Department of the Army awards $16.18M contract for West Point steam vault repairs to Full Circle Group, Inc

Contract Overview

Contract Amount: $16,181,910 ($16.2M)

Contractor: Full Circle Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-05

End Date: 2026-02-04

Contract Duration: 517 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR STEAM VAULTS F, E, D, C, 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 $16.2 million to FULL CIRCLE GROUP, INC. for work described as: REPAIR STEAM VAULTS F, E, D, C, WEST POINT, NY 10996 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $16.18 million is for a duration of 517 days. 3. The primary contractor, Full Circle Group, Inc., is responsible for the execution of this repair work. 4. The work is geographically focused on West Point, NY, impacting facilities there. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. This award represents a significant investment in maintaining critical infrastructure at a key military installation.

Value Assessment

Rating: good

The contract value of $16.18 million for steam vault repairs over approximately 1.4 years appears reasonable given the scope of work at a large military installation like West Point. Without specific benchmarks for similar vault repair projects at other federal facilities, a direct per-unit cost comparison is difficult. However, the firm-fixed-price structure suggests the government has secured a defined cost for the project, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was made broadly available to all responsible prospective contractors. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which can lead to better pricing and quality. The exclusion of sources clause might suggest specific technical requirements or past performance considerations that narrowed the initial pool, but the core competition was open.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple companies to bid, driving down prices and improving the quality of services offered. This process helps ensure that the government is not overpaying for necessary services.

Public Impact

The primary beneficiaries are the Department of the Army and the United States Military Academy at West Point, ensuring the continued operational integrity of its facilities. The services delivered include the repair of steam vaults, crucial for the heating and power infrastructure of the installation. The geographic impact is localized to West Point, New York, affecting the physical plant and potentially the daily operations of the academy. Workforce implications include potential job creation for skilled tradespeople involved in construction and repair, likely sourced locally or regionally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise within the steam vault system that are not fully captured by the fixed-price contract.
Dependence on the contractor's ability to meet the schedule, as delays could impact facility operations.
Ensuring the long-term effectiveness and durability of the repairs beyond the contract period.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm Fixed Price contract structure provides cost certainty for the government.
The contractor, Full Circle Group, Inc., is tasked with a critical infrastructure repair, suggesting they possess the necessary expertise.
The project addresses essential maintenance for a high-profile federal facility.

Sector Analysis

The construction and maintenance sector for institutional and commercial buildings is a significant part of the federal contracting landscape. This contract falls within the broader category of building construction and engineering services. Federal spending in this area often focuses on maintaining aging infrastructure at military bases, federal courthouses, and other government facilities. Benchmarks for similar projects can vary widely based on location, complexity, and the specific systems being repaired, but large-scale infrastructure projects at military installations typically represent substantial investments.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a larger entity. There is no explicit information on subcontracting requirements within this award notice. The lack of a small business set-aside means that opportunities for small businesses would primarily arise if Full Circle Group, Inc. chooses to subcontract portions of the work, which is not guaranteed.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant project management office within the Department of the Army. The firm-fixed-price nature of the contract provides a degree of accountability by locking in costs. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract performance.

Related Government Programs

Department of Defense Facilities Maintenance
Military Base Infrastructure Repair
Steam System Maintenance Contracts
Federal Building Construction Services
Army Corps of Engineers Construction Projects

Risk Flags

Potential for unforeseen conditions impacting cost and schedule.
Contractor performance risk.
Long-term durability of repairs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 million to FULL CIRCLE GROUP, INC.. REPAIR STEAM VAULTS F, E, D, C, WEST POINT, NY 10996

Who is the contractor on this award?

The obligated recipient is FULL CIRCLE GROUP, 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 $16.2 million.

What is the period of performance?

Start: 2024-09-05. End: 2026-02-04.

What is the track record of Full Circle Group, Inc. in performing similar federal construction and repair contracts?

A review of federal contract databases would be necessary to fully assess Full Circle Group, Inc.'s track record. Key indicators to examine would include the number of previous federal contracts awarded to the company, their performance ratings on past projects (if publicly available), the types of services they have previously provided, and their history of meeting contract deadlines and budgets. Understanding their experience with complex infrastructure repairs, particularly those involving utility systems like steam vaults, would be crucial in evaluating their capability to successfully execute this $16.18 million award for the Department of the Army at West Point.

How does the awarded price of $16.18 million compare to similar steam vault repair projects at other federal facilities?

Benchmarking this contract's value requires identifying comparable federal projects involving steam vault repairs at similar-sized institutions or military bases. Factors such as geographic location (affecting labor and material costs), the specific scope of work (e.g., depth of vaults, materials used, extent of system overhaul), and the contract duration are critical for a fair comparison. Without access to a database of such specific projects and their costs, it is challenging to definitively state whether $16.18 million represents a high, low, or average price. However, the firm-fixed-price nature suggests the government aimed for cost certainty.

What are the primary risks associated with this firm-fixed-price contract for steam vault repairs?

The primary risk with a firm-fixed-price (FFP) contract, while beneficial for cost certainty, lies in potential unforeseen issues that could escalate costs beyond the contractor's initial estimates. For steam vault repairs, these could include discovering deteriorated structural components, encountering hazardous materials (like asbestos), or facing unexpected geological conditions. If such issues arise and are not adequately addressed in the contract's contingency or change order clauses, the contractor might seek additional funding, potentially leading to cost growth. Another risk is the contractor's ability to manage the project efficiently to maintain profitability, which could impact quality or schedule if not properly monitored.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayers in this case?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with specific requirements. By excluding sources, the Army likely ensured that only technically capable or previously vetted companies could bid, potentially reducing the risk of awarding to unqualified contractors. This can lead to a more efficient process and better-suited bids. However, if the exclusion criteria were overly restrictive, it might have limited the number of bidders, potentially reducing the competitive pressure on pricing. The effectiveness for taxpayers hinges on whether sufficient competition remained to drive a fair market price, despite the exclusions.

What is the historical spending pattern for steam vault maintenance and repair at West Point or similar Army installations?

Analyzing historical spending patterns for steam vault maintenance and repair at West Point and comparable Army installations would provide context for the $16.18 million award. This would involve examining past contracts for similar work, noting their values, durations, and the frequency of such repairs. Significant year-over-year increases or decreases in spending could indicate changes in infrastructure condition, maintenance strategies, or contracting approaches. Understanding this history helps determine if the current award is an anomaly, a continuation of a trend, or potentially an indicator of deferred maintenance finally being addressed.

What are the potential long-term implications for facility operations and infrastructure resilience at West Point resulting from these repairs?

The successful completion of these steam vault repairs is expected to significantly enhance the long-term operational resilience of West Point's facilities. By addressing critical infrastructure, the project aims to prevent future failures that could disrupt heating, cooling, and power distribution across the installation. This improved reliability contributes to the overall readiness and functionality of the academy. Furthermore, modernizing or repairing these systems can potentially increase energy efficiency and reduce the risk of environmental incidents associated with aging infrastructure, thereby contributing to the facility's long-term sustainability and safety.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 740 SPRINGDALE DR STE 125, EXTON, PA, 19341

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $16,181,910

Exercised Options: $16,181,910

Current Obligation: $16,181,910

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SD19D0003

IDV Type: IDC

Timeline