Army Corps of Engineers Awards $10.96M Construction Management Contract to Paragon-Jacobs Joint Venture

Contract Overview

Contract Amount: $10,958,180 ($11.0M)

Contractor: Paragon-Jacobs Joint Venture, LLC

Awarding Agency: Department of Defense

Start Date: 2023-03-01

End Date: 2026-03-21

Contract Duration: 1,116 days

Daily Burn Rate: $9.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION MANAGEMENT SERVICES FOR THE U.S. ARMY CORPS OF ENGINEERS, PIPESTEM RESIDENT OFFICE, JAMESTOWN, ND.

Place of Performance

Location: JAMESTOWN, STUTSMAN County, NORTH DAKOTA, 58401

State: North Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to PARAGON-JACOBS JOINT VENTURE, LLC for work described as: CONSTRUCTION MANAGEMENT SERVICES FOR THE U.S. ARMY CORPS OF ENGINEERS, PIPESTEM RESIDENT OFFICE, JAMESTOWN, ND. Key points: 1. Contract awarded for construction management services in Jamestown, ND. 2. The contract is valued at $10.96 million. 3. The awardee is Paragon-Jacobs Joint Venture, LLC. 4. The contract duration is 1116 days, ending March 21, 2026. 5. This falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The contract value of $10.96 million for construction management services appears reasonable given the duration and scope. Benchmarking against similar Army Corps of Engineers projects would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited competition approach. This method may impact price discovery and potentially lead to higher costs compared to a fully open solicitation.

Taxpayer Impact: The limited competition raises concerns about maximizing taxpayer value. Further justification for the non-competitive award is needed to ensure fair pricing.

Public Impact

Supports critical infrastructure projects for the U.S. Army Corps of Engineers. Ensures effective management and oversight of construction activities. Contributes to regional economic activity through project execution. Impacts the operational readiness of Army facilities in North Dakota.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises cost concerns.
Lack of detailed justification for sole-source award.
Potential for cost overruns without competitive pressure.

Positive Signals

Award to a joint venture suggests capacity for complex projects.
Firm fixed price contract provides cost certainty.
Long duration allows for comprehensive project management.

Sector Analysis

This contract falls within the Engineering Services sector, specifically for construction management. Spending in this sector is crucial for infrastructure development and maintenance, with benchmarks varying significantly based on project complexity and location.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to assess small business participation.

Oversight & Accountability

Oversight will be critical given the limited competition. The Army Corps of Engineers must ensure robust monitoring of performance and costs to hold the contractor accountable and protect taxpayer interests.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of transparency regarding justification for limited competition.
Potential for cost overruns without competitive pressure.
Need for strong oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to PARAGON-JACOBS JOINT VENTURE, LLC. CONSTRUCTION MANAGEMENT SERVICES FOR THE U.S. ARMY CORPS OF ENGINEERS, PIPESTEM RESIDENT OFFICE, JAMESTOWN, ND.

Who is the contractor on this award?

The obligated recipient is PARAGON-JACOBS JOINT VENTURE, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2023-03-01. End: 2026-03-21.

What is the specific justification for awarding this contract on a limited competition basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source or limited justification. A thorough review of the contracting officer's determination is necessary to understand the rationale, which could include factors like specialized expertise, urgency, or lack of available alternatives. Without this justification, it's difficult to assess if taxpayer funds are being used efficiently.

How does the $10.96 million cost compare to similar construction management contracts for Army Corps of Engineers projects of comparable size and complexity?

Benchmarking this contract's cost against similar projects is essential for evaluating value. Factors like project scope, geographic location, and specific services required influence pricing. A detailed comparison with historical data or industry standards for Army Corps of Engineers construction management contracts would reveal if this award represents a fair and reasonable price or if it is potentially inflated due to limited competition.

What mechanisms are in place to ensure effective oversight and accountability for this contract, given its limited competition nature?

Robust oversight is paramount when competition is limited. Key mechanisms should include detailed performance metrics, regular progress reviews, stringent quality control, and transparent financial reporting. The Army Corps of Engineers must actively monitor the contractor's adherence to the contract terms, identify potential risks early, and ensure that the project is delivered on time, within budget, and to the required standards.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9128F22R0045

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3301 C STREET, SUITE 400, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,958,180

Exercised Options: $10,958,180

Current Obligation: $10,958,180

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F22D0041

IDV Type: IDC

Timeline