Navy awards $21.5M industrial building construction contract to W. M. Schlosser Co., Inc

Contract Overview

Contract Amount: $21,547,658 ($21.5M)

Contractor: W. M. Schlosser CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2006-09-21

End Date: 2008-12-22

Contract Duration: 823 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: BID ITEM 0001

Place of Performance

Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to W. M. SCHLOSSER CO., INC. for work described as: BID ITEM 0001 Key points: 1. Contract awarded for industrial building construction, indicating a need for specialized facilities. 2. The contract duration of 823 days suggests a significant construction project. 3. Fixed-price contract type aims to control costs for the government. 4. Awarded by the Department of the Navy, highlighting defense infrastructure needs. 5. The contract was awarded under full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: fair

The total award amount of $21.5 million for industrial building construction appears to be within a reasonable range for a project of this scope and duration. Without specific details on the building's size, complexity, and location, a precise benchmark is difficult. However, comparing it to similar large-scale industrial construction projects for the Department of Defense would provide a clearer picture of value for money. The fixed-price contract type suggests an effort to manage cost overruns, but the final cost will depend on the execution and any potential change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The fact that it was competed suggests that the Navy sought to leverage market competition to obtain the best value. The number of bidders is not specified, but a full and open competition generally leads to a more robust price discovery process compared to sole-source or limited solicitations.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that government funds are used efficiently by selecting the most cost-effective solution.

Public Impact

The primary beneficiaries are the Department of the Navy, which will receive a new or improved industrial building to support its operations. The services delivered include the construction of an industrial building, likely involving site preparation, structural work, and installation of necessary utilities and equipment. The geographic impact is specific to the location of the awarded contract in North Carolina. Workforce implications include job creation for construction workers, engineers, project managers, and related trades in the North Carolina region during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for all project contingencies.
Risk of delays in construction impacting the Navy's operational readiness.
Quality control during construction is crucial to ensure the building meets all specifications and safety standards.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield good value.
Fixed-price contract type provides cost certainty for the government.
The contractor, W. M. Schlosser Co., Inc., has experience in construction projects, implying a level of capability.

Sector Analysis

This contract falls within the construction sector, specifically industrial building construction. The market for large-scale government construction projects is often characterized by a mix of large prime contractors and specialized subcontractors. Government spending in this area is driven by the need to maintain and upgrade critical infrastructure, including facilities for defense, research, and operations. Benchmarks for industrial building construction costs can vary widely based on size, materials, and specific functional requirements, but projects in the millions of dollars are common for significant defense facilities.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (sb: false). While the prime contractor is not specified as a small business, there may be opportunities for small businesses to participate as subcontractors on this project. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific needs of the construction project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Navy. Quality assurance personnel would likely monitor construction progress and adherence to specifications. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Construction
Naval Base Infrastructure Projects
Industrial Facility Development
Fixed-Price Construction Contracts

Risk Flags

Potential for cost overruns
Risk of construction delays
Quality control concerns
Contractor performance history

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to W. M. SCHLOSSER CO., INC.. BID ITEM 0001

Who is the contractor on this award?

The obligated recipient is W. M. SCHLOSSER CO., INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2006-09-21. End: 2008-12-22.

What is the track record of W. M. Schlosser Co., Inc. with federal contracts, particularly in construction?

W. M. Schlosser Co., Inc. has a history of federal contracting, primarily within the construction domain. Analyzing their past performance on similar projects, especially those awarded by the Department of Defense or other federal agencies, would provide insight into their reliability, quality of work, and ability to manage projects within budget and schedule. A review of their contract history might reveal patterns in project types, award values, and any instances of contract disputes or performance issues. Understanding their experience with fixed-price contracts and large-scale industrial building construction is particularly relevant for assessing their suitability for this specific award.

How does the awarded amount of $21.5 million compare to similar industrial building construction projects for the Navy or DoD?

To benchmark the value of this $21.5 million contract, it's essential to compare it against similar industrial building construction projects undertaken by the Navy or the broader Department of Defense. Key comparison points would include the square footage of the building, the complexity of its intended use (e.g., manufacturing, storage, maintenance), the materials used, and the duration of the construction period. If comparable projects in North Carolina or similar geographic regions have been awarded recently, their contract values, adjusted for inflation and scope differences, can serve as a valuable reference. A significant deviation from established benchmarks, either higher or lower, would warrant further investigation into the specific project requirements and market conditions.

What are the primary risks associated with a fixed-price contract for a large-scale construction project like this?

Fixed-price contracts, while offering cost certainty, carry inherent risks for both the government and the contractor, especially on large-scale construction projects. For the government, the primary risk is that the contractor may cut corners on quality or materials to maintain profitability if costs escalate unexpectedly, or if the initial price was set too low. Conversely, the contractor bears the risk of cost overruns due to unforeseen site conditions, material price increases, labor shortages, or design changes. Effective risk mitigation involves a well-defined scope of work, robust contingency planning within the contract, and diligent government oversight to ensure quality and adherence to specifications throughout the construction lifecycle. Change order management is also critical to prevent scope creep from inflating costs.

What is the expected impact of this contract on the local economy in North Carolina?

This $21.5 million industrial building construction contract is expected to have a positive impact on the local economy in North Carolina. The project will likely create numerous jobs for skilled and unskilled labor in the construction trades, including carpenters, electricians, plumbers, heavy equipment operators, and project managers. Beyond direct employment, the contract will stimulate economic activity through the procurement of local materials, equipment rentals, and services from businesses in the supply chain. Furthermore, increased economic activity can lead to greater demand for local services such as food, transportation, and lodging for workers. The long-term impact may also include enhanced operational capabilities for the Navy in the region.

How does the duration of 823 days (approximately 2.25 years) influence the assessment of this contract's value and risk?

A contract duration of 823 days for industrial building construction signifies a substantial project requiring extensive planning, execution, and oversight. This extended timeline increases the potential for risks such as material price volatility, labor availability fluctuations, and the need for sustained project management. From a value perspective, a longer duration might imply a more complex or larger-scale undertaking, which could justify a higher total cost. However, it also necessitates careful monitoring to ensure the project remains on schedule and within budget, as prolonged projects can be more susceptible to scope creep and unforeseen challenges. The government must ensure that the extended timeline is justified by the project's complexity and not indicative of potential inefficiencies or delays.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial 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: N4008506R4042

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2400 51ST PL, HYATTSVILLE, MD, 20781

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,612,658

Exercised Options: $21,547,658

Current Obligation: $21,547,658

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline