DoD awards $17.4M for building construction and maintenance, with a significant portion allocated to a single contractor

Contract Overview

Contract Amount: $17,386,952 ($17.4M)

Contractor: Atlantic Refinishing & Restoration, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2025-09-15

Contract Duration: 1,811 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CLIN 0002 - CASTLE GATEHOUSE

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 $17.4 million to ATLANTIC REFINISHING & RESTORATION, INC. for work described as: CLIN 0002 - CASTLE GATEHOUSE Key points: 1. The contract value represents a substantial investment in facility upkeep for the Department of Defense. 2. Competition dynamics indicate a full and open process, suggesting a broad market engagement. 3. The firm-fixed-price structure aims to provide cost certainty for the government. 4. Performance is expected over a multi-year period, requiring sustained contractor delivery. 5. The contract falls within the commercial and institutional building construction sector, a common area for federal procurement. 6. A single award suggests a focus on a specific contractor's capabilities for this particular requirement.

Value Assessment

Rating: fair

Benchmarking this contract's value against similar large-scale construction and maintenance projects for the Department of Defense is challenging without more specific project details. However, the $17.4 million award for a definitive contract over approximately five years suggests a significant scope of work. The firm-fixed-price nature provides some cost control, but the ultimate value for money will depend on the quality of work performed and adherence to the contract's specifications. Without comparable data on per-unit costs for specific construction or maintenance tasks, a precise value assessment is difficult.

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 data does not specify the number of bids received, but the full and open nature generally promotes a competitive environment. This approach allows the government to solicit proposals from a wide range of qualified contractors, potentially leading to better pricing and innovative solutions. The absence of specific bidder numbers prevents a deeper analysis of the intensity of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider pool of bidders, which can drive down prices and improve the quality of services through market forces.

Public Impact

The Department of Defense benefits from the maintenance and potential upgrades to its facilities, ensuring operational readiness. The contract supports the construction and maintenance sector, potentially creating or sustaining jobs in skilled trades. Services are likely delivered within the District of Columbia, impacting local infrastructure and services. The contract ensures the physical integrity and functionality of government buildings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen construction challenges.
Risk of performance delays impacting facility availability or operational needs.
Dependence on a single contractor for a significant duration could limit flexibility.
Quality control and assurance are critical to ensure the work meets federal standards.

Positive Signals

Firm-fixed-price contract provides budget certainty for the government.
Full and open competition suggests a robust selection process.
Long-term contract duration allows for sustained facility support.
The contract is awarded to a single entity, potentially streamlining management and execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building, alteration, or repair of non-residential structures. This sector is vital for maintaining and developing the physical infrastructure necessary for government operations. Federal spending in this area is often driven by the need to preserve aging facilities, accommodate new requirements, or improve energy efficiency. Comparable spending benchmarks would typically involve analyzing the total federal outlays for construction and maintenance services across various agencies and building types.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this particular award. The primary contractor, Atlantic Refinishing & Restoration, Inc., will likely manage the project, and any subcontracting would be at their discretion, not as a result of a small business set-aside requirement. This means the direct impact on the small business ecosystem from this specific contract is minimal unless the prime contractor voluntarily engages small businesses.

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 embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through federal procurement databases where contract awards are recorded. Inspector General jurisdiction may apply if allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Military Construction
Facility Maintenance and Repair
Government Building Operations
Architectural and Engineering Services

Risk Flags

Potential for cost overruns if unforeseen conditions arise.
Risk of performance delays impacting facility readiness.
Quality assurance is critical to ensure adherence to standards.
Contractor's financial stability and capacity to manage large projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to ATLANTIC REFINISHING & RESTORATION, INC.. CLIN 0002 - CASTLE GATEHOUSE

Who is the contractor on this award?

The obligated recipient is ATLANTIC REFINISHING & RESTORATION, 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 $17.4 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-09-15.

What is the historical spending pattern for Atlantic Refinishing & Restoration, Inc. with the Department of Defense?

Analyzing the historical spending patterns for Atlantic Refinishing & Restoration, Inc. with the Department of Defense requires access to comprehensive federal procurement data. Without specific historical contract awards for this company, it's impossible to provide a detailed breakdown. However, a review of past performance would typically involve examining the number of contracts awarded, their total value, the types of services rendered, and the agencies involved. A contractor with a consistent history of successful performance on similar projects for the DoD would generally be considered a lower risk. Conversely, a history of contract disputes, performance issues, or significant cost overruns could raise concerns. Further investigation into the company's contract history would be necessary to assess their track record.

How does the awarded amount compare to similar building construction contracts within the Department of Defense?

Comparing the $17.4 million award to similar building construction contracts within the Department of Defense is challenging without specific details on the scope of work, location, and duration of comparable projects. However, this amount falls within the range of significant construction and renovation projects undertaken by the military. Larger projects might involve new barracks, hangars, or specialized facilities, potentially reaching hundreds of millions of dollars. Smaller projects could include localized repairs or upgrades. The firm-fixed-price nature of this contract suggests a defined scope, and its value should be assessed against projects of similar complexity and scale. Benchmarking would ideally involve looking at contracts for similar building types (e.g., administrative, industrial, residential) and service requirements (e.g., new construction, major renovation, ongoing maintenance) within the DoD.

What are the primary risks associated with this firm-fixed-price contract for building construction?

The primary risks associated with this firm-fixed-price contract for building construction revolve around potential cost overruns and performance issues. While the fixed price provides budget certainty, it places the financial risk on the contractor. If the contractor underestimates costs, encounters unforeseen site conditions (e.g., hazardous materials, unexpected structural issues), or experiences significant labor or material price increases, they may incur losses. This could incentivize the contractor to cut corners on quality or delay work to manage costs, impacting project timelines and deliverables. For the government, the risk lies in ensuring the contractor's ability to deliver the required quality and scope within the agreed price and schedule. Robust oversight and clear performance metrics are crucial to mitigate these risks.

What is the expected impact of this contract on the local economy in the District of Columbia?

This contract is expected to have a positive impact on the local economy in the District of Columbia by creating jobs and stimulating economic activity. The construction and maintenance services will likely require a workforce comprising various skilled trades, such as carpenters, electricians, plumbers, and general laborers. This employment generation can lead to increased household income and consumer spending within the region. Furthermore, the prime contractor and any subcontractors may procure materials and services from local suppliers, further boosting the local business ecosystem. The duration of the contract, spanning over 1800 days, suggests a sustained period of economic contribution.

How does the 'full and open competition' procurement method influence the potential for cost savings for taxpayers?

The 'full and open competition' procurement method is designed to maximize cost savings for taxpayers by fostering a competitive environment. By allowing all responsible sources to submit proposals, the government broadens the pool of potential bidders, increasing the likelihood of receiving competitive pricing. This method encourages contractors to offer their best prices and most efficient solutions to win the contract. The inherent competition can drive down bid prices, prevent monopolies, and ensure that the government obtains services at or near market rates. While the specific number of bidders isn't provided, the method itself is a key mechanism for achieving value for taxpayer money in federal procurement.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912DR17B0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6640 AMMENDALE RD, BELTSVILLE, MD, 20705

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

Financial Breakdown

Contract Ceiling: $17,386,952

Exercised Options: $17,386,952

Current Obligation: $17,386,952

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline