DOD awards $46.3M contract for new multifamily housing construction to ABSHER CONSTRUCTION CO

Contract Overview

Contract Amount: $46,347,993 ($46.3M)

Contractor: Absher Construction CO

Awarding Agency: Department of Defense

Start Date: 2005-04-26

End Date: 2008-02-08

Contract Duration: 1,018 days

Daily Burn Rate: $45.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: FORT LEWIS, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $46.3 million to ABSHER CONSTRUCTION CO for work described as: Key points: 1. Contract value of $46.3M for housing construction appears substantial, warranting a review of scope and deliverables. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type may limit cost overruns for the government, but requires careful initial pricing. 4. The duration of 1018 days indicates a significant construction project with long-term implications. 5. The contract was awarded by the Department of the Army, a major component of the DOD. 6. The North American Industry Classification System (NAICS) code 236116 points to new multifamily housing construction.

Value Assessment

Rating: fair

The contract value of $46.3 million for new multifamily housing construction is a significant investment. Benchmarking this against similar DOD housing projects would be crucial to assess value for money. Without specific details on the scope of work, number of units, or quality standards, a precise value assessment is difficult. However, the fixed-price nature suggests the government aimed to control costs upfront.

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 a bid. The presence of 8 bidders (no) suggests a healthy level of competition for this project. This competitive environment is generally favorable for price discovery and potentially securing better terms for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging contractors to offer their best value.

Public Impact

Military personnel and their families stationed at the relevant Army installation will benefit from new housing. The contract delivers new multifamily housing units, addressing potential shortages or outdated facilities. The geographic impact is localized to the area where the housing is constructed, likely a military base. The construction project will likely create jobs in the construction sector, benefiting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting military housing availability.
Risk of cost increases if unforeseen site conditions arise, despite fixed-price contract.
Ensuring quality of construction meets long-term durability and habitability standards.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Fixed-price contract type helps mitigate cost escalation risks for the government.
Contract duration suggests a comprehensive approach to project completion.

Sector Analysis

The construction industry, particularly for government projects, is a significant sector. This contract falls under the 'New Multifamily Housing Construction' category. Government spending in this area often aims to provide essential infrastructure and housing for military personnel and other public service needs. Comparable benchmarks would involve looking at other large-scale housing developments, both government and private, in similar geographic regions and of similar scale.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is ABSHER CONSTRUCTION CO, there is no explicit information on subcontracting plans for small businesses within this award. Further investigation into subcontracting goals and actual performance would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases, though detailed project progress reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Housing Privatization Initiative
Department of Defense Construction Programs
Federal Housing Administration (FHA) Programs
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for construction delays
Risk of quality compromises
Need for robust oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.3 million to ABSHER CONSTRUCTION CO. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ABSHER 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 $46.3 million.

What is the period of performance?

Start: 2005-04-26. End: 2008-02-08.

What is the track record of ABSHER CONSTRUCTION CO. with federal contracts, particularly in housing construction?

A review of ABSHER CONSTRUCTION CO.'s federal contract history would be necessary to assess their track record. This would involve examining past performance on similar projects, including on-time completion rates, adherence to budget, and any documented performance issues or awards. For this specific $46.3 million contract, understanding their experience with large-scale multifamily housing projects for the Department of Defense would be particularly relevant. Data from contract databases like SAM.gov or FPDS could provide insights into their past performance ratings and any history of disputes or contract modifications.

How does the awarded amount of $46.3 million compare to similar multifamily housing construction projects by the DOD?

To benchmark the $46.3 million award, one would need to compare it against the contract values of similar multifamily housing construction projects undertaken by the Department of Defense or other federal agencies. Key comparison points would include the number of units constructed, the square footage, the quality of materials and finishes, and the geographic location. For instance, if similar projects with comparable scope and scale have been awarded for $30-40 million, this award might be considered on the higher end. Conversely, if comparable projects have exceeded $50 million, this award could represent good value. Access to historical contract data for similar projects is essential for this analysis.

What are the primary risk indicators associated with this fixed-price contract for new housing construction?

The primary risk indicator for the government in a fixed-price contract is the potential for the contractor to cut corners on quality or materials to maintain profitability if their initial cost estimates were too low or if unforeseen issues arise during construction. For ABSHER CONSTRUCTION CO., the risk lies in accurately estimating all costs and potential challenges over the 1018-day duration. Risks for the government include potential delays if the contractor faces financial difficulties or management issues, and the need for robust oversight to ensure contract compliance and quality standards are met. Site conditions and environmental factors can also pose risks.

How effective is the 'full and open competition' process in ensuring competitive pricing for large construction projects like this?

The 'full and open competition' process is generally considered the most effective method for ensuring competitive pricing in federal contracting, especially for large projects like this $46.3 million housing construction contract. By allowing all responsible sources to bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. The fact that 8 bids were received suggests that the market was sufficiently engaged. This competition drives down prices as contractors vie for the award. However, the effectiveness also depends on the clarity of the solicitation requirements and the evaluation criteria used.

What are the historical spending patterns for multifamily housing construction by the Department of the Army?

Analyzing historical spending patterns for multifamily housing construction by the Department of the Army would involve examining contract awards over several fiscal years. This would reveal trends in contract values, the number of awards, the types of contractors utilized (e.g., large vs. small business), and the geographic distribution of projects. Understanding these patterns can help identify periods of increased or decreased investment in housing infrastructure, potential budget fluctuations, and the typical scale of such projects. It can also highlight any shifts in procurement strategies, such as a move towards fixed-price contracts or specific competition types.

What is the typical duration for a federal contract of this magnitude for new multifamily housing construction?

The typical duration for a federal contract of this magnitude ($46.3 million) for new multifamily housing construction can vary significantly based on project complexity, size, and location. However, a duration of 1018 days (approximately 2.8 years) is not uncommon for large-scale construction projects. This timeframe allows for planning, site preparation, foundation work, building erection, interior finishing, and final inspections. Shorter durations might indicate smaller projects or pre-fabricated components, while significantly longer durations could suggest complex infrastructure requirements or phased construction.

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: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1001 SHAW RD, PUYALLUP, WA, 10

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $334,152

Exercised Options: $334,152

Current Obligation: $46,347,993

Contract Characteristics

Cost or Pricing Data: NO

Timeline