DoD Awards $2.9M for Building Construction in Alabama to Arrowhead Contracting, Inc
Contract Overview
Contract Amount: $2,907,754 ($2.9M)
Contractor: Arrowhead Contracting, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-08-27
End Date: 2026-02-15
Contract Duration: 537 days
Daily Burn Rate: $5.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BLDG 362 & 32 ANAD, AL
Place of Performance
Location: ANNISTON, CALHOUN County, ALABAMA, 36201
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $2.9 million to ARROWHEAD CONTRACTING, INC. for work described as: BLDG 362 & 32 ANAD, AL Key points: 1. Contract awarded for building construction in Alabama. 2. Arrowhead Contracting, Inc. is the sole awardee. 3. The contract is for a firm fixed price. 4. The duration of the contract is 537 days.
Value Assessment
Rating: questionable
The contract value of $2.9M for building construction is difficult to assess without specific project details or comparable projects. The lack of available cost data makes a direct pricing assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The sole-source nature of this award may result in a higher cost to taxpayers compared to a competitively bid contract.
Public Impact
Construction services for federal facilities are essential for operational readiness. The award supports infrastructure development within the Department of the Army. Local economic impact through job creation and material sourcing in Alabama is likely.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of cost data hinders value assessment.
- Potential for inflated pricing due to lack of competition.
Positive Signals
- Supports critical infrastructure for the Department of the Army.
- Awarded to a specific contractor for defined building needs.
Sector Analysis
The Commercial and Institutional Building Construction sector encompasses a wide range of projects. Federal spending in this sector can vary significantly based on infrastructure needs and modernization efforts.
Small Business Impact
The data indicates that small business participation is not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if this is a trend or an isolated instance.
Oversight & Accountability
Oversight of sole-source contracts is crucial to ensure fair pricing and prevent waste. The Department of the Army is responsible for ensuring the contractor meets all performance requirements.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Limited price discovery
- No small business set-aside
- Insufficient cost data for detailed analysis
Tags
commercial-and-institutional-building-co, department-of-defense, al, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.9 million to ARROWHEAD CONTRACTING, INC.. BLDG 362 & 32 ANAD, AL
Who is the contractor on this award?
The obligated recipient is ARROWHEAD CONTRACTING, 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 $2.9 million.
What is the period of performance?
Start: 2024-08-27. End: 2026-02-15.
What specific construction services are included in this $2.9M award, and how do they align with the Army's infrastructure priorities?
The provided data does not detail the specific construction services. However, the award is for BLDG 362 & 32 ANAD, AL, suggesting it pertains to facility upgrades or new construction at an Army installation in Alabama. The alignment with infrastructure priorities would require further investigation into the Army's current facility management and modernization plans.
Given the sole-source nature, what mechanisms are in place to ensure the $2.9M price is fair and reasonable?
For sole-source contracts, agencies typically rely on certified cost and pricing data, market research, and negotiation techniques to establish a fair and reasonable price. The contracting officer would have conducted an independent cost estimate and reviewed the contractor's proposed costs to justify the final award amount, even without competition.
What is the potential impact on future construction costs if sole-source awards become a common practice for similar projects within the Department of the Army?
A trend towards sole-source awards for similar projects could lead to increased overall construction costs for the Department of the Army. Without competitive bidding, contractors may have less incentive to offer competitive pricing, potentially resulting in higher expenditures for taxpayers over time and reduced innovation.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W9127824R0022
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 504 W INTENDENCIA ST, PENSACOLA, FL, 32502
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,907,754
Exercised Options: $2,907,754
Current Obligation: $2,907,754
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9127824D0068
IDV Type: IDC
Timeline
Start Date: 2024-08-27
Current End Date: 2026-02-15
Potential End Date: 2026-02-15 00:00:00
Last Modified: 2026-01-09
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