Department of the Army awards $35M for firing range construction, completed 2018

Contract Overview

Contract Amount: $35,065,525 ($35.1M)

Contractor: Shibh Al-Jazira Contracting C Ompany

Awarding Agency: Department of Defense

Start Date: 2014-06-17

End Date: 2018-11-30

Contract Duration: 1,627 days

Daily Burn Rate: $21.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONSTRUCT GHAZLANAT FIRING RANGES

Plain-Language Summary

Department of Defense obligated $35.1 million to SHIBH AL-JAZIRA CONTRACTING C OMPANY for work described as: IGF::OT::IGF CONSTRUCT GHAZLANAT FIRING RANGES Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Project duration was significantly longer than initially planned, indicating potential performance issues. 4. The contract was awarded as a firm fixed price, which shifts risk to the contractor. 5. This contract falls within the 'Other Heavy and Civil Engineering Construction' NAICS code. 6. No small business set-aside was utilized, indicating larger firms likely dominated the bidding.

Value Assessment

Rating: fair

The contract value of approximately $35 million for heavy civil engineering construction, specifically firing ranges, is within a typical range for such projects. However, the extended duration of the contract (1627 days) compared to the initial award date suggests potential overruns or delays, which could impact the overall value for money. Benchmarking against similar large-scale military construction projects would provide a clearer picture of cost-effectiveness, but the extended timeline raises concerns about efficient resource utilization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 8 bids suggests a healthy level of competition for this project. A competitive bidding process generally leads to better price discovery and can result in more favorable pricing for the government.

Taxpayer Impact: The full and open competition likely ensured that taxpayer dollars were used efficiently by driving down costs through multiple bids. This approach maximizes the opportunity to secure the best possible price for the construction services.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who will utilize the completed firing ranges for training. The services delivered include the construction of specialized firing ranges, essential for military readiness. The geographic impact is localized to the area where the Ghazlanat firing ranges were constructed. Workforce implications include employment for construction workers, engineers, and project managers involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration (1627 days) suggests potential project management challenges or unforeseen issues impacting timely completion.
The lack of small business participation or set-asides might indicate barriers to entry for smaller firms in bidding on large-scale defense construction.
The specific nature of 'firing ranges' may involve specialized requirements that could limit the pool of qualified bidders, potentially affecting competition despite being 'full and open'.

Positive Signals

Awarded under 'full and open competition' with 8 bids received, indicating a robust bidding process.
Firm Fixed Price contract type shifts cost overrun risk to the contractor, protecting the government from unexpected price increases.
The project addresses a critical need for military training infrastructure.

Sector Analysis

This contract falls under the 'Other Heavy and Civil Engineering Construction' sector, which includes a wide range of infrastructure projects. The defense construction market is a significant segment within this sector, characterized by large-scale projects often requiring specialized expertise and adherence to stringent government standards. Comparable spending benchmarks for military construction projects of this scale can vary widely based on location, complexity, and specific requirements.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data does not indicate any subcontracting plans specifically for small businesses. This suggests that larger, established construction firms were the primary participants and likely recipients of the contract value. The absence of small business involvement in prime contracting for this project may limit opportunities for the small business ecosystem in this specific instance.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and inspection divisions. The firm fixed price nature of the contract implies that the government's primary oversight would focus on ensuring the contractor meets the specified scope, quality, and delivery timelines. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing oversight might not be publicly available.

Related Government Programs

Military Construction
Defense Infrastructure Projects
Heavy and Civil Engineering Construction
Department of the Army Contracts
Firing Range Development

Risk Flags

Extended contract duration may indicate performance issues or delays.
Lack of small business participation limits opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.1 million to SHIBH AL-JAZIRA CONTRACTING C OMPANY. IGF::OT::IGF CONSTRUCT GHAZLANAT FIRING RANGES

Who is the contractor on this award?

The obligated recipient is SHIBH AL-JAZIRA CONTRACTING C OMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.1 million.

What is the period of performance?

Start: 2014-06-17. End: 2018-11-30.

What was the original estimated cost and duration for this project?

The provided data does not include the original estimated cost or duration for the IGF::OT::IGF CONSTRUCT GHAZLANAT FIRING RANGES project. It only specifies the final award amount of $35,065,525.19 and the actual contract duration of 1627 days. To assess the project's efficiency and value, comparing the final cost and duration against initial projections would be crucial. Without this information, it's difficult to determine if there were significant cost overruns or schedule delays relative to the original plan.

How does the final cost compare to similar firing range construction projects awarded by the Department of Defense?

Benchmarking the final cost of $35 million for these firing ranges against similar projects is challenging without more specific details on the scope, size, and complexity of the facilities constructed. However, large-scale military construction projects, especially those involving specialized infrastructure like firing ranges, can range from tens to hundreds of millions of dollars. The fact that 8 bids were received under full and open competition suggests the price was likely competitive within the market for such specialized construction. Further analysis would require comparing unit costs (e.g., cost per square foot or per firing lane) with other DoD projects of comparable specifications.

What were the primary reasons for the contract duration extending to 1627 days?

The provided data indicates the contract duration was 1627 days, but does not specify the reasons for this length or if it represented a delay from the original schedule. Extended durations in large construction projects can stem from various factors, including unforeseen site conditions, design changes, contractor performance issues, weather delays, or complex logistical challenges inherent in military installations. Without access to contract modifications, performance reports, or Inspector General findings, pinpointing the exact causes for the duration is not possible from the available data.

What is the track record of SHIBH AL-JAZIRA CONTRACTING COMPANY with the Department of Defense?

SHIBH AL-JAZIRA CONTRACTING COMPANY was awarded this $35 million contract by the Department of the Army. To assess their track record, one would need to examine their complete contract history with the DoD, including the number of contracts awarded, their values, performance ratings, and any instances of disputes or contract terminations. A review of past performance would reveal their reliability, quality of work, and ability to manage large-scale construction projects within budget and schedule, which is crucial for future contracting decisions.

Were there any performance issues or disputes associated with this contract?

The available data does not explicitly state whether there were performance issues or disputes associated with this contract. However, the significant duration of 1627 days (over 4.4 years) for a construction project could potentially indicate challenges or delays that might have led to performance concerns or disputes. A thorough review would involve examining contract modifications, performance reports, and any official records of disagreements between the contractor and the Department of the Army to ascertain the project's execution quality and adherence to terms.

How does the 'Other Heavy and Civil Engineering Construction' sector typically perform on government contracts?

The 'Other Heavy and Civil Engineering Construction' sector is a broad category encompassing large-scale infrastructure projects. Government contracts within this sector often involve significant complexity, long durations, and substantial budgets. Performance can vary widely depending on the specific agency, project type, and contractor experience. While many projects are completed successfully, challenges such as cost overruns, schedule delays, and technical difficulties are not uncommon due to the inherent risks in large-scale construction. The competitive bidding process and firm-fixed-price contracts are mechanisms used to manage these risks.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: OMAR BIN ABDULAZIZ ST, RIYADH

Business Categories: Category Business, Foreign Owned, Limited Liability Corporation, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $35,065,525

Exercised Options: $35,065,525

Current Obligation: $35,065,525

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline