DoD's $18.6M Camp Lejeune barracks contract awarded to R. N. Rouse & Co. in 2009, completed in 2012

Contract Overview

Contract Amount: $18,576,743 ($18.6M)

Contractor: R. N. Rouse & CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2009-01-15

End Date: 2012-08-16

Contract Duration: 1,309 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE BID, P1227 WOUNDED WARRIOR BATTALION BEQ, CAMP LEJEUNE, NORTH CAROLINA

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to R. N. ROUSE & CO., INC. for work described as: BASE BID, P1227 WOUNDED WARRIOR BATTALION BEQ, CAMP LEJEUNE, NORTH CAROLINA Key points: 1. The contract aimed to construct barracks for the Wounded Warrior Battalion at Camp Lejeune, North Carolina. 2. Awarded under a firm-fixed-price definitive contract, indicating a clear scope and price upfront. 3. The contract duration was 1309 days, suggesting a substantial construction project. 4. The base bid was $18.58 million, providing a clear initial cost benchmark. 5. The contract was awarded by the Department of the Navy, a major component of the DoD. 6. The project was located in North Carolina, impacting the local construction market.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of work and comparable construction projects in the same region and timeframe. The base bid of $18.58 million for barracks construction at a military installation provides a starting point for cost analysis. However, without data on the number of units, square footage, or specific amenities included, a precise value-for-money assessment is difficult. The firm-fixed-price nature suggests the government sought cost certainty, but potential for cost overruns or scope creep in long-term construction projects always exists.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 10 bids (implied by 'no': 12, and assuming 'no' refers to bidders) suggests a reasonably competitive environment for this construction project. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The fact that it was competed broadly is a positive sign for taxpayer value.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from the most competitive pricing available, as multiple companies vie for the contract. This process helps prevent inflated costs that might arise from sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Wounded Warrior Battalion personnel who will be housed in the new barracks. The contract delivers essential infrastructure in the form of new barracks, improving living conditions for service members. The geographic impact is concentrated at Camp Lejeune, North Carolina, supporting military operations in that region. The project likely supported jobs in the construction sector within North Carolina during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Construction projects of this scale can be susceptible to delays and cost overruns, impacting the final expenditure.
Ensuring the quality of construction meets military standards for barracks is crucial for long-term usability and safety.
The long duration of the contract (1309 days) increases the risk of material cost fluctuations impacting the fixed price.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type helps control costs and provides budget certainty.
The project addresses a critical need for housing for the Wounded Warrior Battalion.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. The Department of Defense is a major client for construction services, particularly for infrastructure development at military bases. Comparable spending benchmarks would involve analyzing other barracks construction projects or similar facility builds awarded by the Navy or other military branches, considering factors like location, size, and complexity.

Small Business Impact

There is no explicit indication of small business set-asides for this contract, nor is there information on subcontracting plans. The fact that it was competed broadly under full and open competition suggests that large and small businesses alike could have bid. Further analysis would be needed to determine if small businesses participated as prime contractors or subcontractors, and what their role was in the project's ecosystem.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed price. Transparency is generally maintained through contract award databases, though specific oversight reports or inspector general investigations related to this particular project are not detailed here.

Related Government Programs

Military Construction, Navy
Wounded Warrior Programs
Barracks Construction
Department of Defense Facilities

Risk Flags

Long contract duration may increase risk of cost escalation.
Lack of final contract value data prevents full financial assessment.
Need for detailed cost-per-unit analysis for value benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to R. N. ROUSE & CO., INC.. BASE BID, P1227 WOUNDED WARRIOR BATTALION BEQ, CAMP LEJEUNE, NORTH CAROLINA

Who is the contractor on this award?

The obligated recipient is R. N. ROUSE & 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 $18.6 million.

What is the period of performance?

Start: 2009-01-15. End: 2012-08-16.

What was the final contract value, considering any modifications or change orders?

The provided data only includes the base bid of $18,576,742.72. Definitive contracts, especially those with a long duration like this one (1309 days), often undergo modifications due to unforeseen circumstances, changes in requirements, or adjustments in scope. Without access to the contract's modification history, it's impossible to determine the final obligated amount. It is common for construction contracts to deviate from their initial base bid as the project progresses through its lifecycle. Further investigation into the contract's official record would be necessary to ascertain the final expenditure.

How did the winning bid compare to the government's estimate or other bids received?

The data indicates that the base bid was $18,576,742.72 and that there were 10 bids received (indicated by 'no': 12, assuming 'no' refers to the number of bids). To assess how the winning bid compared to the government's estimate, that estimate would need to be known. Similarly, a detailed comparison with each of the other 9 bids would reveal the competitiveness of the winning offer. A bid significantly lower than others or the estimate might raise concerns about quality or completeness, while a bid significantly higher could indicate a lack of competitive pressure or an inflated price. Without these comparative figures, the bid's position within the competitive landscape remains unclear.

What specific risks were identified during the bidding or execution phase, and how were they mitigated?

The provided data does not detail specific risks identified during the bidding or execution phases. However, for a large-scale construction project like barracks, common risks include weather delays, material cost fluctuations, labor shortages, unforeseen site conditions, and design issues. Mitigation strategies typically involve detailed site investigations, robust contract clauses addressing delays and changes, contingency planning, and close project management by the contracting officer's representative. The firm-fixed-price contract type itself aims to mitigate financial risk for the government by setting a ceiling cost, though it shifts some risk to the contractor.

What is the track record of R. N. Rouse & Co., Inc. with federal contracts, particularly with the Department of the Navy?

The provided data identifies R. N. Rouse & Co., Inc. as the contractor for this specific $18.6 million barracks construction project. To assess their track record, a broader search of federal contract databases (like SAM.gov or FPDS) would be necessary. This would reveal the number of contracts they have held, their performance history on those contracts (e.g., ratings, past performance reviews), any awards or penalties, and their experience with similar types of construction projects for the Department of the Navy or other federal agencies. Without this broader data, their overall federal contracting performance remains unknown.

How does the cost per square foot or per bed compare to similar military housing projects?

The provided data lacks crucial information needed to calculate cost per square foot or per bed, such as the total square footage of the barracks or the number of beds they accommodate. The base bid is $18,576,742.72. To perform this comparison, one would need the final construction area (in square feet) and the total capacity (number of beds). Once these figures are obtained, they could be benchmarked against publicly available data for similar military construction projects awarded around the same time and in similar geographic regions. This would provide insight into whether the cost was competitive on a unit basis.

What was the justification for choosing a firm-fixed-price contract for this project?

The firm-fixed-price (FFP) contract type is typically chosen when the scope of work is well-defined and the risks associated with cost overruns can be reasonably ascertained and allocated. For a construction project like building barracks, the requirements are often standardized, making it suitable for FFP. This contract type provides the government with the greatest degree of cost control and predictability, as the contractor assumes most of the risk for cost increases. The Department of the Navy likely selected FFP to ensure budget certainty and to incentivize the contractor to manage costs efficiently throughout the project lifecycle.

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: N4008508R1428

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Danis Building Investments LLC (UEI: 078407092)

Address: 1101 PARKWAY DR (OFF HWY 70 BY-PASS), GOLDSBORO, NC, 27534

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

Financial Breakdown

Contract Ceiling: $18,576,743

Exercised Options: $18,576,743

Current Obligation: $18,576,743

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline