DoD's $25.7M Navy training facility contract awarded to Archer Western Federal JV shows fair competition

Contract Overview

Contract Amount: $25,683,549 ($25.7M)

Contractor: Archer Western Federal JV

Awarding Agency: Department of Defense

Start Date: 2019-02-22

End Date: 2021-06-04

Contract Duration: 833 days

Daily Burn Rate: $30.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF MACC TASK ORDER P427 LCS OPERATIONAL TRAINING FACILITY AT NS MAYPORT, FL.

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32228

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to ARCHER WESTERN FEDERAL JV for work described as: IGF::OT::IGF MACC TASK ORDER P427 LCS OPERATIONAL TRAINING FACILITY AT NS MAYPORT, FL. Key points: 1. Contract value of $25.7M for operational training facility construction. 2. Awarded to Archer Western Federal JV under full and open competition. 3. Performance period spanned over 833 days. 4. Construction services delivered in Florida. 5. Firm Fixed Price contract type indicates defined cost expectations. 6. No small business set-aside was utilized for this contract.

Value Assessment

Rating: good

The contract value of $25.7 million for an operational training facility appears reasonable given the scope of construction services. Benchmarking against similar large-scale institutional building projects within the Department of Defense suggests that the pricing is within expected ranges. The firm fixed-price nature of the contract helps to control costs for the government, providing a predictable expenditure for this significant infrastructure development.

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 19 bids suggests a robust level of interest and a competitive marketplace for this type of construction project. This broad competition is generally favorable for price discovery and ensures the government receives offers from a wide array of qualified contractors.

Taxpayer Impact: The high number of bidders in this full and open competition likely resulted in more competitive pricing, benefiting taxpayers by potentially lowering the overall cost of the training facility.

Public Impact

Naval personnel at NS Mayport, FL, will benefit from enhanced operational training capabilities. The project involved the construction of a new operational training facility. The geographic impact is localized to Naval Station Mayport in Florida. The construction project likely supported local and regional labor markets during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction issues arise, though mitigated by fixed-price contract.
Dependence on a single prime contractor for project completion and quality assurance.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
Project completed within the specified performance period (833 days).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting landscape. The Department of Defense is a major consumer of construction services, particularly for facilities supporting military operations and training. Spending in this sector is often driven by infrastructure modernization, new base construction, and upgrades to existing facilities, with significant annual outlays across various military branches.

Small Business Impact

This contract did not include a small business set-aside, nor is there an indication of significant subcontracting opportunities for small businesses within the provided data. The prime contractor, Archer Western Federal JV, is likely a larger entity. The absence of set-asides means that opportunities for small businesses to directly participate in this specific contract were limited, though they may have been involved as suppliers or indirectly through other means.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments, ensuring compliance with specifications and quality standards. The firm fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost. Transparency is generally maintained through contract award databases, though detailed project-specific oversight reports are not publicly available.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Contracts
Department of Defense Military Construction Projects
Operational Training Facility Development

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of schedule delays impacting operational readiness.
Quality control during construction is critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to ARCHER WESTERN FEDERAL JV. IGF::OT::IGF MACC TASK ORDER P427 LCS OPERATIONAL TRAINING FACILITY AT NS MAYPORT, FL.

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN FEDERAL JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.7 million.

What is the period of performance?

Start: 2019-02-22. End: 2021-06-04.

What is the track record of Archer Western Federal JV with the Department of Defense?

Archer Western Federal JV has a history of securing contracts with the Department of Defense, particularly in construction projects. While this specific contract for the LCS Operational Training Facility is a notable award, their broader portfolio likely includes various infrastructure and building projects for military branches. Analyzing their past performance on similar projects, including adherence to schedules, budget, and quality standards, would provide further insight into their reliability as a contractor. Reviewing past performance evaluations and any documented disputes or contract modifications would offer a more comprehensive understanding of their track record with the DoD.

How does the cost of this training facility compare to similar DoD construction projects?

The $25.7 million cost for the LCS Operational Training Facility at NS Mayport, FL, needs to be benchmarked against comparable projects to assess value for money. Factors such as facility size (square footage), complexity of training systems installed, specific construction materials, and geographic location (which impacts labor and material costs) are crucial for a fair comparison. Without detailed specifications of similar projects, a precise cost-per-square-foot or cost-per-training-station comparison is difficult. However, given the firm fixed-price nature and the competitive bidding process involving 19 offers, it suggests the price was considered competitive at the time of award.

What are the primary risks associated with this type of construction contract?

The primary risks associated with this firm fixed-price construction contract include potential cost overruns due to unforeseen site conditions (e.g., soil issues, hazardous materials), design deficiencies, or scope creep if changes are not managed strictly. Labor shortages or material price volatility could also impact the contractor's profitability, potentially leading to quality compromises if not adequately managed. For the government, the risk lies in the contractor's ability to deliver the facility on time and to the required specifications. The firm fixed-price structure shifts most cost risk to the contractor, but delays or quality issues can still impact the government's mission readiness.

How effective is the firm fixed-price contract type in managing costs for DoD construction?

The Firm Fixed Price (FFP) contract type is generally considered effective for managing costs in DoD construction projects when the scope of work is well-defined and risks are understood. It provides the government with cost certainty, as the contractor assumes the majority of the financial risk. This incentivizes the contractor to control costs and improve efficiency to maximize profit. However, if the initial scope is poorly defined or significant unforeseen issues arise, contractors may be less willing to absorb unexpected costs, potentially leading to disputes or a reluctance to deviate from the original plan, which could impact project outcomes if changes are necessary.

What is the historical spending trend for operational training facilities by the Department of the Navy?

Historical spending by the Department of the Navy on operational training facilities reflects a consistent need for modern and effective training infrastructure. While specific aggregate data for 'operational training facilities' can be broad, the Navy invests significantly in construction and upgrades across its bases. This includes simulators, classrooms, specialized training buildings, and maintenance facilities. Spending fluctuates based on modernization priorities, new platform introductions (like the LCS), and infrastructure lifecycle management. Analyzing past budgets and contract awards for similar facilities would reveal trends in investment levels and the types of training infrastructure prioritized over time.

What does the number of bids (19) indicate about the market for Navy construction projects of this scale?

The submission of 19 bids for this $25.7 million operational training facility contract indicates a healthy and competitive market for Navy construction projects of this magnitude. A high number of bidders suggests that multiple firms possess the necessary qualifications, capacity, and interest to undertake such work. This level of competition is beneficial for the government as it typically drives down prices, encourages innovation, and increases the likelihood of selecting a contractor that offers the best value. It also suggests that the Navy's contracting processes are accessible to a broad range of potential contractors.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6945018R0700

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the (UEI: 121476675)

Address: 929 W ADAMS ST, CHICAGO, IL, 60607

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

Financial Breakdown

Contract Ceiling: $25,683,549

Exercised Options: $25,683,549

Current Obligation: $25,683,549

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945019D0907

IDV Type: IDC

Timeline