Absher Construction awarded $46.6M contract for Rhode Island construction, raising value-for-money questions

Contract Overview

Contract Amount: $46,583,900 ($46.6M)

Contractor: Absher Construction CO

Awarding Agency: Department of Defense

Start Date: 2010-08-13

End Date: 2014-11-27

Contract Duration: 1,567 days

Daily Burn Rate: $29.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 27

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE PRICE

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $46.6 million to ABSHER CONSTRUCTION CO for work described as: BASE PRICE Key points: 1. The contract's value-for-money is questionable given the lack of detailed performance metrics and a lengthy duration. 2. Competition dynamics show a full and open process, but the final award price relative to the base price is not detailed. 3. Risk indicators include the fixed-price nature which can shift risk to the contractor, but potential for scope creep exists. 4. Performance context is limited, with no specific project outcomes or quality assessments readily available. 5. Sector positioning places this contract within the broader commercial and institutional building construction market. 6. The contract duration of over 4 years suggests a significant project scope, potentially impacting long-term cost-effectiveness.

Value Assessment

Rating: questionable

Benchmarking this contract's value is challenging without specific project deliverables or quality metrics. The base price of $46.6 million for a definitive contract spanning over four years requires further scrutiny. Comparing it to similar large-scale construction projects in Rhode Island or for the Navy could provide better context on pricing efficiency. The firm-fixed-price structure suggests a defined cost, but the absence of detailed cost breakdowns or performance-based incentives makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 27 bids suggests a robust competitive environment. This level of competition is generally positive for price discovery and ensuring the government receives competitive offers. However, the specific details of the bidding process and the final award price relative to initial bids are not provided, which limits a full assessment of how effectively competition translated into cost savings.

Taxpayer Impact: A full and open competition process typically benefits taxpayers by driving down prices through market forces. The high number of bidders suggests that the government likely secured a competitive price, although the exact savings are not quantifiable from the provided data.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially the local workforce in Rhode Island through construction jobs. The services delivered involve commercial and institutional building construction, likely for military or government facilities. The geographic impact is concentrated in Rhode Island, contributing to local economic activity. Workforce implications include the creation of construction-related employment opportunities during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the true value delivered.
The long contract duration (1567 days) could lead to cost overruns if not managed tightly.
Limited information on the specific scope of work and potential for change orders.
Absence of data on small business subcontracting raises concerns about broader economic impact.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type shifts cost risk to the contractor.
The large number of bids (27) indicates significant market interest and potential for competitive pricing.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the construction industry. This sector encompasses a wide range of projects, from office buildings to educational facilities and government installations. The market size for federal construction projects is substantial, with agencies like the Department of Defense consistently investing in infrastructure. Comparable spending benchmarks would involve analyzing other large-scale construction contracts awarded by the Navy or other federal agencies for similar types of facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). There is no explicit information regarding subcontracting plans or performance. This suggests that opportunities for small businesses may be limited to direct subcontracting by the prime contractor, Absher Construction Co., if they choose to engage them. Further investigation into subcontracting reports would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this definitive contract would typically involve the contracting officer's representative (COR) and the agency's contract management office. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver the specified work within the agreed budget. Transparency assessment is limited by the available data; while the award is public, detailed project oversight reports or Inspector General findings are not provided. The jurisdiction of the Inspector General would extend to investigating fraud, waste, and abuse related to this contract.

Related Government Programs

Department of Defense Construction Contracts
Navy Facilities Engineering Command Projects
Commercial Building Construction
Institutional Building Construction
Large-Scale Infrastructure Projects

Risk Flags

Long contract duration may indicate potential for schedule slippage or scope creep.
Lack of detailed performance metrics hinders value assessment.
No explicit small business subcontracting data available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.6 million to ABSHER CONSTRUCTION CO. BASE PRICE

Who is the contractor on this award?

The obligated recipient is ABSHER CONSTRUCTION CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $46.6 million.

What is the period of performance?

Start: 2010-08-13. End: 2014-11-27.

What was the final award price compared to the base price?

The provided data lists a 'BASE PRICE' of $46,583,900.23 and an 'AWARD' value which is not explicitly stated as a separate figure but is implied to be the total value of the contract. Since this is a definitive contract with a base price, it's possible the final award price was at or near the base price, especially if it was a firm-fixed-price contract. However, without a distinct 'final award price' field, it's difficult to confirm if there were any modifications or adjustments that altered the initial base price. The number of bids (27) suggests competitive pricing, but the exact delta between the base and final award price remains unconfirmed.

What specific type of commercial and institutional building was constructed?

The provided data categorizes the contract under 'Commercial and Institutional Building Construction' (ND: 236220) but does not specify the exact nature of the facility. This broad category could encompass a wide range of structures, such as administrative buildings, barracks, training facilities, maintenance depots, or other support infrastructure for the Department of the Navy. To determine the specific type of building, one would need to consult the contract's statement of work (SOW) or related procurement documents, which are not included in the summary data.

How does the contract duration of 1567 days compare to similar projects?

A contract duration of 1567 days, approximately 4.3 years, is substantial for a construction project. For large-scale federal construction, durations of this length are not uncommon, particularly for complex facilities or projects involving significant site preparation, multiple phases, or remote locations. However, it is considerably longer than typical commercial building projects. Benchmarking against similar Navy construction projects in Rhode Island or other coastal regions would be necessary to ascertain if this duration is standard, efficient, or indicative of potential delays or extended scope.

What were the key performance indicators (KPIs) for this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) for this contract. For a construction project of this magnitude, typical KPIs might include adherence to schedule, budget compliance, quality of workmanship (e.g., defect rates), safety incident rates, and timely completion of milestones. The absence of explicit KPIs in the summary makes it difficult to objectively assess the contractor's performance and the overall success of the project beyond its completion.

Were there any significant cost overruns or change orders associated with this contract?

The provided data does not contain information regarding cost overruns or change orders for this contract. As a definitive contract with a base price, any modifications would typically be documented through contract modifications. Without access to the contract file or modification history, it is impossible to determine if the final cost deviated from the initial base price due to change orders or unforeseen issues. The firm-fixed-price nature generally aims to limit cost increases, but scope changes can still impact the total value.

What is the track record of Absher Construction Co. with the Department of the Navy?

The provided data indicates that Absher Construction Co. was awarded this specific contract by the Department of the Navy. To assess their overall track record, one would need to examine their complete contract history with the Navy, including past performance evaluations, any disputes or claims filed, and the types and values of previous contracts. This summary data alone does not provide sufficient information to evaluate their broader performance history or reliability with this specific agency.

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: TWO STEP

Solicitation ID: N4008510R9405

Offers Received: 27

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1001 SHAW RD, PUYALLUP, WA, 98372

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,583,900

Exercised Options: $46,583,900

Current Obligation: $46,583,900

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline