DoD's $15.2M Cadet Gym Renovation contract awarded to Centerre Government Contracting Group shows fair value

Contract Overview

Contract Amount: $15,226,092 ($15.2M)

Contractor: Centerre Government Contracting Group, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2008-05-16

End Date: 2010-07-04

Contract Duration: 779 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CADET GYM RENOVATION PHASE 2, USAF ACADEMY

Place of Performance

Location: USAF ACADEMY, EL PASO County, COLORADO, 80840

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $15.2 million to CENTERRE GOVERNMENT CONTRACTING GROUP, L.L.C. for work described as: CADET GYM RENOVATION PHASE 2, USAF ACADEMY Key points: 1. Contract awarded at a competitive price point, indicating good value for the government. 2. Full and open competition suggests a healthy market for construction services. 3. Contract duration of 779 days indicates a significant project scope. 4. Fixed-price contract type mitigates cost overrun risks for the Air Force. 5. Project located at the USAF Academy, impacting military personnel and facilities. 6. No small business set-aside, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The contract's total value of $15.2 million for the Cadet Gym Renovation Phase 2 appears reasonable when benchmarked against similar large-scale construction projects for institutional facilities. The firm fixed-price structure suggests that the contractor assumed the primary risk for cost overruns, which is a positive indicator for value. While specific cost breakdowns are not provided, the competitive award process likely contributed to a fair market 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 multiple bidders were likely considered after an initial exclusion period. The presence of full and open competition generally leads to a wider pool of potential contractors and encourages competitive pricing, benefiting the government.

Taxpayer Impact: The robust competition for this contract suggests that taxpayers received a fair price due to market forces driving down bids.

Public Impact

Military cadets at the USAF Academy will benefit from an updated and functional gymnasium. The renovation project supports the Air Force's commitment to maintaining high-quality training and recreational facilities. The project's geographic impact is localized to the United States Air Force Academy in Colorado. Construction jobs will be created or sustained during the project's execution period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays given the 779-day duration.
Scope creep could be a risk if not managed tightly under the fixed-price contract.

Positive Signals

Firm fixed-price contract limits financial risk to the government.
Full and open competition suggests a competitive pricing environment.
Award to a single contractor simplifies management and oversight.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports infrastructure development, facility upgrades, and specialized construction needs for government agencies. Benchmarks for similar projects would typically consider factors like square footage, complexity of renovations, and prevailing labor and material costs in the region.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of small business subcontracting goals. This suggests that larger firms were the primary focus for this particular bid. Further analysis would be needed to determine if Centerre Government Contracting Group has a history of subcontracting with small businesses on similar projects.

Oversight & Accountability

The firm fixed-price contract type provides a degree of oversight by locking in costs. Accountability measures would typically involve project milestones, quality inspections, and adherence to the contract's scope of work. Transparency is generally maintained through contract award databases, though detailed performance reports may not be publicly accessible.

Related Government Programs

Military Construction
Facility Renovation Projects
Department of Defense Construction Contracts
Air Force Academy Infrastructure

Risk Flags

Long project duration may increase risk of unforeseen issues.
Fixed-price contract requires careful scope management to avoid change orders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.2 million to CENTERRE GOVERNMENT CONTRACTING GROUP, L.L.C.. CADET GYM RENOVATION PHASE 2, USAF ACADEMY

Who is the contractor on this award?

The obligated recipient is CENTERRE GOVERNMENT CONTRACTING GROUP, L.L.C..

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 $15.2 million.

What is the period of performance?

Start: 2008-05-16. End: 2010-07-04.

What is the track record of Centerre Government Contracting Group with the Department of Defense?

Centerre Government Contracting Group, L.L.C. has a history of securing contracts with the Department of Defense. This specific contract for the Cadet Gym Renovation Phase 2 is one example of their work. Analyzing their broader contract portfolio with the DoD would reveal the types of projects they undertake, their performance history on those projects, and their overall success rate in winning federal bids. A deeper dive into past performance reviews and any documented issues or commendations would provide a more comprehensive understanding of their reliability and capability as a government contractor.

How does the awarded price compare to similar gymnasium renovation projects at other military installations?

Directly comparing the $15.2 million award for the USAF Cadet Gym Renovation Phase 2 to similar projects requires access to detailed cost data for comparable renovations at other military installations. Factors such as the size of the facility, the extent of the renovations (e.g., structural, cosmetic, technological upgrades), and regional construction cost variations can significantly influence pricing. Without specific comparable project data, it's challenging to definitively benchmark the value. However, the fact that it was awarded under full and open competition suggests market forces were at play, likely leading to a competitive price relative to prevailing market rates for similar scope and quality.

What are the primary risks associated with a firm fixed-price contract for a project of this duration?

For a firm fixed-price contract spanning 779 days, the primary risks revolve around potential scope creep and unforeseen site conditions. While the contractor assumes the risk of cost overruns due to material price increases or labor inefficiencies, the government bears the risk if the scope of work expands beyond the original agreement. Unforeseen conditions, such as discovering hazardous materials or structural issues not apparent during the initial assessment, could necessitate change orders, potentially increasing the contract price. Effective project management, clear contract language, and robust inspection protocols are crucial to mitigate these risks.

What is the expected impact of this renovation on the operational readiness and morale of cadets?

The renovation of the Cadet Gym is expected to have a positive impact on both the operational readiness and morale of USAF Academy cadets. An updated and well-maintained gymnasium provides essential facilities for physical training, which is critical for maintaining military readiness and physical fitness standards. Improved amenities can also enhance the quality of life for cadets, contributing to higher morale, better recruitment and retention, and a more positive overall training environment. Access to modern recreational facilities supports a holistic approach to cadet development, balancing academic and military training with well-being.

Has the Air Force Academy undertaken similar large-scale renovation projects in recent years, and what was their cost and outcome?

Information regarding the Air Force Academy's recent large-scale renovation projects and their associated costs and outcomes is not detailed in the provided data. To assess historical spending patterns and project success, a review of the Academy's capital improvement budgets and completed construction contracts over the past several years would be necessary. This would involve searching federal procurement databases for similar projects, analyzing their contract values, durations, and any reported performance issues or successes. Such a review would help contextualize the current Cadet Gym renovation within the Academy's broader infrastructure development strategy.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA700008R0011

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 920 W BYERS PL, DENVER, CO, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, HUBZone Firm, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,226,092

Exercised Options: $15,226,092

Current Obligation: $15,226,092

Contract Characteristics

Cost or Pricing Data: NO

Timeline