Naval Facilities Engineering Command awarded $35M for industrial building construction, with a fixed-price definitive contract

Contract Overview

Contract Amount: $35,027,474 ($35.0M)

Contractor: Gray Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-08-11

End Date: 2008-10-02

Contract Duration: 1,879 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200311!188772!1700!C2474 !NAVAL FACILITIES ENGINEERING COM!N6247403C4020 !A!N! !N! !20030811!20050317!007002181!007002181!108349234!N!JAMES N GRAY COMPANY !10 QUALITY STREET !LEXINGTON !KY!40507!80294!095!06!TRAVIS AFB !SOLANO !CALIFORNIA!+000027398143!N!N!000000000000!Y159!OTHER INDUSTRIAL BUILDINGS !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !236210!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!012!B! !D!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! !N! ! ! ! !0001! !

Place of Performance

Location: TRAVIS AFB, SOLANO County, CALIFORNIA, 94535

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $35.0 million to GRAY CONSTRUCTION, INC. for work described as: 200311!188772!1700!C2474 !NAVAL FACILITIES ENGINEERING COM!N6247403C4020 !A!N! !N! !20030811!20050317!007002181!007002181!108349234!N!JAMES N GRAY COMPANY !10 QUALITY STREET !LEXINGTON !KY!40507!80294!095!06!TRAVIS AFB !SOLAN… Key points: 1. Contract awarded for industrial building construction services. 2. Fixed-price definitive contract type indicates predictable costs. 3. Competition level was full and open, suggesting potential for competitive pricing. 4. Contract duration of 1879 days suggests a significant, long-term project. 5. Contractor has a track record with the Department of Defense. 6. Project located in California, impacting local workforce and economy.

Value Assessment

Rating: good

The awarded amount of $35,027,473.54 for industrial building construction appears to be within a reasonable range for a project of this scope and duration. Without specific benchmarks for comparable projects at Travis Air Force Base or within the Naval Facilities Engineering Command's portfolio, a precise value-for-money assessment is challenging. However, the fixed-price contract type generally provides cost certainty for the government, mitigating the risk of cost overruns.

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 offers. The presence of 12 bidders suggests a healthy level of interest and competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government receives offers from a wide range of qualified contractors.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing for taxpayers, as multiple contractors vie for the award. This can result in better value and potentially lower overall costs compared to less competitive procurement methods.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive upgraded or new industrial building facilities. Services delivered include the construction of industrial buildings, likely supporting military operations and infrastructure. The geographic impact is concentrated in Solano County, California, specifically at Travis Air Force Base. Workforce implications include job creation for construction workers, engineers, and project managers in the local California area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if fixed-price contract terms are not strictly managed.
Dependence on contractor's ability to meet complex construction timelines and quality standards.
Risk of supply chain disruptions impacting material availability and project schedule.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive award process.
Contractor's established presence and experience with government contracts.
Project located in a region with established construction industry infrastructure.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on industrial building construction. The North American Industry Classification System (NAICS) code 236210, Industrial Building Construction, covers establishments primarily engaged in the construction or remodeling of nonresidential buildings, such as factories, warehouses, and industrial plants. The Department of Defense is a significant spender in this category to maintain and upgrade its vast infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-value definitive contract awarded under full and open competition, it is unlikely that significant subcontracting opportunities for small businesses were mandated within the contract terms, though the prime contractor may engage them voluntarily. This could limit direct opportunities for small businesses in this specific procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Facilities Engineering Command (NAVFAC), a component of the Department of the Navy. Accountability measures are embedded in the definitive contract structure, including performance standards, delivery schedules, and payment terms. Transparency is generally maintained through contract award databases, though specific project details and ongoing oversight activities may not be publicly detailed.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) projects
Department of Defense Facilities Management
Naval Facilities Engineering Command Contracts
Industrial Infrastructure Development

Risk Flags

Contract awarded for industrial building construction.
Fixed-price definitive contract.
Full and open competition with multiple bidders.
Long contract duration (1879 days).
Contractor: JAMES N GRAY COMPANY / GRAY CONSTRUCTION, INC.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.0 million to GRAY CONSTRUCTION, INC.. 200311!188772!1700!C2474 !NAVAL FACILITIES ENGINEERING COM!N6247403C4020 !A!N! !N! !20030811!20050317!007002181!007002181!108349234!N!JAMES N GRAY COMPANY !10 QUALITY STREET !LEXINGTON !KY!40507!80294!095!06!TRAVIS AFB !SOLANO !CALIFORNIA!+000027398143!N!N!000000000000!Y159!OTHER INDUSTRIAL BUILDINGS !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !236210!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is GRAY 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 $35.0 million.

What is the period of performance?

Start: 2003-08-11. End: 2008-10-02.

What is the contractor's performance history with the Department of Defense on similar industrial construction projects?

The provided data identifies JAMES N GRAY COMPANY as the contractor, with GRAY CONSTRUCTION, INC. listed as the ultimate contractor. To assess their performance history, a review of past contracts awarded by the Department of Defense and other federal agencies would be necessary. This would involve examining contract close-out data, any reported disputes or claims, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and on-time completion rates for similar industrial building construction projects. A lack of readily available detailed performance data in public databases necessitates further investigation into specific contract files or agency performance records to ascertain a comprehensive track record.

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

The provided data shows an awarded amount of $35,027,473.54. However, the data does not include the original estimated cost or the allocated budget for this specific project. Without this information, it is impossible to determine if the contract was awarded significantly above, below, or at the estimated value. Comparing the awarded amount to the initial estimate is crucial for assessing whether the competitive bidding process resulted in cost savings or if the initial estimates were inaccurate. Further analysis would require accessing pre-award documentation or budget justifications related to this contract.

What are the key performance indicators (KPIs) and quality standards outlined in the contract for the industrial building construction?

The provided data snippet does not detail the specific Key Performance Indicators (KPIs) or quality standards for this industrial building construction contract. Typically, such contracts would include detailed specifications regarding materials, construction methods, safety protocols, environmental compliance, and final acceptance criteria. Performance would be measured against these specifications, with potential penalties for non-compliance or incentives for exceeding standards. A thorough review of the full contract document, including its statement of work and technical specifications, would be required to identify these critical performance and quality benchmarks.

What is the historical spending trend for industrial building construction by the Naval Facilities Engineering Command over the last five years?

The provided data pertains to a single contract awarded in 2003. To analyze historical spending trends for industrial building construction by the Naval Facilities Engineering Command (NAVFAC), a broader dataset encompassing multiple years and contracts would be required. This would involve querying federal procurement databases (like FPDS or USASpending) for all contracts awarded by NAVFAC under NAICS code 236210 (Industrial Building Construction) or similar relevant codes over the past five fiscal years. Analyzing this aggregated data would reveal trends in annual spending, average contract values, and the volume of such contracts awarded by NAVFAC.

Were there any significant challenges or disputes during the performance or close-out of this contract?

The provided data does not contain information regarding challenges or disputes during the performance or close-out of this specific contract (N6247403C4020). Contract disputes can arise from disagreements over scope, cost, schedule, or quality. Information on such issues is typically documented in contract modification records, claims files, or litigation records. Without access to these detailed contract administration records, it is not possible to determine if any significant challenges or disputes occurred during the lifecycle of this particular award.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 12

Pricing Type: FIXED PRICE (J)

Contractor Details

Parent Company: Gray, Inc.

Address: 10 QUALITY STREET, LEXINGTON, KY, 40507

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline