Department of the Army awards $49.9M contract for commercial building construction, with 5 bidders

Contract Overview

Contract Amount: $49,924,001 ($49.9M)

Contractor: THE Bedwell Company

Awarding Agency: Department of Defense

Start Date: 2013-12-13

End Date: 2017-08-11

Contract Duration: 1,337 days

Daily Burn Rate: $37.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF NOT INHERENTLY GOV BASIS OF BID FOR ITEM 0001

Place of Performance

Location: MONMOUTH BEACH, MONMOUTH County, NEW JERSEY, 07750

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $49.9 million to THE BEDWELL COMPANY for work described as: IGF::OT::IGF NOT INHERENTLY GOV BASIS OF BID FOR ITEM 0001 Key points: 1. The contract value of $49.9M appears reasonable for a multi-year construction project of this nature. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 1337 days (approx. 3.6 years) indicates a significant, long-term project. 4. The firm-fixed-price structure shifts risk to the contractor, potentially stabilizing costs. 5. The project is located in New Jersey, impacting the regional construction market. 6. The contractor, The Bedwell Company, has secured this significant award.

Value Assessment

Rating: good

The contract value of $49.9 million for commercial and institutional building construction over approximately 3.6 years is within a typical range for projects of this scale. Benchmarking against similar large-scale construction contracts awarded by the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price (FFP) contract type is generally favorable for the government in managing cost certainty, assuming the initial price was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which indicates that while the competition was broad, specific sources were initially excluded before the final competition. With 5 bidders, the level of competition appears adequate, suggesting that multiple firms were interested and capable of performing the work. This level of competition generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The use of full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not unduly constrained in its choice of contractors.

Public Impact

The primary beneficiaries are the Department of the Army, which will receive the constructed facilities. The contract delivers essential commercial and institutional building construction services. The geographic impact is concentrated in New Jersey, where the construction will take place. The project will likely have implications for the local and regional construction workforce, creating jobs and demand for skilled labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial scope is underestimated, despite FFP.
Dependence on contractor performance for timely and quality completion over a long duration.
Risk associated with the specific 'after exclusion of sources' aspect of the competition, requiring scrutiny.
Market fluctuations in material and labor costs could impact contractor profitability and potentially future bids.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Adequate competition (5 bidders) suggests a healthy bidding environment.
Long contract duration allows for phased construction and potential for economies of scale.
Contractor's successful bid indicates perceived capability to meet project requirements.

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 military infrastructure, government facilities, and other public works. The market size for federal construction is substantial, with agencies like the Department of Defense being major clients. This contract represents a specific instance of federal investment in building and infrastructure development.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this contract. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, The Bedwell Company, may engage small businesses as subcontractors, contributing to the broader small business ecosystem. An analysis of subcontracting plans would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army project management office. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified facilities. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if allegations of fraud, waste, or abuse arise.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Federal Building Construction
Department of Defense Facilities Management

Risk Flags

Competition Type Nuance
Long Contract Duration Risk
Contractor Performance History Unknown

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.9 million to THE BEDWELL COMPANY. IGF::OT::IGF NOT INHERENTLY GOV BASIS OF BID FOR ITEM 0001

Who is the contractor on this award?

The obligated recipient is THE BEDWELL 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 $49.9 million.

What is the period of performance?

Start: 2013-12-13. End: 2017-08-11.

What is the track record of The Bedwell Company with federal contracts, particularly within the Department of Defense?

A detailed review of The Bedwell Company's federal contract history would be necessary to assess their track record. This would involve examining past performance on similar construction projects, including contract values, durations, and any reported issues such as delays, cost overruns, or disputes. Performance evaluations from previous federal contracts, if available, would provide crucial insights into their reliability, quality of work, and ability to manage complex projects. Understanding their experience with firm-fixed-price contracts and their success in meeting government requirements is also important for evaluating their suitability for this award.

How does the awarded amount of $49.9 million compare to similar commercial building construction contracts awarded by the Department of Defense in the last five years?

To benchmark the $49.9 million award, a comparative analysis of similar Department of Defense (DoD) contracts for commercial and institutional building construction over the past five years is required. This analysis should consider contracts with comparable scope, size, complexity, and geographic location. Factors such as the type of facility being built (e.g., office buildings, barracks, training facilities), the duration of the contract, and the specific construction services included are critical for a meaningful comparison. If this award falls significantly above or below the average for similar projects, it could indicate either exceptional value or potential overpricing.

What are the specific risks associated with a firm-fixed-price contract for a project of this duration (1337 days)?

A firm-fixed-price (FFP) contract shifts the majority of cost risk to the contractor. For a project spanning 1337 days (approximately 3.6 years), the primary risks for the government include the contractor potentially cutting corners on quality to maintain profitability if costs escalate unexpectedly, or the contractor becoming insolvent if they miscalculate costs significantly. Conversely, the contractor bears the risk of unforeseen material price increases, labor shortages, or scope creep if not managed tightly. The government's risk is primarily in ensuring the initial price was competitive and that robust oversight is in place to monitor performance and prevent quality degradation.

What does the 'after exclusion of sources' clause in the competition type imply for the bidding process and potential cost savings?

The 'Full and Open Competition After Exclusion of Sources' designation suggests that while the competition was intended to be broad, certain potential sources were initially excluded from consideration. The reasons for exclusion would need to be documented and justified (e.g., based on specific technical requirements or past performance issues). The subsequent competition among the remaining eligible sources, with 5 bidders, indicates that a reasonable number of firms were still able to compete. This approach could potentially limit the pool of bidders compared to a pure full and open competition, which might, in some circumstances, affect the level of price competition achieved.

Are there any historical spending patterns with The Bedwell Company or for this type of construction in New Jersey that suggest this award is an outlier?

Analyzing historical spending data for The Bedwell Company and for similar commercial and institutional building construction contracts awarded by federal agencies in New Jersey is crucial. This would involve looking at the frequency and value of contracts awarded to The Bedwell Company over time, as well as the average contract values and durations for comparable projects in the region. If this $49.9 million award represents a significant departure from their typical contract sizes or from the norm for such projects in New Jersey, it warrants further investigation into the specific project requirements, market conditions, and competitive landscape at the time of award.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DS13R0017

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1380 WILMINGTON PIKE STE 210, WEST CHESTER, PA, 19382

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,167,770

Exercised Options: $50,167,770

Current Obligation: $49,924,001

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline