DoD Awards $17.5M Design-Build Contract for Eglin AFB Child Development Centers
Contract Overview
Contract Amount: $17,506,186 ($17.5M)
Contractor: A.E. NEW, JR., Inc.
Awarding Agency: Department of Defense
Start Date: 2010-05-06
End Date: 2013-06-30
Contract Duration: 1,151 days
Daily Burn Rate: $15.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 21
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN-BUILD OF TWO CHILD DEVELOPMENT CENTERS AT EGLIN AIR FORCE BASE, FLORIDA.
Place of Performance
Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $17.5 million to A.E. NEW, JR., INC. for work described as: DESIGN-BUILD OF TWO CHILD DEVELOPMENT CENTERS AT EGLIN AIR FORCE BASE, FLORIDA. Key points: 1. Contract awarded to A.E. New, Jr., Inc. for construction services. 2. Project involves building two child development centers at Eglin Air Force Base. 3. The contract type is Firm Fixed Price, indicating price certainty. 4. This project falls under the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The award amount of $17.5 million for two child development centers appears reasonable for the scope of work. Benchmarking against similar DoD construction projects would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method was 'Full and Open Competition After Exclusion of Sources,' suggesting some initial restrictions but ultimately allowing broad participation. This approach can impact price discovery by limiting the pool of potential bidders.
Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure supporting military families. The competitive process aims to ensure efficient use of these funds.
Public Impact
Supports military families by providing necessary childcare facilities. Contributes to the infrastructure development at a major Air Force installation. Creates construction jobs and stimulates economic activity in the Florida region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method could potentially increase costs.
- Contract duration is substantial, increasing risk of cost overruns due to market fluctuations.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Project addresses a critical need for military family support.
Sector Analysis
This contract is within the Commercial and Institutional Building Construction sector, which is a significant area of government spending. Benchmarks for similar projects would focus on cost per square foot and construction timelines.
Small Business Impact
The data indicates that small business participation was not a stated factor in this award (sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. The contract's definitive nature suggests it's a fixed-scope agreement, which aids accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk of cost escalation.
- Potential for cost overruns due to market fluctuations over 1151 days.
- Limited competition method may not yield the lowest possible price.
- Dependence on a single contractor for a critical infrastructure project.
Tags
commercial-and-institutional-building-co, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.5 million to A.E. NEW, JR., INC.. DESIGN-BUILD OF TWO CHILD DEVELOPMENT CENTERS AT EGLIN AIR FORCE BASE, FLORIDA.
Who is the contractor on this award?
The obligated recipient is A.E. NEW, JR., 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 $17.5 million.
What is the period of performance?
Start: 2010-05-06. End: 2013-06-30.
What was the rationale for excluding certain sources initially in the 'Full and Open Competition After Exclusion of Sources' method?
The exclusion of sources typically occurs when specific capabilities, past performance, or security requirements are necessary, and only a subset of potential contractors can meet them. This can be due to specialized technology, unique site conditions, or specific security clearances required for the project. The contracting agency would need to justify this exclusion based on documented needs to ensure it doesn't unduly restrict competition.
How does the contract duration of 1151 days impact the overall risk profile of this project?
A long contract duration of over three years significantly increases the risk of cost escalation due to inflation, material price volatility, and potential labor shortages. It also extends the period during which unforeseen site conditions or design changes could arise, impacting the final cost and schedule. Mitigation strategies like robust contingency planning and escalation clauses are crucial for such long-term projects.
What is the expected impact of these new child development centers on military readiness and family morale?
The construction of new child development centers directly addresses a critical need for reliable and quality childcare for military personnel. This enhances family morale, reduces stress for parents, and improves overall military readiness by ensuring service members can focus on their duties without childcare concerns. It's a vital support service that contributes to retention and quality of life.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9127810R0045
Offers Received: 21
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2424 EXECUTIVE PLAZA RD, PENSACOLA, FL, 32504
Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,506,186
Exercised Options: $17,506,186
Current Obligation: $17,506,186
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-05-06
Current End Date: 2013-06-30
Potential End Date: 2013-06-30 00:00:00
Last Modified: 2021-04-28
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