Army awards $47M construction contract for CDC building, highlighting firm fixed-price terms

Contract Overview

Contract Amount: $47,153,841 ($47.2M)

Contractor: Bristol Design Build Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-30

End Date: 2025-11-10

Contract Duration: 803 days

Daily Burn Rate: $58.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF THE CDC BUILDING

Place of Performance

Location: JBSA FT SAM HOUSTON, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $47.2 million to BRISTOL DESIGN BUILD SERVICES, LLC for work described as: CONSTRUCTION OF THE CDC BUILDING Key points: 1. The contract utilizes a firm fixed-price structure, which shifts cost overrun risks to the contractor. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a specific justification for limiting initial bidders. 3. The award value of approximately $47 million falls within a moderate range for large-scale construction projects. 4. The project duration of 803 days indicates a significant undertaking requiring substantial planning and execution. 5. The contractor, Bristol Design Build Services, LLC, is positioned to deliver this critical infrastructure. 6. The project is located in Texas, potentially impacting local construction labor markets and material sourcing.

Value Assessment

Rating: good

The contract's firm fixed-price nature is a positive indicator for cost control, as it caps the government's liability. Benchmarking against similar large-scale institutional building construction projects would provide a clearer picture of value. However, the absence of detailed cost breakdowns makes a precise value-for-money assessment challenging without further data. The award amount appears reasonable for a project of this scope and duration, assuming standard construction complexities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be broad, specific reasons led to the exclusion of certain potential sources. The exact number of bidders is not specified, but the 'exclusion of sources' suggests a potentially narrower field than a purely 'full and open' competition. This could impact price discovery if fewer qualified contractors were considered.

Taxpayer Impact: While the competition was not entirely unrestricted, the 'exclusion of sources' clause warrants scrutiny to ensure it did not unduly limit competitive pressure and potentially inflate costs for taxpayers.

Public Impact

The primary beneficiary is the Department of the Army, which will receive a new or renovated CDC building. The project will deliver essential construction services, contributing to the modernization of military infrastructure. The geographic impact is concentrated in Texas, potentially creating local employment opportunities for construction workers and related trades. The construction activities will likely involve material suppliers and subcontractors within the Texas region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method requires further investigation to ensure fair market access.
Lack of detailed cost breakdowns hinders a thorough value-for-money assessment.
The significant duration of the project (803 days) increases the potential for unforeseen delays or cost escalations, despite the fixed-price nature.

Positive Signals

The firm fixed-price contract structure effectively transfers cost overrun risk to the contractor.
The project addresses a clear need for infrastructure development within the Department of the Army.
The award to Bristol Design Build Services, LLC, indicates a selection based on perceived capability to execute the project.

Sector Analysis

The construction sector is characterized by significant project management, labor, and material costs. Large-scale institutional building construction, like that for a CDC facility, often involves complex requirements for specialized systems and adherence to stringent building codes. The market size for such projects can be substantial, with numerous firms capable of undertaking them. This contract fits within the broader category of government infrastructure development, where competition dynamics and pricing can vary widely based on project complexity and procurement methods.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests that the primary award was not directed towards small businesses, and there is no explicit indication of subcontracting goals for small businesses within the provided details. Further analysis would be needed to determine if subcontracting opportunities were mandated or if the prime contractor has a history of engaging small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. Accountability measures are inherent in the firm fixed-price contract, which penalizes the contractor for cost overruns. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Federal Building Construction
Department of Defense Facilities
Public Health Infrastructure

Risk Flags

Competition Method Justification
Potential for Cost Overruns (despite FFP)
Long Project Duration Risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.2 million to BRISTOL DESIGN BUILD SERVICES, LLC. CONSTRUCTION OF THE CDC BUILDING

Who is the contractor on this award?

The obligated recipient is BRISTOL DESIGN BUILD SERVICES, 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 $47.2 million.

What is the period of performance?

Start: 2023-08-30. End: 2025-11-10.

What is the specific justification for the 'exclusion of sources' in the procurement process for this CDC building construction contract?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open, certain sources were intentionally excluded from the bidding process. The specific justification for this exclusion is not detailed in the provided data. Typically, such exclusions might be based on factors like prior performance issues with certain contractors, specific technical requirements that only a limited number of firms can meet, or national security considerations. Without further documentation from the contracting agency (Department of the Army), the precise rationale remains unclear. This procurement approach can sometimes limit competitive pressure, potentially impacting the final price compared to a truly unrestricted full and open competition.

How does the firm fixed-price (FFP) contract type mitigate risks for the government in this construction project?

A Firm Fixed-Price (FFP) contract is designed to provide the government with cost certainty. Under an FFP agreement, the contractor, Bristol Design Build Services, LLC, assumes the primary responsibility for all costs incurred to complete the work. This means that if the project's expenses exceed the agreed-upon price due to unforeseen circumstances, labor cost increases, or material price fluctuations, the contractor absorbs those additional costs. Conversely, the contractor benefits from any cost savings achieved below the fixed price. This structure shifts the risk of cost overruns from the government to the contractor, making budgeting more predictable for the Department of the Army. However, FFP contracts often include higher initial prices to compensate contractors for the risks they undertake.

What is the typical cost range for similar institutional building construction projects awarded by the Department of Defense?

The award of approximately $47 million for the CDC building construction falls within a moderate to large range for institutional facilities. Projects of this nature, especially those for government entities like the Department of Defense, can vary significantly in cost based on size, complexity, location, and specific requirements (e.g., security, specialized labs, LEED certification). Comparable projects, such as barracks, administrative buildings, or research facilities, can range from tens of millions to hundreds of millions of dollars. Without specific details on the square footage, scope of work, and unique features of this CDC building, a precise benchmark is difficult. However, the $47 million figure suggests a substantial project, likely involving significant structural, mechanical, and electrical components.

What are the potential implications of the 803-day duration on the overall cost and success of the project?

An 803-day duration, approximately 2.2 years, for a construction project of this magnitude is substantial. While the firm fixed-price contract aims to cap the government's financial exposure, a longer duration inherently increases the contractor's exposure to market volatility. Risks include potential escalation in material costs (though often mitigated by contract clauses or contractor's purchasing strategy), labor availability fluctuations, and potential delays caused by weather, permitting, or unforeseen site conditions. For the government, a longer project timeline means a delayed realization of the facility's benefits. Successful management by the contractor will be crucial to adhere to the schedule and avoid claims for extensions, which, even in an FFP contract, can sometimes lead to adjustments if based on government-caused delays or differing site conditions.

Does the contractor, Bristol Design Build Services, LLC, have a significant track record with the Department of the Army or similar federal construction projects?

Information regarding Bristol Design Build Services, LLC's specific track record with the Department of the Army or other federal agencies is not provided in the initial data. A comprehensive assessment would require reviewing their past performance history, including contract awards, project completion records, and any past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS). Their ability to secure a contract of this size suggests they possess the necessary qualifications and experience. However, without access to their federal contracting history, it's impossible to definitively assess their established performance level or identify any potential red flags or strong positive indicators related to prior government work.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 111 WEST 16TH AVE 3RD FLOOR, ANCHORAGE, AK, 99501

Business Categories: Alaskan Native Corporation Owned Firm, 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: $47,153,841

Exercised Options: $47,153,841

Current Obligation: $47,153,841

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G21D0015

IDV Type: IDC

Timeline