DOD Awards $24M Fort Greely Building Repair Contract to American Mechanical Inc
Contract Overview
Contract Amount: $24,078,026 ($24.1M)
Contractor: American Mechanical Inc
Awarding Agency: Department of Defense
Start Date: 2014-09-30
End Date: 2017-05-18
Contract Duration: 961 days
Daily Burn Rate: $25.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FTG156, BUILDING 660 REPAIR, FORT GREELY, ALASKA
Place of Performance
Location: FORT GREELY, SOUTHEAST FAIRBANKS County, ALASKA, 99731
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $24.1 million to AMERICAN MECHANICAL INC for work described as: FTG156, BUILDING 660 REPAIR, FORT GREELY, ALASKA Key points: 1. Contract awarded for building repair at Fort Greely, Alaska. 2. American Mechanical Inc. is the sole contractor. 3. The contract type is Firm Fixed Price. 4. The project falls under Commercial and Institutional Building Construction. 5. The award value is $24,078,025.69.
Value Assessment
Rating: fair
The contract value of $24.08 million for building repair appears within a reasonable range for a project of this scope and location. However, without specific details on the scope of work and comparable projects in Alaska, a precise valuation is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This approach may have restricted the pool of potential bidders, potentially impacting price discovery and overall value for taxpayers.
Taxpayer Impact: The limited competition raises concerns about whether the government secured the best possible price. Further analysis of the exclusion of sources is needed to determine the full taxpayer impact.
Public Impact
Military infrastructure upgrades are crucial for operational readiness. Local economic impact through construction jobs and services. Potential for long-term facility improvements at Fort Greely.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have inflated costs.
- Contract duration is lengthy (961 days).
- No small business participation noted.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Project addresses necessary facility repair.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on infrastructure needs, military base expansions, and government facility maintenance cycles. Benchmarks are highly dependent on project scale and location.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests that the prime contractor is not a small business, and there is no indication of subcontracting to small businesses.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract management offices ensuring performance and adherence to terms. The 'exclusion of sources' aspect warrants closer scrutiny for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition raises concerns about price.
- Lack of small business participation.
- Potential for cost inefficiencies in long-duration fixed-price contracts.
- Justification for source exclusion needs review.
Tags
commercial-and-institutional-building-co, department-of-defense, ak, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.1 million to AMERICAN MECHANICAL INC. FTG156, BUILDING 660 REPAIR, FORT GREELY, ALASKA
Who is the contractor on this award?
The obligated recipient is AMERICAN MECHANICAL INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $24.1 million.
What is the period of performance?
Start: 2014-09-30. End: 2017-05-18.
What was the specific justification for excluding other sources during the competition phase, and how did this exclusion impact the final contract price?
The justification for excluding sources is critical to understanding the limited competition. If the exclusion was based on specific technical requirements or unique capabilities, it might be justifiable. However, if it was arbitrary, it could have unnecessarily limited the bidding pool, potentially leading to a higher price than what could have been achieved through broader competition. This directly affects the value realized by taxpayers.
Given the 961-day duration and firm fixed price, what mechanisms were in place to manage potential cost overruns or scope creep, and how effective were they?
A firm fixed price contract generally places the cost risk on the contractor. However, for long-duration projects, mechanisms like escalation clauses or change order processes are vital. Understanding how these were managed, and if any significant change orders occurred, is key to assessing the contractor's performance and the overall cost-effectiveness of the project for the government.
What is the current condition of Building 660, and how does the completed repair work align with the initial needs assessment and expected improvements?
Assessing the alignment of the completed repairs with the initial needs is crucial for evaluating the effectiveness of the contract. If the building's condition has significantly improved and operational capabilities are enhanced as intended, the contract was effective. Conversely, if deficiencies remain or the scope was insufficient, the effectiveness is questionable, regardless of the price paid.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911KB14R0045
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3203 PEGER RD, FAIRBANKS, AK, 99709
Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,598,883
Exercised Options: $24,078,026
Current Obligation: $24,078,026
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-09-30
Current End Date: 2017-05-18
Potential End Date: 2017-05-18 00:00:00
Last Modified: 2021-02-25
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