DoD's $18.9M Construction Contract with ABSHER Construction Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $18,944,648 ($18.9M)
Contractor: Absher Construction CO
Awarding Agency: Department of Defense
Start Date: 2003-06-30
End Date: 2010-04-05
Contract Duration: 2,471 days
Daily Burn Rate: $7.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: TACOMA, PIERCE County, WASHINGTON, 98433
Plain-Language Summary
Department of Defense obligated $18.9 million to ABSHER CONSTRUCTION CO for work described as: Key points: 1. The contract value of $18.9 million for commercial and institutional building construction falls within a typical range for large-scale federal projects. 2. Awarded under full and open competition, this suggests a competitive bidding process aimed at achieving fair market prices. 3. The contract's duration of 2471 days (approximately 6.7 years) indicates a long-term commitment, potentially for a significant construction project. 4. The absence of small business participation is noted, which could be a point of consideration for future contracting strategies.
Value Assessment
Rating: fair
The contract value of $18.9 million is substantial for construction. Benchmarking against similar large-scale commercial and institutional building projects awarded by the Department of the Army would be necessary to fully assess its pricing.
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 possible range of bidders. This method is designed to foster price discovery and ensure competitive pricing by allowing multiple qualified contractors to submit proposals.
Taxpayer Impact: Awarding contracts through full and open competition generally benefits taxpayers by promoting competitive pricing and potentially leading to cost savings compared to less competitive methods.
Public Impact
Taxpayers benefit from a competitive bidding process that aims to secure the best value for public funds. The long duration of the contract suggests a significant infrastructure or building project that will impact federal facilities. The lack of small business involvement might limit opportunities for smaller firms to participate in federal construction contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation noted.
- Long contract duration could introduce risks related to cost escalation or changing requirements.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type can provide cost certainty.
Sector Analysis
The construction sector is a significant area of federal spending, particularly for agencies like the Department of Defense. Benchmarks for commercial and institutional building construction vary widely based on project scope, location, and complexity.
Small Business Impact
This contract did not involve small businesses, as indicated by the 'sb' field being false. Federal contracting goals often aim to include small businesses, so the absence of participation here warrants attention for future contract planning.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract management offices ensuring adherence to terms, quality standards, and timely completion.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation.
- Long contract duration increases risk of cost escalation or requirement changes.
- Potential for scope creep over the extended performance period.
- Need for detailed benchmarking to confirm pricing competitiveness.
Tags
commercial-and-institutional-building-co, department-of-defense, wa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.9 million to ABSHER CONSTRUCTION CO. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is ABSHER CONSTRUCTION CO.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $18.9 million.
What is the period of performance?
Start: 2003-06-30. End: 2010-04-05.
What specific type of commercial or institutional building was constructed, and how does the $18.9M cost compare to similar projects of that scale and type?
The provided data does not specify the exact nature of the building. To assess value, a detailed comparison with similar federal or private sector construction projects of comparable size, complexity, and location would be required. Factors like specialized facilities, unique architectural requirements, or extensive site preparation could significantly influence costs.
Given the 6.7-year duration, what mechanisms were in place to manage potential cost overruns or scope creep, especially with a firm fixed price contract?
A firm fixed price contract aims to lock in costs, but long durations necessitate robust contract management. Mechanisms likely included detailed initial specifications, change order controls, and performance monitoring. However, unforeseen circumstances or significant design changes could still lead to disputes or require contract modifications, potentially impacting the final cost.
How effective was the full and open competition in achieving the best possible price and quality for this specific construction project?
Full and open competition is generally effective in driving competitive pricing. However, effectiveness also depends on the clarity of the solicitation, the number and capability of bidders, and the evaluation criteria used. Without knowing the number of bids received or the specific evaluation process, it's difficult to definitively assess the optimal outcome, though the method itself is designed for fairness and value.
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: 1001 SHAW RD S E, PUYALLUP, WA, 10
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-06-30
Current End Date: 2010-04-05
Potential End Date: 2010-04-05 00:00:00
Last Modified: 2008-04-26
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