DoD's $35.8M Barracks Construction Contract Awarded to ABSHER CONSTRUCTION CO for Schofield Barracks, Hawaii

Contract Overview

Contract Amount: $35,847,682 ($35.8M)

Contractor: Absher Construction CO

Awarding Agency: Department of Defense

Start Date: 2014-08-30

End Date: 2015-07-27

Contract Duration: 331 days

Daily Burn Rate: $108.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY11 MCA PN 52267 CONSTRUCT 228 PN UNACCOMPANIED ENLISTED PERSONNEL HOUSING FACILITY (BARRACKS), SCHOFIELD BARRACKS, OAHU, HI

Place of Performance

Location: SCHOFIELD BARRACKS, HONOLULU County, HAWAII, 96857

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $35.8 million to ABSHER CONSTRUCTION CO for work described as: FY11 MCA PN 52267 CONSTRUCT 228 PN UNACCOMPANIED ENLISTED PERSONNEL HOUSING FACILITY (BARRACKS), SCHOFIELD BARRACKS, OAHU, HI Key points: 1. Value for money assessed against similar construction projects. 2. Competition dynamics indicate a robust bidding process. 3. Risk indicators include project duration and firm fixed-price structure. 4. Performance context is a single, large-scale construction project. 5. Sector positioning within Defense construction services. 6. Contract type is a definitive contract with a firm fixed price.

Value Assessment

Rating: good

The contract value of approximately $35.8 million for constructing barracks at Schofield Barracks, Hawaii, appears reasonable when benchmarked against similar large-scale institutional building construction projects. The firm fixed-price (FFP) award structure generally provides cost certainty for the government, assuming the scope was well-defined. However, a detailed cost breakdown and comparison to industry cost indices for construction in Hawaii would be necessary for a more precise value assessment. The absence of specific performance metrics in the provided data limits a deeper dive into cost-effectiveness.

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 bids. With 3 bidders identified, the competition level suggests a healthy market interest for this type of construction project. A higher number of bidders typically leads to more competitive pricing, but the specific pricing outcomes relative to the number of bidders are not detailed here. The fact that it was competed broadly is a positive sign for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces. The presence of multiple bidders suggests that the government likely received competitive offers, potentially leading to cost savings compared to a sole-source or limited competition scenario.

Public Impact

Benefits unaccompanied enlisted personnel by providing new housing facilities. Delivers essential infrastructure improvements at a major military installation. Geographic impact is localized to Schofield Barracks, Oahu, Hawaii. Workforce implications include construction jobs for skilled trades in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite FFP.
Schedule delays could impact operational readiness if not managed effectively.
Quality control is critical to ensure long-term durability of the facility.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Full and open competition suggests competitive pricing was sought.
Award to an established contractor like ABSHER CONSTRUCTION CO may indicate a track record of successful project completion.

Sector Analysis

This contract falls within the Defense construction sector, specifically focusing on institutional building construction. The market for military construction is substantial, driven by the need to maintain and upgrade aging infrastructure and build new facilities to support military readiness. Benchmarking this project's cost against other barracks construction or similar military facility projects would provide further context on its market competitiveness.

Small Business Impact

The provided data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While the prime contractor is ABSHER CONSTRUCTION CO, it is unknown if they have subcontracting plans that would include small businesses. Further investigation into subcontracting goals and performance would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this Department of the Army contract would typically involve contracting officers, project managers, and potentially the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the firm fixed-price contract structure, which places the risk of cost overruns on the contractor. Transparency is generally maintained through contract award databases, though detailed project-specific oversight reports are not publicly available.

Related Government Programs

Military Construction (MILCON)
Department of Defense Facilities
Barracks Construction
Institutional Building Construction

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Risk of labor or material cost escalation in Hawaii's market.
Ensuring long-term durability and quality of construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to ABSHER CONSTRUCTION CO. FY11 MCA PN 52267 CONSTRUCT 228 PN UNACCOMPANIED ENLISTED PERSONNEL HOUSING FACILITY (BARRACKS), SCHOFIELD BARRACKS, OAHU, HI

Who is the contractor on this award?

The obligated recipient is ABSHER CONSTRUCTION CO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $35.8 million.

What is the period of performance?

Start: 2014-08-30. End: 2015-07-27.

What is ABSHER CONSTRUCTION CO's track record with similar large-scale military construction projects?

ABSHER CONSTRUCTION CO has a history of undertaking significant construction projects, including those for government entities. While specific details on their past barracks construction projects for the Department of Defense are not provided in this data snippet, their involvement in a $35.8 million contract suggests a capacity for handling large-scale endeavors. A deeper analysis would involve reviewing their past performance evaluations, contract history with DoD, and any reported issues or successes on comparable projects to fully assess their suitability and reliability for this specific barracks construction.

How does the cost per square foot of this barracks project compare to industry benchmarks?

The provided data does not include the square footage or detailed cost breakdowns necessary to calculate a cost per square foot. To perform this comparison, one would need the total construction area of the barracks facility. Once obtained, this figure could be compared against industry cost indices for institutional building construction in Hawaii, as well as specific benchmarks for military barracks projects. Such a comparison would help determine if the project's cost is aligned with market rates or if it represents a potential over or under-spending relative to similar construction efforts.

What are the primary risks associated with firm fixed-price construction contracts of this magnitude?

Firm Fixed-Price (FFP) contracts, while offering cost certainty to the government, place the primary risk of cost overruns on the contractor. For a project of this magnitude ($35.8 million), key risks include unforeseen site conditions (e.g., soil issues, hazardous materials), design errors or omissions discovered during construction, labor shortages or cost increases, and material price volatility. Effective risk mitigation relies on thorough pre-construction planning, accurate initial cost estimates, robust contingency planning by the contractor, and diligent government oversight to ensure scope is managed and change orders are justified.

How effective are the competition dynamics in ensuring value for taxpayer dollars on this contract?

The award under 'full and open competition' with three bidders suggests a competitive environment was established, which generally aids in achieving better value for taxpayer dollars. This process allows multiple qualified contractors to bid, fostering price discovery and encouraging efficiency. However, the ultimate value realization depends on the quality of the bids received and the government's ability to negotiate favorable terms. Without knowing the bid spread or the government's cost estimate, it's difficult to definitively state the effectiveness, but the competitive nature is a positive indicator.

What is the historical spending trend for barracks construction at Schofield Barracks or similar Army installations?

Historical spending data for barracks construction at Schofield Barracks or similar Army installations is not provided in this dataset. To analyze this, one would need to access historical contract databases (like FPDS or SAM.gov) and filter for relevant keywords (barracks, housing, construction) and locations (Schofield Barracks, Army installations in Hawaii, or similar bases). Examining past contract values, award dates, and contractor performance would reveal spending trends, identify potential cost escalations over time, and provide context for the current $35.8 million award.

Are there any specific performance concerns or positive indicators from previous contracts awarded to ABSHER CONSTRUCTION CO by the Department of the Army?

The provided data does not contain specific performance evaluations or concerns related to ABSHER CONSTRUCTION CO's previous contracts with the Department of the Army. To assess this, one would need to consult performance assessment reporting tools (like CPARS - Contractor Performance Assessment Reporting System) or conduct a thorough review of their contract history. Positive indicators might include consistently high ratings on past projects, timely completion, and adherence to budget. Conversely, negative indicators could involve documented performance issues, disputes, or contract terminations.

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

Solicitation ID: W9128A11R0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1001 SHAW RD, PUYALLUP, WA, 98372

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,847,682

Exercised Options: $35,847,682

Current Obligation: $35,847,682

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline