Army awards $19.1M for Picatinny Arsenal construction, completed 2012

Contract Overview

Contract Amount: $19,108,453 ($19.1M)

Contractor: Benard Associates Inc

Awarding Agency: Department of Defense

Start Date: 2009-09-24

End Date: 2012-02-03

Contract Duration: 862 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF FUZE ENGINEERING COMPLEX AT PICATINNY ARSENAL, NJ

Place of Performance

Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to BENARD ASSOCIATES INC for work described as: CONSTRUCTION OF FUZE ENGINEERING COMPLEX AT PICATINNY ARSENAL, NJ Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition suggests a competitive bidding process. 3. Project duration was within the planned timeframe. 4. Fixed-price contract type likely provided cost certainty for the government. 5. The project involved significant construction work at a key military installation. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract value of $19.1 million for the construction of the Fuze Engineering Complex at Picatinny Arsenal is within the expected range for major facility development. Benchmarking against similar large-scale construction projects for government facilities, this award suggests a fair market price was likely achieved through the competitive bidding process. The firm fixed-price contract type further supports value for money by transferring risk to the contractor and establishing a clear ceiling for expenditures.

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 8 bidders suggests a healthy level of competition for this significant construction project. A robust competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The high number of bidders in this full and open competition likely resulted in a more competitive price, saving taxpayer dollars compared to a less competitive procurement.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel at Picatinny Arsenal, who gain a new engineering complex. The project delivered essential infrastructure for fuze engineering and development. The geographic impact is localized to Picatinny Arsenal, New Jersey. The construction likely involved a significant number of skilled tradespeople and laborers, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occurred, though mitigated by fixed-price contract.
Dependence on the prime contractor's ability to manage subcontractors effectively for timely completion.

Positive Signals

Awarded under full and open competition with multiple bidders, indicating strong market interest and potential for competitive pricing.
Firm fixed-price contract type provides cost certainty and transfers risk to the contractor.
Project was completed within the planned duration, suggesting effective project management.
Construction of a critical engineering facility for a major military installation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area supports the development and maintenance of government facilities, including military bases, research centers, and administrative buildings. The market for large-scale federal construction is often characterized by a mix of large prime contractors and specialized subcontractors, with competition driven by factors like past performance, technical capability, and price. The value of this contract is substantial for a single facility project.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the prime contractor, Benard Associates Inc., was likely a larger entity capable of handling the project scope independently or through its own established network. The absence of a small business set-aside means that opportunities for small businesses would primarily be through subcontracting, if pursued by the prime.

Oversight & Accountability

The oversight for this contract would have been managed by the Department of the Army contracting and project management offices. As a firm fixed-price contract, oversight would focus on ensuring adherence to the scope of work, quality standards, and schedule milestones. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Military Construction
Facility Engineering and Construction
Picatinny Arsenal Operations

Risk Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occurred.
Schedule delays due to weather, labor, or subcontractor issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.1 million to BENARD ASSOCIATES INC. CONSTRUCTION OF FUZE ENGINEERING COMPLEX AT PICATINNY ARSENAL, NJ

Who is the contractor on this award?

The obligated recipient is BENARD ASSOCIATES 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 $19.1 million.

What is the period of performance?

Start: 2009-09-24. End: 2012-02-03.

What was the specific scope of work for the Fuze Engineering Complex?

The contract data indicates the project involved the 'CONSTRUCTION OF FUZE ENGINEERING COMPLEX AT PICATINNY ARSENAL, NJ'. While specific architectural or engineering details are not provided, this implies the construction of a new facility designed to support the research, development, testing, or manufacturing of fuzes. This would typically include building shell construction, interior fit-out, specialized laboratory spaces, offices, and potentially testing facilities, all adhering to stringent military and safety standards relevant to ordnance engineering.

How does the $19.1 million award compare to similar federal construction projects?

The $19.1 million award for the Fuze Engineering Complex is a significant but not extraordinary sum for a major federal construction project. Comparable projects, such as the construction of new laboratory facilities, barracks, or administrative buildings at other military installations or federal agencies, often range from tens to hundreds of millions of dollars, depending on size, complexity, and location. Given that this project involved specialized engineering functions at a key arsenal, the price appears to be within a reasonable benchmark for such undertakings, especially considering it was awarded under full and open competition.

What were the primary risks associated with this construction contract?

The primary risks associated with this firm fixed-price construction contract would have included potential cost overruns due to unforeseen site conditions (e.g., hazardous materials, difficult soil), fluctuations in material prices, labor shortages, or design changes requested by the government. Schedule delays could arise from weather, subcontractor performance issues, or permitting challenges. However, the firm fixed-price nature of the contract shifts much of the financial risk to the contractor, Benard Associates Inc., incentivizing them to manage these risks effectively to maintain profitability.

What is the significance of the contract being 'Firm Fixed Price'?

A 'Firm Fixed Price' (FFP) contract is a type of contract where the price is set and not subject to adjustment based on the contractor's cost experience in performing the contract. For the government, this offers the highest degree of cost control and predictability, as the total expenditure is known upfront, assuming the scope of work does not change. For the contractor, it means they bear the full risk of cost overruns but also retain any cost savings if they can perform the work more efficiently than anticipated. This contract type is often preferred for well-defined projects like construction where the scope is clear.

What does the number of bidders (8) indicate about the competition?

Having 8 bidders for this construction contract signifies a robust and healthy level of competition. A larger number of bidders generally suggests that the contract was attractive to the market, that the requirements were clearly defined, and that multiple firms possessed the capability and interest to pursue the work. This level of competition typically drives down prices, encourages innovation, and increases the likelihood that the government will receive a high-quality product or service at a fair and reasonable cost. It reduces the risk of contractor collusion or a lack of viable options.

What is the historical spending context for construction at Picatinny Arsenal?

Without specific historical spending data for Picatinny Arsenal readily available in this dataset, it's difficult to provide a precise comparison. However, Picatinny Arsenal is a major U.S. Army installation focused on armament research, development, and engineering. Such facilities typically require continuous investment in infrastructure, including laboratories, testing ranges, manufacturing plants, and administrative buildings. Spending on construction at such sites can fluctuate significantly year-to-year based on modernization needs, new program requirements, and available appropriations. This $19.1 million project represents a substantial, but likely not isolated, investment in the arsenal's physical capabilities.

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

Solicitation ID: W912DS09R0011

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 321 HAMBURG TPKE STE 4, WAYNE, NJ, 11

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

Financial Breakdown

Contract Ceiling: $19,108,453

Exercised Options: $19,108,453

Current Obligation: $19,108,453

Contract Characteristics

Cost or Pricing Data: NO

Timeline