DoD's $10.7M Vehicle Wash Facility Contract Awarded to STC/BHT LLC Under Full and Open Competition

Contract Overview

Contract Amount: $10,696,698 ($10.7M)

Contractor: Stc/Bht LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-30

End Date: 2009-07-10

Contract Duration: 649 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD CENTRALIZED VEHICLE WASH FACILITY

Place of Performance

Location: FORT BLISS, EL PASO County, TEXAS, 79916

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $10.7 million to STC/BHT LLC for work described as: DESIGN BUILD CENTRALIZED VEHICLE WASH FACILITY Key points: 1. The contract was awarded under a firm-fixed-price structure, indicating a defined cost for the project. 2. The duration of the contract was 649 days, suggesting a moderately complex construction project. 3. The award was made by the Department of the Army, a significant component of the Department of Defense. 4. The North American Industry Classification System (NAICS) code 236210 points to Industrial Building Construction. 5. The contract was not set aside for small businesses, suggesting the scope or nature of the work was not specifically targeted for smaller entities. 6. The project was located in Texas, indicating a specific geographic focus for the facility.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable data for centralized vehicle wash facilities of this scale and complexity. The firm-fixed-price contract type suggests that the initial pricing was considered acceptable by the contracting agency. However, without detailed cost breakdowns or comparisons to similar construction projects in the industrial building sector, a definitive assessment of value-for-money is difficult. The total award amount of $10.7 million for a 649-day project needs to be evaluated against construction costs in Texas during the 2007-2009 period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates there were 3 bids received. This level of competition is generally positive as it allows for a wider range of potential contractors to participate, potentially leading to better pricing and innovation. The presence of multiple bidders suggests a healthy competitive environment for this type of industrial construction service.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, ensuring the government receives competitive bids and avoids paying inflated costs.

Public Impact

The primary beneficiaries of this contract are the Department of Defense and specifically the Department of the Army, who will gain a new centralized vehicle wash facility. The service delivered is the construction of an industrial building, specifically a vehicle wash facility, which supports military operations and maintenance. The geographic impact is localized to Texas, where the facility will be built and operated. The workforce implications include employment opportunities for construction workers, engineers, and project managers involved in the building process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price contract.
The duration of the project (649 days) could lead to extended periods of disruption or require significant logistical planning.
Ensuring the facility meets all environmental and operational standards for vehicle washing will be critical.

Positive Signals

The use of full and open competition suggests a robust bidding process that likely secured competitive pricing.
The firm-fixed-price contract provides cost certainty for the government, minimizing the risk of unexpected price increases.
The project's focus on a specific need (vehicle wash facility) indicates a clear objective and potential for operational efficiency gains.

Sector Analysis

The contract falls within the Industrial Building Construction sector, a segment of the broader construction industry. This sector involves the erection of facilities used for manufacturing, processing, storage, and other industrial activities. The market for such construction is driven by industrial development, infrastructure needs, and specific operational requirements of various organizations, including government agencies. Comparable spending benchmarks would typically involve analyzing costs per square foot or per project for similar industrial facilities constructed by government entities or private sector companies.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. This suggests that the scope of the project was either too large or not tailored to meet the criteria for small business set-asides. The absence of explicit small business participation goals means that the direct impact on the small business ecosystem for this particular contract is likely minimal, unless the prime contractor voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, which holds the contractor responsible for delivering the specified facility within the agreed-upon cost. Transparency is generally facilitated through contract award databases and reporting mechanisms. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Military Base Construction
Department of Defense Facilities Management
Industrial Construction Projects
Vehicle Maintenance Facilities
Army Corps of Engineers Projects

Risk Flags

Potential for cost overruns if unforeseen site conditions or construction complexities arise.
Risk associated with contractor performance and adherence to schedule and quality standards.
Ensuring the facility meets all environmental compliance and operational efficiency requirements.
Dependency on specific maintenance and parts for specialized vehicle washing equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.7 million to STC/BHT LLC. DESIGN BUILD CENTRALIZED VEHICLE WASH FACILITY

Who is the contractor on this award?

The obligated recipient is STC/BHT 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 $10.7 million.

What is the period of performance?

Start: 2007-09-30. End: 2009-07-10.

What was the track record of STC/BHT LLC with similar government contracts prior to this award?

Information regarding STC/BHT LLC's prior track record with government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations, contract history, and any reported issues or successes on previous projects. This would help determine their experience and capability in executing similar industrial construction projects, particularly those involving specialized facilities like vehicle wash stations. Understanding their history would provide context for the Department of the Army's decision to award this contract and assess potential risks associated with their performance.

How does the $10.7 million award compare to the average cost of similar industrial building construction projects for the DoD?

Direct comparison of the $10.7 million award for this specific vehicle wash facility to average DoD industrial building construction costs is difficult without more granular data. The average cost can vary significantly based on project scope, size, location, materials, and specific requirements (e.g., environmental controls, specialized equipment). However, given the 649-day duration and the nature of industrial construction, $10.7 million for a centralized vehicle wash facility appears to be within a plausible range for a significant government project. Further analysis would require benchmarking against projects with similar NAICS codes (236210) and contract values within the DoD or other federal agencies over the same time period (2007-2009).

What were the primary risk indicators considered during the evaluation of bids for this contract?

While specific risk indicators are not detailed, common risks evaluated for construction contracts include contractor financial stability, past performance, technical approach, schedule adherence, safety records, and compliance with regulatory requirements. For a firm-fixed-price contract, ensuring the contractor has accurately estimated all costs and potential contingencies is a key risk mitigation strategy. The presence of 3 bidders suggests the agency assessed the competitive landscape as adequate, potentially mitigating risks associated with limited contractor availability. The Department of the Army would have likely assessed STC/BHT LLC's proposed plan for managing construction challenges, material sourcing, and labor availability in Texas.

How effective was the full and open competition in ensuring optimal pricing for this vehicle wash facility?

The full and open competition, with 3 bids received, is generally considered an effective mechanism for ensuring optimal pricing. This process allows multiple qualified contractors to compete, driving prices down through market forces. The firm-fixed-price contract structure further enhances this by locking in the cost, reducing the government's exposure to price escalations. While we don't have the bid amounts, the fact that the contract was awarded suggests that the winning bid from STC/BHT LLC was deemed the best value among the competitive offers. The level of competition (3 bidders) indicates a reasonable market response, likely leading to a price that reflects market conditions at the time.

What is the historical spending pattern for centralized vehicle wash facilities by the Department of the Army?

The provided data focuses on a single contract award and does not offer insights into historical spending patterns for centralized vehicle wash facilities by the Department of the Army. To understand historical spending, one would need to analyze contract databases for similar projects over multiple fiscal years, identifying trends in award amounts, contract types, and the number of facilities procured. This would help determine if this $10.7 million contract represents a typical investment or an outlier. Such analysis would also reveal if there's a consistent demand for these facilities and how procurement strategies have evolved.

What are the potential long-term operational and maintenance implications of this facility for the DoD?

The long-term operational and maintenance implications of this facility depend heavily on the design and construction quality, which are not fully detailed here. A well-built facility should minimize recurring maintenance costs and ensure efficient operation for its intended lifespan. However, specialized equipment within the wash facility may require specific maintenance schedules and parts, potentially leading to ongoing costs. The DoD will need to budget for routine upkeep, potential repairs, utility consumption (water, energy), and waste disposal (water treatment). The effectiveness of the facility in meeting environmental regulations for wastewater discharge will also be a critical long-term consideration.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W9126G07R0015

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1122 MONTANA AVE, EL PASO, TX, 16

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $11,936,698

Exercised Options: $10,696,698

Current Obligation: $10,696,698

Contract Characteristics

Cost or Pricing Data: NO

Timeline