DoD Awards $22.1M for Family Housing Construction to DEBCON, INC

Contract Overview

Contract Amount: $22,154,169 ($22.2M)

Contractor: Debcon Inc

Awarding Agency: Department of Defense

Start Date: 2002-06-13

End Date: 2008-12-01

Contract Duration: 2,363 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200209!109936!1700!C2467 !NAVAL FACILITIES ENGINEERING COM!N6246701C0398 !A!N! !N! !20020613!20040617!055569966!055569966!055569966!N!DEBCON, INC !9714 U S RT 60 !ASHLAND !KY!41102!55360!059!28!PASCAGOULA !JACKSON !MISS !+000019653950!N!N!000000000000!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !233320!E! !3! ! ! ! ! !99990909!B! ! !B! !A!N!J!2!002!B! !D!N!C! ! !N!B!N!N! ! !Z! !A!A!000!A!B!Y!U!Y! ! ! ! !0001!

Place of Performance

Location: GAUTIER, JACKSON County, MISSISSIPPI, 39553

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to DEBCON INC for work described as: 200209!109936!1700!C2467 !NAVAL FACILITIES ENGINEERING COM!N6246701C0398 !A!N! !N! !20020613!20040617!055569966!055569966!055569966!N!DEBCON, INC !9714 U S RT 60 !ASHLAND !KY!41102!55360!059!28!PASCAGOULA !JACKS… Key points: 1. Contract awarded to DEBCON, INC. for family housing facilities. 2. The contract falls under the New Single-Family Housing Construction sector. 3. Full and open competition was utilized for this award. 4. The contract duration is 2363 days, indicating a long-term project.

Value Assessment

Rating: fair

The contract value of $22.1 million for new single-family housing construction appears reasonable given the project's scope and duration. However, without specific per-unit cost data or benchmarks for similar projects in Mississippi, a precise valuation is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government compared to limited or sole-source procurements.

Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best value through market forces. The fixed-price nature of the contract also helps control costs.

Public Impact

Taxpayers benefit from competitive bidding for construction projects. The project aims to provide new housing facilities, potentially improving living conditions for military families. Long-term contracts can offer stability but require careful monitoring for cost overruns.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed per-unit cost data for benchmarking.
Long contract duration increases risk of scope creep or unforeseen cost increases.
No indication of small business participation.

Positive Signals

Awarded under full and open competition.
Fixed-price contract type helps control costs.
Project addresses a clear need for housing facilities.

Sector Analysis

This contract falls within the construction sector, specifically new single-family housing. The benchmark for this type of work can vary significantly based on location, materials, and scale. The award value of $22.1 million for a project spanning over six years suggests a substantial undertaking.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the project scope was not conducive to small business involvement.

Oversight & Accountability

The contract was awarded by the Department of Defense, Naval Facilities Engineering Command. Oversight would typically involve project management and quality assurance to ensure the construction meets specifications and stays within budget. The long duration necessitates sustained oversight.

Related Government Programs

New Single-Family Housing Construction (except For-Sale Builders)
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of detailed cost breakdown.
Long contract duration.
No small business participation noted.
Potential for material cost escalation.
Fixed-price contract risk over extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to DEBCON INC. 200209!109936!1700!C2467 !NAVAL FACILITIES ENGINEERING COM!N6246701C0398 !A!N! !N! !20020613!20040617!055569966!055569966!055569966!N!DEBCON, INC !9714 U S RT 60 !ASHLAND !KY!41102!55360!059!28!PASCAGOULA !JACKSON !MISS !+000019653950!N!N!000000000000!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !233320!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is DEBCON 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 $22.2 million.

What is the period of performance?

Start: 2002-06-13. End: 2008-12-01.

What is the average cost per housing unit for this project, and how does it compare to regional benchmarks?

The provided data does not include a breakdown of the total contract value by the number of housing units. Therefore, calculating a per-unit cost is not possible. To assess value, this figure would need to be compared against average construction costs for similar single-family homes in the Pascagoula, Mississippi area, considering material, labor, and overhead.

What are the specific risks associated with a fixed-price contract of this duration for housing construction?

A significant risk with long-term fixed-price contracts is the potential for material cost escalation and labor shortages, which could erode the contractor's profit margin or lead to quality compromises if not managed proactively. The government also risks paying a premium if market conditions improve significantly after the contract is awarded.

How effectively does this contract address the need for family housing facilities, and what is the expected impact on military readiness?

The contract aims to address the need for new family housing, which is crucial for military morale and retention. The successful and timely completion of these facilities is expected to positively impact readiness by providing adequate living quarters. However, the actual effectiveness will depend on the quality of construction and the duration of occupancy.

Industry Classification

NAICS: Construction › Residential Building Construction › New Single-Family Housing Construction (except For-Sale Builders)

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIXED PRICE (J)

Contractor Details

Address: 9714 U S RT 60, ASHLAND, KY, 41102

Business Categories: Category Business, Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline