R. J. CROWLEY INC. awarded $11.6M for commercial building construction, highlighting fixed-price contract for long-term services

Contract Overview

Contract Amount: $11,642,998 ($11.6M)

Contractor: R. J. Crowley Inc.

Awarding Agency: Department of Labor

Start Date: 2004-06-04

End Date: 2009-12-31

Contract Duration: 2,036 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: BASIC AWARD

Plain-Language Summary

Department of Labor obligated $11.6 million to R. J. CROWLEY INC. for work described as: BASIC AWARD Key points: 1. The contract utilized a fixed-price structure, aiming to control costs over its duration. 2. Full and open competition was employed, suggesting a potentially competitive bidding process. 3. The award was made by the Department of Labor's Employment and Training Administration. 4. The North American Industry Classification System (NAICS) code 236220 indicates a focus on commercial and institutional building construction. 5. The contract duration of 2036 days (approximately 5.6 years) suggests a significant project scope. 6. The absence of small business set-aside flags indicates the primary award was not specifically targeted to small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this $11.6 million contract is challenging without more specific details on the scope of work and the nature of the commercial and institutional building construction. However, the fixed-price award type suggests an attempt to establish a clear cost ceiling. Comparing this to similar large-scale construction projects awarded by the Department of Labor or other federal agencies would provide better context for value for money. The number of bids received (5) is a moderate indicator of competition, which can influence pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 5 bids received, the competition level appears moderate. This suggests that while multiple companies had the opportunity to bid, the number of actual bidders might not have been extensive enough to drive prices down to the absolute lowest possible point. However, it still provides a basis for price discovery and comparison.

Taxpayer Impact: A competitive bidding process, even with a moderate number of bidders, generally benefits taxpayers by encouraging contractors to offer competitive pricing to secure the award.

Public Impact

The primary beneficiaries are likely federal agencies requiring commercial and institutional building construction services. The services delivered involve the construction and potentially maintenance of buildings. The geographic impact is tied to the location of the construction projects undertaken by R. J. CROWLEY INC. under this contract. Workforce implications include employment opportunities for construction workers and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for all project contingencies.
Risk associated with the long contract duration, which could lead to scope creep or changes in project requirements.
Dependence on a single contractor for a significant construction project could pose risks if performance issues arise.

Positive Signals

The fixed-price award type provides cost certainty for the government.
Full and open competition suggests a robust process for selecting the contractor.
The award to R. J. CROWLEY INC. indicates they met the government's requirements for this construction project.

Sector Analysis

The construction sector is a significant part of the federal procurement landscape, encompassing a wide range of building and infrastructure projects. This contract falls under commercial and institutional building construction, a segment that includes offices, educational facilities, and other non-residential structures. Federal spending in this area is often driven by the need to maintain and expand government facilities. Comparable spending benchmarks would involve analyzing other large construction contracts awarded by agencies like the General Services Administration (GSA) or the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means the competition was open to all eligible firms, regardless of size. While there's no direct indication of subcontracting requirements from the provided data, large prime contracts often include provisions for small business subcontracting to ensure broader participation in federal contracting. The absence of a specific small business set-aside means that opportunities for small businesses would likely arise through subcontracting rather than direct prime award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Labor. Accountability measures are inherent in the fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally facilitated through contract databases like FPDS, where award details are publicly available. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

Federal Buildings Fund
GSA Public Buildings Service
Department of Defense Construction Contracts
Public Works Projects

Risk Flags

Long contract duration may increase risk of cost escalation or scope changes.
Fixed-price contract requires careful contractor cost management to ensure profitability.
Moderate competition level (5 bids) may limit aggressive price reductions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $11.6 million to R. J. CROWLEY INC.. BASIC AWARD

Who is the contractor on this award?

The obligated recipient is R. J. CROWLEY INC..

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2004-06-04. End: 2009-12-31.

What was the specific scope of work for R. J. CROWLEY INC.'s commercial and institutional building construction contract?

The provided data indicates the contract falls under NAICS code 236220, which covers Commercial and Institutional Building Construction. This generally includes the construction of new buildings, additions, alterations, and repairs for non-residential structures such as office buildings, warehouses, factories, and public institutions. Without access to the full contract details or statement of work, the precise scope remains unspecified. However, given the $11.6 million award value and a duration of over five years, it likely involved a substantial construction project, potentially encompassing ground-up construction, major renovations, or the development of significant facilities for the Department of Labor or its affiliated agencies.

How does the $11.6 million award compare to typical federal spending on commercial building construction?

The $11.6 million award to R. J. CROWLEY INC. represents a significant but not exceptionally large federal contract for commercial and institutional building construction. Federal agencies, particularly those with large real estate portfolios like the General Services Administration (GSA) or the Department of Defense, often award construction contracts ranging from a few million to hundreds of millions of dollars. For instance, major facility upgrades, new agency headquarters, or large-scale infrastructure projects can easily exceed this amount. However, for specific building projects or renovations within a particular agency, $11.6 million can represent a substantial investment. A more precise comparison would require analyzing the specific type of construction and the agency's historical spending patterns for similar projects.

What are the potential risks associated with a fixed-price contract of this duration (over 5 years)?

Fixed-price contracts, while offering cost certainty, carry inherent risks, especially over extended periods like this 5.6-year contract. For the contractor (R. J. CROWLEY INC.), the primary risk is underestimating costs, leading to reduced profit margins or even losses if material prices escalate, labor costs increase unexpectedly, or unforeseen site conditions arise. For the government, the risk lies in the contractor potentially cutting corners on quality to maintain profitability, or the possibility that the fixed price may become uncompetitive if market conditions change significantly over the contract's life. Scope creep, where the government requests additional work not originally envisioned, can also become a point of contention and potential cost escalation if not managed carefully through contract modifications.

What does the number of bids (5) suggest about the competition for this contract?

Receiving 5 bids for a federal contract generally indicates a moderate level of competition. While 'full and open competition' theoretically allows any eligible firm to bid, the actual number of bids submitted provides a more practical measure. Five bidders suggest that the opportunity was known and attractive enough for several companies to invest the resources in preparing a proposal. However, it may not represent the maximum possible competition. A higher number of bids (e.g., 10+) often correlates with more aggressive pricing as contractors vie more intensely for the award. Conversely, fewer than 3 bids might raise concerns about market interest or the restrictiveness of the solicitation requirements.

What is the significance of the NAICS code 236220 for this contract?

The North American Industry Classification System (NAICS) code 236220 specifically identifies 'Commercial and Institutional Building Construction.' This code is crucial because it defines the primary industry and type of work covered by the contract. It signals that the contract is intended for the construction of buildings such as office buildings, factories, warehouses, retail stores, educational facilities, hospitals, and other non-residential structures. This classification helps in understanding the nature of the services R. J. CROWLEY INC. is expected to provide and allows for comparison with other federal contracts within the same construction sub-sector.

Were there any specific performance metrics or quality standards outlined in this contract?

The provided summary data does not include details on specific performance metrics or quality standards. However, for any federal construction contract, especially one valued at $11.6 million and spanning over five years, robust performance expectations and quality assurance measures are standard. These would typically be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). They often include adherence to building codes, industry standards (e.g., from organizations like ASTM or ANSI), project timelines, safety regulations, and specific functional requirements for the completed facility. The government's contracting officer and technical representatives would monitor compliance throughout the project lifecycle.

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: SEALED BID

Offers Received: 5

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8740-30 CHERRY LANE, LAUREL, MD, 20707

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $11,642,998

Exercised Options: $11,642,998

Current Obligation: $11,642,998

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline