DoD Awards $40.1M Construction Contract to Poole & Kent/Gaudreau Inc JV for 2,649 Days
Contract Overview
Contract Amount: $40,132,131 ($40.1M)
Contractor: Poole & Kent/Gaudreau Inc JV
Awarding Agency: Department of Defense
Start Date: 2002-09-30
End Date: 2009-12-31
Contract Duration: 2,649 days
Daily Burn Rate: $15.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $40.1 million to POOLE & KENT/GAUDREAU INC JV for work described as: Key points: 1. Contract awarded to a joint venture, indicating potential for specialized expertise. 2. Long duration (2,649 days) suggests a complex, multi-phase project. 3. Fixed-price contract type aims to control costs, but scope creep is a risk. 4. Construction sector is highly competitive, but specific JV may have advantages. 5. No small business participation noted, potentially missing opportunities for smaller firms.
Value Assessment
Rating: fair
The award amount of $40.1 million for a nearly 7.3-year contract needs further context. Benchmarking against similar large-scale construction projects of comparable complexity and duration is essential to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the selection of a joint venture might indicate a specific need for combined capabilities, potentially limiting the pool of bidders.
Taxpayer Impact: The firm-fixed-price contract aims to protect taxpayers from cost overruns, but the long duration and potential for change orders warrant close monitoring.
Public Impact
Long-term infrastructure development impacting military readiness and operational capabilities. Potential for local economic impact through job creation and material sourcing. Project completion timeline affects the availability and quality of facilities for service members.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases risk of scope creep and cost escalation.
- Lack of small business participation may indicate barriers to entry or missed opportunities.
- Fixed-price contract could lead to quality compromises if not managed strictly.
Positive Signals
- Full and open competition suggests a competitive bidding process.
- Joint venture structure may bring specialized expertise to the project.
- Fixed-price contract provides cost certainty if scope is well-defined.
Sector Analysis
This contract falls within the commercial and institutional building construction sector. Spending in this area is cyclical and influenced by infrastructure needs, economic conditions, and government investment priorities. Benchmarks would typically compare cost per square foot or cost per project duration for similar military or large-scale public works.
Small Business Impact
The contract does not indicate any specific set-aside for small businesses, nor does it mention small business subcontracting goals. This suggests that the primary awardee(s) are likely larger entities, and opportunities for small businesses may be limited to indirect roles or specific subcontracts not detailed here.
Oversight & Accountability
Oversight will be critical given the contract's long duration and fixed-price nature. The Department of Defense must ensure rigorous contract management, including monitoring progress, managing change orders, and verifying quality to protect taxpayer interests and ensure project success.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (over 7 years).
- Firm-fixed-price contract type.
- No stated small business participation.
- Joint venture awardee may limit competition in future.
- Potential for scope creep and change orders.
Tags
commercial-and-institutional-building-co, department-of-defense, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.1 million to POOLE & KENT/GAUDREAU INC JV. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is POOLE & KENT/GAUDREAU INC JV.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $40.1 million.
What is the period of performance?
Start: 2002-09-30. End: 2009-12-31.
What specific construction services are included in this $40.1 million contract, and how does the cost align with industry benchmarks for similar projects of this scale and duration?
The contract is for Commercial and Institutional Building Construction, with a duration of 2,649 days. A precise cost benchmark is difficult without knowing the specific scope (e.g., new construction, renovation, specific facility types). However, $40.1 million over nearly 7.3 years suggests an average annual spend of approximately $5.5 million. This requires comparison against per-square-foot costs or total project costs for similar military or large public infrastructure projects to assess value.
What are the primary risks associated with a firm-fixed-price contract lasting over seven years, particularly concerning potential scope creep and quality assurance for the Department of Defense?
The primary risk is scope creep, where requirements expand beyond the initial agreement, potentially leading to costly change orders that erode the fixed-price benefit. Quality assurance is also a risk; the contractor might be tempted to cut corners to maintain profitability over such a long period. Robust government oversight, clear contract modifications procedures, and stringent quality control are essential to mitigate these risks.
How effective is the full and open competition strategy in ensuring the best value for taxpayers when awarding a long-term, complex construction project to a joint venture?
Full and open competition is generally effective in maximizing the pool of potential bidders and driving down prices. However, for complex projects like this, a joint venture might be necessary to meet specific technical requirements. The effectiveness hinges on whether the competition truly attracted capable bidders and if the evaluation criteria prioritized both technical merit and cost-competitiveness, ensuring the selected JV offers the best overall value despite the specialized nature of the award.
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
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 4530 HOLLINS FERRY RD, BALTIMORE, MD, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-09-30
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2008-07-08
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