DoD's $37.4M Building 12000 Renovation by Balfour Beatty Construction faces scrutiny over value and competition

Contract Overview

Contract Amount: $37,391,713 ($37.4M)

Contractor: Balfour Beatty Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-28

End Date: 2013-09-11

Contract Duration: 1,444 days

Daily Burn Rate: $25.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING 12000 RENOVATION

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29206

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $37.4 million to BALFOUR BEATTY CONSTRUCTION, LLC for work described as: BUILDING 12000 RENOVATION Key points: 1. The contract awarded to Balfour Beatty Construction for $37.4M for Building 12000 renovation shows a significant investment in infrastructure. 2. Competition was full and open, suggesting a potentially competitive bidding process, but the final price needs further analysis. 3. Risk factors include potential cost overruns and schedule delays common in large construction projects. 4. The sector is Commercial and Institutional Building Construction, a broad category with varying cost benchmarks.

Value Assessment

Rating: fair

The contract value of $37.4M for a renovation project requires comparison against similar large-scale building renovations. Without specific project scope details, it's difficult to definitively assess if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of bidders and can lead to better price discovery. However, the final negotiated price is key to determining if competition effectively drove down costs.

Taxpayer Impact: The $37.4M expenditure represents a significant taxpayer investment. Ensuring the renovation provides long-term value and avoids cost overruns is crucial for maximizing taxpayer benefit.

Public Impact

Taxpayers are funding a major renovation of a Department of Defense facility, impacting military readiness and operational capacity. The project's success or failure could influence future construction contracts awarded by the Department of the Army. The duration of the contract (1444 days) suggests a complex and lengthy undertaking, potentially affecting facility availability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific cost breakdown for the $37.4M.
Potential for scope creep in large renovation projects.
Limited information on the specific benefits of the renovation.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type can limit cost risk for the government.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Benchmarks for large-scale renovations vary widely based on building type, age, and complexity of work required. The $37.4M figure suggests a substantial project.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Larger construction projects often involve prime contractors who may subcontract portions of the work, potentially to small businesses.

Oversight & Accountability

Oversight is crucial for large construction projects to ensure adherence to scope, budget, and timeline. The Department of the Army's contracting and inspection processes will be key to accountability.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

High contract value ($37.4M) warrants close monitoring.
Long contract duration (1444 days) increases risk of delays and cost overruns.
Lack of detailed scope of work in provided data.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.4 million to BALFOUR BEATTY CONSTRUCTION, LLC. BUILDING 12000 RENOVATION

Who is the contractor on this award?

The obligated recipient is BALFOUR BEATTY 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 $37.4 million.

What is the period of performance?

Start: 2009-09-28. End: 2013-09-11.

What specific improvements does the Building 12000 renovation entail, and how do these align with the $37.4M cost?

The provided data lacks specific details on the scope of the Building 12000 renovation. Understanding the exact nature of the work—whether it involves structural upgrades, modernization of systems, or aesthetic improvements—is essential to justify the $37.4M expenditure and assess its value for money.

How did the 'full and open competition' process translate into competitive pricing for this $37.4M renovation?

While 'full and open competition' suggests a broad bidding process, the ultimate measure of its effectiveness lies in the final negotiated price. Further analysis would be needed to compare the winning bid against other proposals and industry benchmarks to confirm if competition truly yielded optimal pricing for the taxpayer.

What are the key performance indicators (KPIs) for this renovation, and how is the Department of the Army measuring the effectiveness of the $37.4M investment?

The effectiveness of this $37.4M renovation hinges on meeting predefined KPIs related to facility functionality, energy efficiency, safety, and operational readiness. The Department of the Army's oversight mechanisms, including inspection reports and post-occupancy evaluations, are critical for assessing whether the investment delivers the intended long-term benefits.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Balfour Beatty PLC (UEI: 210042081)

Address: 3924 PENDER DR STE 100, FAIRFAX, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $37,483,774

Exercised Options: $37,483,774

Current Obligation: $37,391,713

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G09D0019

IDV Type: IDC

Timeline