Army Corps of Engineers awards $8.7M for facility maintenance, facing limited competition
Contract Overview
Contract Amount: $12,194,944 ($12.2M)
Contractor: Northland Constructors of Duluth, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-05-02
End Date: 2009-09-30
Contract Duration: 1,977 days
Daily Burn Rate: $6.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 200608!600210!96CE!W911XK!USA ENGINEER DISTRICT DETROIT !W911XK04C0021 !A!N! !N! !P00008!20060502!20061005!079734448!079734448!874908390!N!NORTHLAND CONSTRUCTORS OF DULU!4843 RICE LAKE RD !DULUTH !MN!55803!17000!137!27!DULUTH !ST. LOUIS !MINNESOTA !+000004401583!N!N!000000000000!Z299!MAINT/ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !237990!E! !3! ! !D! ! !99990909!B! ! !A! !A!U!J!2!004!A! !D!N!C! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! ! ! ! !0001! !
Place of Performance
Location: DULUTH, SAINT LOUIS County, MINNESOTA, 55803
Plain-Language Summary
Department of Defense obligated $12.2 million to NORTHLAND CONSTRUCTORS OF DULUTH, INC. for work described as: 200608!600210!96CE!W911XK!USA ENGINEER DISTRICT DETROIT !W911XK04C0021 !A!N! !N! !P00008!20060502!20061005!079734448!079734448!874908390!N!NORTHLAND CONSTRUCTORS OF DULU!4843 RICE LAKE RD !DULUTH !MN!55803!17000!137!27!DULUTH !ST. … Key points: 1. Contract awarded for facility maintenance services. 2. Limited competition may impact price discovery. 3. Risk of cost overruns due to fixed-price contract. 4. Construction sector spending benchmark is relevant.
Value Assessment
Rating: fair
The contract value of $8.7 million for facility maintenance appears reasonable given the duration of 1977 days. However, without specific details on the scope of work, a precise comparison to similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under limited competition, which could potentially lead to higher prices than if it were fully and openly competed. The impact on price discovery is uncertain without further details on the solicitation process.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these facility maintenance services.
Public Impact
Taxpayers may have paid more due to limited competition. The long contract duration could lead to unforeseen costs. Essential facility maintenance ensures operational readiness.
Waste & Efficiency Indicators
Waste Risk Score: 65 / 10
Warning Flags
- Limited competition
- Fixed-price contract risk
- Long contract duration
Positive Signals
- Essential service provision
- Clear contract award
Sector Analysis
This contract falls within the Other Heavy and Civil Engineering Construction sector. Spending in this sector can vary significantly based on infrastructure needs and government priorities.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to compete.
Oversight & Accountability
The contract was awarded by the Department of the Army, USA Engineer District Detroit. Oversight mechanisms should ensure proper execution and accountability for the funds expended.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for overpayment due to limited competition.
- Risk of contractor cost overruns on a long-term fixed-price contract.
- Lack of small business participation.
- Vague scope of work for facility maintenance.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.2 million to NORTHLAND CONSTRUCTORS OF DULUTH, INC.. 200608!600210!96CE!W911XK!USA ENGINEER DISTRICT DETROIT !W911XK04C0021 !A!N! !N! !P00008!20060502!20061005!079734448!079734448!874908390!N!NORTHLAND CONSTRUCTORS OF DULU!4843 RICE LAKE RD !DULUTH !MN!55803!17000!137!27!DULUTH !ST. LOUIS !MINNESOTA !+000004401583!N!N!000000000000!Z299!MAINT/ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !237990!E! !3! ! !D! ! !999
Who is the contractor on this award?
The obligated recipient is NORTHLAND CONSTRUCTORS OF DULUTH, 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 $12.2 million.
What is the period of performance?
Start: 2004-05-02. End: 2009-09-30.
What specific facility maintenance tasks are included in this contract?
The contract specifies 'MAINT/ALL OTHER NON-BUILDING FACILITIES'. This broad description suggests a range of upkeep and repair services for various non-building structures and infrastructure managed by the Detroit Engineer District. Detailed task orders would further define the scope.
What is the risk associated with the fixed-price contract type for this long-duration project?
A firm fixed-price contract for a nearly 6-year project carries the risk of cost overruns for the contractor if material or labor costs escalate significantly. Conversely, the government might overpay if costs decrease. This structure places the cost risk on the contractor.
How effective is limited competition in ensuring value for taxpayer money in construction contracts?
Limited competition generally reduces the pressure on contractors to offer the lowest possible price, potentially leading to higher costs for taxpayers. While sometimes necessary due to specialized requirements, it warrants scrutiny to ensure the selected contractor provides fair value.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northland Group of Comapanies-Duluth Inc (UEI: 874908390)
Address: 4843 RICE LAKE RD, DULUTH, MN, 55803
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-05-02
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2021-02-25
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)