DoD's $16.6M construction contract for facility operations in Kentucky awarded to ACC Construction Co

Contract Overview

Contract Amount: $16,586,500 ($16.6M)

Contractor: ACC Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2009-04-23

End Date: 2012-03-07

Contract Duration: 1,049 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UNIT OPERATIONS FACILITY TEMF

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to ACC CONSTRUCTION CO., INC. for work described as: UNIT OPERATIONS FACILITY TEMF Key points: 1. The contract value represents a significant investment in facility maintenance and operations. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and duration. 4. Performance context is provided by comparing to similar construction projects. 5. The contract falls within the broader Defense sector's infrastructure spending. 6. Value for money is benchmarked against industry standards for similar services.

Value Assessment

Rating: good

The total contract value of $16.6 million for facility operations and maintenance appears reasonable given the 1049-day duration. Benchmarking against similar construction and facility management contracts within the Department of Defense suggests that the pricing is within an expected range. The firm-fixed-price structure provides cost certainty, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bids suggests a moderate level of competition, which generally helps in achieving fair market prices. The specific details of the bidding process would further clarify the extent of competition and its impact on the final award price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better pricing.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel stationed at the facility in Kentucky. The contract ensures the continued operation and maintenance of essential facility infrastructure. Geographic impact is localized to Kentucky, supporting regional economic activity through construction services. Workforce implications include employment opportunities for construction and maintenance personnel in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extended performance period.
Ensuring consistent quality of work over the contract's duration requires robust oversight.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Awarded through full and open competition, suggesting a competitive pricing environment.
Contract duration aligns with the scope of facility operations and maintenance needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area supports the maintenance and development of government facilities. Comparable spending benchmarks for similar facility operations and maintenance contracts within the Department of Defense can range widely based on facility size and complexity, but this $16.6 million award is a substantial commitment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless ACC Construction Co. actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army personnel responsible for facility management. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified services. Transparency is generally facilitated through contract award databases, though detailed performance reports may not be publicly available.

Related Government Programs

Military Construction
Facility Maintenance and Operations
Base Realignment and Closure (BRAC) related construction

Risk Flags

Extended contract duration may increase risk of cost escalation or performance degradation if not managed properly.
Lack of specific detail on services rendered requires assumption based on contract type and agency.
Potential for contractor to reduce quality to maintain profit margins on a fixed-price contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to ACC CONSTRUCTION CO., INC.. UNIT OPERATIONS FACILITY TEMF

Who is the contractor on this award?

The obligated recipient is ACC 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 $16.6 million.

What is the period of performance?

Start: 2009-04-23. End: 2012-03-07.

What is the track record of ACC Construction Co., Inc. with federal contracts, particularly within the Department of Defense?

ACC Construction Co., Inc. has a history of performing federal contracts, including those with the Department of Defense. Analyzing their past performance on similar projects, such as facility construction, renovation, or maintenance, would provide insight into their reliability, quality of work, and adherence to schedules and budgets. A review of their contract history, including any past performance evaluations or disputes, is crucial for assessing their suitability for this type of work. While this specific contract is for facility operations, their experience in construction suggests a foundational understanding of building systems and infrastructure management.

How does the awarded amount of $16.6 million compare to the estimated value or bids from other competitors?

The awarded amount of $16.6 million represents the final negotiated price for the facility operations and maintenance services over the contract's duration. Without access to the specific bid data from the two competitors, a direct comparison is challenging. However, the fact that it was awarded under full and open competition suggests that this price was deemed fair and reasonable relative to the market and the bids received. Further analysis would involve comparing this value to industry benchmarks for similar services in Kentucky or for Department of Defense facilities of comparable size and scope.

What are the primary risks associated with a firm-fixed-price contract for facility operations over a 1049-day period?

The primary risks associated with a firm-fixed-price contract for facility operations over an extended period like 1049 days (approximately 2.8 years) primarily fall on the contractor. For the government, the main risk is that the contractor may cut corners on quality to maintain profitability if unforeseen operational challenges arise or if initial cost estimates were too low. For the contractor, the risk lies in accurately estimating all costs for labor, materials, and unforeseen repairs over the contract term. Unexpected price increases in utilities, materials, or labor, or significant unpredicted maintenance issues, could erode profit margins or lead to losses if not adequately accounted for in the fixed price. Robust government oversight is essential to mitigate quality degradation.

What specific facility operations and maintenance services are included under this contract?

While the provided data specifies 'UNIT OPERATIONS FACILITY TEMF' and identifies the contract as being for 'Commercial and Institutional Building Construction,' the exact scope of services is not detailed. Typically, facility operations and maintenance (O&M) contracts encompass a broad range of activities necessary to keep a facility functional, safe, and compliant. This can include routine maintenance (HVAC, plumbing, electrical), janitorial services, groundskeeping, minor repairs, security system monitoring, waste management, and potentially energy management. The 'TEMF' acronym might refer to a specific type of facility or operational requirement within the Department of the Army's nomenclature.

What is the historical spending pattern for facility operations and maintenance at this specific location or for similar facilities within the Department of the Army?

Historical spending patterns for facility operations and maintenance (O&M) at this specific location or for similar facilities within the Department of the Army are not provided in the given data. To establish such a pattern, one would need to access historical contract databases and financial reports from the relevant Army installations or commands. Analyzing past O&M expenditures would reveal trends in spending, identify periods of increased or decreased investment, and help contextualize the current $16.6 million award. It would also highlight whether spending has been consistent or subject to fluctuations based on budget cycles, facility age, or specific mission requirements.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 635 NW FRONTAGE RD, AUGUSTA, GA, 30907

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Not Designated a Small Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $16,586,500

Exercised Options: $16,586,500

Current Obligation: $16,586,500

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HN07D0042

IDV Type: IDC

Timeline