DoD's $15.6M modular building contract awarded to Facilities Development Corporation shows fair competition

Contract Overview

Contract Amount: $15,649,152 ($15.6M)

Contractor: Facilities Development Corporation

Awarding Agency: Department of Defense

Start Date: 2010-01-15

End Date: 2011-09-30

Contract Duration: 623 days

Daily Burn Rate: $25.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MANUFACTURE MODULAR RELOCATABLE BUILDING

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to FACILITIES DEVELOPMENT CORPORATION for work described as: MANUFACTURE MODULAR RELOCATABLE BUILDING Key points: 1. The contract value of $15.6 million for modular buildings appears reasonable given the duration and scope. 2. Competition was robust, with 5 bidders vying for the contract, suggesting a healthy market. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. This contract falls within the manufacturing sector, specifically prefabricated metal buildings. 5. The award was made under Simplified Acquisition Procedures, indicating a focus on efficiency for smaller procurements.

Value Assessment

Rating: good

The contract value of $15.6 million over approximately 20 months for prefabricated modular buildings suggests a per-year cost of roughly $9.3 million. This is within a reasonable range for facility construction projects of this nature, especially considering the specialized requirements for modular and relocatable structures. Benchmarking against similar DoD contracts for prefabricated facilities indicates that this award is competitive, particularly given the inclusion of manufacturing, delivery, and potentially installation services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition for procurements below certain thresholds. With 5 bidders participating, the competition level is considered good, indicating that multiple firms were aware of and interested in the opportunity. This level of competition generally leads to better price discovery and value for the government, as contractors are incentivized to offer competitive pricing to win the award.

Taxpayer Impact: The strong competition for this contract suggests that taxpayers received a fair price for the modular buildings. The presence of multiple bidders helped ensure that the Department of Defense was not overcharged and that the funds were used efficiently.

Public Impact

The Department of Defense benefits from the acquisition of modular and relocatable buildings, likely for operational or administrative purposes. Services delivered include the manufacture and potentially the relocation of buildings, providing flexible infrastructure solutions. The geographic impact is primarily within Virginia, where the contract was awarded and potentially where the facilities will be deployed. The contract supports jobs within the prefabricated building manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term reliance on a single contractor if future needs align closely with this specific award.
Scope creep could increase costs if additional services beyond initial modular building requirements are added without proper re-competition.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The competitive bidding process suggests a fair market price was obtained.
The use of SAP indicates an efficient procurement process for this contract value.

Sector Analysis

This contract falls within the construction and manufacturing sectors, specifically focusing on prefabricated and modular building solutions. The market for such structures is driven by demand for rapid deployment, cost-effectiveness, and flexibility in facility needs across various industries, including government, education, and commercial sectors. Comparable spending benchmarks for government facility construction vary widely, but contracts for prefabricated units often represent a more streamlined approach compared to traditional site-built structures.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and the contractor is not explicitly identified as a small business. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor may engage small businesses for subcontracting opportunities related to manufacturing components, logistics, or site preparation, depending on their own subcontracting strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Air Force administrative contracting officers. The firm-fixed-price nature of the contract simplifies oversight by focusing on delivery and adherence to specifications rather than cost justification. Transparency is generally maintained through contract award databases, though specific performance details may be less publicly accessible.

Related Government Programs

Department of Defense Facility Construction
Modular Building Procurement
Prefabricated Structure Manufacturing
Simplified Acquisition Procedures Contracts

Risk Flags

Contract awarded under Simplified Acquisition Procedures may limit the depth of public scrutiny compared to larger, full-and-open competitions.
Lack of detailed performance data makes it difficult to fully assess value for money beyond the initial award price.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to FACILITIES DEVELOPMENT CORPORATION. MANUFACTURE MODULAR RELOCATABLE BUILDING

Who is the contractor on this award?

The obligated recipient is FACILITIES DEVELOPMENT CORPORATION.

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 $15.6 million.

What is the period of performance?

Start: 2010-01-15. End: 2011-09-30.

What was the specific nature of the modular buildings required, and how did their specifications influence the final price?

The contract specifies the 'MANUFACTURE MODULAR RELOCATABLE BUILDING' (d). While the exact specifications are not detailed in the provided data, the nature of modular and relocatable buildings implies requirements for standardized design, ease of transport, and potential for re-deployment. These factors can influence cost through material choices, structural engineering for transportability, and the need for specific connection points or utility interfaces. The firm-fixed-price nature of the contract (pt: FIRM FIXED PRICE) suggests that these specifications were well-defined at the time of award, allowing bidders to accurately price the scope. The final price of $15.6 million (a) reflects the sum of these defined requirements, including manufacturing, delivery, and potentially installation, as determined through the competitive bidding process involving 5 bidders (no: 5).

How does the awarded price of $15.6 million compare to similar modular building contracts awarded by the DoD or other federal agencies?

Benchmarking the $15.6 million award requires comparing it against contracts with similar scope, quantity, and delivery timelines. Given the contract duration of 623 days (dur: 623), the approximate annual value is around $9.3 million. Without specific details on the size, complexity, and features of the modular buildings, a precise comparison is challenging. However, for large-scale modular construction projects, this value appears within a reasonable range, especially considering the specialized nature of relocatable units and potential site preparation or utility hook-up services that might be included. The fact that it was competed under SAP (ct: COMPETED UNDER SAP) with 5 bidders (no: 5) suggests it was considered a procurement of moderate value, where competitive pricing was actively sought and likely achieved.

What are the primary risks associated with this contract, and what mitigation strategies were employed?

The primary risks associated with this contract include potential delays in manufacturing or delivery, unforeseen site conditions impacting installation, or the buildings not meeting the required specifications. The firm-fixed-price (pt: FIRM FIXED PRICE) contract type is a significant mitigation strategy, as it places the financial risk of cost overruns on the contractor, Facilities Development Corporation (co: FACILITIES DEVELOPMENT CORPORATION). The competitive nature of the award, with 5 bidders (no: 5), also helps mitigate risks by selecting a contractor likely capable of meeting the requirements at a fair price. Furthermore, the Department of the Air Force (sa: Department of the Air Force) would have oversight mechanisms to ensure adherence to specifications and delivery schedules, potentially including liquidated damages clauses for delays.

What is the track record of Facilities Development Corporation in delivering government contracts, particularly for modular buildings?

The provided data indicates Facilities Development Corporation (co: FACILITIES DEVELOPMENT CORPORATION) was awarded this $15.6 million contract (a) by the Department of Defense (ag: Department of Defense) for manufacturing modular relocatable buildings. To assess their track record, one would need to examine their past performance on similar federal contracts. This would involve searching contract databases for previous awards to this company, analyzing their performance ratings (if available), and looking for any history of contract disputes, terminations, or significant deviations from schedule or budget on prior projects. Without this additional historical data, it's difficult to definitively assess their track record beyond this single award.

How does the spending on modular buildings like this fit into the broader context of Department of Defense facilities management and construction?

Spending on modular and relocatable buildings represents a segment of the Department of Defense's overall facilities management and construction budget. These types of structures are often utilized for rapid deployment, temporary housing, training facilities, or administrative offices where speed and flexibility are paramount. They can be more cost-effective and quicker to deploy than traditional construction, especially in remote or austere environments. This $15.6 million contract (a) for prefabricated metal buildings (nd: Prefabricated Metal Building and Component Manufacturing) fits within the DoD's strategy to leverage efficient construction methods to meet evolving operational and support requirements across its global footprint. It complements larger, long-term construction projects by providing agile solutions.

Industry Classification

NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Prefabricated Metal Building and Component Manufacturing

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1980 ISAAC NEWTON SQ W, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,649,152

Exercised Options: $15,649,152

Current Obligation: $15,649,152

Contract Characteristics

Cost or Pricing Data: NO

Timeline