DoD's $28.4M moisture infiltration contract awarded to Whitesell-Yates JV shows fair value with 6 bidders

Contract Overview

Contract Amount: $28,384,018 ($28.4M)

Contractor: Whitesell-Yates, a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2009-09-14

End Date: 2012-11-19

Contract Duration: 1,162 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MOISTURE INFILTRATION REDUCTION WORK

Place of Performance

Location: FORT STEWART, LIBERTY County, GEORGIA, 31314, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $28.4 million to WHITESELL-YATES, A JOINT VENTURE for work described as: MOISTURE INFILTRATION REDUCTION WORK Key points: 1. The contract's value appears reasonable given the scope of work and the competitive nature of its award. 2. A robust competition with 6 bidders suggests a healthy market for these specialized construction services. 3. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 4. The contract duration of over 3 years indicates a significant, long-term project for the Army. 5. The geographic location in Georgia may point to specific regional infrastructure needs or base requirements. 6. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities are not mandated.

Value Assessment

Rating: good

The contract's total value of $28.4 million for moisture infiltration reduction work appears to be within a reasonable range for a project of this duration and scope. While specific benchmarks for this exact type of work are difficult to ascertain without more granular detail, the presence of multiple bidders suggests that the pricing was competitive. The firm-fixed-price structure further supports the assessment of good value, as it shifts cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The participation of 6 bidders suggests a healthy level of competition for this type of construction service. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as the government received multiple proposals and selected the best value offering. This process helps prevent inflated pricing that might occur with less competitive solicitations.

Public Impact

The Department of the Army is the primary beneficiary, receiving improved infrastructure resilience. The services delivered focus on reducing moisture infiltration, likely enhancing the longevity and habitability of facilities. The contract's performance is geographically located in Georgia (ST='GA'), impacting local construction resources and potentially local economies. The project likely supports a workforce of skilled construction laborers, project managers, and specialized trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise, though mitigated by firm-fixed-price.
Dependence on the performance and financial stability of the joint venture.
Limited visibility into specific subcontracting opportunities for small businesses.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type reduces financial risk for the government.
Contract duration suggests a significant commitment and potential for successful project completion.
The joint venture structure may bring together complementary expertise.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically addressing building envelope issues related to moisture. The construction industry is a significant component of federal spending, with a substantial portion dedicated to maintaining and upgrading existing infrastructure. This contract represents a specific need within the broader defense construction market, focusing on facility preservation and operational readiness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS=false, SB=false). This suggests that the primary award went to a larger entity or a joint venture not classified as a small business. There is no explicit information on subcontracting plans, meaning small businesses may or may not have opportunities to participate in this project, depending on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army project management office. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS, though detailed project-specific oversight reports are not always publicly available.

Related Government Programs

Military Construction
Facility Sustainment, Restoration, and Modernization
Base Realignment and Closure (BRAC) related construction
Department of Defense Infrastructure Projects

Risk Flags

Potential for scope creep if initial moisture issues are underestimated.
Contractor performance risk over a multi-year duration.
Dependence on specific materials and technologies for effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.4 million to WHITESELL-YATES, A JOINT VENTURE. MOISTURE INFILTRATION REDUCTION WORK

Who is the contractor on this award?

The obligated recipient is WHITESELL-YATES, 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 $28.4 million.

What is the period of performance?

Start: 2009-09-14. End: 2012-11-19.

What is the track record of Whitesell-Yates, A Joint Venture, on similar federal contracts?

Analyzing the track record of Whitesell-Yates, A Joint Venture, requires accessing historical contract data. Without specific prior contract awards linked to this exact joint venture entity in public databases, it's challenging to provide a detailed performance history. However, the formation of a joint venture often indicates an intent to pool resources and expertise for large projects. The performance on this specific $28.4 million contract would be a key indicator of their capabilities. Future analysis should track their subsequent awards and performance ratings to build a comprehensive understanding of their reliability and effectiveness in executing complex construction projects for the federal government.

How does the awarded price compare to similar moisture infiltration reduction contracts?

Benchmarking the $28.4 million award for moisture infiltration reduction against similar contracts is complex due to variations in project scope, location, duration, and specific materials or techniques employed. However, the fact that this contract was awarded under full and open competition with 6 bidders suggests that the pricing was competitive within the market for such services. A firm-fixed-price award further implies that the contractor assessed the risks and costs and submitted a price they believed was adequate to cover expenses and provide a reasonable profit. To conduct a more precise comparison, one would need to identify contracts with similar square footage, building types, severity of infiltration issues, and geographic cost-of-living adjustments.

What are the primary risks associated with this type of construction contract?

The primary risks associated with this type of construction contract include unforeseen site conditions that could increase costs or extend timelines, potential material price fluctuations (though mitigated by firm-fixed-price), and contractor performance issues. For moisture infiltration reduction specifically, risks can involve the complexity of identifying all sources of water ingress, the effectiveness of chosen remediation methods, and potential damage to existing building systems during repair. The firm-fixed-price structure shifts the financial risk of cost overruns to the contractor, but performance risk remains. The duration of the contract (over 3 years) also introduces risks related to long-term material durability and the contractor's sustained capacity.

How effective is the firm-fixed-price contract type in managing costs for the government on this project?

The firm-fixed-price (FFP) contract type is generally considered highly effective in managing costs for the government on projects like this. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This incentivizes the contractor to manage their expenses efficiently and accurately estimate project costs upfront. For the government, it provides cost certainty and predictability, minimizing the risk of budget overruns due to contractor inefficiencies or unexpected cost increases. While it places the cost risk on the contractor, it requires thorough pre-award planning and a well-defined scope of work to be successful.

What is the historical spending trend for moisture infiltration reduction services by the Department of Defense?

Analyzing the historical spending trend for moisture infiltration reduction services by the Department of Defense requires a deep dive into federal procurement data over several fiscal years. This specific contract, valued at $28.4 million and awarded in 2009, represents a significant investment in facility maintenance. Trends would likely show fluctuations based on military construction priorities, aging infrastructure needs, and budget allocations. Periods of increased infrastructure investment or specific environmental concerns (like increased rainfall or hurricane activity) could correlate with higher spending in this category. Without broader trend data, this single contract serves as a data point rather than a trend indicator.

What does the number of bidders (6) indicate about the market for specialized construction services?

The presence of 6 bidders for this contract indicates a reasonably healthy and competitive market for specialized moisture infiltration reduction and building construction services. A higher number of bidders generally suggests that there are multiple qualified firms capable of performing the work and that the opportunity is attractive enough to warrant their investment in preparing proposals. This level of competition typically leads to better pricing for the government, as contractors vie to win the award. It also provides the government with a wider range of technical approaches and solutions to choose from, increasing the likelihood of selecting the best value proposal.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 987 HOWARD AVE, BILOXI, MS, 39534

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,384,018

Exercised Options: $28,384,018

Current Obligation: $28,384,018

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127807D0045

IDV Type: IDC

Timeline