DoD awards $40M contract for West Point building repair, highlighting construction sector activity

Contract Overview

Contract Amount: $39,906,000 ($39.9M)

Contractor: Abhzeen ICC JV Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-26

End Date: 2028-01-26

Contract Duration: 1,217 days

Daily Burn Rate: $32.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR OF CENTRAL PLANT BLDG. 604, WEST POINT, NY 10996.

Place of Performance

Location: WEST POINT, ORANGE County, NEW YORK, 10996

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $39.9 million to ABHZEEN ICC JV INC. for work described as: REPAIR OF CENTRAL PLANT BLDG. 604, WEST POINT, NY 10996. Key points: 1. Contract value of $39.9M indicates significant investment in infrastructure maintenance. 2. The award to ABHZEEN ICC JV INC. suggests a competitive selection process. 3. Project duration of over 3 years points to a complex and extensive repair scope. 4. The North American Industry Classification System (NAICS) code 236220 places this contract within the commercial and institutional building construction sector. 5. Fixed-price contract type aims to control costs for the government. 6. Geographic focus on West Point, NY, directs federal spending to a specific region.

Value Assessment

Rating: good

The contract value of $39.9 million for the repair of Building 604 at West Point appears reasonable for a project of this scope and duration. Benchmarking against similar large-scale institutional building repairs would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to establish cost certainty, which is generally favorable for the government, assuming the initial bid accurately reflects the work required. Without specific cost breakdowns or comparisons to similar projects, a definitive assessment of pricing efficiency is challenging, but the overall investment aligns with typical infrastructure renewal expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, certain sources were excluded prior to the solicitation. The presence of two bidders (no) suggests a limited but present level of competition. The exclusion of sources may have implications for the breadth of competition and potentially the final price, as it narrows the pool of potential offerors. Further details on the rationale for excluding sources would be necessary to fully assess the impact on price discovery.

Taxpayer Impact: The limited competition, stemming from the exclusion of certain sources, may have resulted in a higher price for taxpayers than if a truly open competition had been conducted. However, the existence of two bidders still provides some level of price negotiation.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and West Point personnel who will utilize the repaired facility. The contract delivers essential repair and maintenance services for critical infrastructure at a military installation. The geographic impact is concentrated in West Point, New York, supporting local economic activity through construction. The project will likely involve a workforce of skilled tradespeople and construction professionals in the New York region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite fixed-price contract.
Risk associated with the exclusion of sources, which could limit competitive pricing.
Dependency on the contractor's ability to meet the complex repair requirements within the specified timeline.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a joint venture (ABHZEEN ICC JV INC.) may indicate specialized capabilities for complex projects.
Project duration allows for thorough execution of extensive repair work.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a vital part of the U.S. economy. This sector encompasses a wide range of activities, from new construction to major renovations and repairs of non-residential buildings. Federal spending in this area often supports critical infrastructure at government facilities, military bases, and public institutions. The value of this contract, approximately $40 million, is substantial and reflects the significant investment required for major building system overhauls or structural repairs. Comparable spending benchmarks would typically involve analyzing other large-scale repair and renovation contracts for federal buildings or military installations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a set-aside provision. The prime contractor, ABHZEEN ICC JV INC., is likely a larger entity or a joint venture composed of larger entities, given the contract's value. Analysis of subcontracting plans, if any, would be necessary to determine indirect impacts on small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially through the U.S. Army Corps of Engineers, which often oversees construction projects. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified repairs within the agreed-upon price and schedule. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Base Infrastructure Modernization
Federal Building Repair and Maintenance
Construction Services for Government Facilities
Department of Defense Facilities Management

Risk Flags

Limited competition due to source exclusion.
Potential for cost increases if unforeseen conditions arise.
Contractor performance history requires verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.9 million to ABHZEEN ICC JV INC.. REPAIR OF CENTRAL PLANT BLDG. 604, WEST POINT, NY 10996.

Who is the contractor on this award?

The obligated recipient is ABHZEEN ICC JV 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 $39.9 million.

What is the period of performance?

Start: 2024-09-26. End: 2028-01-26.

What is the track record of ABHZEEN ICC JV INC. with federal contracts, particularly in construction and repair?

A thorough review of the contractor's past performance is crucial. This would involve examining their history with federal agencies, specifically the Department of Defense and Army Corps of Engineers. Key metrics to assess include on-time completion rates, adherence to budget on previous projects, quality of work, and any history of disputes or contract terminations. Understanding their experience with similar-sized projects and the specific types of repairs involved in Building 604 (e.g., HVAC, structural, electrical) would provide insight into their capability to successfully execute this current contract. A positive track record suggests a lower risk of performance issues, while a history of problems could indicate potential challenges ahead.

How does the awarded amount of $39.9 million compare to similar building repair projects at military installations?

Benchmarking this $39.9 million contract against similar projects is essential for assessing value for money. This comparison should ideally include projects of comparable size, scope (e.g., major system overhauls, structural repairs), and type of facility (e.g., barracks, administrative buildings, training facilities) at other military installations. Factors such as geographic location (which can influence labor and material costs), the age and condition of the building being repaired, and the specific repair requirements (e.g., LEED certification, historical preservation) should be considered. If data indicates that similar projects have been completed for significantly less, or if the scope appears less complex for a similar price, it could raise concerns about the cost-effectiveness of this award.

What are the specific risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award method?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method presents specific risks. While it aims for broad competition, the exclusion of certain sources inherently limits the pool of potential bidders. The primary risk is that this limitation could stifle robust price competition, potentially leading to a higher contract price than if all qualified sources were allowed to bid. It also raises questions about the justification for excluding specific sources; if the exclusions were not well-founded or transparent, it could suggest a lack of impartiality or an attempt to favor certain contractors. This could also lead to a perception of reduced fairness in the procurement process and potentially limit the government's access to the most innovative or cost-effective solutions available in the market.

What is the expected impact of this repair project on the operational readiness and functionality of West Point?

The repair of Building 604 is critical for maintaining the operational readiness and functionality of West Point. Depending on the building's purpose (e.g., administrative, training, housing, utility plant), its condition directly impacts the ability of cadets, faculty, and staff to perform their duties effectively. A well-maintained facility ensures a safe and conducive environment for learning, training, and daily operations. Conversely, a deteriorating building could lead to disruptions, safety hazards, and reduced efficiency. This contract signifies an investment in ensuring that essential infrastructure supports West Point's core mission, thereby contributing to its overall effectiveness and long-term sustainability.

How does the $39.9 million spending on this single repair project compare to the Army's overall annual budget for facilities maintenance and repair?

Placing the $39.9 million expenditure for Building 604 within the context of the Army's broader facilities maintenance and repair budget is crucial for understanding its significance. The Army manages a vast portfolio of real property, and annual budgets for maintenance and repair can run into billions of dollars. A single project of this magnitude represents a substantial investment, but it must be viewed relative to the total needs across all installations. If this project constitutes a small fraction of the overall budget, it suggests it's one of many necessary repairs. However, if it represents a disproportionately large share, it might indicate either a particularly critical need at West Point or potential inefficiencies in how repair funds are allocated or spent across the service.

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: W911SD24R0105

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 34 SCHOOL ROAD EAST, MARLBORO, NJ, 07746

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $39,906,000

Exercised Options: $39,906,000

Current Obligation: $39,906,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline