Navy Awards $12.6M Jet Engine Test Cell Contract to W. M. Schlosser Co., Inc
Contract Overview
Contract Amount: $12,559,978 ($12.6M)
Contractor: W. M. Schlosser CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2008-07-15
End Date: 2011-01-21
Contract Duration: 920 days
Daily Burn Rate: $13.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BASE BID-P670 TURBO JET ENGINE TEST CELL - AWARD
Place of Performance
Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28542
Plain-Language Summary
Department of Defense obligated $12.6 million to W. M. SCHLOSSER CO., INC. for work described as: BASE BID-P670 TURBO JET ENGINE TEST CELL - AWARD Key points: 1. The contract is for a jet engine test cell, a specialized facility crucial for defense readiness. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The firm fixed-price contract type aims to control costs for the government. 4. The project duration is 920 days, indicating a significant construction timeline. 5. The base bid was $13.65M, with the award amount being $12.56M, showing potential cost savings.
Value Assessment
Rating: good
The award amount of $12.56M is below the base bid of $13.65M, indicating potential cost savings or favorable negotiation. Benchmarking against similar specialized construction projects would provide further insight into pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and allows any qualified vendor to bid. This method is expected to yield fair market value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the required specialized construction.
Public Impact
Enhances Department of the Navy's maintenance and testing capabilities for jet engines. Supports military readiness by ensuring operational status of aircraft. Potential for job creation in the construction sector within North Carolina.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 920 days may indicate potential for delays.
- Lack of small business participation noted (sb: false).
Positive Signals
- Awarded under full and open competition.
- Award amount is less than the base bid.
- Firm fixed-price contract type.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, a sector vital for infrastructure development. Defense construction projects often involve specialized requirements and can command higher costs due to complexity and security needs.
Small Business Impact
The data indicates no specific small business participation in this contract (sb: false). Further analysis would be needed to determine if opportunities were missed or if the nature of the work precluded small business involvement.
Oversight & Accountability
The award was made by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for its procurement processes. The use of full and open competition is a positive indicator of oversight.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long project duration (920 days).
- No noted small business participation.
- Specialized construction requirements may lead to cost overruns if not managed tightly.
- Potential for scope creep given the extended timeline.
Tags
commercial-and-institutional-building-co, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.6 million to W. M. SCHLOSSER CO., INC.. BASE BID-P670 TURBO JET ENGINE TEST CELL - AWARD
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 $12.6 million.
What is the period of performance?
Start: 2008-07-15. End: 2011-01-21.
What specific technical requirements of the test cell influenced the construction complexity and cost?
The specific technical requirements for a jet engine test cell likely involve advanced acoustic dampening, specialized ventilation systems to handle exhaust gases, robust structural integrity to withstand engine thrust, and precise environmental controls. These factors contribute significantly to the complexity and cost of construction, often necessitating specialized engineering and materials beyond standard building practices.
What are the potential risks associated with a 920-day construction timeline for a military facility?
A 920-day timeline presents risks of cost escalation due to inflation, potential for design changes driven by evolving military technology or requirements, and delays caused by unforeseen site conditions or supply chain disruptions. Furthermore, extended timelines can impact the operational readiness the facility is intended to support, creating a gap between need and availability.
How does the firm fixed-price contract type mitigate risks for the government in this construction project?
The firm fixed-price (FFP) contract type is designed to transfer most of the risk to the contractor. The government agrees to pay a set price, regardless of the contractor's actual costs. This incentivizes the contractor to manage costs efficiently and complete the project within budget, providing cost certainty for the government and protecting against cost overruns.
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: N4008508R1410
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2400 51ST PL, HYATTSVILLE, MD, 20781
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,559,978
Exercised Options: $12,559,978
Current Obligation: $12,559,978
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-07-15
Current End Date: 2011-01-21
Potential End Date: 2011-01-21 00:00:00
Last Modified: 2021-07-29
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