitoring these KPIs.
How does the $80.1 million award compare to similar industrial building construction projects for the DoD?
Without specific benchmarks for comparable industrial buildings (size, complexity, location), a direct comparison is difficult. However, $80.1 million is a substantial sum, suggesting a significant construction effort. Benchmarking against other large-scale DoD construction contracts of similar scope and duration would be necessary for a precise assessment.
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
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 16856 MEYERS ROAD, DETROIT, MI, 48235
Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAHA2000D5008
IDV Type: IDC
Timeline
Start Date: 2003-02-19
Current End Date: 2005-06-24
Potential End Date: 2005-06-24 00:00:00
Last Modified: 2024-09-27
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