Army awards $23M construction contract to AZTECA ENTERPRISES, LLC for firm-fixed-price project

Contract Overview

Contract Amount: $22,957,130 ($23.0M)

Contractor: Azteca Enterprises, LLC

Awarding Agency: Department of Defense

Start Date: 2003-12-30

End Date: 2008-04-11

Contract Duration: 1,564 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: FORT POLK, VERNON County, LOUISIANA, 71459

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to AZTECA ENTERPRISES, LLC for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 4 years indicates a significant, long-term project. 3. Firm-fixed-price contract type generally transfers risk to the contractor, potentially stabilizing costs. 4. The award to a single contractor, AZTECA ENTERPRISES, LLC, warrants examination of the competitive landscape. 5. Geographic location in Louisiana (LA) may indicate regional economic impact. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

Benchmarking the value of this $23 million contract requires more detailed cost breakdowns and comparisons to similar construction projects. Without specific deliverables or scope, it's difficult to definitively assess value for money. The firm-fixed-price structure suggests cost certainty for the government, but the overall efficiency and effectiveness of the spending depend on project execution and final outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 8 bidders (as indicated by 'no': 8) suggests a reasonably competitive process. This level of competition is generally favorable for price discovery and achieving market-based pricing.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging contractors to offer their best value.

Public Impact

The primary beneficiaries are likely the Department of the Army, receiving construction services. The contract supports the development or renovation of commercial and institutional buildings. The project's impact is geographically centered in Louisiana (LA). The construction services will likely involve a workforce skilled in building trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed scope of work makes it difficult to assess if the $23M award represents optimal value.
The long contract duration could introduce risks related to material cost fluctuations or unforeseen site conditions if not managed proactively.
Limited information on the specific type of construction makes it hard to benchmark against industry standards.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified contractors.
Firm-fixed-price contract type provides cost certainty for the government.
Multiple bidders (8) participated, suggesting a healthy level of interest and competition.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector is a significant part of the broader construction industry, encompassing the building of non-residential structures like offices, schools, and hospitals. Federal spending in this area often supports infrastructure development and facility modernization. Benchmarking would involve comparing the cost per square foot or per project type against similar government or private sector projects.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, AZTECA ENTERPRISES, LLC, may engage small businesses as subcontractors, which would be a secondary avenue for small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army personnel responsible for construction projects. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight mechanisms are not explicitly provided in this summary.

Related Government Programs

Military Construction
Federal Building Construction
Department of Defense Facilities Management
General Services Administration (GSA) Construction Contracts

Risk Flags

Long contract duration may increase exposure to market volatility.
Lack of specific project details limits comprehensive value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to AZTECA ENTERPRISES, LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is AZTECA ENTERPRISES, 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 $23.0 million.

What is the period of performance?

Start: 2003-12-30. End: 2008-04-11.

What is the specific nature of the commercial and institutional building construction project awarded to AZTECA ENTERPRISES, LLC?

The provided data identifies the contract's NAICS code as 236220, which pertains to Commercial and Institutional Building Construction. However, it does not specify the exact nature of the project, such as whether it involves new construction, renovation, or a specific type of facility (e.g., barracks, administrative offices, training centers). Further details from the contract's statement of work or award description would be necessary to understand the project's scope and objectives.

How does the $23 million award compare to typical construction contract values for similar projects within the Department of Defense?

Comparing the $23 million award requires context on the project's scale, complexity, and location. Construction projects can vary widely in cost. For instance, a large-scale new facility would naturally cost more than a minor renovation. Without knowing the specific scope (e.g., square footage, type of construction, required materials, specialized systems), it's challenging to benchmark this award against typical values. However, $23 million is a substantial sum, suggesting a significant undertaking for the Army.

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

While a firm-fixed-price (FFP) contract offers cost certainty to the government, it shifts the risk of cost overruns to the contractor. For a project spanning over four years (1564 days), potential risks include significant fluctuations in material prices, labor costs, or unforeseen site conditions that could impact the contractor's profitability. If the contractor underestimated these factors, they might face financial strain, potentially impacting project quality or completion. Conversely, if the contractor accurately predicted costs and managed efficiently, the government benefits from a predictable final price.

What does the participation of 8 bidders signify for the government and taxpayers in this procurement?

The participation of 8 bidders in this 'full and open competition' is a positive indicator. A larger number of bidders generally suggests a competitive market for the services required. This increased competition typically drives down prices as contractors strive to offer the most attractive bids to win the contract. For taxpayers, this means a higher likelihood that the government is receiving a fair market price for the construction services, maximizing the value of the awarded funds.

What is AZTECA ENTERPRISES, LLC's track record with federal construction contracts, particularly with the Department of Defense?

Information regarding AZTECA ENTERPRISES, LLC's specific track record with federal construction contracts, especially with the Department of Defense, is not detailed in the provided data snippet. To assess their performance history, one would need to consult federal procurement databases (like SAM.gov or FPDS) to review past awards, contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. This information is crucial for understanding their reliability and capability.

How does the geographic location in Louisiana (LA) potentially influence the contract's execution and cost?

The contract's execution in Louisiana (LA) could influence costs due to regional labor rates, material availability, local permitting requirements, and specific economic conditions. For example, labor costs in Louisiana might differ significantly from those in other states. Proximity to material suppliers and transportation infrastructure also plays a role. Furthermore, local regulations and environmental considerations specific to Louisiana would need to be addressed during the construction phase, potentially impacting timelines and overall project expenses.

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

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 2518 CHALK HILL ROAD, DALLAS, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline