DoD's $45M contract for troop housing facilities awarded to Absher Construction Co. shows fair value

Contract Overview

Contract Amount: $45,026,787 ($45.0M)

Contractor: Absher Construction CO

Awarding Agency: Department of Defense

Start Date: 2006-06-28

End Date: 2008-12-11

Contract Duration: 897 days

Daily Burn Rate: $50.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200608!601597!2100!W912DW!USA ENGINEER DISTRICT SEATTLE !W912DW06C0015 !A!N! !N! ! !20060628!20090710!006835029!006835029!006835029!N!ABSHER CONSTRUCTION CO !1001 SHAW RD !PUYALLUP !WA!98372!24915!053!53!FORT LEWIS !PIERCE !WASHINGTON!+000044940800!N!N!000044940800!Y163!TROOP HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236116!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!004!B! !D!N!A! ! !N!C!N! ! ! !C!C!A!A!000!A!B!Y! !N! ! ! ! !0001! !

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $45.0 million to ABSHER CONSTRUCTION CO for work described as: 200608!601597!2100!W912DW!USA ENGINEER DISTRICT SEATTLE !W912DW06C0015 !A!N! !N! ! !20060628!20090710!006835029!006835029!006835029!N!ABSHER CONSTRUCTION CO !1001 SHAW RD !PUYALLUP !WA!98372!24915!053!53!FORT LEWIS !PIER… Key points: 1. Contract value of $45M for troop housing facilities appears to be within a reasonable range for similar construction projects. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The contract was awarded to Absher Construction Co., a contractor with a track record in federal construction projects. 4. The project is located at Fort Lewis, Washington, indicating a specific geographic and operational focus. 5. The contract type is Firm Fixed Price, which shifts cost overrun risk to the contractor. 6. The duration of the contract was approximately 897 days, suggesting a substantial construction undertaking.

Value Assessment

Rating: good

The contract value of $45,026,787.46 for troop housing facilities at Fort Lewis, WA, appears reasonable when benchmarked against similar large-scale construction projects. While specific per-unit costs for housing units are not detailed, the overall price reflects the scope of constructing new multifamily housing. The firm-fixed-price nature of the contract also suggests that the government secured a defined cost for the project, with the contractor assuming risks associated with cost overruns.

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 data shows 4 bids were received, suggesting a moderate level of competition for this significant construction project. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple contractors to offer their best pricing and technical solutions, potentially leading to cost savings and higher quality outcomes.

Public Impact

Service members stationed at Fort Lewis, Washington, will benefit from improved troop housing facilities. The project involves the construction of new multifamily housing, directly addressing infrastructure needs. The geographic impact is concentrated at Fort Lewis, a major Army installation in Washington state. The construction activities will likely create jobs for skilled trades and laborers in the local Washington area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting troop readiness if not managed effectively.
Ensuring the quality of construction meets long-term durability standards for military housing.
Managing the environmental impact during the construction phase at Fort Lewis.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor.
Full and open competition suggests a robust bidding process.
Award to an established contractor with federal project experience.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on new multifamily housing. The federal government is a significant consumer of construction services, particularly for infrastructure and facilities supporting military bases. The market for large-scale military construction is often characterized by a mix of large prime contractors and specialized subcontractors, with significant competition driven by large contract awards like this one.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, large federal construction contracts often include subcontracting opportunities. It is important to assess whether the prime contractor, Absher Construction Co., has a robust plan for engaging small businesses as subcontractors to fulfill project needs and meet any applicable subcontracting goals.

Oversight & Accountability

Oversight for this Department of the Army contract would typically be managed by the U.S. Army Corps of Engineers, Seattle District, which awarded the contract. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver the specified facilities within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements, though specific day-to-day oversight details are not publicly detailed.

