Army awards $37.3M for family housing construction, with 6 bids received

Contract Overview

Contract Amount: $37,253,890 ($37.3M)

Contractor: Watterson Construction CO

Awarding Agency: Department of Defense

Start Date: 2005-03-29

End Date: 2010-09-16

Contract Duration: 1,997 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200507!500708!2100!W912DW!USA ENGINEER DISTRICT SEATTLE !W912DW05C0007 !A!N! !N! ! !20050329!20070430!019274943!019274943!019274943!N!WATTERSON CONSTRUCTION CO !6500 INTERSTATE CIRCLE !ANCHORAGE !AK!99518!26210!020!02!FORT RICHARDSON !ANCHORAGE !ALASKA !+000035964000!N!N!000035964000!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !* !236116!E! !3! ! ! ! ! !20200930!B! ! !A! !A!U!J!2!006!B! !D!N!C! ! !N!C!N! ! ! !C!D!A!A!000!A!C!Y! !N! !Y! ! !0001! !

Place of Performance

Location: FORT RICHARDSON, ANCHORAGE County, ALASKA, 99505

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $37.3 million to WATTERSON CONSTRUCTION CO for work described as: 200507!500708!2100!W912DW!USA ENGINEER DISTRICT SEATTLE !W912DW05C0007 !A!N! !N! ! !20050329!20070430!019274943!019274943!019274943!N!WATTERSON CONSTRUCTION CO !6500 INTERSTATE CIRCLE !ANCHORAGE !AK!99518!26210!020!02!FORT RICHARDSON !ANCH… Key points: 1. Contract value represents a significant investment in military family housing infrastructure. 2. The competitive nature of the award suggests potential for cost efficiencies. 3. Performance period of nearly 2000 days indicates a long-term, complex project. 4. The contract falls within the broader category of construction services for the Department of Defense. 5. Geographic focus on Alaska highlights specific regional infrastructure needs. 6. The firm-fixed-price structure aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $37.3 million for new multifamily housing construction appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for military installations, especially in remote or challenging environments like Alaska, would provide further context. The firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bids received. A healthy number of bidders generally indicates a competitive market and can lead to better pricing and terms for the government. The presence of multiple qualified contractors suggests that the requirements were well-defined and accessible to a broad range of potential offerors.

Taxpayer Impact: The full and open competition with six bidders is a positive signal for taxpayers, as it likely drove down the final contract price through market forces.

Public Impact

Military families stationed at Fort Richardson, Alaska, will benefit from improved housing facilities. The contract delivers new multifamily housing units, addressing potential shortages or outdated accommodations. The geographic impact is concentrated in Anchorage, Alaska, supporting the local military community. The project will likely create or sustain jobs in the construction sector in Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long performance period could introduce risks related to material cost fluctuations or unforeseen site conditions.
Construction projects of this scale can be susceptible to delays impacting service members' housing availability.
Dependence on a single contractor for an extended period may limit flexibility if needs change.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
Awarding to a contractor with a physical presence in Alaska (Watterson Construction Co. based in Anchorage) may indicate familiarity with local conditions and workforce.
The competitive bidding process suggests a robust selection of qualified contractors.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on residential and multifamily building. The market for military construction is substantial, driven by the need to maintain and upgrade facilities across numerous installations. Comparable spending benchmarks would involve looking at other large-scale housing projects awarded by the Department of Defense or other federal agencies for similar purposes and geographic locations.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to be a small business set-aside, the prime contractor, Watterson Construction Co., may engage small businesses for subcontracting opportunities. The scale of the project suggests potential for significant subcontracting, which could benefit the local small business ecosystem in Alaska. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, Seattle District, which awarded the contract. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified housing units within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight activities are internal to the agency.

Related Government Programs

Military Construction, Army
Family Housing Construction
Department of Defense Construction Contracts
Army Corps of Engineers Projects
Alaska Military Installations

Risk Flags

Long contract duration may increase risk of cost escalation or performance issues.
Construction projects in Alaska face unique logistical and environmental challenges.
Potential for delays impacting military family housing availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.3 million to WATTERSON CONSTRUCTION CO. 200507!500708!2100!W912DW!USA ENGINEER DISTRICT SEATTLE !W912DW05C0007 !A!N! !N! ! !20050329!20070430!019274943!019274943!019274943!N!WATTERSON CONSTRUCTION CO !6500 INTERSTATE CIRCLE !ANCHORAGE !AK!99518!26210!020!02!FORT RICHARDSON !ANCHORAGE !ALASKA !+000035964000!N!N!000035964000!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !* !236116!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is WATTERSON CONSTRUCTION CO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $37.3 million.

What is the period of performance?

Start: 2005-03-29. End: 2010-09-16.

What is the track record of Watterson Construction Co. on federal contracts, particularly with the Department of Defense?

Watterson Construction Co. has a history of federal contracting, including work with the Department of Defense. The provided data indicates they were awarded this specific contract (W912DW05C0007) for family housing facilities. To fully assess their track record, a deeper dive into their past performance on similar projects, including any history of contract modifications, disputes, or performance issues, would be necessary. Examining contract databases for other awards to Watterson Construction Co. and their associated performance ratings would provide a more comprehensive view of their reliability and capability in executing large-scale construction projects for the government.

How does the awarded amount of $37.3 million compare to the estimated cost or budget for this family housing project?

The provided data shows the awarded amount as $37,253,889.55. Without access to the original contract solicitation or internal agency budget documents, it is difficult to definitively state how this compares to the estimated cost or budget. However, the fact that it was awarded under full and open competition with six bidders suggests that the bids received were competitive and likely within a reasonable range of the government's cost expectations. If the awarded amount is significantly below the initial estimate, it could indicate efficient procurement or a conservative estimate. Conversely, if it's close to or exceeds the estimate, it might warrant further scrutiny of the bidding process and cost factors.

What are the primary risks associated with a nearly 2000-day construction contract in Alaska?

A performance period of approximately 2000 days (around 5.5 years) for a construction contract in Alaska presents several significant risks. These include: 1. **Environmental and Weather Conditions:** Alaska's extreme weather can cause substantial delays and increase construction costs due to shorter working seasons and the need for specialized equipment and techniques. 2. **Material and Labor Cost Escalation:** Over a multi-year period, the cost of construction materials and skilled labor can fluctuate significantly, potentially impacting the contractor's profitability under a firm-fixed-price contract if not adequately accounted for. 3. **Logistical Challenges:** The remote nature of many Alaskan locations can complicate the transportation of materials and personnel, leading to higher costs and potential delays. 4. **Regulatory Changes:** Evolving environmental regulations or building codes during the contract term could necessitate design changes or additional compliance measures. 5. **Contractor Performance Stability:** Maintaining consistent performance and financial stability from the contractor over such a long duration can be a concern.

What is the historical spending trend for family housing construction by the Department of the Army in Alaska?

Analyzing historical spending trends for family housing construction by the Department of the Army in Alaska requires access to comprehensive historical contract data. This specific contract, awarded in 2005, represents a significant investment. To understand trends, one would need to examine contract awards for similar projects over the past decade or more, looking at the total dollar volume, number of contracts awarded, and average contract values. Factors such as military base growth, infrastructure modernization initiatives, and federal budget allocations for military construction would influence these trends. Without broader data, it's challenging to establish a definitive trend, but this $37.3 million award suggests a substantial commitment to improving housing infrastructure in the region during that period.

How does the number of bidders (6) on this contract influence the potential for cost savings for the government?

Receiving six bids on this contract is generally a positive indicator for cost savings. A larger pool of bidders typically intensifies competition, encouraging each company to submit its most competitive pricing to win the contract. This market pressure can drive down the final awarded price compared to a scenario with fewer bidders. Furthermore, a higher number of bids increases the likelihood that the government receives proposals that closely align with its needs and budget, potentially reducing the need for costly contract modifications later on. The presence of multiple bidders also provides a stronger basis for the government to evaluate the reasonableness of the proposed costs.

Industry Classification

NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6500 INTERSTATE CIRCLE, ANCHORAGE, AK, 99518

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,753

Exercised Options: $12,753

Current Obligation: $37,253,890

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline