DoD's $42.1M Red River Army Depot building repair contract awarded to AMES 1-HWH JV, LLC

Contract Overview

Contract Amount: $42,170,477 ($42.2M)

Contractor: Ames 1- HWH JV, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2024-12-18

Contract Duration: 1,541 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROVIDE RESTORATION TO THE FAILED AND FAILING BUILDING COMPONENTS AND CORRECT REGULATORY CODE DEFICIENCIES FOR B551&B561 AT RED RIVER ARMY DEPOT, TX.

Place of Performance

Location: TEXARKANA, BOWIE County, TEXAS, 75501

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $42.2 million to AMES 1- HWH JV, LLC for work described as: PROVIDE RESTORATION TO THE FAILED AND FAILING BUILDING COMPONENTS AND CORRECT REGULATORY CODE DEFICIENCIES FOR B551&B561 AT RED RIVER ARMY DEPOT, TX. Key points: 1. Contract addresses critical building component failures and regulatory code deficiencies. 2. Project duration spans over 1500 days, indicating a complex and lengthy undertaking. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. Firm-fixed-price contract type aims to control costs for the government. 5. The contract is a definitive contract, often used for complex projects. 6. Located in Texas, impacting local construction workforce and economy.

Value Assessment

Rating: fair

The total contract value of $42.1 million for building component restoration and code deficiency correction at Red River Army Depot appears to be within a reasonable range for a project of this scale and duration. Benchmarking against similar large-scale construction and repair contracts for military installations is necessary for a definitive assessment. The firm-fixed-price structure suggests an attempt to manage cost overruns, but the extended performance period could introduce risks if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this significant project. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition, despite having only two bidders, provides some assurance that the government received competitive pricing. However, further analysis of the bid spread would be beneficial to understand the true extent of price competition.

Public Impact

The primary beneficiaries are the U.S. Army, ensuring operational readiness and safety at Red River Army Depot. Services delivered include the restoration of failed building components and correction of regulatory code deficiencies. The geographic impact is concentrated at the Red River Army Depot in Texas. The contract likely supports the local construction workforce through direct employment and subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended performance period (1541 days) increases risk of cost escalation and schedule delays.
Limited competition (2 bidders) may have resulted in a higher-than-optimal price.
Potential for unforeseen issues in building components and regulatory compliance not fully captured in the initial scope.
Dependence on a single contractor for a prolonged period could impact flexibility for future needs.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition, even with limited bidders, suggests an effort to achieve fair market value.
Addressing critical building failures and code deficiencies enhances safety and operational capability.
The contract is awarded to a joint venture, potentially bringing diverse expertise.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical infrastructure maintenance and upgrades for government facilities. Comparable spending benchmarks would involve analyzing other large-scale repair and renovation contracts for military bases or similar government installations, considering factors like building size, age, and complexity of required work.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct small business set-aside implications. However, the prime contractor, AMES 1- HWH JV, LLC, may engage small businesses as subcontractors to fulfill portions of the work, contributing to the small business ecosystem. An analysis of subcontracting plans would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and project management offices at Red River Army Depot. 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 facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Army Base Infrastructure Modernization
Military Facility Maintenance and Repair
Federal Building Construction Contracts
Defense Infrastructure Projects
Regulatory Compliance Projects

Risk Flags

Extended contract duration increases risk of cost and schedule overruns.
Limited competition may have impacted price competitiveness.
Potential for unforeseen conditions in aging building infrastructure.
Firm-fixed-price contract requires careful scope management to avoid change orders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.2 million to AMES 1- HWH JV, LLC. PROVIDE RESTORATION TO THE FAILED AND FAILING BUILDING COMPONENTS AND CORRECT REGULATORY CODE DEFICIENCIES FOR B551&B561 AT RED RIVER ARMY DEPOT, TX.

Who is the contractor on this award?

The obligated recipient is AMES 1- HWH JV, 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 $42.2 million.

What is the period of performance?

Start: 2020-09-29. End: 2024-12-18.

What is the track record of AMES 1- HWH JV, LLC in performing similar large-scale building repair and renovation contracts for the Department of Defense?

A thorough review of AMES 1- HWH JV, LLC's past performance is crucial. This would involve examining their contract history with the DoD and other federal agencies, focusing on projects of similar scope, value, and complexity. Key performance indicators to assess include on-time completion rates, adherence to budget, quality of work, and any history of disputes or contract terminations. Understanding their experience with building component restoration and regulatory code compliance in an industrial or military setting would provide significant insight into their capability to successfully execute this $42.1 million contract.

How does the awarded price of $42.1 million compare to market rates for similar building restoration projects of this magnitude?

To benchmark the value for money, the awarded price of $42.1 million needs to be compared against industry cost data for similar large-scale building restoration and code compliance projects. This comparison should consider factors such as the square footage of the affected buildings (B551 & B561), the age and type of construction, the specific nature of the 'failed and failing building components,' and the complexity of the regulatory code deficiencies. Analyzing cost per square foot or cost per major repair item from publicly available data on similar government or commercial projects would help determine if the price is competitive or if there are indications of overpayment or significant savings.

What are the primary risks associated with the extended performance period of 1541 days for this contract?

The extended performance period of 1541 days (over 4 years) presents several significant risks. Firstly, it increases the likelihood of scope creep or unforeseen conditions emerging as the project progresses, potentially leading to change orders and cost increases, despite the firm-fixed-price structure. Secondly, material and labor costs can fluctuate significantly over such a long period, impacting the contractor's profitability and potentially leading to claims if not adequately managed. Thirdly, there's a risk of contractor performance degradation over time due to team turnover or loss of focus. Finally, the prolonged duration means the government's capital is tied up for an extended period, delaying the full realization of the benefits of the restored facilities.

What is the expected impact of correcting regulatory code deficiencies on the long-term safety and operational efficiency of Buildings B551 & B561?

Correcting regulatory code deficiencies is paramount for ensuring the long-term safety and operational efficiency of Buildings B551 & B561. These deficiencies, if left unaddressed, could pose risks to personnel, compromise the integrity of stored materials or ongoing operations, and lead to potential fines or sanctions from regulatory bodies. By bringing the buildings into compliance, the contract aims to mitigate these risks, enhance workplace safety, prevent future failures, and ensure that the facilities meet current standards, thereby supporting the depot's mission more effectively and reliably for years to come.

How has federal spending on building construction and repair at Red River Army Depot trended in recent years prior to this award?

Analyzing historical spending patterns for building construction and repair at Red River Army Depot is essential for context. This would involve examining data from previous fiscal years to understand the typical investment levels in facility maintenance and upgrades. A trend of consistently high or increasing spending might indicate ongoing infrastructure challenges, while a sudden surge could signal a specific modernization initiative or a backlog of deferred maintenance. Understanding this historical context helps in evaluating whether the $42.1 million award represents a typical investment or a significant deviation.

Given the 'failed and failing building components,' what specific types of repairs are anticipated, and what is the potential for latent defects?

The description 'failed and failing building components' is broad and suggests a range of potential issues, possibly including structural damage, HVAC system failures, roofing leaks, electrical system malfunctions, or plumbing issues. The specific types of repairs will depend on the detailed assessment conducted by the contractor. The risk of latent defects is inherent in older buildings; these are problems that are not apparent upon initial inspection but may emerge during the course of renovation. The contract's scope and the contractor's due diligence in identifying and addressing potential latent defects are critical to managing this risk and ensuring the long-term success of the repairs.

Industry Classification

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

Solicitation ID: W9126G20B0031

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3045 MOUNTAIN VIEW DRIVE, ANCHORAGE, AK, 99501

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,431,489

Exercised Options: $42,170,477

Current Obligation: $42,170,477

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline