Army awards $16.3M for construction services, with a 12% difference between award and estimated cost

Contract Overview

Contract Amount: $16,344,235 ($16.3M)

Contractor: Ironclad-Ei a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2005-11-10

End Date: 2009-06-24

Contract Duration: 1,322 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200604!600296!2100!W912EP!USA ENGINEER DIST JACKSONVILLE !W9127806D0005 !A!N! !N!CS01 ! !20051110!20061110!610323052!610323052!610323052!N!IRONCLAD-EEI A JOINT VENTURE !200 S MAIN ST !BELLE GLADE !FL!33430!76600!099!12!WEST PALM BEACH !PALM BEACH !FLORIDA !+000010000000!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !5!B!S! ! !B!20061117!B! ! !A! !A!U!J!2!014!B! !Z!N!C! ! !N!B!N!N! ! !Z! !A!A!000!A!B!Y!S!N! ! ! ! !0001! !

Place of Performance

Location: BELLE GLADE, PALM BEACH County, FLORIDA, 33430

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to IRONCLAD-EI A JOINT VENTURE for work described as: 200604!600296!2100!W912EP!USA ENGINEER DIST JACKSONVILLE !W9127806D0005 !A!N! !N!CS01 ! !20051110!20061110!610323052!610323052!610323052!N!IRONCLAD-EEI A JOINT VENTURE !200 S MAIN ST !BELLE GLADE !FL!33430!76600!099!12!WEST PALM BEACH !PALM… Key points: 1. The contract was awarded at a price point 12% below the estimated value, suggesting potential cost savings. 2. Competition was robust, with 14 bids received, indicating a healthy market for these construction services. 3. The contract's duration of 1322 days (approx. 3.6 years) suggests a significant, long-term project. 4. The award was made to a joint venture, which can sometimes indicate specialized capabilities or risk mitigation. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, a common procurement method.

Value Assessment

Rating: good

The final award amount of $16.34M was 12% below the initial estimate of $18.58M (calculated from the provided data). This indicates favorable pricing for the government. Benchmarking against similar construction contracts would require access to a broader dataset of comparable projects, but the significant difference between estimate and award suggests good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' with 14 bids received. This high level of competition is generally positive, as it allows for a wider range of potential contractors to participate and can drive down prices through market forces. The number of bidders suggests that the market for these services is active and accessible.

Taxpayer Impact: A high number of bidders in a full and open competition typically benefits taxpayers by ensuring the government receives competitive pricing and a broad selection of qualified contractors.

Public Impact

The primary beneficiary is the Department of the Army, which will receive construction services for facilities. The services delivered fall under 'OTHER MISCELLANEOUS BUILDINGS' construction, indicating a need for facility upgrades or new builds. The contract is geographically focused on Florida, specifically West Palm Beach, impacting the local construction workforce and economy. The award to a joint venture may involve a mix of large and small business participation in subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the project scope expands beyond initial estimates.
Dependence on the joint venture's ability to manage a long-term, complex construction project.
Risk associated with the specific nature of 'OTHER MISCELLANEOUS BUILDINGS' if specialized expertise is required.

Positive Signals

Award price significantly below estimate indicates strong negotiation or competitive pressure.
High number of bidders suggests a competitive market and potential for future competitive awards.
Award to a joint venture might leverage specialized skills and shared risk.

Sector Analysis

The construction sector is a significant part of federal spending, particularly for agencies like the Department of Defense. This contract falls under commercial and institutional building construction, a broad category encompassing a wide range of projects. Federal spending in this area often supports infrastructure modernization, base improvements, and facility maintenance. Comparable spending benchmarks would depend on the specific type and scale of the 'miscellaneous buildings' being constructed.

Small Business Impact

While the contract was awarded under full and open competition and there is no explicit small business set-aside noted, the award to a joint venture ('IRONCLAD-EEI A JOINT VENTURE') could imply subcontracting opportunities for small businesses. Further analysis would be needed to determine the specific small business participation goals or actual subcontracting performance under this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Inspector General for the Department of Defense would have jurisdiction for audits and investigations. Transparency is facilitated by public contract databases, but detailed project progress and specific oversight activities are not always publicly disclosed.

Related Government Programs

Army Corps of Engineers Construction Contracts
Department of Defense Facilities Modernization
General Services Administration (GSA) Public Buildings Service
Construction Services for Federal Agencies

Risk Flags

Potential for scope creep in 'miscellaneous buildings' category.
Long contract duration may increase exposure to market fluctuations.
Performance risk associated with a joint venture structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to IRONCLAD-EI A JOINT VENTURE. 200604!600296!2100!W912EP!USA ENGINEER DIST JACKSONVILLE !W9127806D0005 !A!N! !N!CS01 ! !20051110!20061110!610323052!610323052!610323052!N!IRONCLAD-EEI A JOINT VENTURE !200 S MAIN ST !BELLE GLADE !FL!33430!76600!099!12!WEST PALM BEACH !PALM BEACH !FLORIDA !+000010000000!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !5!B!S! ! !B!200

Who is the contractor on this award?

The obligated recipient is IRONCLAD-EI A JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.3 million.

What is the period of performance?

Start: 2005-11-10. End: 2009-06-24.

What is the track record of 'IRONCLAD-EEI A JOINT VENTURE' on federal contracts?

Information on the specific track record of 'IRONCLAD-EEI A JOINT VENTURE' is not detailed in the provided data snippet. To assess their track record, one would need to query federal procurement databases (like FPDS or SAM.gov) for past performance on similar contracts, including their history of on-time delivery, quality of work, and any past performance issues or awards. Analyzing their past contract values, agencies served, and types of services rendered would provide a clearer picture of their capabilities and reliability.

How does the $16.34M award compare to similar construction projects in Florida?

Benchmarking the $16.34M award against similar construction projects in Florida requires access to a comprehensive database of construction costs and project scopes. Factors such as project type (e.g., office building, barracks, warehouse), square footage, materials used, and specific site conditions significantly influence costs. Without detailed project specifications and comparable market data for the West Palm Beach area, a precise comparison is difficult. However, the 12% difference between the award and estimate suggests the government achieved favorable pricing relative to its own projections for this specific project.

What are the specific risks associated with 'OTHER MISCELLANEOUS BUILDINGS' construction?

The term 'OTHER MISCELLANEOUS BUILDINGS' is broad and can encompass a wide range of structures, from administrative facilities to specialized support buildings. The primary risk lies in the potential for undefined scope, which can lead to change orders and cost overruns if not managed meticulously. Specialized construction techniques, unique material requirements, or unforeseen site conditions could also present risks. Effective risk mitigation would involve detailed project planning, robust contract language defining scope and deliverables, and proactive site investigations prior to award.

What is the historical spending pattern for construction services by the Department of the Army in Florida?

Analyzing historical spending patterns for construction services by the Department of the Army in Florida would require examining procurement data over several fiscal years. This would involve filtering federal contract awards by agency (Department of the Army), service category (construction), and geographic location (Florida). Trends might reveal seasonal spending, preferred contracting methods (e.g., IDIQ vs. specific awards), common contractors, and the typical value range for projects. Such analysis helps in understanding the agency's investment in infrastructure within the state and identifying potential areas for efficiency or increased competition.

What is the significance of the contract being a 'Delivery Order' under an IDIQ contract?

A delivery order under an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract signifies that the government has established a framework agreement with one or more contractors for services or supplies to be ordered as needed over a period. This specific award is one instance of an order placed against that larger IDIQ. The significance is that the competition and vetting of the contractor likely occurred when the IDIQ contract was initially awarded. Subsequent delivery orders are typically competed among the IDIQ holders or awarded based on pre-negotiated terms, streamlining the procurement process for specific task orders and allowing for flexibility in meeting fluctuating demands.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 14

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 S MAIN ST, BELLE GLADE, FL, 33430

Business Categories: Category Business, Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127806D0005

IDV Type: IDC

Timeline