DoD awards $10.36M construction contract to JAMES H. MALOY INC for heavy civil engineering

Contract Overview

Contract Amount: $10,361,467 ($10.4M)

Contractor: James H. Maloy Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-28

End Date: 2025-10-17

Contract Duration: 750 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACT AWARD

Place of Performance

Location: WEST POINT, ORANGE County, NEW YORK, 10996

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $10.4 million to JAMES H. MALOY INC for work described as: CONTRACT AWARD Key points: 1. Contract value appears reasonable for the scope of heavy civil engineering work. 2. Full and open competition suggests a competitive bidding process. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of 750 days indicates a substantial project timeline. 5. The award falls within the broader category of construction and infrastructure spending. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract value of $10.36 million for heavy civil engineering construction is within a typical range for projects of this nature. Benchmarking against similar Army Corps of Engineers or Department of Defense construction contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government, as it caps the contractor's potential earnings and shifts cost risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 9 bidders, the competition level appears robust, which typically leads to more competitive pricing and better value for the government. This broad competition suggests that the market has sufficient capacity and interest in performing this type of work.

Taxpayer Impact: A high level of competition generally benefits taxpayers by driving down prices and ensuring that the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are the Department of the Army, which will receive the completed construction services. The contract will deliver essential heavy and civil engineering construction, likely supporting military infrastructure or readiness. The geographic impact is centered in New York, where the contractor is based and likely where the work will be performed. The project will likely involve a workforce of skilled construction laborers, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite firm fixed-price.
Dependence on a single contractor for project completion could lead to delays if performance issues emerge.
Limited visibility into the specific sub-contracting plans and their impact on small businesses.

Positive Signals

Firm fixed-price contract structure limits financial risk to the government.
Robust competition with 9 bidders suggests a healthy market and competitive pricing.
Contractor's established presence in New York may indicate local expertise and resource availability.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a significant segment of the broader construction industry. This sector includes infrastructure projects such as roads, bridges, dams, and other large-scale public works. Federal spending in this area is crucial for maintaining and upgrading national infrastructure, supporting economic activity, and ensuring national security. Comparable spending benchmarks would typically be found within the Army Corps of Engineers' historical contract awards for similar civil works projects.

Small Business Impact

The absence of a small business set-aside for this contract suggests that the primary award was made to a large business. While the prime contractor is not obligated to subcontract with small businesses under this specific award mechanism, it is common practice for large construction firms to utilize small business subcontractors for specialized tasks or to meet broader subcontracting goals. Further analysis would be needed to determine if specific subcontracting plans were required or if small businesses will be involved in the project's execution.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of the Army will be responsible for monitoring contract performance, ensuring compliance with terms and conditions, and managing payments. The firm fixed-price nature of the contract provides a degree of accountability by capping costs. Transparency is generally maintained through contract award databases, though specific project details and performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Construction Contracts
Department of Defense Infrastructure Projects
Heavy and Civil Engineering Construction Services
Federal Public Works Projects

Risk Flags

Potential for unforeseen site conditions impacting schedule or cost.
Contractor performance risk over the 750-day duration.
Dependency on specific material availability and pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.4 million to JAMES H. MALOY INC. CONTRACT AWARD

Who is the contractor on this award?

The obligated recipient is JAMES H. MALOY 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 $10.4 million.

What is the period of performance?

Start: 2023-09-28. End: 2025-10-17.

What is the track record of JAMES H. MALOY INC with the federal government, particularly in large-scale civil engineering projects?

A review of federal procurement data indicates that JAMES H. MALOY INC has a history of receiving contracts from various government agencies, including the Department of Defense. While specific details on past project performance, scale, and client satisfaction are not fully detailed in public award summaries, their consistent receipt of federal awards suggests a level of capability and reliability. Further investigation into contract performance reports (e.g., CPARS) and the value and complexity of their previous federal projects would provide a more comprehensive understanding of their track record in large-scale civil engineering.

How does the awarded price of $10.36 million compare to similar heavy civil engineering projects undertaken by the Department of the Army or other federal agencies?

Benchmarking the $10.36 million award requires comparing it to contracts for projects with similar scope, complexity, geographic location, and duration. Projects involving heavy civil engineering, such as road construction, bridge repair, or site preparation for large facilities, can vary significantly in cost. Without specific details on the project's requirements (e.g., square footage, material specifications, environmental considerations), a precise comparison is difficult. However, the number of bidders (9) suggests that the price was competitive within the market for such services. A detailed analysis would involve identifying comparable Army Corps of Engineers or DoD contracts awarded within the last 1-2 years.

What are the primary risk indicators associated with this firm fixed-price contract, beyond standard construction project risks?

While firm fixed-price contracts are designed to mitigate cost overrun risks for the government, potential risks remain. These include the possibility of the contractor cutting corners on quality to maintain profitability if unforeseen challenges arise, or the risk of contractor default if they underestimate costs significantly. For this specific contract, the duration of 750 days (over two years) increases the exposure to potential economic fluctuations or changes in material costs, although the fixed-price nature aims to absorb these. The geographic location (New York) might also introduce specific regulatory or environmental risks that need careful management by the contractor.

What is the expected effectiveness of this contract in achieving the Department of the Army's infrastructure or readiness goals?

The effectiveness of this contract hinges on the successful and timely completion of the heavy and civil engineering construction as specified in the contract. Assuming JAMES H. MALOY INC delivers the project according to the defined scope, quality standards, and schedule, the contract will be effective in meeting the Army's infrastructure needs. This could range from improving training facilities, enhancing logistical capabilities, or supporting broader base operations. The firm fixed-price structure incentivizes the contractor to complete the work efficiently, contributing to the project's overall effectiveness.

How does the historical spending pattern for heavy and civil engineering construction by the Department of the Army compare to this specific award?

The Department of the Army, particularly through the Army Corps of Engineers, is a significant spender on heavy and civil engineering construction. Annual federal outlays in this category can range from billions to tens of billions of dollars, supporting a wide array of military installations, infrastructure projects, and civil works. A single award of $10.36 million represents a relatively small fraction of the Army's total annual construction budget. However, it is indicative of the ongoing need for maintenance, upgrades, and new construction to support military readiness and operations. Analyzing trends in contract values and award volumes over several fiscal years would provide better context.

What are the implications of awarding this contract under 'full and open competition' with 9 bidders for price discovery and taxpayer value?

Awarding this contract under 'full and open competition' with nine bidders is a positive signal for price discovery and taxpayer value. The presence of multiple bidders creates a competitive environment where each company strives to offer the most attractive price and technical solution to win the contract. This competition inherently drives down prices compared to a sole-source or limited competition scenario. The fact that nine firms submitted bids suggests a healthy market with sufficient capacity and interest, increasing the likelihood that the government secured a fair and reasonable price for the construction services. This level of competition minimizes the risk of price gouging and maximizes the efficient use of taxpayer funds.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912DS23B0020

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 421 ALBANY SHAKER RD, LOUDONVILLE, NY, 12211

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,361,467

Exercised Options: $10,361,467

Current Obligation: $10,361,467

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline