Army awards $19.4M construction contract to Western Contracting Corp for facility upgrades

Contract Overview

Contract Amount: $19,405,566 ($19.4M)

Contractor: Western Contracting Corp

Awarding Agency: Department of Defense

Start Date: 2004-05-25

End Date: 2007-06-10

Contract Duration: 1,111 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200409!001462!96CE!W9128F!USA ENGINEER DISTRICT OMAHA !W9128F04C0018 !A!N! !N! ! !20040525!20060531!006942239!006942239!006942239!N!WESTERN CONTRACTING CORPORATIO!705 DOUGLAS ST STE 400 !SIOUX CITY !IA!51101!73335!193!19!SIOUX CITY !WOODBURY !IOWA !+000000800000!N!N!000013002039!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!003!A! !D!N!Z! ! !N!B!N!N! ! !C! !A!A!00 !A!B!Y!N!Y! ! ! ! !0001! !

Place of Performance

Location: SIOUX CITY, WOODBURY County, IOWA, 51104

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $19.4 million to WESTERN CONTRACTING CORP for work described as: 200409!001462!96CE!W9128F!USA ENGINEER DISTRICT OMAHA !W9128F04C0018 !A!N! !N! ! !20040525!20060531!006942239!006942239!006942239!N!WESTERN CONTRACTING CORPORATIO!705 DOUGLAS ST STE 400 !SIOUX CITY !IA!51101!73335!193!19!SIOUX CITY !WOOD… Key points: 1. Contract value of $19.4M represents a significant investment in infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this award. 3. Contract duration of over 3 years indicates a substantial project scope. 4. Fixed-price contract type may offer cost certainty but limits flexibility. 5. Geographic focus on Iowa suggests regional economic impact. 6. Contractor's track record and past performance will be key to successful execution.

Value Assessment

Rating: good

The contract value of $19.4 million for construction services appears reasonable given the project's scope and duration. Benchmarking against similar Army Corps of Engineers projects for facility upgrades would provide a more precise value-for-money assessment. The fixed-price nature of the contract suggests an expectation of cost control by the government, though it shifts risk to the contractor. Without specific details on the scope of work, a definitive comparison is challenging, but the award amount is within typical ranges for substantial construction projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this contract. While more bidders could potentially drive prices lower, three offers generally provide a reasonable basis for price comparison and selection. The government's ability to select the best value offer from these three is a positive outcome of the competitive process.

Taxpayer Impact: Full and open competition, with multiple bidders, generally leads to better pricing for taxpayers by fostering a competitive environment that encourages contractors to offer their best terms.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel at the Omaha Engineer District facility, who will receive upgraded facilities. The contract delivers construction services for 'ALL OTHER NON-BUILDING FACILITIES', implying a broad range of infrastructure improvements. The geographic impact is concentrated in Sioux City, Iowa, potentially benefiting the local construction workforce and economy. The project is expected to support jobs within the construction sector, both directly with the prime contractor and indirectly through subcontractors and suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise in construction, despite fixed-price terms.
Dependence on the contractor's ability to manage complex construction schedules and logistics.
Risk of delays impacting the operational readiness of the facilities if project milestones are not met.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Fixed-price contract type provides cost certainty for the government.
Contract duration of over three years allows for thorough project execution.
Contractor is a known entity in the construction space, implying some level of established capability.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically NAICS code 237990 (Other Heavy and Civil Engineering Construction). This sector is characterized by large-scale infrastructure projects, including those for government entities. The market size for federal construction contracts is substantial, with significant annual spending across various agencies. This particular contract represents a portion of the Department of the Army's broader infrastructure investment strategy.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. The prime contractor, Western Contracting Corporation, is likely a large business given the contract value. Subcontracting opportunities may exist for small businesses, but this would depend on the prime contractor's subcontracting plan and the specific needs of the project. The overall impact on the small business ecosystem is likely indirect, through potential subcontracting roles.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the Omaha Engineer District. Accountability measures are embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Construction Contracts
Department of Defense Facility Modernization Programs
Federal Heavy and Civil Engineering Construction Spending
Infrastructure Improvement Projects

Risk Flags

Potential for scope creep in long-term construction projects.
Contractor's financial stability and capacity to manage large projects.
Adequacy of site investigation and risk assessment prior to contract award.
Ensuring compliance with environmental and safety regulations during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to WESTERN CONTRACTING CORP. 200409!001462!96CE!W9128F!USA ENGINEER DISTRICT OMAHA !W9128F04C0018 !A!N! !N! ! !20040525!20060531!006942239!006942239!006942239!N!WESTERN CONTRACTING CORPORATIO!705 DOUGLAS ST STE 400 !SIOUX CITY !IA!51101!73335!193!19!SIOUX CITY !WOODBURY !IOWA !+000000800000!N!N!000013002039!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is WESTERN CONTRACTING CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2004-05-25. End: 2007-06-10.

What is the track record of Western Contracting Corporation with federal contracts, particularly within the Department of Defense?

Western Contracting Corporation has a history of performing federal construction contracts. While specific details require deeper database analysis, their ability to win a $19.4 million contract from the Army Engineer District suggests they have successfully navigated federal procurement processes and demonstrated relevant capabilities. Further investigation into their past performance ratings, any past disputes or contract terminations, and the types of projects they have completed for the DoD would provide a more comprehensive understanding of their track record and reliability for this specific project.

How does the awarded price of $19.4 million compare to similar construction projects for non-building facilities within the Department of the Army?

Benchmarking this $19.4 million contract against similar projects is crucial for assessing value for money. Projects involving 'ALL OTHER NON-BUILDING FACILITIES' can vary widely in scope, complexity, and location, making direct comparisons difficult without detailed project specifications. However, general market data for large-scale civil engineering and construction projects awarded by the Army Corps of Engineers can provide a reference point. If comparable projects of similar scale and complexity have been awarded at significantly lower price points, it might indicate potential overpricing or a less competitive bid environment for this specific award. Conversely, if the price aligns with or is below market rates for similar work, it suggests good value.

What are the primary risks associated with a fixed-price contract of this magnitude and duration?

The primary risk with a fixed-price contract of this magnitude ($19.4 million) and duration (over 3 years) is the potential for cost overruns borne by the contractor, which could lead to quality compromises or project delays if the contractor struggles to absorb unexpected expenses. For the government, the risk lies in the contractor potentially cutting corners on quality or scope to maintain profitability, or in disputes arising over change orders if the project scope evolves. Additionally, unforeseen site conditions or material price escalations not adequately accounted for in the fixed price can pose significant challenges for the contractor, potentially impacting project completion.

What is the expected impact of this contract on the local economy in Sioux City, Iowa?

This $19.4 million construction contract is expected to have a positive impact on the local economy in Sioux City, Iowa. It will likely create numerous jobs in the construction sector, both directly for Western Contracting Corporation and potentially through subcontracting opportunities for local firms. The influx of spending on labor, materials, and equipment will stimulate local businesses. Furthermore, the completion of upgraded facilities could enhance the operational efficiency and capabilities of the Army presence in the region, contributing to long-term economic stability.

How does the number of bidders (3) influence the government's ability to secure competitive pricing?

Having three bidders for this contract suggests a moderate level of competition. While more bidders could theoretically drive prices down further, three offers generally provide a sufficient basis for the government to compare proposals and select the best value. It indicates that the opportunity was attractive enough to draw multiple interested parties, but not so intensely competitive that it might deter some potential bidders due to perceived low probability of success. The government's procurement team would have evaluated the offers to ensure fair pricing relative to the scope of work and the market.

What are the implications of the NAICS code 237990 (Other Heavy and Civil Engineering Construction) for the type of work being performed?

The classification under NAICS code 237990 signifies that the contract involves the construction of infrastructure projects that are not typically classified under building construction. This includes a wide range of projects such as highways, streets, bridges, tunnels, dams, power plants, and other large-scale engineering works. For this specific contract, it implies the work likely involves significant civil engineering components related to the 'ALL OTHER NON-BUILDING FACILITIES' for the Army, potentially including site preparation, utility work, paving, drainage systems, or other similar infrastructure improvements rather than the construction of new buildings.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 705 DOUGLAS ST STE 400, SIOUX CITY, IA, 51101

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $1,164,196

Exercised Options: $1,164,196

Current Obligation: $19,405,566

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline