DoD's $10.87M contract for building construction awarded to REASOR BUILDING GROUP LLC, with 4 bidders

Contract Overview

Contract Amount: $10,868,114 ($10.9M)

Contractor: Reasor Building Group LLC

Awarding Agency: Department of Defense

Start Date: 2023-10-02

End Date: 2025-11-06

Contract Duration: 766 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: F35

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $10.9 million to REASOR BUILDING GROUP LLC for work described as: F35 Key points: 1. Value for money appears fair given the fixed-price nature and competitive bidding. 2. Competition dynamics show a healthy level of interest with 4 bidders. 3. Risk indicators are moderate, with a definitive contract type and fixed pricing. 4. Performance context is for building construction, a standard service. 5. Sector positioning is within Defense construction, a significant area of federal spending.

Value Assessment

Rating: fair

The contract's total value of $10.87 million for building construction is within a typical range for such projects. As a firm fixed-price contract, the pricing is established upfront, which can offer cost certainty. Benchmarking against similar construction contracts would require more detailed project specifications, but the presence of multiple bidders suggests a degree of market validation for the price.

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 opportunity was broadly advertised, but specific sources may have been excluded based on predefined criteria. With 4 bidders, the competition level suggests a reasonable market response, which generally aids in price discovery and can lead to more competitive pricing.

Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source award. The inclusion of multiple bidders helps ensure that the government is not overpaying for the construction services.

Public Impact

The Department of Defense benefits from the construction services provided. The contract delivers essential building construction, likely for operational facilities. The geographic impact is concentrated in Florida (FL), where the contractor is based. Workforce implications include employment opportunities for construction labor in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise in construction, despite fixed-price.
Dependence on contractor's ability to meet quality and timeline requirements.
Limited flexibility for scope changes once the definitive contract is in place.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Competitive bidding process suggests a reasonable market price was achieved.
Contract duration of over 700 days allows for structured project execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Federal spending in this sector supports infrastructure development and facility maintenance across various agencies. Comparable spending benchmarks would depend on the specific type and scale of the building project, but the $10.87 million value is substantial for a single contract.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. The prime contractor, REASOR BUILDING GROUP LLC, may still engage small businesses as subcontractors, but this is not a requirement of the contract itself.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant program officials within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract terms, requiring delivery of specified construction services. Transparency is facilitated by the public award data, though detailed project specifics and oversight reports may not be publicly accessible.

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

Contract awarded after exclusion of sources may warrant review of exclusion justification.
Definitive contract type requires careful monitoring for scope creep and quality adherence.
Fixed-price contracts can incentivize cost-cutting that may impact quality if not managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to REASOR BUILDING GROUP LLC. F35

Who is the contractor on this award?

The obligated recipient is REASOR BUILDING GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2023-10-02. End: 2025-11-06.

What is the track record of REASOR BUILDING GROUP LLC with federal contracts?

Information on REASOR BUILDING GROUP LLC's specific track record with federal contracts is not detailed in the provided data. However, the award of this $10.87 million contract by the Department of the Air Force suggests a level of qualification and capability deemed sufficient by the agency. Further investigation into the company's past performance, including any previous awards, contract history, and performance reviews, would be necessary for a comprehensive assessment. This could involve searching federal procurement databases and performance rating systems.

How does the value of this contract compare to similar building construction projects within the Department of Defense?

The $10.87 million value for this building construction contract is a significant but not extraordinary amount for federal projects. The Department of Defense undertakes numerous construction projects annually, ranging from smaller facility upgrades to large-scale new constructions. Without specific details on the scope, size, and complexity of the building being constructed under this contract, a precise comparison is difficult. However, it falls within a common range for substantial construction efforts, suggesting it is a moderately sized project within the DoD's vast portfolio.

What are the primary risks associated with this definitive contract type?

The primary risks associated with this definitive contract, awarded as a Firm Fixed Price (FFP), center on potential cost overruns for the contractor and limited flexibility for the government. If REASOR BUILDING GROUP LLC encounters unforeseen construction challenges, material cost increases, or labor shortages, they bear the financial burden of these overruns. For the government, the risk lies in the potential for the contractor to cut corners on quality or scope to maintain profitability, or the need for costly change orders if project requirements evolve significantly, which can negate the FFP's cost certainty.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method in ensuring value for money?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance broad competition with specific agency needs. By excluding certain sources, the agency might be targeting specific capabilities or ensuring compliance with particular regulations. When combined with a sufficient number of bidders (4 in this case), it can still foster price discovery and encourage competitive offers. However, the effectiveness in ensuring maximum value for money depends heavily on the justification for excluding sources and whether this exclusion inadvertently limits the competitive pool, potentially leading to higher prices than true full and open competition.

What are the historical spending patterns for building construction within the Department of the Air Force?

Historical spending patterns for building construction within the Department of the Air Force are substantial, reflecting the vast infrastructure needs of the service branch. The Air Force manages numerous bases and facilities globally, requiring continuous investment in new construction, renovation, and maintenance. Annual spending can run into billions of dollars across various contract types and scopes. This $10.87 million contract represents a single component of that larger, ongoing investment in maintaining and expanding its physical footprint.

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: TWO STEP

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7100 PLANTATION ROAD, PENSACOLA, FL, 32504

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,868,114

Exercised Options: $10,868,114

Current Obligation: $10,868,114

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline