DoD's $23.2M Fitness Center Construction Awarded to Grahams Construction Inc. in Oklahoma

Contract Overview

Contract Amount: $23,189,051 ($23.2M)

Contractor: Grahams Construction Inc

Awarding Agency: Department of Defense

Start Date: 2012-06-19

End Date: 2014-05-27

Contract Duration: 707 days

Daily Burn Rate: $32.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 35

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION OF THE PHYSICAL FITNESS CENTER FT. SILL, OK

Place of Performance

Location: FORT SILL, COMANCHE County, OKLAHOMA, 73503

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to GRAHAMS CONSTRUCTION INC for work described as: DESIGN AND CONSTRUCTION OF THE PHYSICAL FITNESS CENTER FT. SILL, OK Key points: 1. The contract value represents a significant investment in military infrastructure. 2. Competition dynamics for this project warrant further examination due to the 'after exclusion of sources' clause. 3. The fixed-price contract type suggests a defined scope and potential for cost certainty. 4. Project duration of 707 days indicates a substantial construction undertaking. 5. The award falls within the broader category of commercial and institutional building construction. 6. Geographic concentration in Oklahoma highlights regional economic impact.

Value Assessment

Rating: fair

Benchmarking the value of this specific fitness center construction against similar military or government projects is challenging without more detailed scope information. The firm fixed-price nature suggests the contractor assumed cost risk, which can be favorable for the government if managed well. However, the final cost relative to the initial bid and any change orders would be key indicators of value. The provided data does not allow for a direct per-unit cost comparison to market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, suggesting a potential limitation on the number of bidders or specific pre-qualification requirements. The exact reasons for excluding sources are not detailed, which could impact the breadth of competition and potentially the final price.

Taxpayer Impact: Excluding sources, even with an initial open competition intent, may limit the number of competitive bids received, potentially leading to a higher price for taxpayers than if all qualified sources could participate.

Public Impact

Military personnel at Fort Sill, Oklahoma, will benefit from improved physical fitness facilities. The project delivers construction services for a physical fitness center. The geographic impact is localized to Fort Sill, Oklahoma. The construction project likely created temporary jobs for skilled trades and laborers in the Oklahoma region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurred despite fixed-price contract.
Limited transparency on the rationale for excluding specific sources from competition.
Risk associated with the long project duration (707 days) for potential delays or unforeseen issues.

Positive Signals

Firm fixed-price contract structure can provide cost certainty if scope is well-defined.
Awarding to a single contractor streamlines project management.
Construction of essential facility infrastructure supports military readiness.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for military construction is substantial, driven by the Department of Defense's continuous need to maintain and upgrade its facilities worldwide. Comparable spending benchmarks would involve analyzing other large-scale construction projects for government entities, particularly those focused on recreational or support facilities.

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 information on subcontracting plans. This suggests that the primary awardee, Grahams Construction Inc., was not a small business, and there's no explicit mechanism detailed here to ensure small business involvement in the project's execution.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and engineering divisions. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified facility within the agreed price. Transparency is limited by the available data; further details on the bidding process and any oversight reports would be needed for a fuller assessment. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Recreational Facilities Construction
General Building Construction

Risk Flags

Limited Competition Rationale
Potential for Schedule Delays
Cost Escalation Risk (if scope changes)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to GRAHAMS CONSTRUCTION INC. DESIGN AND CONSTRUCTION OF THE PHYSICAL FITNESS CENTER FT. SILL, OK

Who is the contractor on this award?

The obligated recipient is GRAHAMS CONSTRUCTION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.2 million.

What is the period of performance?

Start: 2012-06-19. End: 2014-05-27.

What was the specific rationale for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The provided data does not specify the exact rationale for excluding certain sources. This contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' implies that while the solicitation was publicly advertised, specific pre-determined criteria or actions led to the disqualification or non-consideration of certain potential bidders. Common reasons for such exclusions can include failure to meet stringent technical qualifications, past performance issues, security concerns, or specific statutory/regulatory requirements that limit the pool of eligible contractors. Without further documentation from the contracting agency (Department of the Army), the precise reasons remain unknown, making it difficult to fully assess the impact on competition and potential cost savings for taxpayers.

How does the awarded price of $23.2 million compare to similar physical fitness center construction projects by the Department of Defense?

Directly comparing the $23.2 million cost of this physical fitness center at Fort Sill, OK, to similar DoD projects is challenging without detailed scope, size (square footage), and amenity comparisons. Construction costs vary significantly based on location, material costs, labor rates, and the complexity of the facility's design and features. However, for context, large-scale military construction projects, including barracks, training facilities, and recreational centers, can range from tens to hundreds of millions of dollars. A $23.2 million project for a fitness center suggests a substantial facility. To perform a robust benchmark, one would need to analyze contracts for fitness centers of comparable size and features awarded around the same period (2012-2014) in similar geographic regions or military installations.

What are the key risks associated with a 707-day construction timeline for a physical fitness center?

A 707-day (approximately 23-month) construction timeline for a physical fitness center presents several risks. Firstly, there's an increased risk of cost escalation due to inflation in material and labor prices over the extended period, even with a firm fixed-price contract, if unforeseen contract modifications arise. Secondly, weather-related delays or unforeseen site conditions (e.g., soil issues, underground utilities) can significantly impact the schedule. Thirdly, the prolonged duration increases the chance of contractor performance issues or changes in project management personnel. Finally, the longer the project takes, the longer the military personnel are without the fully operational facility, potentially impacting morale and readiness, which represents a non-monetary risk to the government.

What does the 'FIRM FIXED PRICE' contract type imply about cost control and contractor risk?

A 'FIRM FIXED PRICE' (FFP) contract type implies that the contractor, Grahams Construction Inc., agreed to a set price for completing the work as defined in the contract. This shifts the primary cost risk to the contractor. If the contractor's costs exceed the agreed-upon price due to poor estimating, inefficiencies, or rising material costs, the contractor absorbs those losses. Conversely, if the contractor completes the project under budget, they retain the profit. For the government, FFP offers the highest degree of cost certainty, assuming the scope is well-defined and changes are minimal. It incentivizes the contractor to manage costs efficiently to maximize their profit margin.

How does the contract's geographic location in Oklahoma potentially influence its cost and execution?

The contract's location in Oklahoma (Fort Sill) influences its cost and execution primarily through regional economic factors. Labor costs for construction trades in Oklahoma may differ from those in higher cost-of-living areas, potentially impacting the bid price. Similarly, the availability and cost of construction materials sourced locally or transported to Oklahoma would affect the overall budget. Execution can be influenced by local climate patterns (e.g., severe weather risks in Oklahoma) and the established construction industry infrastructure within the state. The presence of a capable local or regional construction workforce and supply chain can facilitate smoother execution, while a lack thereof might introduce logistical challenges.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 35

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27278 ANDREW JACKSON HWY E STE D, DELCO, NC, 28436

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,189,051

Exercised Options: $23,189,051

Current Obligation: $23,189,051

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY11D0040

IDV Type: IDC

Timeline