DoD's $18.5M Redstone Arsenal software annex design/build contract awarded to Fite Building Company

Contract Overview

Contract Amount: $18,470,561 ($18.5M)

Contractor: Fite Building Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-07-02

End Date: 2012-10-18

Contract Duration: 1,569 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUIILD CONTRACT FOR: DESIGN/BUILD SYSTEMS SOFTWARE ANNEX, PHASE II, REDSTONE ARSENAL, ALABAMA.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to FITE BUILDING COMPANY, INC. for work described as: DESIGN/BUIILD CONTRACT FOR: DESIGN/BUILD SYSTEMS SOFTWARE ANNEX, PHASE II, REDSTONE ARSENAL, ALABAMA. Key points: 1. Contract awarded for design/build of systems software annex at Redstone Arsenal. 2. Project duration spans over 4 years, indicating a significant undertaking. 3. Fixed-price contract type suggests cost certainty for the government. 4. The contract was awarded under full and open competition. 5. No small business set-aside was utilized for this procurement. 6. The contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

The contract value of approximately $18.5 million for a design/build systems software annex at Redstone Arsenal appears to be within a reasonable range for a project of this scope and duration. Benchmarking against similar large-scale construction projects for government facilities, particularly those involving specialized infrastructure like software annexes, would be necessary for a definitive value assessment. However, without specific cost breakdowns or comparisons to similar projects, it's difficult to definitively assess value-for-money. The firm fixed-price nature of the contract provides some cost control.

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 offers. The solicitation resulted in four bids, suggesting a moderate level of competition for this project. While four bidders indicate some market interest, a higher number of bids could potentially lead to more aggressive pricing and a stronger demonstration of price discovery. The specific details of the bidding process and the evaluation criteria would further inform the assessment of competition effectiveness.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The presence of four bidders suggests that the government received multiple proposals, increasing the likelihood of a fair market price being established.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel at Redstone Arsenal, Alabama, who will gain enhanced facilities for systems software development and operations. The project delivers critical infrastructure for supporting advanced technological capabilities within the Department of Defense. The geographic impact is localized to Redstone Arsenal, Alabama, contributing to the local economy through construction activities and associated services. The contract supports the construction workforce and potentially specialized technical roles related to the software annex's function.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during the design or build phases, despite the fixed-price contract.
Risk of schedule delays impacting the operational readiness of the software annex.
Ensuring the final build meets the specific, evolving requirements of systems software development.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive bidding process.
Project duration of over 4 years allows for thorough design and construction phases.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for a specialized facility. The Department of Defense is a significant investor in construction and infrastructure projects, often requiring unique specifications for research, development, and operational facilities. The market for such specialized government construction is competitive, with firms needing to demonstrate expertise in handling complex projects and adhering to stringent government standards. Comparable spending benchmarks would involve analyzing other large-scale military construction projects with similar functional requirements.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses explicitly detailed in the provided data. This means that opportunities for small businesses would likely arise through subcontracting opportunities offered by the prime contractor, Fite Building Company, Inc. The absence of a direct set-aside suggests that the primary focus was on securing the best offer through full and open competition, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the project within the agreed-upon cost. Transparency would be facilitated through contract award databases and potentially through public reporting on project milestones. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Information Technology Infrastructure
Redstone Arsenal Operations

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Ensuring final build meets evolving software needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to FITE BUILDING COMPANY, INC.. DESIGN/BUIILD CONTRACT FOR: DESIGN/BUILD SYSTEMS SOFTWARE ANNEX, PHASE II, REDSTONE ARSENAL, ALABAMA.

Who is the contractor on this award?

The obligated recipient is FITE BUILDING 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 $18.5 million.

What is the period of performance?

Start: 2008-07-02. End: 2012-10-18.

What is the track record of Fite Building Company, Inc. with federal contracts, particularly within the Department of Defense?

Fite Building Company, Inc. has a history of federal contracting, though specific details on their performance with the Department of Defense for projects of similar scale and complexity to the Redstone Arsenal software annex would require a deeper dive into federal procurement databases. Analyzing past performance reviews, any contract disputes, or awards for similar construction projects would provide a clearer picture of their reliability and expertise. It is crucial to assess whether they have successfully managed large, fixed-price construction contracts for government entities, especially those involving specialized facilities. A review of their contract history can indicate their ability to deliver on time, within budget, and to the required specifications, which are key indicators for future project success.

How does the awarded amount of $18.5 million compare to similar design/build software annex projects for the Department of Defense?

Benchmarking the $18.5 million award for the Redstone Arsenal design/build software annex against similar projects is essential for assessing value for money. This comparison should ideally include projects of comparable size, complexity, and location, focusing on those awarded within a similar timeframe. Factors such as the specific technological requirements of the software annex, the construction environment (e.g., existing infrastructure, site conditions), and the prevailing market rates for construction services in Alabama would influence cost. Without access to a detailed database of comparable projects and their awarded values, a precise comparison is challenging. However, the duration of the contract (over 4 years) suggests a substantial undertaking, making the $18.5 million figure a starting point for further cost analysis.

What are the primary risks associated with this design/build contract, and how are they being mitigated?

Key risks for this design/build contract include potential scope creep during the design phase, unforeseen site conditions impacting construction, and schedule delays. Given it's a firm fixed-price contract, the primary risk of cost overruns lies with the contractor, Fite Building Company, Inc. Mitigation strategies likely involve robust contract management by the Army, including detailed review of design submissions, regular site inspections, and clear communication channels. The contractor's own risk mitigation would involve thorough site investigations, detailed design planning, and proactive project scheduling. The 4-year duration allows for more detailed planning and execution, potentially reducing some risks compared to shorter-term projects.

What is the expected effectiveness of the completed software annex in supporting the Army's systems software needs?

The effectiveness of the completed software annex hinges on how well the design and build phases meet the specific, evolving requirements of the Army's systems software operations at Redstone Arsenal. The contract's success will be measured by the facility's ability to provide a secure, reliable, and functional environment for software development, testing, and deployment. Factors contributing to effectiveness include the quality of the infrastructure (power, cooling, network connectivity), adherence to cybersecurity standards, and the overall usability of the space for its intended purpose. The Department of the Army's clear articulation of requirements and the contractor's ability to translate those into a functional facility are paramount.

How has federal spending on similar construction projects at Redstone Arsenal or for the Department of the Army evolved over time?

Analyzing historical federal spending trends for construction projects at Redstone Arsenal and for the Department of the Army provides context for the $18.5 million award. This would involve examining past contracts for facilities, infrastructure upgrades, and specialized buildings within the Army's portfolio. Trends might reveal an increase or decrease in the average cost per square foot, changes in contract types (e.g., shift towards design-build), and the overall volume of construction spending. Understanding these patterns can help determine if the current contract represents a typical investment or an outlier, and whether spending has been efficient over time. Data on inflation and the increasing complexity of military facilities would also be relevant.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3116 SEXTON RD SE STE A, DECATUR, AL, 05

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,470,561

Exercised Options: $18,470,561

Current Obligation: $18,470,561

Contract Characteristics

Cost or Pricing Data: NO

Timeline