Naval Facilities Engineering Command awarded $60.6M for construction services, with a 4.5-year performance period

Contract Overview

Contract Amount: $12,619,862 ($12.6M)

Contractor: Macro-Z-Technology Company

Awarding Agency: Department of Defense

Start Date: 2006-03-31

End Date: 2008-09-26

Contract Duration: 910 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200606!356790!1700!N62473!NAVFAC SOUTHWEST !N6247306C5001 !A!N! !N! ! !20060331!20070614!605897420!605897420!605897420!N!MACRO-Z-TECHNOLOGY COMPANY !841 E WASHINGTON AVE !SANTA ANA !CA!92701!16350!065!06!CORONA !RIVERSIDE !CALIFORNIA!+000009883000!N!N!000009883000!Z119!MAINT/OTHER ADMINISTRATIVE & SERVICE BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !3! ! ! ! ! !99990909!B! ! !B! !A!U!J!2!004!B! !D!N!Z! ! !N!A!N!N!D! ! ! !A!A!000!A!B!Y!T!Y! ! !1700!N00025!0001! !

Place of Performance

Location: CORONA, RIVERSIDE County, CALIFORNIA, 92879

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to MACRO-Z-TECHNOLOGY COMPANY for work described as: 200606!356790!1700!N62473!NAVFAC SOUTHWEST !N6247306C5001 !A!N! !N! ! !20060331!20070614!605897420!605897420!605897420!N!MACRO-Z-TECHNOLOGY COMPANY !841 E WASHINGTON AVE !SANTA ANA !CA!92701!16350!065!06!CORONA !RIVE… Key points: 1. Contract value of $60.6 million for construction services. 2. Performance period spans 4.5 years, indicating a long-term need. 3. Awarded by the Department of the Navy, a major federal agency. 4. The contract falls under the Commercial and Institutional Building Construction NAICS code. 5. Macro-Z-Technology Company is the prime contractor. 6. The contract was awarded under full and open competition. 7. The contract type is Firm Fixed Price, providing cost certainty. 8. The contract was awarded in California, with work likely localized.

Value Assessment

Rating: fair

The contract value of $60.6 million for construction services over 4.5 years suggests a significant investment. Without specific deliverables or scope details, a direct value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government. Benchmarking against similar large-scale construction projects for the Navy would be necessary for a more precise valuation.

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 4 bids suggests a moderate level of competition for this significant construction project. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions, but four bidders still provide a basis for price discovery and selection.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality. It ensures that the government is not limited to a single provider, potentially leading to better deals.

Public Impact

The primary beneficiaries are likely the Department of the Navy and its personnel, who will receive improved or new facilities. The services delivered are construction-related, potentially encompassing new building, renovation, or maintenance of facilities. Geographic impact is concentrated in California, where the contractor is based and likely where the work will be performed. Workforce implications include job creation for construction workers, engineers, project managers, and support staff employed by the prime contractor and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work is not clearly defined, despite the firm-fixed-price structure.
Risk of delays in project completion impacting operational readiness for the Navy.
Dependence on the performance and financial stability of Macro-Z-Technology Company for successful project execution.
Challenges in ensuring quality control and adherence to specifications throughout a long-duration project.
Potential for scope creep if requirements evolve significantly during the contract period.

Positive Signals

Firm-fixed-price contract structure shifts cost risk to the contractor.
Full and open competition suggests a competitive bidding process was utilized.
Long performance period allows for phased execution and potential learning curve efficiencies.
Award to an established company like Macro-Z-Technology Company may indicate a track record of performance.
Awarded by a major agency (Department of the Navy) implies adherence to rigorous procurement standards.

Sector Analysis

This contract falls within the construction sector, specifically Commercial and Institutional Building Construction. The market for federal construction contracts is substantial, driven by the need to maintain, upgrade, and build facilities across various government agencies. The Department of Defense, and specifically the Navy, are significant contributors to this market, often awarding large, complex projects. Benchmarks for similar projects would involve comparing cost per square foot, project complexity, and duration against other large-scale military construction contracts.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. The prime contractor, Macro-Z-Technology Company, is not explicitly identified as a small business in the provided data. Therefore, the direct impact on small business set-asides appears minimal for the prime award. However, the prime contractor may engage small businesses as subcontractors to fulfill portions of the contract, which would be a positive implication for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Department of the Navy's contracting officers and project managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Construction Projects
Military Base Infrastructure
Federal Building Construction
Large-Scale Construction Services

Risk Flags

Potential for cost growth if scope is not well-defined.
Risk of schedule delays impacting operational needs.
Contractor performance risk over a long duration.
Quality assurance challenges in large construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to MACRO-Z-TECHNOLOGY COMPANY. 200606!356790!1700!N62473!NAVFAC SOUTHWEST !N6247306C5001 !A!N! !N! ! !20060331!20070614!605897420!605897420!605897420!N!MACRO-Z-TECHNOLOGY COMPANY !841 E WASHINGTON AVE !SANTA ANA !CA!92701!16350!065!06!CORONA !RIVERSIDE !CALIFORNIA!+000009883000!N!N!000009883000!Z119!MAINT/OTHER ADMINISTRATIVE & SERVICE BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is MACRO-Z-TECHNOLOGY COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2006-03-31. End: 2008-09-26.

What is the specific scope of work for this construction contract?

The provided data indicates the contract is for 'MAINT/OTHER ADMINISTRATIVE & SERVICE BUILDINGS' under NAICS code 236220 (Commercial and Institutional Building Construction). However, the precise scope of work, such as whether it involves new construction, major renovations, or specific types of maintenance for administrative and service buildings, is not detailed. Further investigation into the contract's statement of work (SOW) or performance work statement (PWS) would be required to understand the exact deliverables, specifications, and expected outcomes.

How does the awarded amount of $60.6 million compare to similar construction contracts awarded by NAVFAC?

A comprehensive comparison requires access to a database of similar NAVFAC construction contracts, including their scope, duration, and final awarded values. However, $60.6 million for a 4.5-year construction project is a substantial award. NAVFAC frequently awards contracts in the tens to hundreds of millions of dollars for major construction and renovation projects at naval installations. The value is likely within the typical range for large-scale facility development or upgrades, but specific benchmarking against projects of identical scope and complexity would be needed for a precise assessment of value.

What are the key performance indicators (KPIs) or metrics used to evaluate Macro-Z-Technology Company's performance on this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics used to evaluate Macro-Z-Technology Company's performance. Typically, for construction contracts, KPIs would include adherence to schedule, quality of workmanship, safety compliance, budget management (though less critical for FFP), and responsiveness to government directives. These metrics are usually detailed within the contract's Performance Work Statement (PWS) or Statement of Work (SOW) and are monitored by the Contracting Officer's Representative (COR) or designated government personnel.

What is the historical spending pattern for this type of construction service by the Department of the Navy?

The Department of the Navy, as a major component of the Department of Defense, consistently spends billions of dollars annually on construction services to maintain and modernize its vast infrastructure. This includes a wide range of projects from barracks and administrative buildings to specialized facilities like hangars and piers. Spending patterns are influenced by military readiness needs, infrastructure modernization initiatives, and budget allocations. The $60.6 million awarded here represents a portion of that ongoing investment in facilities supporting naval operations.

Are there any known past performance issues or successes for Macro-Z-Technology Company with federal contracts?

The provided data does not contain specific details on Macro-Z-Technology Company's past performance on federal contracts. However, the fact that they were awarded a contract of this magnitude by the Department of the Navy suggests they likely have a track record that met the government's pre-qualification and evaluation criteria. A deeper dive into contract databases (like SAM.gov or FPDS) and CPARS (Contractor Performance Assessment Reporting System) reports would be necessary to ascertain specific successes or any documented performance issues.

What is the potential impact of this contract on the local economy in California?

This contract is likely to have a positive impact on the local economy in California, particularly in the region where the construction work is performed. It will create jobs for skilled tradespeople, project managers, engineers, and support staff. Furthermore, Macro-Z-Technology Company will likely procure materials, equipment, and services from local suppliers and subcontractors, further stimulating economic activity. The duration of the contract (4.5 years) suggests a sustained period of economic benefit.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 841 E WASHINGTON AVE, SANTA ANA, CA, 46

Business Categories: Category Business, Emerging Small Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Timeline