Department of Defense awards $25.2M contract for vehicle control points, highlighting construction sector activity

Contract Overview

Contract Amount: $25,207,638 ($25.2M)

Contractor: Argo Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2016-05-23

End Date: 2020-10-27

Contract Duration: 1,618 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: VEHICLE CONTROL POINT (VCP-1) IGF::CL::IGF

Place of Performance

Location: ANNAPOLIS JUNCTION, HOWARD County, MARYLAND, 20701

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to ARGO SYSTEMS, LLC for work described as: VEHICLE CONTROL POINT (VCP-1) IGF::CL::IGF Key points: 1. Contract value of $25.2 million indicates significant investment in infrastructure. 2. Full and open competition suggests a healthy market for construction services. 3. Fixed-price contract type aims to control costs and provide predictability. 4. Contract duration of over 4 years suggests a substantial project scope. 5. Award to ARGO SYSTEMS, LLC, a single entity, warrants review of performance history. 6. Geographic focus on Maryland points to specific regional infrastructure needs.

Value Assessment

Rating: fair

The contract value of $25.2 million for vehicle control points appears substantial. Benchmarking against similar construction projects for specialized security infrastructure is necessary to fully assess value. Without specific details on the scope of work and materials, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract suggests an effort to manage costs.

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,' indicating that while the initial solicitation may have had restrictions, the final award was made through a broad competitive process. The number of bidders is not specified, but the 'full and open' designation generally implies a robust competition, which can lead to better pricing and innovation.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are likely military installations requiring enhanced vehicle control and security. The contract delivers physical infrastructure, specifically vehicle control points, improving base security. The geographic impact is concentrated in Maryland, where the contract is being performed. The contract supports the construction workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of work makes it difficult to fully assess value for money.
The single awardee, ARGO SYSTEMS, LLC, necessitates a review of their past performance and capacity for this scale of project.
The 'Exclusion of Sources' clause in the competition type warrants further investigation into why certain sources were initially excluded.

Positive Signals

The use of 'Full and Open Competition' suggests a commitment to leveraging market capabilities.
The 'Firm Fixed Price' contract type provides cost certainty for the government.
The contract duration of over four years indicates a significant and potentially impactful project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The Department of Defense is a major consumer of construction services, particularly for specialized facilities like vehicle control points that require robust security features. Market size for defense construction is substantial, driven by ongoing modernization and security requirements. This contract represents a specific investment in physical security infrastructure.

Small Business Impact

The data indicates that small business participation was not a primary set-aside criterion for this contract (ss: false, sb: false). This suggests the contract was likely awarded to a larger prime contractor. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in fulfilling parts of this construction project.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Transparency is facilitated by public contract databases, but detailed project-specific oversight mechanisms and accountability measures are not detailed in this data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Base Construction
Security Infrastructure Projects
Department of Defense Facilities Management
Commercial Building Contracts

Risk Flags

Potential for cost overruns if contractor underestimates scope or faces unforeseen conditions under FFP.
Contractor performance risk given the single awardee and project scale.
Need for detailed review of initial source exclusions in competition.
Lack of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to ARGO SYSTEMS, LLC. VEHICLE CONTROL POINT (VCP-1) IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is ARGO SYSTEMS, 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 $25.2 million.

What is the period of performance?

Start: 2016-05-23. End: 2020-10-27.

What is the specific scope of work for these Vehicle Control Points (VCP-1) and how does it compare to industry standards for similar security infrastructure?

The provided data identifies the contract as 'VEHICLE CONTROL POINT (VCP-1) IGF::CL::IGF' awarded to ARGO SYSTEMS, LLC. However, it lacks specific details regarding the scope of work. Typically, vehicle control points involve the construction or upgrade of physical barriers, entry/exit gates, guard booths, inspection areas, and associated security technology (e.g., cameras, sensors, access control systems). Industry standards for such facilities vary based on threat level, traffic volume, and specific security protocols required by the client. Without a detailed statement of work, it is difficult to benchmark the specific deliverables against industry norms or assess the appropriateness of the $25.2 million award value.

How does the $25.2 million contract value compare to other similar construction projects for vehicle control points or security infrastructure awarded by the Department of Defense or other federal age

Benchmarking the $25.2 million contract value requires access to data on comparable projects. Federal procurement databases often contain information on similar awards. Factors influencing cost include geographic location (labor and material costs), complexity of security features, size and scale of the VCP, and the specific technologies integrated. A preliminary assessment suggests that $25.2 million is a significant investment, potentially indicating a large-scale project or one with highly specialized security requirements. Further analysis would involve comparing this value against contracts for similar VCPs, gate systems, or perimeter security constructions within the last 3-5 years, adjusting for inflation and regional cost differences.

What is ARGO SYSTEMS, LLC's track record with Department of Defense contracts, particularly in construction and security infrastructure?

The award to ARGO SYSTEMS, LLC for $25.2 million necessitates an examination of their past performance. Information on their contract history with the Department of Defense (DoD) and other federal agencies is crucial. This includes reviewing previous awards, contract values, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. A strong track record in similar construction projects, especially those involving security elements, would indicate a lower risk for this current contract. Conversely, a history of performance issues or limited experience in this specific domain would raise concerns about project execution and value delivery.

Given the 'Full and Open Competition After Exclusion of Sources' designation, what were the initial exclusions and what impact did this have on the competitive landscape and final pricing?

The designation 'Full and Open Competition After Exclusion of Sources' implies that the initial solicitation may have contained restrictions or exclusions, but the final award was made under full and open competition. Understanding the nature of these initial exclusions is important. For example, were specific technologies or capabilities initially sought that limited the pool of potential bidders? Or were there other pre-qualification criteria? The impact on the competitive landscape and final pricing depends on how many responsible sources were ultimately able to compete. If the exclusions significantly narrowed the field, it could have potentially led to less aggressive pricing than a truly unrestricted full and open competition. Conversely, if many qualified bidders emerged despite initial exclusions, it suggests a robust market.

What are the potential risks associated with a firm fixed-price contract for a construction project of this duration and complexity?

Firm Fixed Price (FFP) contracts are designed to provide cost certainty to the government. However, for complex and long-duration construction projects like this ($25.2M over 4+ years), FFP contracts can introduce risks for the contractor. If the contractor underestimates costs, encounters unforeseen site conditions, or experiences significant material price escalations, they bear the brunt of the financial loss. This can lead to contractor financial distress, potential project delays, or even default. For the government, the risk shifts towards ensuring the contractor has the capacity and financial stability to complete the project, and that the initial price adequately reflects the anticipated scope and potential challenges. Robust contract administration and monitoring are essential to mitigate these risks.

How does the geographic concentration in Maryland for this contract align with broader Department of Defense infrastructure spending patterns or security needs in that region?

The contract's performance location in Maryland is significant given the state's high concentration of federal agencies and military installations, including the Pentagon and numerous other defense-related facilities. Awarding a $25.2 million contract for vehicle control points in this region suggests a strategic focus on enhancing security for critical assets located there. DoD infrastructure spending patterns are often driven by evolving threat assessments, base realignment and closure (BRAC) decisions, and the need to modernize aging facilities. Concentrated spending in a specific geographic area like Maryland could indicate a regional security initiative or a response to specific vulnerabilities identified within that operational environment.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DR14R0026

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1362 MELLON RD STE 100, HANOVER, MD, 21076

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $25,207,638

Exercised Options: $25,207,638

Current Obligation: $25,207,638

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DR14D0019

IDV Type: IDC

Timeline