Little Rock Job Corps Center Construction Contract Awarded to FLYNCO INC for $30 Million

Contract Overview

Contract Amount: $30,020,126 ($30.0M)

Contractor: Flynco Inc

Awarding Agency: Department of Labor

Start Date: 2007-06-08

End Date: 2009-01-30

Contract Duration: 602 days

Daily Burn Rate: $49.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RELOCATION PROJECT/CONSTRUCTION OF THE LITTLE ROCK JOB CORPS CENTER

Place of Performance

Location: LITTLE ROCK, PULASKI County, ARKANSAS, 72209

State: Arkansas Government Spending

Plain-Language Summary

Department of Labor obligated $30.0 million to FLYNCO INC for work described as: RELOCATION PROJECT/CONSTRUCTION OF THE LITTLE ROCK JOB CORPS CENTER Key points: 1. The contract awarded to FLYNCO INC for $30 million covers the relocation and construction of the Little Rock Job Corps Center. 2. The project falls under the Commercial and Institutional Building Construction sector, a competitive market. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The award was made under 'Full and Open Competition After Exclusion of Sources', suggesting a specific reason for excluding some potential bidders.

Value Assessment

Rating: fair

The contract value of $30 million for a Job Corps Center construction project appears within a reasonable range for similar large-scale construction efforts. However, without specific details on the scope of work and location-specific costs, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' indicates that while the competition was intended to be broad, certain sources were excluded. This could potentially limit price discovery and competition compared to a truly unrestricted full and open competition.

Taxpayer Impact: The final price is fixed, meaning taxpayers are protected from cost overruns by the contractor. However, the limited competition might have resulted in a higher initial price than if all potential sources had been included.

Public Impact

Construction of a new Job Corps Center will provide enhanced training facilities for young adults in Arkansas. The project creates jobs in the construction sector and related industries. The successful completion of the center is crucial for delivering essential workforce development services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have impacted the final price.
The specific reasons for excluding sources are not detailed.
Potential for cost increases if scope changes significantly.

Positive Signals

Firm Fixed Price contract shifts risk to contractor.
Project aims to improve workforce development infrastructure.
Awarded to a single contractor, potentially streamlining project management.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on project size, location, and economic conditions. Large federal construction projects often involve substantial investment.

Small Business Impact

The data indicates that the contract was not awarded to a small business (ss: false, sb: false). This suggests the project's scale or nature required a larger, established contractor.

Oversight & Accountability

The Department of Labor, through the Office of the Assistant Secretary for Administration and Management, is responsible for overseeing this contract. Standard federal procurement oversight processes should apply to ensure compliance and performance.

Related Government Programs

Commercial and Institutional Building Construction
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for higher cost due to limited competition.
Lack of transparency regarding source exclusion.
Risk of cost overruns if project scope expands.
Dependence on a single contractor for project completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $30.0 million to FLYNCO INC. RELOCATION PROJECT/CONSTRUCTION OF THE LITTLE ROCK JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is FLYNCO INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $30.0 million.

What is the period of performance?

Start: 2007-06-08. End: 2009-01-30.

What was the specific justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and how did this impact the final price?

The justification for excluding sources is critical for understanding the procurement's integrity. If exclusions were based on specific technical requirements or past performance issues, it might be justifiable. However, if arbitrary, it could indicate a lack of robust competition, potentially leading to a higher price than achievable in a truly open market. Further documentation is needed to assess the validity of the exclusions and their financial implications.

How does the $30 million cost compare to similar Job Corps Center construction projects in terms of cost per square foot or per trainee capacity?

Benchmarking the $30 million cost against similar projects requires detailed project specifications (e.g., square footage, number of trainees, specific facilities included) and regional cost data. Without this granular information, it's challenging to definitively assess value. However, for a large federal construction project, this figure suggests a significant investment, necessitating a thorough review of the scope against industry standards to ensure cost-effectiveness.

What mechanisms are in place to ensure the quality and timely completion of the construction project, given the contractor's sole award and the project duration?

Oversight by the Department of Labor's Office of the Assistant Secretary for Administration and Management is key. Mechanisms likely include regular progress reports, site inspections, performance milestones, and penalties for delays or substandard work. The firm fixed-price nature of the contract incentivizes the contractor to complete the project efficiently. However, proactive monitoring is essential to mitigate risks associated with project scope and timeline.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: DOL079RB20325

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7711 DISTRIBUTION DR, LITTLE ROCK, AR, 02

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $30,020,126

Exercised Options: $30,020,126

Current Obligation: $30,020,126

Contract Characteristics

Cost or Pricing Data: NO

Timeline