Army awards $42.8M for construction at Redstone Arsenal, completed in 2008

Contract Overview

Contract Amount: $42,786,460 ($42.8M)

Contractor: Universal Construction Company Inc.

Awarding Agency: Department of Defense

Start Date: 2005-05-03

End Date: 2008-07-08

Contract Duration: 1,162 days

Daily Burn Rate: $36.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200508!501892!2100!W91278!USA ENGINEER DIST MOBILE !W9127805C0024 !A!N! !N! ! !20050503!20070503!058635699!128604506!315922807!N!UNIVERSAL CONSTRUCTION CO INC!336 JAMES RECORD ROAD !HUNTSVILLE !AL!35824!63912!089!01!REDSTONE ARSENAL !MADISON !ALABAMA !+000038408375!N!N!000000000000!Y119!OTHER ADMINISTRATIVE & SERVICE BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!J!2!003!B! !D!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!B!Y! !N! ! ! ! !0001! !

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35809

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $42.8 million to UNIVERSAL CONSTRUCTION COMPANY INC. for work described as: 200508!501892!2100!W91278!USA ENGINEER DIST MOBILE !W9127805C0024 !A!N! !N! ! !20050503!20070503!058635699!128604506!315922807!N!UNIVERSAL CONSTRUCTION CO INC!336 JAMES RECORD ROAD !HUNTSVILLE !AL!35824!63912!089!01!REDSTONE ARSENAL !MADI… Key points: 1. Contract value of $42.8M for construction services. 2. Completed in 2008, indicating historical project execution. 3. Awarded under full and open competition. 4. Firm Fixed Price contract type suggests cost certainty. 5. Contractor has a track record with the Department of Defense. 6. Project located at Redstone Arsenal, Alabama.

Value Assessment

Rating: good

The contract value of $42.8 million for construction services at Redstone Arsenal appears reasonable for a project of this nature, especially considering it was awarded under full and open competition. While specific benchmarks for similar projects are not provided, the firm fixed-price nature of the contract suggests that the pricing was established upfront and agreed upon by both parties. The contractor, Universal Construction Co. Inc., has a history of working with the Department of Defense, which can imply a level of familiarity and efficiency in executing government contracts. The duration of the contract (over 3 years) also suggests a substantial scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of 3 bidders indicates a moderate level of competition for this construction project. A competitive bidding process generally helps to ensure that the government receives fair market prices and that taxpayers' money is used efficiently. The fact that multiple companies vied for the contract suggests that the terms and scope were attractive enough to draw interest from the industry.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among contractors. This ensures that the government is not overpaying for services and that the most cost-effective solutions are considered.

Public Impact

The primary beneficiaries are the Department of the Army and personnel stationed at Redstone Arsenal, who will utilize the completed construction. The contract delivered essential construction services, likely for administrative or service buildings as indicated by the Product Service Code. The geographic impact is localized to Redstone Arsenal in Madison, Alabama. The project supported jobs in the construction sector within Alabama and potentially surrounding regions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arose during the extended construction period, though mitigated by fixed-price.
Dependence on a single contractor for a significant construction project carries inherent execution risks.
The specific nature of the 'OTHER ADMINISTRATIVE & SERVICE BUILDINGS' could have unique requirements or challenges not detailed here.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
Contractor has prior experience with the Department of Defense, indicating familiarity with government contracting procedures.
Project was completed, implying successful execution of the construction scope.

Sector Analysis

The construction sector is a significant part of federal spending, encompassing a wide range of projects from infrastructure to facility upgrades. This contract falls under the 'Commercial and Institutional Building Construction' category, which is a substantial segment within the broader construction market. Federal agencies frequently contract for new building construction, renovations, and maintenance to support their operational needs. Spending in this area is influenced by factors such as agency mission requirements, infrastructure aging, and economic conditions. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per project for similar types of buildings constructed by government entities or in the commercial sector.

Small Business Impact

This contract was not specifically set aside for small businesses, and the data does not indicate any small business subcontracting requirements. The award went to Universal Construction Co. Inc., which is likely a larger entity given the contract value. The absence of small business considerations in this specific award means that opportunities for small businesses to participate in this particular project were limited, unless they were part of a larger firm's supply chain or subcontracted independently.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Army, likely through contracting officers and project managers at Redstone Arsenal. 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 like FPDS, which record key details of federal procurements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Department of Defense Construction Contracts
Army Facilities Engineering
Redstone Arsenal Projects
Commercial Building Construction Services

Risk Flags

Contract completed in the past, limiting current risk assessment.
Scope of 'Administrative & Service Buildings' is broad and lacks specific detail.
No explicit mention of small business subcontracting goals or achievements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.8 million to UNIVERSAL CONSTRUCTION COMPANY INC.. 200508!501892!2100!W91278!USA ENGINEER DIST MOBILE !W9127805C0024 !A!N! !N! ! !20050503!20070503!058635699!128604506!315922807!N!UNIVERSAL CONSTRUCTION CO INC!336 JAMES RECORD ROAD !HUNTSVILLE !AL!35824!63912!089!01!REDSTONE ARSENAL !MADISON !ALABAMA !+000038408375!N!N!000000000000!Y119!OTHER ADMINISTRATIVE & SERVICE BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is UNIVERSAL CONSTRUCTION COMPANY 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 $42.8 million.

What is the period of performance?

Start: 2005-05-03. End: 2008-07-08.

What was the specific scope of work for the 'OTHER ADMINISTRATIVE & SERVICE BUILDINGS' at Redstone Arsenal?

The provided data indicates the contract was for 'OTHER ADMINISTRATIVE & SERVICE BUILDINGS' with a Product Service Code (PSC) of '236220' (Commercial and Institutional Building Construction). However, the exact scope of work, such as the type of buildings, their size, specific functionalities, or the nature of the construction (e.g., new build, renovation, expansion), is not detailed in the available information. Further investigation would require accessing the contract's statement of work or related documentation. Typically, such buildings could include administrative offices, barracks, training facilities, maintenance shops, or other support structures necessary for the base's operations.

How does the $42.8 million contract value compare to similar construction projects at military installations?

Comparing the $42.8 million contract value requires context regarding the specific type and scale of construction. For administrative and service buildings at a major installation like Redstone Arsenal, this value could represent a significant project, potentially involving multiple structures or substantial upgrades. Without detailed project specifications (e.g., square footage, complexity, specific building types), a direct comparison is challenging. However, federal construction projects of this magnitude are common across military bases. Benchmarking would ideally involve analyzing cost per square foot for similar government-funded buildings in the same region or for similar purposes, which is not directly available from the provided summary data.

What is Universal Construction Co. Inc.'s track record with the Department of Defense?

Universal Construction Co. Inc. has a history of receiving contracts from the Department of Defense. This specific contract, W9127805C0024, awarded in 2005, is one such instance. The data indicates they were awarded this $42.8 million firm fixed-price contract for construction services. While this single award demonstrates past performance, a comprehensive assessment of their track record would involve analyzing the number, value, types, and performance history of all their DoD contracts, including any past performance evaluations or disputes. Their successful completion of this project suggests a capability to execute DoD construction requirements.

What were the key performance indicators or success metrics for this construction contract?

The provided data does not explicitly list the key performance indicators (KPIs) or success metrics for this specific construction contract. However, for federal construction contracts, common performance metrics typically include adherence to schedule (completion by the specified date), quality of workmanship (meeting building codes and specifications), adherence to budget (staying within the firm fixed-price), safety compliance, and overall client satisfaction. The contract's duration of over three years and its eventual completion suggest that these underlying performance expectations were likely met to some degree, allowing for final acceptance and payment.

How has federal spending on construction at Redstone Arsenal trended over time?

The provided data only offers information on a single contract awarded in 2005 for construction at Redstone Arsenal. To analyze spending trends over time, a broader dataset encompassing multiple contracts awarded to various entities for different types of work at Redstone Arsenal over an extended period would be necessary. This would involve querying federal procurement databases for all relevant contracts associated with the installation. Without such a comprehensive view, it is impossible to determine historical spending patterns or trends specifically for construction at Redstone Arsenal based solely on this one data point.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hochtief AG (UEI: 315922807)

Address: 336 JAMES RECORD ROAD, HUNTSVILLE, AL, 35824

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline