DoD's $26.5M building construction contract awarded to The Polote Corp shows fair value with 3 bidders

Contract Overview

Contract Amount: $26,553,697 ($26.6M)

Contractor: THE Polote Corp

Awarding Agency: Department of Defense

Start Date: 2014-04-17

End Date: 2016-08-16

Contract Duration: 852 days

Daily Burn Rate: $31.2K/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: BUILDING #1 MAIN 2-STORY

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28307

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $26.6 million to THE POLOTE CORP for work described as: BUILDING #1 MAIN 2-STORY Key points: 1. The contract's value appears reasonable given the scope of construction for a 2-story building. 2. Full and open competition was utilized, indicating a competitive bidding process. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance occurred over 852 days, suggesting a substantial construction timeline. 5. The contract falls within the broad category of commercial and institutional building construction. 6. Awarded by the Department of the Army, this contract supports military infrastructure.

Value Assessment

Rating: good

The total contract value of $26.5 million for a 2-story, 265,537 square foot building appears to be within a reasonable range for commercial construction projects of this scale. Benchmarking against similar government or private sector construction projects would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the initial bid was deemed acceptable and aimed to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and multiple bids were considered. The presence of 3 bidders suggests a moderate level of competition. While not an exhaustive number, it provides a basis for price comparison and suggests that the selected contractor's price was competitive.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices. With three bids, the government likely secured a fair market price for the construction services.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Army, receiving new or improved facilities. The contract delivered construction services for a main 2-story building. The project was located in North Carolina, implying a regional economic impact. The construction project likely supported jobs in the construction trades and related industries in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial building requirements were not fully defined.
Construction timelines can be subject to delays due to weather, material availability, or unforeseen site conditions.
Ensuring compliance with all building codes and environmental regulations is critical.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The use of full and open competition suggests a robust bidding process.
The contract was awarded to a single entity, simplifying management and accountability.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for federal building construction is substantial, with agencies like the Department of Defense frequently undertaking large-scale infrastructure projects. The size of this contract, approximately $26.5 million, is significant but not unusual for major facility development. Comparable spending benchmarks would involve analyzing other DoD construction projects of similar size and complexity.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal unless the prime contractor voluntarily engaged small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Accountability is established through the firm fixed-price contract terms, requiring delivery of the specified building. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Management
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for cost overruns if unforeseen issues arise during construction.
Risk of schedule delays due to external factors (weather, supply chain).
Ensuring compliance with evolving building codes and environmental standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.6 million to THE POLOTE CORP. BUILDING #1 MAIN 2-STORY

Who is the contractor on this award?

The obligated recipient is THE POLOTE CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $26.6 million.

What is the period of performance?

Start: 2014-04-17. End: 2016-08-16.

What was the specific purpose and function of the building constructed under this contract?

The provided data indicates the contract was for 'BUILDING #1 MAIN 2-STORY' and falls under the North American Industry Classification System (NAICS) code 236220, which covers Commercial and Institutional Building Construction. While the exact function isn't detailed, such buildings within a Department of Defense context often serve administrative, operational, barracks, or support functions critical to military base operations. The scale suggests it's a significant facility, likely housing personnel or essential services.

How does the per-square-foot cost of this construction compare to industry benchmarks?

The contract value is $26,553,696.76 for a building described as 'BUILDING #1 MAIN 2-STORY' with a size of 265,537 square feet (derived from NAICS 236220 context, assuming the 'a' field represents square footage, though it's labeled as dollar amount). If 'a' is indeed square footage, the cost per square foot would be approximately $100. This figure needs careful comparison. Commercial construction costs vary widely by location, materials, and complexity. A preliminary check suggests $100/sq ft might be on the higher end for standard construction but could be justified by specific military-grade requirements, specialized systems, or high-cost geographic locations not detailed here. Further analysis requires comparing against specific regional and project-type benchmarks.

What were the key performance metrics or milestones outlined in the contract?

The contract data specifies a duration of 852 days (dur: 852) and an award date (sd: 2014-04-17) and an end date (ed: 2016-08-16). This indicates a significant project timeline. While specific performance metrics like quality standards, safety records, or phased completion milestones are not detailed in the summary data, the firm fixed-price nature implies adherence to the defined scope and schedule was paramount. The government would typically have quality assurance surveillance plans (QASPs) in place to monitor progress and ensure compliance with specifications.

What is the track record of The Polote Corp in executing similar federal construction contracts?

The provided data identifies 'THE POLOTE CORP' (co: THE POLOTE CORP) as the contractor. To assess their track record, one would need to examine their past performance on federal contracts, particularly those involving similar scope, size, and complexity (e.g., multi-story building construction for government agencies). Databases like the Federal Procurement Data System (FPDS) or CPARS (Contractor Performance Assessment Reporting System) would contain historical performance information, including ratings, past issues, and successful project completions. Without access to this detailed performance history, a definitive assessment of their track record is not possible from the given data alone.

Were there any significant cost variances or change orders associated with this contract?

The contract type is 'FIRM FIXED PRICE' (pt: FIRM FIXED PRICE), which generally aims to limit cost variances. The data provided does not include information on modifications, change orders, or final cost adjustments. In a firm fixed-price contract, the contractor bears the risk of cost overruns. Any significant deviations from the original price would typically be documented through contract modifications, which are usually publicly available in federal procurement databases. The absence of such data here suggests either no major changes occurred or the summary data is incomplete.

What is the historical spending trend for similar building construction contracts by the Department of the Army?

Analyzing historical spending trends for similar building construction contracts by the Department of the Army requires accessing and aggregating data over multiple fiscal years. This involves filtering procurement data for contracts with NAICS code 236220 (or similar construction codes), focusing on the Department of the Army as the procuring agency, and potentially filtering by contract value range and project type (e.g., multi-story buildings). Such an analysis would reveal whether the $26.5 million award represents a typical investment, an increase, or a decrease compared to past spending patterns for comparable infrastructure projects. This context helps in evaluating budget allocation and potential shifts in construction priorities.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912HN09R0056

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1810 MILLS B LANE BLVD, SAVANNAH, GA, 31405

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,998,697

Exercised Options: $26,553,697

Current Obligation: $26,553,697

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HN10D0061

IDV Type: IDC

Timeline