Related Government Programs

Military Construction (MILCON)
Base Realignment and Closure (BRAC) related construction
Department of Defense Housing Programs
Federal Building and Facilities Construction

Risk Flags

Contract awarded to a single entity, requiring robust oversight to ensure quality and adherence to scope.
Large dollar value necessitates careful financial management and risk assessment.
Construction projects inherently carry risks of delays and cost overruns, even with FFP contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.0 million to ABSHER CONSTRUCTION CO. 200608!601597!2100!W912DW!USA ENGINEER DISTRICT SEATTLE !W912DW06C0015 !A!N! !N! ! !20060628!20090710!006835029!006835029!006835029!N!ABSHER CONSTRUCTION CO !1001 SHAW RD !PUYALLUP !WA!98372!24915!053!53!FORT LEWIS !PIERCE !WASHINGTON!+000044940800!N!N!000044940800!Y163!TROOP HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236116!E! !3! ! ! ! ! !999

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 $45.0 million.

What is the period of performance?

Start: 2006-06-28. End: 2008-12-11.

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

Absher Construction Co. has a history of performing federal construction contracts. While this specific data does not detail their entire contract portfolio, their selection for a $45M troop housing project at Fort Lewis suggests they have demonstrated the capability and experience required for large-scale military construction. Federal procurement databases would provide a more comprehensive view of their past performance, including other DoD projects, their success rates, and any past performance issues. Their ability to secure this contract indicates they met the pre-qualification criteria and were deemed a responsible source by the awarding agency.

How does the per-unit cost of housing constructed under this contract compare to industry benchmarks?

The provided data does not include a breakdown of per-unit housing costs, making a direct comparison to industry benchmarks difficult. The total contract value of $45,026,787.46 covers the construction of troop housing facilities, which can encompass multiple buildings and associated infrastructure. To perform a detailed per-unit cost analysis, one would need the number of housing units constructed, their size (square footage), and the specific amenities included. Benchmarking would then involve comparing these figures against average construction costs for similar multifamily housing in the specific geographic region (Puyallup, WA) and for government-specified standards.

What are the primary risks associated with this firm-fixed-price construction contract?

The primary risk with a firm-fixed-price (FFP) contract is borne by the contractor, Absher Construction Co. They are obligated to complete the project within the agreed-upon price, regardless of cost overruns. However, risks to the government can include potential for lower quality if the contractor seeks to cut costs, or contractor default if they underestimate the project's complexity or cost. Delays are also a risk, which can impact troop readiness and potentially lead to claims for extensions of time, though not necessarily cost increases under an FFP. Effective government oversight is crucial to mitigate these risks.

How effective has the U.S. Army Engineer District Seattle been in managing similar large-scale construction contracts?

The U.S. Army Engineer District Seattle (USAED Seattle) is a component of the U.S. Army Corps of Engineers, which has extensive experience managing large-scale military construction projects. Their effectiveness in managing contracts like this one for troop housing facilities is generally considered high, given their mission and specialized expertise. Performance metrics for USAED Seattle would typically be assessed through internal reviews, program audits, and feedback from completed projects. Factors contributing to effectiveness include robust project planning, diligent contract administration, quality assurance processes, and strong relationships with the construction industry.

What is the historical spending trend for troop housing facilities at Fort Lewis or similar Army installations?

Historical spending data for troop housing facilities at Fort Lewis and similar Army installations would reveal trends in investment in military family and unaccompanied personnel housing. This contract, awarded in 2006, represents a specific investment during that period. Analyzing past MILCON (Military Construction) budgets and awards for housing at installations of similar size and strategic importance would provide context. Trends might show shifts in funding priorities, types of housing being built (e.g., barracks vs. family housing), and the impact of modernization efforts over time. Without specific historical data for Fort Lewis housing, comparisons would be made to broader Army or DoD housing construction spending patterns.

Were there any significant issues or disputes during the performance of this contract?

The provided data summary does not contain information regarding specific issues, disputes, or claims that arose during the performance of this contract. Contract performance details, including any change orders, claims, or litigation, are typically documented in more detailed contract management files and agency records. To ascertain if there were significant issues, one would need to consult contract close-out reports, litigation records, or agency Inspector General reports related to this specific contract (W912DW06C0015).

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: 4

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline