Agbayani Construction Corporation received $14.5M for building repair and maintenance services from the Department of the Army

Contract Overview

Contract Amount: $14,528,278 ($14.5M)

Contractor: Agbayani Construction Corporation

Awarding Agency: Department of Defense

Start Date: 2010-03-10

End Date: 2015-12-31

Contract Duration: 2,122 days

Daily Burn Rate: $6.8K/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, ALTERATION, MAINTENANCE SERVICE

Place of Performance

Location: CONCORD, CONTRA COSTA County, CALIFORNIA, 94518

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to AGBAYANI CONSTRUCTION CORPORATION for work described as: REPAIR, ALTERATION, MAINTENANCE SERVICE Key points: 1. The contract value of $14.5M for building repair and maintenance appears reasonable given the 5-year duration. 2. Full and open competition after exclusion of sources suggests a potentially limited but structured bidding process. 3. The definitive contract type with a firm fixed price indicates a clear scope and financial commitment. 4. Performance occurred over a 5-year period, allowing for sustained service delivery. 5. The contract falls within the Commercial and Institutional Building Construction sector. 6. The award was made to a single contractor, Agbayani Construction Corporation.

Value Assessment

Rating: fair

The contract value of $14.5 million over approximately five years for repair and maintenance services is difficult to benchmark without specific details on the scope of work. However, the firm fixed-price structure suggests that the contractor assumed the risk for cost overruns. Compared to similar large-scale building maintenance contracts, the per-year cost of roughly $2.9 million would need to be assessed against the size and complexity of the facilities maintained. Without more granular data on the services provided, a definitive value-for-money assessment is challenging.

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 open, certain sources were excluded, potentially limiting the number of eligible bidders. The specific reasons for this exclusion are not detailed, but it suggests a deliberate selection process rather than a completely unrestricted market approach. The presence of 3 bidders, as indicated by the 'no' field, shows some level of competition, but the exclusion clause warrants further investigation into its impact on price discovery.

Taxpayer Impact: The limited competition, even with three bidders, may have resulted in a higher price for taxpayers than if the competition had been entirely unrestricted. The exclusion of certain sources could have inadvertently reduced the pool of competitive offers.

Public Impact

The primary beneficiaries are the Department of the Army facilities in California that received repair and maintenance services. The services delivered included general repair, alteration, and maintenance of commercial and institutional buildings. The geographic impact is concentrated in California, where the contract was likely performed. The contract supported the construction and maintenance workforce, likely including skilled tradespeople.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' designation raises questions about the breadth of competition and potential impact on pricing.
Lack of detailed scope of work makes it difficult to fully assess value for money and compare to market rates.
The contract duration of over 5 years could lead to scope creep or changing needs not fully captured in the initial fixed price.

Positive Signals

Firm fixed-price contract structure shifts cost risk to the contractor.
The contract was awarded after a competitive process, even with exclusions, indicating some level of market vetting.
The contract duration allowed for sustained service delivery and potential for building contractor expertise.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the repair, alteration, and maintenance of various non-residential structures. The market for such services is substantial, driven by the ongoing need to maintain government and private facilities. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar maintenance contracts across different government agencies and geographic regions. The size of this contract, at $14.5 million over five years, positions it as a significant award within this sector for the specific facilities it served.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to Agbayani Construction Corporation, without further details on its size, makes it difficult to assess the direct impact on the small business ecosystem. Future contracts of this nature should ideally include provisions for small business participation to foster broader economic inclusion.

Oversight & Accountability

Oversight for this contract would have been managed by the contracting officers within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver services as specified. Transparency is facilitated by contract databases that record award details, though specific performance reports or Inspector General findings related to this particular contract are not readily available in the provided data.

Related Government Programs

General Services Administration (GSA) building maintenance contracts
Department of Defense facilities maintenance
Commercial building repair services
Institutional building maintenance contracts

Risk Flags

Limited competition due to source exclusion
Potential for unassessed value for money without detailed scope
Contractor performance history not detailed

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to AGBAYANI CONSTRUCTION CORPORATION. REPAIR, ALTERATION, MAINTENANCE SERVICE

Who is the contractor on this award?

The obligated recipient is AGBAYANI CONSTRUCTION CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2010-03-10. End: 2015-12-31.

What was the specific scope of work covered by this $14.5 million contract?

The provided data indicates the contract was for 'REPAIR, ALTERATION, MAINTENANCE SERVICE' within the 'Commercial and Institutional Building Construction' industry. However, the specific details of the scope of work, such as the types of repairs (e.g., structural, electrical, plumbing), the extent of alterations, and the frequency and nature of maintenance activities, are not detailed. This level of specificity is crucial for a thorough value-for-money assessment and for comparing the contract's performance against industry benchmarks. Without this information, it's challenging to determine if the $14.5 million expenditure was fully justified by the services rendered.

How did the 'Full and Open Competition After Exclusion of Sources' process impact the final contract price?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a competitive process was initiated, but with specific limitations on eligible bidders. The reasons for excluding certain sources are not provided. While three bids were received, the exclusion could have potentially reduced the overall competition compared to a truly unrestricted open competition. This reduction in the bidder pool might have influenced the final negotiated price, potentially leading to a higher cost for the government than if a wider range of contractors had been allowed to compete. Further analysis would require understanding which sources were excluded and why.

What is Agbayani Construction Corporation's track record with similar government contracts?

The provided data identifies Agbayani Construction Corporation as the awardee for this $14.5 million contract. However, it does not offer details on the company's past performance, its history with other government contracts, or its overall track record in the construction and maintenance sector. To assess the contractor's reliability and past performance, one would typically review contract performance reports, past performance questionnaires, and any documented instances of awards or penalties on previous federal contracts. This information is essential for understanding the risk associated with awarding a significant contract to a particular entity.

How does the $14.5 million contract value compare to similar building maintenance contracts awarded by the Department of Defense?

Benchmarking the $14.5 million contract value requires comparing it to similar contracts for repair, alteration, and maintenance services within the Department of Defense (DoD) or other federal agencies. Key comparison factors include the size and type of facilities maintained, the geographic location, the duration of the contract, and the specific services included. Without access to a database of comparable DoD contracts, it's difficult to definitively state whether this contract represents a high, low, or average expenditure. However, a five-year contract of this magnitude suggests a substantial scope of work, likely covering multiple facilities or extensive maintenance needs.

What were the primary risks identified for this contract, and how were they mitigated?

The provided data does not explicitly list identified risks for this contract. However, common risks in large construction and maintenance contracts include cost overruns (mitigated here by the firm fixed-price structure), schedule delays, performance deficiencies, and unforeseen site conditions. The 'Full and Open Competition After Exclusion of Sources' might also represent a risk if it limited the availability of qualified contractors or led to suboptimal pricing. Mitigation strategies would typically involve detailed contract clauses, performance monitoring, clear communication channels, and contingency planning by both the government and the contractor.

What is the historical spending pattern for building repair and maintenance services by the Department of the Army in California?

The provided data focuses on a single contract award and does not offer historical spending patterns for building repair and maintenance services by the Department of the Army in California. To analyze historical spending, one would need access to aggregated contract data over several fiscal years, broken down by agency, service type, and geographic location. Such an analysis would reveal trends in spending, identify major contractors, and help in understanding the overall budget allocation for these types of services in the region. This specific contract represents a portion of that broader spending landscape.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9123810R0006

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 88 DIXON CT, DALY CITY, CA, 94014

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

Financial Breakdown

Contract Ceiling: $14,567,691

Exercised Options: $14,567,691

Current Obligation: $14,528,278

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline