DoD's $54.5M Design/Build Construction Contract Awarded to FSA + JKC Joint Venture One, LLC

Contract Overview

Contract Amount: $54,516,463 ($54.5M)

Contractor: FSA + JKC Joint Venture ONE, LLC

Awarding Agency: Department of Defense

Start Date: 2013-07-24

End Date: 2014-09-30

Contract Duration: 433 days

Daily Burn Rate: $125.9K/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: PARTIAL DESIGN/BUILD CONSTRUCTION

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33625

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $54.5 million to FSA + JKC JOINT VENTURE ONE, LLC for work described as: PARTIAL DESIGN/BUILD CONSTRUCTION Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price structure indicates that the contractor assumes the risk for cost overruns. 3. The contract duration of 433 days suggests a moderately complex construction project. 4. The award was made by the Department of the Army, a major component of the DoD. 5. The project falls under Commercial and Institutional Building Construction, a broad category. 6. The contract was awarded in Florida, indicating a specific geographic focus for the construction.

Value Assessment

Rating: fair

Benchmarking the value of this $54.5 million construction contract is challenging without specific details on the scope of work and the type of facility being built. However, the firm-fixed-price contract type generally aims to provide cost certainty. Comparing this to similar design-build projects within the Department of the Army or for similar institutional buildings would be necessary for a more precise value assessment. The absence of detailed cost breakdowns makes it difficult to assess if the pricing is competitive or represents good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was open, certain sources may have been excluded prior to the solicitation. This suggests a competitive process was intended, but the specific reasons for excluding certain sources are not detailed. With 6 bidders, the level of competition appears moderate, which can contribute to price discovery but might not be as robust as a larger number of bidders.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally benefits taxpayers by encouraging lower prices and better terms from the competing firms.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Army, which will receive the constructed facility. The services delivered include the design and construction of a commercial or institutional building. The geographic impact is localized to Florida, where the construction will take place. The contract will likely have implications for the construction workforce in Florida, creating jobs during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed scope of work makes it difficult to assess the true value and potential for cost efficiencies.
The 'exclusion of sources' clause in the competition type warrants further investigation into the rationale behind it.
Limited information on the specific type of building and its complexity hinders a thorough risk assessment.
No data provided on contractor performance history for similar projects.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Awarded under full and open competition, indicating a structured procurement process.
Moderate number of bidders (6) suggests some level of market interest and competition.
Contract awarded to a joint venture, potentially leveraging combined expertise.

Sector Analysis

The construction sector is a significant part of the federal spending landscape, encompassing a wide range of projects from infrastructure to specialized facilities. Design-build contracts, like this one, are increasingly favored for their potential to streamline project delivery by integrating design and construction services. The Department of Defense is a major client within this sector, frequently awarding large contracts for military bases, housing, and support facilities. Benchmarking this $54.5 million contract would involve comparing it to other DoD design-build projects of similar scale and complexity, as well as considering regional construction cost indices in Florida.

Small Business Impact

The contract indicates that small business set-asides were not utilized (ss: false, sb: false). This means the contract was not specifically reserved for small businesses. Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities. The prime contractor, FSA + JKC JOINT VENTURE ONE, LLC, may engage small businesses for specialized services or materials, but there is no explicit requirement for it based on the provided data. Further analysis would be needed to determine if subcontracting plans included small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army'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 project within the agreed-upon price. Transparency is limited by the available public data; while the award amount and contractor are known, detailed project specifications, performance metrics, and cost breakdowns are not readily accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Construction Contracts
Army Corps of Engineers Projects
Design-Build Construction Services
Commercial Building Construction
Institutional Building Construction

Risk Flags

Potential for cost overruns if design is incomplete or unforeseen conditions arise, despite FFP.
Risk of quality compromise if contractor faces financial pressure under FFP.
Uncertainty regarding the specific reasons for 'exclusion of sources' in competition.
Limited public information on project scope hinders detailed value assessment.
Contractor's past performance history is not publicly available for risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.5 million to FSA + JKC JOINT VENTURE ONE, LLC. PARTIAL DESIGN/BUILD CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is FSA + JKC JOINT VENTURE ONE, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $54.5 million.

What is the period of performance?

Start: 2013-07-24. End: 2014-09-30.

What is the specific type of commercial or institutional building being constructed, and what are its key features?

The provided data indicates the contract is for 'PARTIAL DESIGN/BUILD CONSTRUCTION' within the 'Commercial and Institutional Building Construction' NAICS code (236220). However, the specific type of building (e.g., barracks, administrative facility, training center, warehouse) and its key features (e.g., square footage, specialized systems, security requirements) are not detailed in the provided data. This information is crucial for understanding the project's complexity, assessing the appropriateness of the contract value, and evaluating potential risks associated with its construction. Without these specifics, a comprehensive analysis of the contract's value and performance context remains limited.

How does the $54.5 million contract value compare to similar design-build construction projects undertaken by the Department of the Army?

Comparing the $54.5 million contract value requires access to a database of similar Department of the Army design-build projects, including their scope, size, location, and award dates. Without such comparative data, it's difficult to definitively state whether this contract represents a high, low, or average cost. Factors like inflation, regional construction market conditions in Florida, and the specific technical requirements of the project heavily influence cost. A benchmark analysis would involve identifying comparable projects and adjusting for these variables to assess if the $54.5 million is reasonable for the services rendered.

What were the specific criteria used to exclude certain sources during the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the competition was generally open, specific potential bidders were identified and excluded before the solicitation was released. The reasons for exclusion are typically based on factors such as past performance issues, failure to meet pre-qualification criteria, or specific statutory or regulatory limitations. Without access to the pre-solicitation documentation or the agency's justification for these exclusions, it is impossible to determine the specific criteria. Understanding these exclusions is important for assessing the breadth of competition and potential impacts on pricing.

What is the track record of FSA + JKC JOINT VENTURE ONE, LLC in executing similar large-scale design-build construction projects for the federal government?

The provided data does not include information on the contractor's specific track record, past performance ratings, or experience with similar federal design-build projects. To assess this, one would need to consult federal procurement databases (like SAM.gov or FPDS) for previous contract awards to FSA + JKC JOINT VENTURE ONE, LLC, review performance evaluations (if available), and examine the complexity and scale of their prior work. A strong track record with successful project completion, adherence to budget, and timely delivery would indicate lower performance risk, while a history of issues could signal potential concerns for this current contract.

What are the potential risks associated with the firm-fixed-price contract type for this specific construction project?

The firm-fixed-price (FFP) contract type places the primary risk of cost overruns on the contractor, FSA + JKC JOINT VENTURE ONE, LLC. For the government, the main risk is that the contractor might cut corners on quality or scope to maintain profitability if unforeseen issues arise during construction, especially if the initial price was set too low or if the scope was not fully defined. Given this is a design-build project, risks include potential design errors leading to costly rework, unforeseen site conditions, or material price escalations that the contractor must absorb. Effective government oversight is crucial to mitigate quality risks under an FFP contract.

How does the contract's duration of 433 days align with typical timelines for similar federal design-build construction projects?

A duration of 433 days (approximately 14 months) for a $54.5 million design-build construction project is a moderate timeframe. The suitability of this duration depends heavily on the project's complexity, size, and specific requirements. For instance, constructing a standard administrative building might be achievable within this period, whereas a highly specialized or large-scale facility could require longer. Benchmarking against similar DoD projects would provide context. Factors like weather in Florida, permitting processes, and the efficiency of the design-build integration can significantly impact actual project timelines.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911SD13R0005

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6912 W. LINEBAUGH AVE STE 102, TAMPA, FL, 90

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,516,463

Exercised Options: $54,516,463

Current Obligation: $54,516,463

Contract Characteristics

Cost or Pricing Data: NO

Timeline