DoD's $23.6M Gunston Road widening contract awarded to Shirley Contracting Company, LLC

Contract Overview

Contract Amount: $23,601,648 ($23.6M)

Contractor: Shirley Contracting Company, LLC

Awarding Agency: Department of Defense

Start Date: 2010-04-23

End Date: 2011-12-15

Contract Duration: 601 days

Daily Burn Rate: $39.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WIDENING OF GUNSTON ROAD

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.6 million to SHIRLEY CONTRACTING COMPANY, LLC for work described as: WIDENING OF GUNSTON ROAD Key points: 1. Contract value represents a significant investment in local infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Fixed-price contract type may offer cost certainty for the government. 4. Project duration of 601 days indicates a substantial construction undertaking. 5. Awarded by the Department of the Army, highlighting defense infrastructure needs. 6. Virginia location suggests a focus on regional military installation support.

Value Assessment

Rating: fair

The contract value of $23.6 million for the widening of Gunston Road appears to be within a reasonable range for a project of this scale, considering the scope of highway construction. Benchmarking against similar road construction projects by the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract suggests that the contractor assumed the majority of the cost risk, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency 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 7 bidders suggests a healthy level of competition for this project. A competitive bidding process generally leads to more favorable pricing for the government as contractors strive to offer their best value proposals. The number of bidders provides a good indication that the market was engaged and that the government likely received a range of pricing options.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drove down the final contract price through competitive pressures, ensuring a better return on investment for public funds.

Public Impact

Benefits military personnel and their families by improving access and traffic flow to installations. Enhances local transportation infrastructure, potentially easing congestion for civilian commuters. Supports the economic activity in Virginia through construction jobs and material procurement. Improves the operational efficiency of military logistics and personnel movement. The project directly impacts the community surrounding the military installation by upgrading public roadways.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Risk of schedule delays due to weather, permitting, or contractor performance issues.
Ensuring quality of construction meets federal and local standards requires diligent oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty and shifts risk to the contractor.
Award to an established contractor, Shirley Contracting Company, LLC, suggests a degree of reliability.
Full and open competition indicates a robust market response and potentially competitive pricing.

Sector Analysis

Highway, Street, and Bridge Construction is a critical sector within the broader construction industry, essential for maintaining and upgrading transportation networks. Federal spending in this area often supports military installations, national infrastructure initiatives, and disaster recovery. The market is characterized by a mix of large, established firms and smaller specialized contractors. This contract, valued at $23.6 million, falls within the mid-to-large range for a specific infrastructure improvement project, reflecting typical federal investment in maintaining and enhancing the accessibility and functionality of its facilities.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Shirley Contracting Company, LLC, may engage small businesses for subcontracting opportunities. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of qualified small businesses for specialized construction tasks. Further analysis of subcontracting awards would be needed to determine the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting and engineering divisions. Accountability measures are inherent in the firm-fixed-price contract structure, which incentivizes the contractor to complete the work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction Program
Federal Highway Administration Grants
Army Corps of Engineers Civil Works Projects
Infrastructure Investment and Jobs Act

Risk Flags

Potential for cost growth if scope changes significantly.
Risk of schedule delays impacting operational readiness.
Need for robust quality assurance to ensure long-term durability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.6 million to SHIRLEY CONTRACTING COMPANY, LLC. WIDENING OF GUNSTON ROAD

Who is the contractor on this award?

The obligated recipient is SHIRLEY CONTRACTING COMPANY, 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 $23.6 million.

What is the period of performance?

Start: 2010-04-23. End: 2011-12-15.

What is Shirley Contracting Company, LLC's track record with federal contracts, particularly with the Department of Defense?

Shirley Contracting Company, LLC has a history of performing federal contracts, primarily with the Department of Defense and other agencies involved in infrastructure projects. Their experience often includes road construction, airfield paving, and utility work. A review of their contract history reveals numerous awards, indicating a capacity to manage and execute projects of varying complexity and value. While specific performance ratings are not detailed here, the consistent award of contracts suggests a generally satisfactory performance history. However, a deeper dive into past performance evaluations and any documented disputes or corrective actions would provide a more comprehensive understanding of their reliability and expertise in fulfilling federal obligations.

How does the $23.6 million cost compare to similar road widening projects undertaken by the Department of Defense?

Benchmarking the $23.6 million cost against similar road widening projects requires access to a comparable dataset of federal contracts. Factors such as project scope (e.g., length of road, number of lanes added, complexity of terrain, required utility relocation), geographic location (which impacts labor and material costs), and the specific year of award significantly influence project costs. Generally, large-scale road construction projects for federal agencies can range from tens to hundreds of millions of dollars. This $23.6 million award for widening Gunston Road appears to be a substantial but not extraordinary figure for a significant infrastructure upgrade, especially if it involves substantial earthwork, paving, and potential utility adjustments. A precise comparison would necessitate identifying projects with highly similar characteristics.

What are the primary risks associated with this specific highway construction contract?

The primary risks associated with this highway construction contract include potential cost overruns due to unforeseen subsurface conditions (e.g., unexpected rock formations, poor soil stability, underground utilities not previously identified), which can be challenging even with a firm-fixed-price contract if change orders are necessary. Schedule delays are another significant risk, often stemming from adverse weather conditions, permitting issues, or contractor performance problems. Furthermore, ensuring the quality of construction to meet stringent federal and local standards requires robust oversight to prevent defects. Environmental compliance and the management of traffic during construction also present ongoing risks that need careful mitigation.

How effective is the firm-fixed-price contract type in managing costs for this type of infrastructure project?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for infrastructure projects like road widening because it shifts the majority of the cost risk from the government to the contractor. The contractor is obligated to complete the work for the agreed-upon price, providing a high degree of cost certainty for the government. This incentivizes the contractor to control their own costs efficiently and manage the project effectively to maintain profitability. However, the effectiveness of FFP can be diminished if the initial scope is poorly defined, leading to numerous change orders that can increase the overall cost and administrative burden. Diligent contract administration and a well-defined scope are crucial for maximizing the cost-control benefits of an FFP contract.

What is the historical spending pattern for highway and bridge construction by the Department of the Army?

The Department of the Army, through various commands including the Army Corps of Engineers and installation management agencies, consistently allocates significant funds towards highway and bridge construction. Historical spending patterns reveal a continuous need for maintaining and upgrading infrastructure supporting military bases, training ranges, and operational readiness. This spending fluctuates based on military construction priorities, congressional appropriations, and specific infrastructure improvement initiatives. While annual figures vary, the Army is a major federal spender in this category, often awarding contracts in the hundreds of millions to billions of dollars annually for a wide array of construction and engineering services, including road networks critical for base operations and access.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DR10R0023

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Clark Enterprises, Inc. (UEI: 064862345)

Address: 8435 BACKLICK RD, LORTON, VA, 22079

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,830,648

Exercised Options: $32,852,648

Current Obligation: $23,601,648

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline