DOD Awards $28.5M for Army CDC Expansion, Full Competition Yields 6 Bids
Contract Overview
Contract Amount: $28,484,032 ($28.5M)
Contractor: Pease Construction, Inc
Awarding Agency: Department of Defense
Start Date: 2009-09-16
End Date: 2014-03-13
Contract Duration: 1,639 days
Daily Burn Rate: $17.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BEACHWOOD, CLARKMOOR, MADIGAN AND YOUTH ACTIVITY CENTER CDC EXPANSION AND RENOVATION
Place of Performance
Location: TACOMA, PIERCE County, WASHINGTON, 98433
Plain-Language Summary
Department of Defense obligated $28.5 million to PEASE CONSTRUCTION, INC for work described as: BEACHWOOD, CLARKMOOR, MADIGAN AND YOUTH ACTIVITY CENTER CDC EXPANSION AND RENOVATION Key points: 1. Contract value of $28.5M for building construction. 2. Full and open competition resulted in 6 bids, suggesting a competitive market. 3. Risk appears moderate given the fixed-price contract and established construction sector. 4. Construction sector spending is significant, with this contract representing a small portion.
Value Assessment
Rating: good
The contract value of $28.5M for a large-scale renovation and expansion project appears reasonable. Benchmarking against similar institutional building construction projects of this size would provide a more precise assessment, but the competitive bidding process suggests fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified contractors were allowed to bid. This method typically fosters price discovery and encourages competitive pricing, likely resulting in a more favorable outcome for the government.
Taxpayer Impact: The competitive bidding process likely ensured taxpayer funds were used efficiently, securing a fair price for the construction services.
Public Impact
Enhances facilities for youth activities and community engagement. Supports military families and personnel by improving essential services. Contributes to local economy through construction jobs and material sourcing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen issues arise during renovation.
- Schedule delays due to weather or material availability.
Positive Signals
- Full and open competition ensures market-driven pricing.
- Firm fixed price contract limits government's exposure to cost increases.
- Experienced contractor likely to deliver quality results.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant area of federal spending. Benchmarks for similar projects vary widely based on scope, location, and specific requirements, but this project's value is within a typical range for substantial renovations.
Small Business Impact
The data indicates that small businesses were not awarded this prime contract, as the contractor, Pease Construction, Inc., is not listed as a small business. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The Department of the Army, under the Department of Defense, managed this award. Standard oversight mechanisms for federal construction projects, including site inspections and progress reporting, would have been in place to ensure compliance and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration significantly exceeded the initial estimate (1639 days vs. estimated duration).
- Small business participation not explicitly detailed.
- Potential for scope creep or change orders during renovation.
- Reliance on a single prime contractor for project completion.
Tags
commercial-and-institutional-building-co, department-of-defense, wa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.5 million to PEASE CONSTRUCTION, INC. BEACHWOOD, CLARKMOOR, MADIGAN AND YOUTH ACTIVITY CENTER CDC EXPANSION AND RENOVATION
Who is the contractor on this award?
The obligated recipient is PEASE CONSTRUCTION, 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 $28.5 million.
What is the period of performance?
Start: 2009-09-16. End: 2014-03-13.
What was the estimated cost savings achieved through the competitive bidding process compared to a sole-source or limited competition award?
While the exact savings are not provided, full and open competition typically yields significant cost advantages. The presence of 6 bids suggests a robust competition that likely drove down the price below what might have been achieved through less competitive methods. A detailed cost-benefit analysis of the bidding process would quantify these savings.
What are the specific risks associated with the renovation of older facilities, and how were they mitigated in the contract?
Renovating older facilities often carries risks such as discovering unforeseen structural issues, hazardous materials, or outdated systems. The firm fixed-price contract structure places the burden of managing these risks on the contractor. However, the government likely conducted thorough pre-bid site assessments and included contingency planning clauses in the contract.
How effectively will the expanded and renovated CDC facilities serve the youth and community needs over the long term?
The effectiveness will depend on the quality of the renovation and the programming offered. Assuming the construction meets specifications and the facilities are well-maintained, the expansion should significantly enhance the capacity and quality of services for youth and the community. User feedback and utilization rates post-completion will be key indicators of long-term effectiveness.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DW09R0033
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3815 100TH ST SW STE 3A, LAKEWOOD, WA, 10
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $28,484,032
Exercised Options: $28,484,032
Current Obligation: $28,484,032
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-16
Current End Date: 2014-03-13
Potential End Date: 2014-03-13 00:00:00
Last Modified: 2014-07-02
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