DoD awards $19.4M for Joint Base Andrews kennel construction, with City Construction, LLC securing the definitive contract

Contract Overview

Contract Amount: $19,384,083 ($19.4M)

Contractor: City Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-16

End Date: 2024-09-30

Contract Duration: 745 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MILITARY WORKING DOG KENNEL, JOINT BASE ANDREWS, CAMP SPRINGS, MD

Place of Performance

Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $19.4 million to CITY CONSTRUCTION, LLC for work described as: MILITARY WORKING DOG KENNEL, JOINT BASE ANDREWS, CAMP SPRINGS, MD Key points: 1. The contract value represents a significant investment in military infrastructure at Joint Base Andrews. 2. The firm-fixed-price structure aims to provide cost certainty for the government. 3. The duration of the contract (745 days) suggests a substantial construction project. 4. The award was made under full and open competition, indicating a broad search for qualified bidders. 5. The project falls under the Commercial and Institutional Building Construction NAICS code, a common category for facility development. 6. The contract's completion date extends into late 2024, aligning with typical construction project timelines.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed project specifications and comparable construction costs in the Maryland region. However, the $19.4 million award for a military working dog kennel suggests a substantial facility. The firm-fixed-price contract type provides some cost control, but the final value is fixed regardless of actual costs incurred by the contractor. Further analysis would require comparing the scope and scale of this kennel to similar military or commercial construction projects to assess true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of two bidders, as indicated by the 'no' field, suggests a moderate level of competition for this project. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs through competitive bidding.

Public Impact

Military working dogs and their handlers at Joint Base Andrews will benefit from improved and potentially expanded kennel facilities. The construction project will deliver a specialized facility designed to meet the needs of military working dogs. The geographic impact is concentrated at Joint Base Andrews in Camp Springs, Maryland. The construction activities will likely create temporary employment opportunities for skilled trades and laborers in the Maryland region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price contract.
The limited number of bidders (2) may have reduced the competitive pressure on pricing.
Ensuring the final facility meets all specific operational and welfare requirements for the working dogs.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential contractors.
Firm-fixed-price contract provides budget certainty for the government.
The project addresses a specific infrastructure need for military working dog operations.

Sector Analysis

The construction sector is a significant area of federal spending, encompassing a wide range of projects from infrastructure development to facility maintenance. This contract for a military working dog kennel falls under the broader category of commercial and institutional building construction. Federal spending in this sector is often driven by the need to maintain and upgrade existing military bases and government facilities, as well as construct new ones. Comparable spending benchmarks would involve analyzing other construction contracts for specialized facilities on military installations.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. There is no explicit information provided regarding subcontracting plans for small businesses. Without this data, it is difficult to assess the direct impact on the small business ecosystem for this particular contract, though the prime contractor, City Construction, LLC, would need to be evaluated for its own small business utilization history.

Oversight & Accountability

Oversight for this definitive contract would typically fall under the purview of the Department of the Navy, which awarded the contract on behalf of the Department of Defense. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work for the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed project oversight and inspection reports may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Base Infrastructure Projects
Department of Defense Construction Contracts
Animal Facility Construction
Federal Building and Facility Construction

Risk Flags

Potential for cost escalation due to long contract duration.
Limited competition may impact price discovery.
Contractor performance history needs thorough vetting.
Scope definition clarity for firm-fixed-price contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to CITY CONSTRUCTION, LLC. MILITARY WORKING DOG KENNEL, JOINT BASE ANDREWS, CAMP SPRINGS, MD

Who is the contractor on this award?

The obligated recipient is CITY CONSTRUCTION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2022-09-16. End: 2024-09-30.

What is the track record of City Construction, LLC in performing federal construction contracts, particularly those of similar size and scope?

Assessing the track record of City Construction, LLC requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. For a $19.4 million definitive contract involving specialized kennel construction, it would be important to see if they have successfully managed projects of comparable value and complexity, especially those with firm-fixed-price terms. A history of timely completion, adherence to budget, and quality delivery on similar projects would indicate a lower performance risk for this current contract. Conversely, a pattern of delays, cost overruns, or quality issues on prior federal work would raise concerns about their capacity to execute this project successfully.

How does the awarded price of $19.4 million compare to industry benchmarks for constructing military working dog kennels of similar size and specifications?

Directly comparing the $19.4 million award to industry benchmarks for military working dog kennels is challenging without specific details on the facility's size, features, and the prevailing construction costs in the Camp Springs, Maryland area. However, the cost per square foot or per kennel unit can be a useful metric if such data is available. Generally, specialized facilities like kennels, especially those designed for military working animals, can incur higher costs due to specific requirements for climate control, security, sanitation, and durability. To benchmark effectively, one would need to identify comparable projects (e.g., other military kennel constructions, high-end veterinary clinics, or specialized animal housing facilities) and analyze their construction costs relative to their scope. The firm-fixed-price nature of this contract suggests the government sought a defined cost, but the value is ultimately determined by the quality and suitability of the delivered facility against the price paid.

What are the primary risk indicators associated with this contract, considering its type, duration, and the contractor's history?

The primary risk indicators for this contract include the firm-fixed-price (FFP) nature, which shifts cost overrun risk to the contractor but could lead to potential quality compromises if the contractor seeks to minimize expenses. The contract duration of 745 days (over two years) increases the risk of unforeseen issues like material price fluctuations, labor availability challenges, or changes in regulatory requirements. While awarded under full and open competition, the low number of bidders (two) might suggest limited market interest or contractor capacity, potentially increasing the risk of contractor default or performance issues. A thorough risk assessment would also scrutinize City Construction, LLC's past performance data, looking for any red flags such as past defaults, significant disputes, or a history of subpar quality on similar federal projects. The specific nature of constructing a kennel also introduces risks related to specialized design, environmental controls, and animal welfare compliance.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific military infrastructure project?

The firm-fixed-price (FFP) contract type is generally considered effective in controlling costs for projects with well-defined scopes, such as the construction of a military working dog kennel. It provides budget certainty for the government by establishing a ceiling price, incentivizing the contractor to manage costs efficiently to maximize profit. This can lead to good value for money if the initial price accurately reflects the work required and the contractor is capable and motivated to perform. However, the effectiveness can be diminished if the scope is not perfectly defined upfront, leading to change orders, or if the contractor cuts corners on quality to meet the fixed price. For a long-duration project like this, the risk of unforeseen cost increases is borne by the contractor, which might be factored into the initial bid price, potentially making it higher than a cost-reimbursable contract might have been if costs were lower than anticipated. Therefore, while FFP offers cost certainty, value for money also depends on the accuracy of the initial estimate and the contractor's execution.

What are the historical spending patterns for military working dog kennel construction or similar animal facility projects within the Department of Defense?

Analyzing historical spending patterns for military working dog kennel construction or similar animal facility projects within the Department of Defense (DoD) would involve examining contract databases over several fiscal years. This would reveal trends in contract values, the number of awards, typical contract types used (e.g., FFP, cost-plus), and the average duration and cost per project. Understanding these patterns can help contextualize the current $19.4 million award for Joint Base Andrews. For instance, if historical data shows similar projects typically cost between $15-20 million, this award would appear within the expected range. Conversely, if it's significantly higher or lower, it warrants further investigation into the specific scope, location, or market conditions. Such analysis also helps identify agencies or bases that frequently procure these types of facilities and the contractors most often awarded these contracts, providing insights into market dynamics and potential competition levels.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008021R1178

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1312 DECATUR ST NW, WASHINGTON, DC, 20011

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,604,768

Exercised Options: $19,384,083

Current Obligation: $19,384,083

Actual Outlays: $4,423,912

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline