Department of Defense awards $21M construction contract to MASON & HANGER, INC. for firm-fixed-price services

Contract Overview

Contract Amount: $21,057,578 ($21.1M)

Contractor: Mason & Hanger, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-12-20

End Date: 2009-09-30

Contract Duration: 1,745 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: SHEPPARD AFB, WICHITA County, TEXAS, 76311

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to MASON & HANGER, INC. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1745 days indicates a significant, long-term project. 3. Firm-fixed-price contract type generally offers cost certainty for the government. 4. The contract was awarded by the Department of the Army, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded in Texas, indicating a specific geographic focus for the construction services.

Value Assessment

Rating: fair

Benchmarking the value of this $21 million contract is challenging without specific deliverables or scope. However, the firm-fixed-price structure suggests an attempt to control costs. Comparing this to similar large-scale construction projects within the Department of Defense would provide better context on whether the pricing is competitive for the services rendered. The duration of the contract also implies a substantial project, and the total value should be assessed against the complexity and scale of the construction.

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 a bid. The presence of 4 bids suggests a moderate level of competition for this construction project. While more bidders could potentially drive prices lower, a moderate number can still lead to a competitive outcome, especially for specialized construction services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple companies to bid, which can lead to more favorable pricing and a wider selection of qualified contractors.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel who will utilize the constructed facilities. The services delivered involve commercial and institutional building construction, potentially including new builds or renovations. The geographic impact is concentrated in Texas, where the construction work will take place. Workforce implications include the creation of construction jobs in the local Texas economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond the initial fixed-price agreement.
Risk of delays in project completion impacting operational readiness for the DoD.
Dependence on a single contractor for a large-scale, long-duration project can create leverage issues.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a robust selection process.
The contractor, MASON & HANGER, INC., has a track record in construction, implying experience.

Sector Analysis

The construction sector is a significant part of the federal spending landscape, encompassing a wide range of projects from infrastructure to facility development. This contract falls under commercial and institutional building construction, a segment that supports government operations and readiness. Federal spending in this area is often driven by modernization needs, base improvements, and the construction of new facilities. Comparable spending benchmarks would involve analyzing other large-scale construction contracts awarded by the Department of Defense or other federal agencies for similar types of buildings.

Small Business Impact

This contract does not indicate any specific small business set-aside. The fact that it was awarded under full and open competition suggests that small businesses could have participated if they met the qualifications. However, the scale of a $21 million construction project may present barriers to entry for smaller firms. There is no explicit information on subcontracting plans for small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army project management office. Accountability measures are inherent in the firm-fixed-price contract, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Construction Contracts
Army Corps of Engineers Projects
Federal Building Construction
Infrastructure Development Contracts

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep if not managed tightly.
Lack of specific project details limits comprehensive value assessment.
Moderate competition level (4 bidders) warrants monitoring for potential price impacts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to MASON & HANGER, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is MASON & HANGER, 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 $21.1 million.

What is the period of performance?

Start: 2004-12-20. End: 2009-09-30.

What is the specific nature of the construction project and its intended use?

The provided data indicates the contract is for 'Commercial and Institutional Building Construction' under NAICS code 236220. However, the specific nature of the project (e.g., barracks, office building, training facility, renovation) and its intended use are not detailed in the summary data. Further investigation into the contract's statement of work or associated documentation would be required to ascertain the precise details of the construction and its purpose within the Department of the Army's operational needs.

How does the awarded amount of $21 million compare to similar construction projects within the Department of Defense?

Without specific details on the project's scope, size, and complexity, a direct comparison of the $21 million award is difficult. However, for large-scale institutional or commercial building construction, this amount is substantial but not extraordinary for federal projects. Benchmarking would require analyzing contracts with similar square footage, construction types (e.g., new build vs. renovation), and geographic locations. The Department of Defense undertakes numerous construction projects annually, and this figure should be assessed against the average cost per square foot or per project for comparable military facilities or government buildings.

What are the key performance indicators (KPIs) or milestones associated with this contract?

The provided data does not specify the key performance indicators or milestones for this contract. Typically, firm-fixed-price construction contracts include detailed schedules with phased milestones for design, procurement, construction, and final acceptance. Performance would be measured against adherence to these milestones, quality of work, safety compliance, and adherence to the contract specifications. The contracting officer's representative (COR) would be responsible for monitoring performance throughout the contract duration.

What is MASON & HANGER, INC.'s track record with similar federal construction contracts?

MASON & HANGER, INC. is a known entity in the construction industry, often involved in large-scale projects, including those for government clients. A review of their past performance on federal contracts, particularly within the Department of Defense or for similar types of commercial and institutional buildings, would be necessary to assess their track record. This would involve examining past project completion times, adherence to budget, quality of work, and any history of disputes or contract modifications. Their experience with firm-fixed-price contracts of this magnitude is a key indicator.

What is the potential risk associated with the 1745-day duration of this contract?

A contract duration of 1745 days (approximately 4.8 years) for a construction project introduces several potential risks. These include the possibility of escalating material costs over the extended period, even with a fixed-price contract, if escalation clauses are present or if unforeseen market shifts occur. There's also a risk of design obsolescence if the facility's needs change significantly during the construction timeline. Furthermore, long-duration projects increase the likelihood of personnel turnover within the contractor's team and potential disruptions due to external factors like environmental changes or regulatory updates. Effective project management and contingency planning are crucial to mitigate these risks.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DAY & Zimmermann Group Inc., the (UEI: 007913486)

Address: 7270 W 162ND ST, STILWELL, KS, 03

Business Categories: Category Business, Emerging Small Business, Small Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Timeline