DoD's $18.45M Minot Dorm Construction Contract with Graham Construction Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $18,453,005 ($18.5M)

Contractor: Graham Construction Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-02-14

End Date: 2014-03-11

Contract Duration: 756 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 23

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MILITARY-PROJECT NO: QJVF092001-MINOT DORM CONSTRUCTION

Place of Performance

Location: MINOT AFB, WARD County, NORTH DAKOTA, 58705

State: North Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to GRAHAM CONSTRUCTION SERVICES, INC. for work described as: MILITARY-PROJECT NO: QJVF092001-MINOT DORM CONSTRUCTION Key points: 1. The contract awarded to Graham Construction Services, Inc. for Minot Dorm Construction is valued at $18.45 million. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts risk to the contractor. 4. The project falls under Commercial and Institutional Building Construction, a sector with significant federal spending.

Value Assessment

Rating: fair

The contract value of $18.45 million for dormitory construction needs to be benchmarked against similar projects to assess its fairness. Without specific per-unit cost data, a definitive pricing assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by encouraging multiple bids and potentially lowering overall project costs.

Public Impact

Military personnel housing is directly impacted, potentially affecting morale and readiness. The construction sector is a significant recipient of federal funds, with implications for local economies. Taxpayer funds are allocated for infrastructure projects that support military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data for value assessment.
Potential for cost overruns if not managed effectively despite fixed price.
Durability and long-term maintenance costs are not detailed.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type shifts risk to contractor.
Project supports military personnel housing needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector is substantial, supporting infrastructure development across various government agencies. Benchmarks for dormitory construction costs vary widely based on location, materials, and specific requirements.

Small Business Impact

The data indicates that Graham Construction Services, Inc. received the award. There is no explicit information provided regarding small business participation or subcontracting in this specific contract award notice.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for federal construction projects would apply, including contract monitoring and compliance checks.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of detailed cost breakdown for value assessment.
Potential for quality issues if contractor underbids.
No explicit mention of small business subcontracting.
Project duration (756 days) is substantial, increasing risk exposure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to GRAHAM CONSTRUCTION SERVICES, INC.. MILITARY-PROJECT NO: QJVF092001-MINOT DORM CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is GRAHAM CONSTRUCTION SERVICES, 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 $18.5 million.

What is the period of performance?

Start: 2012-02-14. End: 2014-03-11.

What is the average cost per square foot or per bed for similar dormitory construction projects in North Dakota or comparable regions to assess the value of this contract?

Assessing the value requires benchmarking against similar projects. Without specific cost breakdowns like cost per square foot or per bed, it's difficult to definitively state if $18.45 million is competitive. Factors like local labor costs, material prices, and specific architectural requirements in North Dakota would influence this benchmark. Further analysis comparing this contract's unit costs to regional averages for military or institutional housing is needed.

Given the Firm Fixed Price (FFP) contract type, what are the primary risks to the government regarding potential cost overruns or quality compromises?

While FFP shifts cost overrun risk to the contractor, risks to the government can still arise. These include potential quality compromises if the contractor seeks to reduce costs, or contractor default if the fixed price proves unworkable. The government's risk is primarily in ensuring robust contract oversight, clear quality standards, and effective inspection processes to mitigate these potential issues.

How effectively does the 'full and open competition' method ensure optimal use of taxpayer funds for this specific military construction project?

Full and open competition is designed to maximize taxpayer value by encouraging multiple bidders to offer their best prices and technical solutions. For this project, it suggests a competitive environment was established. However, the ultimate effectiveness in ensuring optimal fund use depends on the quality of the bids received, the government's negotiation leverage, and diligent contract administration throughout the project lifecycle.

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: SEALED BID

Solicitation ID: W9128F12B0001

Offers Received: 23

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Graham Group Ltd (UEI: 252179825)

Address: 2995 LONE OAK CIR STE 1, SAINT PAUL, MN, 55121

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,568,505

Exercised Options: $18,453,005

Current Obligation: $18,453,005

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline