DoD Awards $175M Construction Contract to Fabrication Products, Inc. for Dams

Contract Overview

Contract Amount: $13,387,091 ($13.4M)

Contractor: Fabrication Products Inc

Awarding Agency: Department of Defense

Start Date: 2005-09-15

End Date: 2007-04-15

Contract Duration: 577 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200512!501251!96CE!W9127N!USA ENGINEER DISTRICT PORTLAND !W9127N05C0025 !A!N! !N! ! !20050915!20050420!175479625!175479625!175479625!N!FABRICATION PRODUCTS, INC !4201 N E MINNEHAHA ST !VANCOUVER !WA!98661!49555!059!53!NORTH BONNEVILLE !SKAMANIA !WASHINGTON!+000000100000!N!N!000012738672!Y211!DAMS !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !20200930!B! ! !A! !A!U!J!2!004!A! !D!N!C! ! !N!A!Y!N!D! ! ! !A!A!000!A!B!Y!T!N! ! ! ! !0001! !

Place of Performance

Location: NORTH BONNEVILLE, SKAMANIA County, WASHINGTON, 98639

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to FABRICATION PRODUCTS INC for work described as: 200512!501251!96CE!W9127N!USA ENGINEER DISTRICT PORTLAND !W9127N05C0025 !A!N! !N! ! !20050915!20050420!175479625!175479625!175479625!N!FABRICATION PRODUCTS, INC !4201 N E MINNEHAHA ST !VANCOUVER !WA!98661!49555!059!53!NORTH BONNEVILLE !SKAM… Key points: 1. The Department of Defense awarded a significant construction contract valued at $175.4 million. 2. Fabrication Products, Inc. secured the contract, indicating potential specialization or competitive advantage in this niche. 3. The contract carries a risk of cost overruns due to its fixed-price nature and a 2-year duration. 4. The sector is heavy and civil engineering construction, specifically related to dams, a critical infrastructure area.

Value Assessment

Rating: good

The contract value of $175.4 million for dam construction appears reasonable given the scope and duration. Benchmarking against similar large-scale civil engineering projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.

Taxpayer Impact: Full and open competition likely resulted in a fair price, maximizing taxpayer value for this substantial infrastructure project.

Public Impact

This contract supports critical infrastructure development, potentially improving water management or power generation capabilities. The award to Fabrication Products, Inc. could stimulate local economies in Washington state through job creation and material sourcing. Long-term maintenance and operational costs associated with the dam construction are not detailed but represent future public expenditure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large construction projects.
Reliance on a single contractor for a critical infrastructure component.
Fixed-price contracts can sometimes lead to quality compromises if not closely monitored.

Positive Signals

Awarded through full and open competition.
Contract value appears substantial, indicating a significant project.
Contract duration is defined, allowing for project planning.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on dam construction. Spending in this sector is often driven by infrastructure needs and government investment in public works.

Small Business Impact

While Fabrication Products, Inc. secured this large contract, the data does not specify if they are a small business or if subcontracting opportunities were mandated for small businesses. Further analysis is needed to determine small business participation.

Oversight & Accountability

The Department of Defense, through the Army Corps of Engineers, is responsible for overseeing this contract. Robust oversight is crucial to ensure project completion, quality, and adherence to budget.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Large contract value increases financial risk.
Fixed-price contract may incentivize cutting corners on quality.
Construction projects are susceptible to delays due to weather or unforeseen site conditions.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to FABRICATION PRODUCTS INC. 200512!501251!96CE!W9127N!USA ENGINEER DISTRICT PORTLAND !W9127N05C0025 !A!N! !N! ! !20050915!20050420!175479625!175479625!175479625!N!FABRICATION PRODUCTS, INC !4201 N E MINNEHAHA ST !VANCOUVER !WA!98661!49555!059!53!NORTH BONNEVILLE !SKAMANIA !WASHINGTON!+000000100000!N!N!000012738672!Y211!DAMS !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is FABRICATION PRODUCTS 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 $13.4 million.

What is the period of performance?

Start: 2005-09-15. End: 2007-04-15.

What specific dam infrastructure is being constructed or improved, and what is the expected impact on water management or energy production?

The provided data identifies the project as 'DAMS' under NAICS code 237990 (Other Heavy and Civil Engineering Construction). However, specific details regarding the dam's location, purpose (e.g., flood control, hydroelectric power, water supply), or expected operational impact are not included. Further investigation into the contract's statement of work would be necessary to ascertain these critical details and their public benefit.

What are the key performance indicators and risk mitigation strategies outlined in the contract to ensure quality and timely completion of the dam construction?

The contract is a fixed-price definitive contract with a duration of 577 days. While this structure aims for cost certainty, it necessitates stringent quality control and performance monitoring by the contracting agency. Specific KPIs and detailed risk mitigation plans are typically found in the contract's statement of work and associated appendices, which are not provided here. The agency's oversight will be critical in managing potential delays or quality issues.

How does the $175.4 million contract award compare to industry benchmarks for similar dam construction projects of comparable scale and complexity?

Benchmarking this $175.4 million contract requires detailed comparison with similar dam construction projects, considering factors like geographical location, specific engineering requirements, material costs, and prevailing labor rates. Without access to a comprehensive database of comparable projects and their costs, a precise benchmark is difficult. However, the 'full and open competition' award suggests the price was deemed competitive within the market at the time of award.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 4

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4201 N E MINNEHAHA ST, VANCOUVER, WA, 98661

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline