DOD's $15M Hazmat Facility Construction Contract Awarded to The Christman Company

Contract Overview

Contract Amount: $14,967,159 ($15.0M)

Contractor: Christman Company, the

Awarding Agency: Department of Defense

Start Date: 2009-09-25

End Date: 2012-05-11

Contract Duration: 959 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN - HAZMAT RESPONSE FACILITY

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to CHRISTMAN COMPANY, THE for work described as: DESIGN - HAZMAT RESPONSE FACILITY Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The fixed-price contract type aims to control costs for the government. 3. The project duration of 959 days indicates a significant construction undertaking. 4. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 5. The contract was awarded by Washington Headquarters Services, a component of the Department of Defense. 6. The project is located in Virginia, impacting the local construction sector.

Value Assessment

Rating: fair

The contract value of $14.97 million for a hazmat response facility appears to be within a reasonable range for a project of this scale and complexity. Without specific benchmarks for hazmat facility construction in the Washington D.C. area, a direct comparison is difficult. However, the firm-fixed-price structure suggests an effort to lock in costs. Further analysis would require comparing the cost per square foot or per specialized feature against similar government or private sector projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 12 bids suggests a healthy level of competition for this construction project. This broad competition is generally favorable for price discovery and potentially leads to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process like this one helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of Defense personnel who will utilize the new hazmat response facility. The facility will enhance the Department of Defense's capabilities for handling hazardous materials. The project's geographic impact is concentrated in Virginia, providing construction jobs and economic activity in the region. The construction phase will likely involve a workforce of skilled tradespeople and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price fluctuations occur, despite the fixed-price contract.
Ensuring timely completion within the 959-day duration is critical to avoid project delays and associated costs.
Adequate oversight is needed to ensure the facility meets all safety and environmental regulations for hazmat handling.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
Full and open competition with 12 bidders suggests a robust and competitive procurement process.
The project addresses a critical need for specialized facilities within the Department of Defense.

Sector Analysis

The construction sector, particularly commercial and institutional building, is a significant area of federal spending. This contract falls under the broader category of infrastructure development and specialized facility construction. Federal spending in this sector often involves complex projects requiring specialized expertise, as demonstrated by the need for a hazmat response facility. Comparable spending benchmarks would typically look at cost per square foot for similar government-built facilities or specialized industrial buildings.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The award to The Christman Company, a large construction firm, suggests that small businesses may have participated as subcontractors. Further investigation into the subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by Washington Headquarters Services, with potential involvement from the Department of Defense's Inspector General. Accountability measures would be embedded in the contract terms, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency is generally maintained through contract award databases and public reporting mechanisms.

Related Government Programs

Department of Defense Facilities Construction
Hazardous Materials Management Facilities
Commercial Building Construction Contracts
Washington Headquarters Services Contracts

Risk Flags

Potential for cost overruns if unforeseen site conditions or material price fluctuations occur.
Risk of project delays impacting operational readiness.
Ensuring compliance with stringent environmental and safety regulations for hazmat facilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to CHRISTMAN COMPANY, THE. DESIGN - HAZMAT RESPONSE FACILITY

Who is the contractor on this award?

The obligated recipient is CHRISTMAN COMPANY, THE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2009-09-25. End: 2012-05-11.

What is the track record of The Christman Company in completing similar government construction projects on time and within budget?

The Christman Company has a substantial history of completing large-scale construction projects, including those for government and institutional clients. While specific data on all past projects' performance against budget and schedule is not detailed here, their extensive portfolio suggests experience in managing complex builds. For federal contracts, performance is typically tracked through contract administration and past performance evaluations. A review of their award history and any associated performance ratings within federal procurement databases would provide a more granular understanding of their track record. Generally, large firms like Christman are accustomed to the rigorous oversight and reporting requirements of government contracts, but individual project success can vary based on scope, complexity, and unforeseen challenges.

How does the awarded amount of $14.97 million compare to the estimated cost or budget for this hazmat response facility?

The provided data does not include the estimated cost or the initial budget for the hazmat response facility. The awarded amount of $14.97 million represents the final negotiated price. To assess value for money, this figure would need to be compared against the government's independent government cost estimate (IGCE) or the bids received from other competitors. If the awarded amount was significantly lower than the IGCE and competitive bids, it could indicate strong value. Conversely, if it was close to or exceeded the IGCE, further scrutiny might be warranted. Without the pre-award cost estimates, it's difficult to definitively state if the $14.97 million represents a favorable or unfavorable outcome relative to expectations.

What are the key risk indicators associated with constructing a hazmat response facility, and how were they addressed in this contract?

Key risk indicators for constructing a hazmat response facility include specialized design requirements, stringent safety and environmental compliance, potential for hazardous material discovery during excavation, and the need for highly skilled labor. The firm-fixed-price contract structure helps mitigate financial risks for the government by setting a ceiling on costs. The full and open competition with 12 bidders suggests that multiple contractors assessed these risks and submitted proposals, indicating a market understanding of the project's demands. Specific risk mitigation strategies would be detailed in the contract's statement of work and performance specifications, addressing aspects like material handling protocols, waste disposal, and emergency preparedness during construction. The duration of 959 days also suggests a phased approach to manage complexity and potential risks.

What is the historical spending pattern for similar hazmat response facilities or specialized construction projects by the Department of Defense?

Historical spending patterns for similar hazmat response facilities or specialized construction projects by the Department of Defense can vary widely based on location, size, specific capabilities required, and the prevailing economic conditions at the time of procurement. The Department of Defense, as a major federal agency, regularly invests in infrastructure, including specialized facilities. Analyzing past contracts for similar projects would involve looking at the number of bids received, the range of bid prices, the final awarded values, and the duration of construction. This contract's value of approximately $15 million for a hazmat facility provides one data point. Broader analysis would require aggregating data on numerous similar projects over several fiscal years to identify trends in cost per square foot, average contract duration, and the typical level of competition.

How does the number of bidders (12) on this contract reflect the overall health and competitiveness of the construction market for specialized government facilities?

Receiving 12 bids for a specialized construction project like a hazmat response facility generally indicates a healthy level of competition within the relevant market segment. A higher number of bidders typically suggests that multiple firms possess the capability and interest to undertake such work, which can lead to more competitive pricing and better value for the government. Conversely, a low number of bidders (e.g., one or two) might signal market consolidation, insufficient outreach, or a lack of qualified contractors, potentially leading to higher costs. The 12 bids in this instance suggest that the market for specialized government construction, at least in this region and for this type of facility, is robust enough to attract significant interest.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT OF RESTORATION ACTIVITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003409R3010

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 208 N CAPITAL, LANSING, MI, 07

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,967,159

Exercised Options: $14,967,159

Current Obligation: $14,967,159

Contract Characteristics

Cost or Pricing Data: NO

Timeline