DoD's $22.3M power line construction contract awarded to Endicott Constructors Corporation shows fair value

Contract Overview

Contract Amount: $22,326,202 ($22.3M)

Contractor: Endicott Constructors Corporation

Awarding Agency: Department of Defense

Start Date: 2009-09-15

End Date: 2011-06-30

Contract Duration: 653 days

Daily Burn Rate: $34.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: JSEC

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to ENDICOTT CONSTRUCTORS CORPORATION for work described as: JSEC Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 653 days indicates a substantial project scope. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. The project is located in Maryland, a state with significant infrastructure development. 5. The North American Industry Classification System (NAICS) code 237130 points to specialized construction services. 6. The award amount of over $22 million reflects a significant investment in power infrastructure.

Value Assessment

Rating: good

The contract's firm fixed-price structure is a positive indicator for value, as it caps the government's liability. Benchmarking against similar power and communication line construction projects would provide a clearer picture of the pricing efficiency. However, the absence of specific performance metrics or detailed cost breakdowns makes a definitive value assessment challenging without further data. The award amount of $22.3 million for a 653-day project suggests a moderate per-day cost, which appears reasonable for complex infrastructure work.

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. The presence of 16 bids suggests a healthy level of interest and competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value. The extensive bidding process likely contributed to price discovery and ensured a wide range of capabilities were considered.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final award price and ensured that the government received competitive proposals. This process helps prevent inflated costs and promotes efficiency in federal spending.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive reliable power and communication infrastructure. The services delivered include the construction of power and communication lines and related structures. The geographic impact is concentrated in Maryland, supporting regional infrastructure development. The project likely involves a skilled construction workforce, contributing to employment in the skilled trades sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial project requirements are not clearly defined.
Dependence on a single contractor for a critical infrastructure project carries inherent risks.
Weather and environmental factors in Maryland could impact project timelines and costs.
Coordination with existing utilities and infrastructure may present unforeseen challenges.

Positive Signals

Firm fixed-price contract type limits financial risk for the government.
Full and open competition suggests a competitive bidding process, likely resulting in favorable pricing.
The contractor, Endicott Constructors Corporation, has a track record of performing similar construction projects.
The project addresses a critical need for reliable power and communication infrastructure for military operations.

Sector Analysis

The construction of power and communication lines falls under the specialized infrastructure sector. This sector is crucial for national security and economic development, requiring significant investment in skilled labor and materials. The market for such services is competitive, with numerous firms capable of undertaking large-scale projects. The Department of Defense is a major client in this sector, often awarding contracts for base infrastructure upgrades and expansions. Comparable spending benchmarks would typically be assessed based on project complexity, geographic location, and specific technical requirements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a larger entity suggests that the project's scale or technical requirements may have favored established, larger contractors. Further analysis would be needed to determine if opportunities for small business participation were overlooked or if the nature of the work inherently limited such involvement.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price nature of the contract provides a degree of financial oversight by capping costs. Accountability measures would include adherence to project timelines, quality standards, and contractual specifications. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Military Base Infrastructure Modernization
Utility Construction and Maintenance Contracts
Federal Power Grid Projects
Department of Defense Construction Projects

Risk Flags

Potential for schedule delays due to external factors.
Contractor performance risk.
Scope creep potential if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to ENDICOTT CONSTRUCTORS CORPORATION. JSEC

Who is the contractor on this award?

The obligated recipient is ENDICOTT CONSTRUCTORS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.3 million.

What is the period of performance?

Start: 2009-09-15. End: 2011-06-30.

What is the track record of Endicott Constructors Corporation in performing similar federal contracts?

Endicott Constructors Corporation has a history of performing construction contracts, including those related to power and communication lines. A review of their federal contract history would reveal the number and value of similar projects they have completed, their performance ratings on those contracts, and any past performance issues or awards. This information is crucial for assessing their capability and reliability in executing the current $22.3 million contract. Understanding their experience with firm fixed-price contracts and projects of similar duration and complexity would provide further insight into their suitability for this specific award.

How does the awarded amount compare to the estimated cost or market rates for similar power line construction projects?

Without access to the government's cost estimate or detailed market research data for this specific project, a precise comparison is difficult. However, the fact that the contract was awarded under full and open competition with 16 bids suggests that the pricing was likely competitive. To benchmark effectively, one would need to identify comparable projects in Maryland or similar geographic regions, considering factors like project scope, length of construction, and specific technical requirements (e.g., underground vs. overhead lines, terrain challenges). The $22.3 million award for a 653-day project indicates an average daily expenditure, which can be compared to industry averages for similar infrastructure work.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential delays due to weather or unforeseen site conditions, contractor performance issues, and material cost fluctuations. The firm fixed-price contract mitigates financial risk for the government by capping the total cost. Mitigation for performance and schedule risks relies on robust contract oversight, clear performance standards, and the contractor's own project management capabilities. The competitive bidding process also helps mitigate risk by selecting a contractor with a demonstrated ability to perform. The contract's duration of over a year suggests that contingency planning for schedule impacts is likely incorporated.

What is the expected impact of this contract on the local workforce and economy in Maryland?

This contract is expected to create or sustain jobs for skilled construction workers, including electricians, linemen, heavy equipment operators, and project managers in Maryland. The influx of federal spending will also benefit local suppliers of materials, equipment, and services. The project's duration of 653 days suggests a sustained period of employment and economic activity. The specific economic impact will depend on the extent to which local labor and materials are utilized, as well as the multiplier effect of wages spent within the local community.

How does this contract fit into the broader context of Department of Defense infrastructure spending?

This contract represents a component of the Department of Defense's ongoing investment in maintaining and upgrading its infrastructure, which is critical for operational readiness and security. Spending on power and communication lines is essential for ensuring reliable utility services at military installations. The $22.3 million award is a significant but not exceptionally large sum within the DoD's overall budget for facilities and infrastructure. It aligns with broader trends of modernizing aging infrastructure and ensuring resilience against potential threats or disruptions.

Were there any specific performance metrics or key performance indicators (KPIs) defined in the contract?

The provided data does not specify the exact performance metrics or KPIs included in the contract. However, for a construction project of this nature, typical KPIs would likely include adherence to schedule milestones, quality of workmanship (e.g., meeting industry standards and specifications), safety compliance (e.g., low incident rates), and successful completion of defined project phases. The firm fixed-price nature implies that meeting these performance expectations is crucial for the contractor to achieve profitability without incurring cost overruns.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures 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: W912BU09B0020

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 591 N AVE DOOR B 1ST FL, WAKEFIELD, MA, 01880

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

Financial Breakdown

Contract Ceiling: $22,326,202

Exercised Options: $22,326,202

Current Obligation: $22,326,202

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline