Department of the Army awards $16M for modular soldier barracks, with limited competition

Contract Overview

Contract Amount: $15,974,437 ($16.0M)

Contractor: CNI Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2006-07-18

End Date: 2007-01-22

Contract Duration: 188 days

Daily Burn Rate: $85.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MODULAR SOLDIER BARRACKS

Place of Performance

Location: FORT LEONARD WOOD, PULASKI County, MISSOURI, 65473

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $16.0 million to CNI CONSTRUCTION, LLC for work described as: MODULAR SOLDIER BARRACKS Key points: 1. The contract value of $15.97 million for modular barracks suggests a significant investment in military infrastructure. 2. The limited competition for this contract raises questions about potential price discovery and value for money. 3. The contract duration of 188 days indicates a relatively short-term project, possibly for immediate deployment needs. 4. The prefabricated metal building manufacturing NAICS code points to a specific industrial sector for this procurement. 5. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation. 6. The firm-fixed-price contract type aims to provide cost certainty for the government, shifting risk to the contractor.

Value Assessment

Rating: fair

The contract value of approximately $16 million for modular barracks appears substantial. Benchmarking this against similar military construction projects would be necessary to fully assess value for money. Given the limited competition, it's difficult to definitively state if the pricing is competitive without further market analysis. The per-unit cost, if calculable, would provide a clearer picture of efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' indicating a limited or sole-source procurement strategy. This suggests that either only one source was capable of meeting the requirements, or there were specific circumstances justifying a lack of broader competition. The limited number of bidders, likely one or very few, means that the government did not benefit from a wide range of proposals to drive down costs or foster innovation.

Taxpayer Impact: Limited competition can lead to higher prices for taxpayers as the government may not secure the most cost-effective solution available in a more open market.

Public Impact

Soldiers will benefit from improved living quarters through the provision of modular barracks. The services delivered include the manufacturing and likely deployment of prefabricated metal buildings. The contract is associated with Missouri (SN: MISSOURI), indicating a specific geographic location for the project. The procurement supports the manufacturing sector, potentially impacting jobs in prefabricated building construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher costs for taxpayers.
Lack of transparency in the procurement process due to limited competition.
Potential for contractor lock-in if future needs are similar and competition remains restricted.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Focus on modular construction can lead to faster deployment of facilities.
Specific NAICS code allows for targeted industry engagement.

Sector Analysis

The procurement falls within the construction and manufacturing sectors, specifically focusing on prefabricated metal buildings. The market for military barracks construction is often characterized by specialized requirements and security considerations. While specific market size data for modular military barracks is not readily available, the broader construction industry is a significant component of the US economy. This contract represents a specific instance of federal spending within this niche.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). This means that large businesses were likely the primary or sole participants in the bidding process. Consequently, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The impact on the broader small business ecosystem is neutral in terms of direct contract awards or set-aside requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which holds the contractor responsible for delivering the specified goods within the agreed-upon price. Transparency is limited due to the 'NOT AVAILABLE FOR COMPETITION' award status. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Housing Construction
Prefabricated Building Manufacturing
Department of Defense Infrastructure Projects
Army Barracks Modernization

Risk Flags

Limited Competition
Potential for Cost Overruns
Lack of Transparency in Procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.0 million to CNI CONSTRUCTION, LLC. MODULAR SOLDIER BARRACKS

Who is the contractor on this award?

The obligated recipient is CNI CONSTRUCTION, 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 $16.0 million.

What is the period of performance?

Start: 2006-07-18. End: 2007-01-22.

What is the track record of CNI CONSTRUCTION, LLC with Department of Defense contracts?

CNI CONSTRUCTION, LLC has been awarded this specific contract by the Department of the Army for modular soldier barracks. To assess their track record comprehensively, a review of their contract history with the DoD would be necessary. This would involve examining past performance on similar projects, adherence to schedules and budgets, and any history of disputes or contract modifications. Without access to a broader contract database or performance reviews, it is difficult to provide a detailed assessment of their overall reliability and expertise beyond this single award.

How does the awarded amount compare to similar modular barracks contracts?

The awarded amount of approximately $16 million for modular soldier barracks requires comparison with similar contracts to assess value. Factors such as the number of units, square footage per unit, included amenities, and geographic location significantly influence cost. Without specific details on the scope of work for this contract and comparable projects, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature suggests an attempt to control costs, but the limited competition raises concerns about whether the best possible price was achieved.

What are the primary risks associated with a 'NOT AVAILABLE FOR COMPETITION' award for barracks construction?

The primary risks associated with a 'NOT AVAILABLE FOR COMPETITION' award for barracks construction include potential overpayment due to lack of competitive pricing, reduced incentive for the contractor to innovate or optimize costs, and a lack of transparency in the procurement process. This award mechanism suggests that either only one contractor could meet the unique requirements, or there were specific justifications for avoiding open competition. This can limit the government's ability to explore alternative solutions or secure the most advantageous terms, potentially impacting budget adherence and overall project efficiency.

What is the expected effectiveness of modular barracks in meeting soldier housing needs?

Modular barracks are generally expected to be effective in meeting soldier housing needs by providing a rapid and cost-efficient solution for deploying living quarters. Their prefabricated nature allows for quicker construction timelines compared to traditional building methods, which is crucial for addressing immediate housing shortages or supporting troop deployments. The effectiveness also depends on the quality of materials, design, and adherence to military standards for habitability and durability. This contract's focus on modular construction suggests an expectation of timely delivery and functional soldier accommodations.

What are the historical spending patterns for modular barracks by the Department of the Army?

Historical spending patterns for modular barracks by the Department of the Army would reveal trends in the utilization of this construction method. Analyzing past contracts would indicate whether modular barracks are a recurring solution for troop housing, the typical contract values, and the frequency of such procurements. This specific contract, awarded in 2006 for a project completed in 2007, represents a data point within a broader historical context. Understanding past spending can inform future budgeting and procurement strategies for military infrastructure.

What is the significance of the NAICS code 332311 for this contract?

The North American Industry Classification System (NAICS) code 332311, 'Prefabricated Metal Building and Component Manufacturing,' is significant as it precisely defines the industry sector relevant to this contract. It indicates that the Department of the Army is procuring prefabricated metal structures intended for use as barracks. This classification helps in understanding the specific manufacturing capabilities required from the contractor and allows for benchmarking against other procurements within this specialized manufacturing segment. It also guides potential future solicitations to relevant industry players.

Industry Classification

NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Prefabricated Metal Building and Component Manufacturing

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DQ06R0028

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2020 ARLINGTON SUITE 4 A, ADA, OK, 04

Business Categories: 8(a) Program Participant, Category Business, Emerging Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $16,086,993

Exercised Options: $15,974,487

Current Obligation: $15,974,437

Contract Characteristics

Cost or Pricing Data: NO

Timeline