Department of the Army awards $15.4M contract for Washington Aqueduct facilities, highlighting construction sector activity

Contract Overview

Contract Amount: $15,433,179 ($15.4M)

Contractor: CPP Construction Company

Awarding Agency: Department of Defense

Start Date: 2008-10-16

End Date: 2011-09-08

Contract Duration: 1,057 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HYPOCHLORITE AND ASSOCIATED FACILITIES, WASHINGTON AQUEDUCT, DC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20016

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $15.4 million to CPP CONSTRUCTION COMPANY for work described as: HYPOCHLORITE AND ASSOCIATED FACILITIES, WASHINGTON AQUEDUCT, DC Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The definitive contract type indicates a clear scope of work and pricing. 3. Firm Fixed Price award aims to provide cost certainty for the government. 4. The contract duration of 1057 days spans over two years, indicating a substantial project. 5. The project is located in the District of Columbia, impacting local infrastructure. 6. The contractor, CPP Construction Company, has secured a significant federal award. 7. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

The contract value of $15.4 million for commercial and institutional building construction appears within a reasonable range for a project of this scope and duration. Benchmarking against similar projects would require more detailed information on the specific facilities and construction scope. However, the firm fixed-price nature suggests an effort to control costs upfront. Without specific cost breakdowns or comparisons to market rates for similar construction services in the DC area, a precise value-for-money assessment is challenging.

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 6 bidders suggests a healthy level of competition for this project. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the users of the Washington Aqueduct, ensuring the continued operation and maintenance of critical water infrastructure. The services delivered include construction and potentially renovation or upgrade of associated facilities. The geographic impact is concentrated in the District of Columbia, serving the nation's capital. The project likely supports the construction workforce in the DC metropolitan area, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Dependence on the contractor's ability to manage the project timeline effectively to avoid delays.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm Fixed Price contract provides cost certainty for the government.
The contractor has secured a significant federal contract, suggesting a level of established capability.
The project addresses critical infrastructure needs for the Washington Aqueduct.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures such as government facilities, educational institutions, and healthcare buildings. Federal spending in this area is crucial for maintaining and upgrading public infrastructure. Comparable spending benchmarks would depend on the specific type and scale of facilities being constructed or renovated, but federal construction contracts often represent significant investments in the economy.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While there is no explicit small business set-aside, the prime contractor, CPP Construction Company, may engage small businesses as subcontractors. The extent of subcontracting to small businesses would need further investigation to assess the impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract performance or closeout.

Related Government Programs

Washington Aqueduct Operations and Maintenance
Federal Building Construction Projects
Department of Defense Infrastructure Modernization

Risk Flags

Potential for unforeseen site conditions impacting fixed price.
Contractor performance and adherence to schedule.
Quality of construction and materials used.
Compliance with environmental and safety regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to CPP CONSTRUCTION COMPANY. HYPOCHLORITE AND ASSOCIATED FACILITIES, WASHINGTON AQUEDUCT, DC

Who is the contractor on this award?

The obligated recipient is CPP CONSTRUCTION COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.4 million.

What is the period of performance?

Start: 2008-10-16. End: 2011-09-08.

What is the track record of CPP Construction Company with federal contracts, particularly in the construction of water infrastructure facilities?

A review of CPP Construction Company's federal contract history would be necessary to assess their track record. This would involve examining past performance on similar projects, including their success in meeting deadlines, staying within budget, and the quality of their work. Specifically for water infrastructure, understanding their experience with the unique challenges and regulatory requirements of such facilities would be crucial. Data from contract databases can reveal the number and value of previous federal awards, as well as any performance ratings or disputes. A strong history with comparable projects would indicate a lower risk for this current contract.

How does the awarded amount of $15.4 million compare to the estimated cost or market rates for similar construction projects in the Washington D.C. metropolitan area?

Benchmarking the $15.4 million award against market rates for similar construction projects in the Washington D.C. area requires detailed project specifications. Factors such as the square footage, type of construction (new build vs. renovation), complexity of systems (e.g., water treatment, mechanical, electrical), and prevailing labor and material costs in the region are critical. Without these specifics, a direct comparison is difficult. However, given the firm fixed-price nature and the competitive bidding process (6 bidders), it suggests the government sought to secure a competitive price. Further analysis would involve consulting construction cost indices and databases for the D.C. region for projects of comparable scope and scale.

What are the primary risks associated with this definitive contract, and what mitigation strategies are in place?

Primary risks for this definitive contract include potential scope creep if the project requirements are not precisely defined, unforeseen site conditions (e.g., hazardous materials, unexpected geological issues) that could lead to cost increases despite the fixed price, and contractor performance issues (delays, quality defects). Mitigation strategies typically involve robust contract management, clear definition of work requirements, contingency planning for unforeseen conditions (often built into the contract price or managed through change orders), and performance monitoring. The firm fixed-price structure itself is a risk mitigation tool for the government, placing the cost risk on the contractor, provided the scope is well-defined.

What is the expected effectiveness of this contract in ensuring the long-term operational capacity of the Washington Aqueduct?

The effectiveness of this contract in ensuring the long-term operational capacity of the Washington Aqueduct hinges on the scope and quality of the construction work performed. If the contract addresses critical maintenance, upgrades, or expansion needs for associated facilities, it should contribute positively to the aqueduct's reliability and efficiency. The success will depend on the contractor's adherence to specifications, the durability of the materials used, and the integration of new or renovated facilities with existing systems. Regular performance reviews and post-completion inspections would be key to verifying the contract's effectiveness in meeting its objectives.

How has federal spending on commercial and institutional building construction (NAICS 236220) trended in recent years, and how does this contract fit into that pattern?

Federal spending on commercial and institutional building construction (NAICS 236220) can fluctuate based on infrastructure needs, agency priorities, and budget allocations. In recent years, there has been a general emphasis on modernizing federal facilities, addressing deferred maintenance, and investing in critical infrastructure. This $15.4 million contract for the Washington Aqueduct fits within this pattern by addressing specific needs for a vital piece of public infrastructure. Analyzing historical spending data for this NAICS code would reveal whether this award is part of a larger trend or an isolated investment. Such analysis could also highlight which agencies are the largest spenders in this category.

What is the significance of the contract type being a 'Definitive Contract' with a 'Firm Fixed Price' for this project?

A 'Definitive Contract' signifies a contract that is finalized and binding, with all terms and conditions clearly established. This contrasts with 'undefinitized' contracts, which may have some terms yet to be finalized. The 'Firm Fixed Price' (FFP) pricing structure is significant because it places the primary responsibility for cost overruns on the contractor. This provides the government with maximum cost certainty, as the price is not subject to adjustment based on the contractor's actual costs. This type of contract is generally preferred when the scope of work is well-defined and the risks are manageable, as is often the case with construction projects where specifications can be clearly laid out.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912DR08B0019

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4016 HOLLAND BLVD, CHESAPEAKE, VA, 23323

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

Financial Breakdown

Contract Ceiling: $17,633,179

Exercised Options: $15,433,179

Current Obligation: $15,433,179

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline