DoD's $76.6M Bachelor Enlisted Quarters project awarded to ABSHER CONSTRUCTION CO shows fair value with 3 bidders

Contract Overview

Contract Amount: $76,578,785 ($76.6M)

Contractor: Absher Construction CO

Awarding Agency: Department of Defense

Start Date: 2007-12-14

End Date: 2010-03-31

Contract Duration: 838 days

Daily Burn Rate: $91.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MCON P-305 BACHELOR ENLISTED QUARTERS (BEQ)

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98314

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $76.6 million to ABSHER CONSTRUCTION CO for work described as: MCON P-305 BACHELOR ENLISTED QUARTERS (BEQ) Key points: 1. The contract value of $76.6M for Bachelor Enlisted Quarters (BEQ) appears reasonable given the scope of construction. 2. Competition dynamics were healthy with 3 bidders, suggesting a competitive bidding process. 3. Risk indicators are moderate, with a firm fixed-price contract type generally mitigating cost overrun risks. 4. Performance context is tied to the Department of the Navy's need for improved enlisted housing. 5. Sector positioning is within commercial and institutional building construction, a standard category for such projects.

Value Assessment

Rating: good

The contract value of approximately $76.6 million for the construction of Bachelor Enlisted Quarters (BEQ) seems to be within a reasonable range for a project of this scale. Benchmarking against similar large-scale construction projects for military housing indicates that costs per square foot or per unit can vary significantly based on location, complexity, and specific amenities. Without detailed cost breakdowns or specific unit counts, a precise value-for-money assessment is challenging, but the presence of multiple bidders suggests that the pricing was competitive.

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 fact that three bidders participated suggests a healthy level of competition for this significant construction project. A competitive environment typically leads to more favorable pricing and better quality offerings as contractors vie for the award.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drove down the final contract price through competitive pressures, ensuring a better return on investment for public funds.

Public Impact

Enlisted personnel in the Navy will benefit from improved housing facilities. The project delivers essential construction services for military infrastructure. The geographic impact is centered in Washington, where the BEQ is located. The construction project likely created jobs in the local Washington area and for the skilled trades involved.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting occupancy timelines.
Ensuring adherence to strict military construction standards and specifications.
Managing the complexity of a large-scale construction project with multiple stakeholders.

Positive Signals

Firm fixed-price contract helps control costs.
Awarded under full and open competition, indicating market responsiveness.
Contractor has a track record in large construction projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for military construction is substantial, driven by the Department of Defense's continuous need to maintain and upgrade its facilities. Comparable spending benchmarks for large-scale barracks or housing projects can vary widely, but projects in the tens of millions are common for significant infrastructure developments.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions, large construction projects often involve significant subcontracting opportunities. It is possible that ABSHER CONSTRUCTION CO will engage small businesses for specialized services or materials, contributing to the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.

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 structure, which places the financial risk on the contractor. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight reports may not be publicly available.

Related Government Programs

Military Housing Construction
Department of Defense Facilities Management
Bachelor Enlisted Quarters Programs
Naval Facilities Engineering Command Projects

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of construction delays impacting project timelines.
Ensuring compliance with stringent military construction standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.6 million to ABSHER CONSTRUCTION CO. MCON P-305 BACHELOR ENLISTED QUARTERS (BEQ)

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 $76.6 million.

What is the period of performance?

Start: 2007-12-14. End: 2010-03-31.

What is the track record of ABSHER CONSTRUCTION CO on similar government contracts?

ABSHER CONSTRUCTION CO has a history of performing large-scale construction projects, including those for government entities. While specific details on past military housing projects would require deeper database searches, their involvement in a $76.6 million Department of the Navy contract suggests a capacity to handle complex and sizable federal construction work. Examining past performance reviews, any past performance issues, and the types of projects they have successfully completed for the government would provide a more comprehensive understanding of their reliability and expertise in this domain. Their ability to win and execute this contract indicates they met the government's criteria for experience and capability.

How does the awarded amount compare to the estimated cost or budget for this project?

The provided data indicates the awarded amount is $76,578,785.11. Without access to the government's initial cost estimates or budget allocations for this specific Bachelor Enlisted Quarters (BEQ) project, a direct comparison is not possible. However, the fact that the contract was awarded under full and open competition with three bidders suggests that the bids received were competitive and likely within a reasonable range of the government's expectations. If the bids significantly exceeded estimates, it might indicate an issue with the initial budgeting or an unexpected increase in construction costs. Conversely, if bids came in well under estimates, it could point to a highly competitive market or a well-defined scope.

What are the primary risk indicators associated with this firm fixed-price contract?

The primary risk indicator for a firm fixed-price (FFP) contract is the potential for the contractor to cut corners on quality or scope to maintain profitability if costs escalate unexpectedly. While FFP contracts are generally favored for controlling costs, they can lead to disputes if the scope of work is not clearly defined or if unforeseen conditions arise. For this BEQ project, risks could include material price fluctuations, labor availability issues, or unforeseen site conditions that might strain the contractor's ability to deliver within the fixed price. Robust oversight and clear contract specifications are crucial to mitigate these risks and ensure the project meets all requirements.

How effective is the competition level in ensuring value for taxpayers on this contract?

The competition level for this contract, with three bidders participating under full and open competition, is a strong indicator of value for taxpayers. A competitive bidding process incentivizes contractors to offer their best pricing and most efficient solutions to win the contract. The presence of multiple bidders suggests that the market had sufficient capacity and interest, leading to a more robust price discovery mechanism. This competitive pressure helps ensure that the government is not overpaying for the construction services and that the selected contractor is likely to deliver the project at a reasonable cost and high quality to remain profitable.

What is the historical spending pattern for Bachelor Enlisted Quarters (BEQ) construction by the Department of the Navy?

Historical spending on Bachelor Enlisted Quarters (BEQ) by the Department of the Navy is substantial and ongoing, reflecting the continuous need to provide adequate housing for service members. The Navy manages a vast portfolio of facilities, and investments in BEQ construction and renovation are critical for maintaining readiness and quality of life. Spending patterns can fluctuate based on military construction priorities, budget allocations, and the lifecycle of existing facilities. This $76.6 million contract represents a significant, but not necessarily anomalous, investment in a specific BEQ project, indicative of the Navy's broader commitment to housing infrastructure.

Are there any specific performance concerns or successes documented for ABSHER CONSTRUCTION CO on federal projects?

Without access to specific performance reviews or contract administration records for ABSHER CONSTRUCTION CO's federal projects, it is difficult to detail specific performance concerns or successes. However, the award of a contract of this magnitude by the Department of the Navy suggests that the contractor met the government's pre-award requirements regarding past performance and capability. Agencies typically maintain performance data, and any significant issues or outstanding successes would likely be documented in contract files and potentially influence future award decisions. A thorough review of their contract history would be necessary to provide a definitive assessment.

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: N4425507R0009

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1001 SHAW RD, PUYALLUP, WA, 10

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

Financial Breakdown

Contract Ceiling: $76,578,785

Exercised Options: $76,578,785

Current Obligation: $76,578,785

Contract Characteristics

Cost or Pricing Data: NO

Timeline