DoD's $117.5M construction contract for ANGELICO BN COMPLEXES awarded to Universal Construction Company Inc

Contract Overview

Contract Amount: $117,466,160 ($117.5M)

Contractor: Universal Construction Company Inc.

Awarding Agency: Department of Defense

Start Date: 2011-06-29

End Date: 2016-02-29

Contract Duration: 1,706 days

Daily Burn Rate: $68.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 36

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P-1034&1240 INTEL/ANGLICO BN COMPLEXES.

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $117.5 million to UNIVERSAL CONSTRUCTION COMPANY INC. for work described as: P-1034&1240 INTEL/ANGLICO BN COMPLEXES. Key points: 1. The contract value of $117.5 million represents a significant investment in military infrastructure. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. The project duration of 1706 days indicates a substantial, long-term construction undertaking. 5. The contract was awarded by the Department of the Navy, part of the Department of Defense. 6. The North Carolina location suggests a focus on regional military readiness.

Value Assessment

Rating: fair

Benchmarking the value of this $117.5 million contract is challenging without specific project scope details and comparable construction projects in the region. However, the firm-fixed-price nature of the award suggests that the initial price was determined through negotiation and competition. The duration of the contract (1706 days) implies a large-scale project, and the final cost relative to the initial award will be a key indicator of value realization. Without more granular data on cost breakdowns or comparisons to similar military construction projects, a definitive value assessment remains difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 36 bids suggests a highly competitive environment. This level of competition is generally favorable for price discovery, as it incentivizes bidders to offer their most competitive pricing to secure the award. The significant number of bidders implies that the market for this type of construction service is robust.

Taxpayer Impact: The extensive competition for this contract likely resulted in a more favorable price for taxpayers, as Universal Construction Company Inc. had to offer a competitive bid to win the award.

Public Impact

The primary beneficiaries are the military personnel and units stationed at the ANGELICO BN COMPLEXES, who will gain improved facilities. The contract delivers essential construction services for military base infrastructure. The geographic impact is concentrated in North Carolina, supporting regional military operations. The project will likely create numerous jobs in the construction sector, benefiting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the long construction period, despite the fixed-price nature.
Ensuring timely completion within the 1706-day timeframe is critical to avoid operational disruptions.
Quality control and adherence to military construction standards require diligent oversight.

Positive Signals

The firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition with 36 bidders suggests a competitive market and potentially good pricing.
The contractor, Universal Construction Company Inc., has experience in commercial and institutional building construction.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The Department of Defense is a major client in this sector, frequently awarding large contracts for barracks, training facilities, and support buildings. The market size for military construction is substantial, driven by ongoing modernization and operational needs. This specific contract for ANGELICO BN COMPLEXES fits within the broader trend of investing in military infrastructure to support readiness and personnel.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is Universal Construction Company Inc., there is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Universal Construction Company Inc. actively seeks to subcontract portions of the work to small businesses, which is a common practice in large construction projects.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the firm-fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Barracks Construction
Defense Base Infrastructure Projects
Naval Facilities Engineering Command Contracts
General Building Construction Services

Risk Flags

Long project duration increases risk exposure.
Firm-fixed-price contract shifts cost risk to contractor.
Potential for quality control issues over extended timeline.
Dependence on contractor's financial stability for project completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $117.5 million to UNIVERSAL CONSTRUCTION COMPANY INC.. P-1034&1240 INTEL/ANGLICO BN COMPLEXES.

Who is the contractor on this award?

The obligated recipient is UNIVERSAL CONSTRUCTION COMPANY 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 $117.5 million.

What is the period of performance?

Start: 2011-06-29. End: 2016-02-29.

What is the track record of Universal Construction Company Inc. on similar government contracts?

Universal Construction Company Inc. has a history of performing work within the Commercial and Institutional Building Construction NAICS code (236220). While the provided data does not detail specific past government contracts, their award on this $117.5 million Department of Defense project suggests they have the capacity and qualifications to handle large-scale federal construction. Further analysis would require examining their contract performance history, including any past performance evaluations, on previous federal projects to assess their reliability, quality of work, and adherence to schedules and budgets. A review of their financial stability and any past disputes or claims on government contracts would also be pertinent.

How does the awarded price compare to similar military construction projects in North Carolina?

Comparing the $117.5 million award for the ANGELICO BN COMPLEXES to similar military construction projects in North Carolina requires access to a database of comparable projects with detailed cost breakdowns and scope of work. Factors such as project size, complexity, specific building types (e.g., barracks vs. training facilities), and prevailing market conditions at the time of award significantly influence pricing. Without specific benchmarks for similar-sized military construction projects in the same geographic region and timeframe, it is difficult to definitively assess if this contract represents a particularly good or poor value. However, the presence of 36 bids under full and open competition suggests that the price was likely competitive within the market at the time of award.

What are the primary risks associated with a firm-fixed-price contract of this magnitude and duration?

The primary risks associated with a firm-fixed-price contract of this magnitude ($117.5 million) and duration (1706 days) primarily lie with the contractor, Universal Construction Company Inc. The contractor assumes the risk of cost overruns due to unforeseen site conditions, material price fluctuations, labor shortages, or project delays. For the government, the main risks include potential contractor default or bankruptcy, which could lead to significant delays and the need to re-procure services. There's also a risk that the contractor might cut corners on quality to maintain profitability, necessitating robust government oversight. Ensuring the contractor has adequate bonding and insurance is crucial to mitigate financial risks.

How effective are the oversight mechanisms for ensuring the successful completion of this construction project?

The effectiveness of oversight for this project hinges on the Department of the Navy's established procedures for managing large construction contracts. Typically, this involves dedicated project managers, quality assurance representatives, and contract specialists who monitor progress, review submittals, conduct site inspections, and verify compliance with specifications and standards. The firm-fixed-price nature of the contract incentivizes the contractor to manage their own processes efficiently, but government oversight is crucial to ensure adherence to military construction standards, safety regulations, and the overall project scope. Regular progress meetings, site visits, and performance reporting are standard oversight tools.

What is the historical spending pattern for similar construction projects by the Department of the Navy in North Carolina?

Historical spending patterns for similar construction projects by the Department of the Navy in North Carolina would reveal trends in contract values, types of facilities procured, and the frequency of awards. Analyzing past data could indicate whether $117.5 million is a typical investment for major infrastructure projects in the region, or if it represents an outlier. It would also show which contractors have been successful in winning these types of bids and the general competitive landscape. Understanding these patterns helps in assessing the current contract's context and potential future spending needs for military construction in the area.

What are the implications of the 1706-day duration on project management and potential cost escalation?

A duration of 1706 days (approximately 4.7 years) for a construction project of this scale presents significant project management challenges and potential cost escalation risks, even under a firm-fixed-price contract. Managing a project over such an extended period requires robust scheduling, resource allocation, and risk management by the contractor. For the government, it means sustained oversight and potential delays in realizing the full operational benefits of the completed facilities. While the fixed price aims to cap costs, prolonged projects increase the contractor's exposure to market volatility (e.g., material costs, labor rates) and the possibility of unforeseen site conditions or design changes, which could strain the contractor's ability to deliver within the agreed price without impacting quality or schedule.

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: N4008511R4000

Offers Received: 36

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vinci (UEI: 462009101)

Address: 336 JAMES RECORD RD SW, HUNTSVILLE, AL, 35824

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

Financial Breakdown

Contract Ceiling: $117,466,160

Exercised Options: $117,466,160

Current Obligation: $117,466,160

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline