Army awards $185M+ construction contract to T J Lambrecht Construction Inc. for facility upgrades

Contract Overview

Contract Amount: $20,474,778 ($20.5M)

Contractor: T J Lambrecht Construction, Inc

Awarding Agency: Department of Defense

Start Date: 2005-08-12

End Date: 2010-10-01

Contract Duration: 1,876 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200608!601782!2100!W9126G!USA ENGINEER DISTRICT FORT WORTH!W9126G05C0027 !A!N! !N! !P00005!20060517!20070222!185191905!185191905!185191905!N!T J LAMBRECHT CONSTRUCTION INC!10 GOUGAR RD !JOLIET !IL!60432!19000!113!48!DALLAS !DALLAS !TEXAS !+000000019006!N!N!000000000000!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !237990!E! !3! ! !D! ! !99990909!B! ! !A! !A!N!J!2!004!B! !D!N!C! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! !Y! ! !0001! !

Place of Performance

Location: ADDISON, DALLAS County, TEXAS, 75001

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to T J LAMBRECHT CONSTRUCTION, INC for work described as: 200608!601782!2100!W9126G!USA ENGINEER DISTRICT FORT WORTH!W9126G05C0027 !A!N! !N! !P00005!20060517!20070222!185191905!185191905!185191905!N!T J LAMBRECHT CONSTRUCTION INC!10 GOUGAR RD !JOLIET !IL!60432!19000!113!48!DALLAS !DALL… Key points: 1. Contract value exceeds $185 million, indicating a significant investment in infrastructure. 2. The contract was awarded through full and open competition, suggesting a robust bidding process. 3. The duration of the contract is over 1800 days, implying a long-term project with substantial scope. 4. The North American Industry Classification System (NAICS) code 237990 points to specialized heavy construction services. 5. The contract was awarded by the U.S. Army Engineer District, Fort Worth, highlighting a specific regional focus for the project. 6. The firm fixed price contract type suggests that cost risks are largely borne by the contractor.

Value Assessment

Rating: good

The contract value of over $185 million is substantial for a construction project of this nature. Benchmarking against similar large-scale civil engineering projects would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract suggests that the contractor has assumed significant cost risk, which can be a positive indicator for the government if managed effectively. The number of bids received (4) provides a basis for competitive pricing, though further analysis of bid spread would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. Four bids were received, suggesting a moderate level of competition for this significant construction project. A higher number of bidders typically leads to more competitive pricing, but four bids can still be sufficient to achieve fair market value, especially for specialized services.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the best possible price and quality by allowing a wide range of contractors to participate, fostering a competitive environment that drives down costs.

Public Impact

The primary beneficiaries are likely military personnel and their families stationed at the facility where the construction takes place, through improved living and working conditions. The contract delivers essential construction and renovation services for non-building facilities, potentially including roads, utilities, and other civil engineering works. The geographic impact is centered in Texas, as indicated by the awardee's location and the awarding agency's district. The project will likely have implications for the construction workforce, creating jobs and demand for skilled labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 1800 days) could lead to scope creep or cost overruns if not managed meticulously.
Firm fixed price contracts can sometimes incentivize contractors to cut corners on quality if not adequately overseen.
Reliance on a single contractor for an extended period might limit flexibility in adapting to changing requirements.

Positive Signals

Award through full and open competition suggests a fair and transparent procurement process.
The substantial contract value indicates a significant need and commitment from the agency.
The firm fixed price structure shifts cost risk to the contractor, potentially protecting the government from budget overruns.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically NAICS code 237990, which covers 'Other Heavy and Civil Engineering Construction.' This sector is characterized by large-scale projects such as highways, bridges, utilities, and other infrastructure. The market size for federal construction contracts is substantial, with agencies like the Department of Defense being major clients. This specific contract represents a significant investment within this sector, likely related to military base infrastructure improvements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no explicit mention of subcontracting goals (sb: false). This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if mandated or pursued by the prime contractor. Without specific subcontracting plans, the direct impact on the small business ecosystem from this particular award is likely limited, though the prime contractor's own supply chain might involve small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely through the U.S. Army Engineer District, Fort Worth. Accountability measures would be embedded in the contract terms, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Army Corps of Engineers Contracts
Heavy Civil Engineering Construction Services
Infrastructure Improvement Contracts
Department of Defense Facilities Maintenance

Risk Flags

Long-term contract duration may increase risk of cost escalation or scope creep.
Firm Fixed Price contracts can incentivize cost-cutting that may impact quality if not properly monitored.
Limited number of bidders (4) may indicate potential for reduced price competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to T J LAMBRECHT CONSTRUCTION, INC. 200608!601782!2100!W9126G!USA ENGINEER DISTRICT FORT WORTH!W9126G05C0027 !A!N! !N! !P00005!20060517!20070222!185191905!185191905!185191905!N!T J LAMBRECHT CONSTRUCTION INC!10 GOUGAR RD !JOLIET !IL!60432!19000!113!48!DALLAS !DALLAS !TEXAS !+000000019006!N!N!000000000000!Y299!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 T J LAMBRECHT CONSTRUCTION, 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 $20.5 million.

What is the period of performance?

Start: 2005-08-12. End: 2010-10-01.

What is the track record of T J Lambrecht Construction Inc. with federal contracts, particularly with the Department of Defense?

T J Lambrecht Construction Inc. has a history of federal contracting, as evidenced by this award. A deeper dive into their contract history would reveal the number and value of previous awards, the agencies they have served, and their performance ratings on past projects. Examining their past performance, especially with the Department of Defense or similar agencies, would provide insight into their reliability, quality of work, and ability to manage large-scale construction projects. Information on past performance can often be found in federal procurement databases and through agency performance evaluation systems, though specific details may be proprietary.

How does the awarded amount of $185 million compare to similar Army construction contracts for non-building facilities?

The $185 million award is a substantial sum, placing it among larger federal construction contracts. To benchmark its value, one would compare it to other contracts awarded by the Army Corps of Engineers or other DoD components for similar types of 'Other Heavy and Civil Engineering Construction' (NAICS 237990) over the past several years. Factors such as project scope, geographic location, specific facility types (e.g., runways, utility systems, roads), and prevailing market conditions would need to be considered. A higher number of bids in a competitive process generally suggests better value, but the complexity and specialization required for such projects can limit the pool of qualified bidders, potentially influencing the price.

What are the primary risks associated with a firm fixed-price contract of this magnitude and duration?

The primary risks with a firm fixed-price (FFP) contract of this magnitude ($185M+) and long duration (over 1800 days) revolve around potential cost overruns for the contractor and quality compromises. For the contractor, unforeseen increases in material costs, labor shortages, or unexpected site conditions could significantly erode profit margins or lead to financial distress. For the government, the risk is that the contractor, under pressure to maintain profitability, might cut corners on quality, materials, or safety standards if oversight is insufficient. Additionally, the long duration increases the possibility of scope changes or evolving requirements, which can be difficult and costly to manage under an FFP structure without formal modifications.

What does the 'Other Heavy and Civil Engineering Construction' classification imply about the nature of the work performed?

The NAICS code 237990, 'Other Heavy and Civil Engineering Construction,' signifies that the contract likely involves the construction or alteration of infrastructure projects that do not fit into more specific categories like highway, street, or bridge construction. This can encompass a wide range of projects such as dams, reservoirs, tunnels, pipelines, power plants, waste treatment facilities, and site preparation for large industrial or military complexes. Given the awarding agency (Army Engineer District), the work could involve significant earthmoving, utility installation, structural concrete, and potentially specialized systems integral to military installations or civil works projects.

How does the number of bids (4) impact the assessment of price discovery and taxpayer value?

Receiving four bids suggests a moderate level of competition for this substantial construction contract. While more bids generally lead to better price discovery and potentially lower prices for taxpayers, four bidders can still provide sufficient competition, especially in specialized fields where the number of qualified contractors is limited. The key factors are the competitiveness among those four bidders and whether they represented a significant portion of the market. If the bids were closely clustered, it might indicate effective price competition. Conversely, a wide spread between the lowest and highest bid could suggest either a lack of robust competition or significant differences in proposed approaches and costs.

What are the potential implications of the contract's start and end dates (2005-2010) on current value assessment?

The contract's performance period (2005-2010) is now significantly in the past. This means that any direct comparison of its awarded value or cost performance to current market rates or similar ongoing projects would require substantial adjustments for inflation, changes in labor costs, material prices, and technological advancements over the intervening years. While the historical data provides a snapshot of federal spending at that time, its relevance for assessing current value-for-money or benchmarking contemporary projects is limited without detailed economic deflators and market trend analyses. The data primarily serves as a historical record of federal expenditure.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 GOUGAR RD, JOLIET, IL, 60432

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $27,702,060

Exercised Options: $19,709,062

Current Obligation: $20,474,778

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline