DoD's $22.6M Academic Training Building contract awarded to Barnhart-Reese Construction, Inc. in California

Contract Overview

Contract Amount: $22,590,289 ($22.6M)

Contractor: Barnhart-Reese Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-01-22

End Date: 2023-12-13

Contract Duration: 1,055 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: X004 (CONSTR) P1924 - ACADEMIC TRAINING BUILDING - NAWS CHINA LAK

Place of Performance

Location: RIDGECREST, KERN County, CALIFORNIA, 93555

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.6 million to BARNHART-REESE CONSTRUCTION, INC. for work described as: X004 (CONSTR) P1924 - ACADEMIC TRAINING BUILDING - NAWS CHINA LAK Key points: 1. Contract value of $22.6 million for construction services. 2. Awarded to a single contractor, Barnhart-Reese Construction, Inc. 3. Contract duration of 1055 days, indicating a significant project timeline. 4. Firm Fixed Price contract type suggests cost certainty for the government. 5. Located in California, potentially impacting local construction labor markets. 6. The contract falls under Commercial and Institutional Building Construction NAICS code. 7. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract value of $22.6 million for an academic training building appears within a reasonable range for a project of this scale and complexity, especially considering the firm fixed price structure which shifts risk to the contractor. However, without specific benchmarks for academic training facilities in the region or detailed scope of work, a precise value-for-money assessment is challenging. The duration of 1055 days suggests a substantial undertaking, and the final cost should be evaluated against the completed project's quality and functionality.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be broad, certain sources were excluded. This could be due to specific qualifications or prior relationships. With 4 bidders, the competition level was moderate, which may have influenced pricing. The exclusion of sources warrants further investigation to ensure it did not unduly limit competition and potentially increase costs for the government.

Taxpayer Impact: A moderate level of competition, even with exclusions, generally provides some price discovery. However, the exclusion of potential bidders could mean taxpayers did not benefit from the lowest possible price achievable through a truly open market.

Public Impact

Naval Air Weapons Station (NAWS) China Lake personnel will benefit from improved training facilities. The contract delivers construction services for an academic training building. The project's geographic impact is localized to NAWS China Lake in California. The construction project will likely involve a workforce of skilled trades and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'Exclusion of Sources' clause.
Lack of small business set-aside may limit opportunities for smaller firms.
Firm Fixed Price contracts can sometimes lead to change order disputes if scope is not perfectly defined.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Award to a single contractor streamlines project management.
Project duration is clearly defined, allowing for planning.

Sector Analysis

The construction sector, particularly for institutional and commercial buildings, is a significant part of the federal procurement landscape. This contract for an academic training facility fits within the broader category of construction services. Federal spending in this area often involves large-scale projects requiring specialized contractors. Benchmarking this contract's value against similar government-funded educational or training facility constructions would provide further context on its cost-effectiveness.

Small Business Impact

This contract did not include a small business set-aside, nor does it appear to have subcontracting goals explicitly mentioned in the provided data. The absence of set-asides means that large businesses were eligible to compete without specific requirements to engage small businesses. This could limit subcontracting opportunities for small businesses within the construction ecosystem for this particular project.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and project management offices. Accountability measures are inherent in the firm fixed price contract type, which holds the contractor responsible for delivering the specified scope within the agreed price. Transparency is generally facilitated through federal procurement databases where contract awards are published, though detailed project oversight reports may not always be publicly accessible.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) construction projects
Department of Defense military construction (MILCON) program
Federal building and facility construction contracts
Academic and training facility construction

Risk Flags

Potential for limited competition due to source exclusion.
Contract duration is lengthy, increasing exposure to market fluctuations.
No explicit small business subcontracting goals identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.6 million to BARNHART-REESE CONSTRUCTION, INC.. X004 (CONSTR) P1924 - ACADEMIC TRAINING BUILDING - NAWS CHINA LAK

Who is the contractor on this award?

The obligated recipient is BARNHART-REESE CONSTRUCTION, 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 $22.6 million.

What is the period of performance?

Start: 2021-01-22. End: 2023-12-13.

What is the track record of Barnhart-Reese Construction, Inc. with federal contracts, particularly within the Department of Defense?

Barnhart-Reese Construction, Inc. has a history of securing federal contracts, primarily within the Department of Defense. Their portfolio includes various construction projects, often for military installations. Analyzing their past performance on similar firm fixed price contracts, their on-time delivery rates, and any history of disputes or contract modifications would provide a clearer picture of their reliability and capability. A review of their federal contract award history, including the total value and types of projects, can indicate their experience level and specialization relevant to this academic training building project.

How does the cost per square foot of this academic training building compare to similar federal construction projects?

To assess the value for money, a comparison of the cost per square foot for this academic training building against similar federal construction projects is crucial. This requires obtaining the total square footage of the completed facility and dividing the contract value ($22.6 million) by that figure. Benchmarking this against average costs for academic or training facilities built by the DoD or other federal agencies in similar geographic regions and of comparable quality would reveal if the price was competitive. Factors like specialized equipment, unique architectural requirements, or site-specific challenges could justify deviations from the average.

What specific risks were identified during the procurement process, and how were they mitigated?

The procurement data indicates the contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting potential risks related to limiting the competitive pool. Risks could include a reduced number of qualified bidders, potentially leading to higher prices or less innovative solutions. Mitigation strategies might have involved thorough market research to ensure sufficient competition remained despite exclusions, clear and detailed performance specifications to minimize scope creep, and robust oversight during construction. The '4' bidders noted implies some level of competition was maintained, but the rationale for excluding other sources would be key to understanding the risk profile.

What is the expected effectiveness of the new academic training building in enhancing military readiness or specific skill development?

The effectiveness of the academic training building is directly tied to its design, functionality, and the quality of training programs it will house. Its purpose is to provide a modern, dedicated space for instruction, which should theoretically improve the learning environment and facilitate the delivery of specialized training. Measuring effectiveness would involve tracking improvements in training completion rates, skill acquisition metrics for personnel using the facility, and feedback from instructors and trainees. The building's capacity, technological integration, and suitability for specific training curricula are all factors contributing to its ultimate effectiveness in enhancing military readiness.

How has federal spending on similar construction projects at NAWS China Lake trended over the past five years?

Analyzing historical spending patterns on similar construction projects at NAWS China Lake over the past five years would provide context for the $22.6 million award. This involves examining previous contracts for facility construction, renovation, or upgrades at the base. Understanding the average project size, types of construction services procured, and the number of bidders on those historical contracts can reveal trends in investment and contractor activity. Significant increases or decreases in spending could indicate shifts in base development priorities or market conditions affecting construction costs in the region.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247315R2440

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10805 THORNMINT RD #200, SAN DIEGO, CA, 92127

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $22,590,289

Exercised Options: $22,590,289

Current Obligation: $22,590,289

Actual Outlays: $9,340,006

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247317D4635

IDV Type: IDC

Timeline