DOD Awards $20.7M Contract to Lydig Construction for Fitness Center in Washington

Contract Overview

Contract Amount: $20,742,037 ($20.7M)

Contractor: Lydig Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-04-29

End Date: 2012-09-30

Contract Duration: 885 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT FITNESS CENTER

Place of Performance

Location: AIRWAY HEIGHTS, SPOKANE County, WASHINGTON, 99001

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $20.7 million to LYDIG CONSTRUCTION, INC. for work described as: CONSTRUCT FITNESS CENTER Key points: 1. Contract awarded to Lydig Construction, Inc. for a fitness center. 2. The contract falls under the Commercial and Institutional Building Construction sector. 3. Full and open competition was utilized for this award. 4. The project duration was 885 days. 5. The award value is $20,742,037.

Value Assessment

Rating: fair

The contract value of $20.7 million for a fitness center appears within a reasonable range for large-scale construction projects. However, without specific details on the facility's size, amenities, and location, a precise comparison is difficult. Benchmarking against similar military construction projects would provide better context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process, allowing multiple qualified contractors to bid. This method generally leads to more competitive pricing by leveraging market forces.

Taxpayer Impact: Taxpayer funds were utilized through a competitive bidding process, aiming for value for money in the construction of a military facility.

Public Impact

Enhances military readiness and quality of life for service members. Supports the local economy through construction jobs and material sourcing. Represents a significant investment in military infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in large construction projects.
  • Delays in project completion impacting facility availability.
  • Scope creep leading to increased final costs.

Positive Signals

  • Awarded through full and open competition, promoting fairness.
  • Firm fixed price contract helps control costs.
  • Project contributes to military infrastructure improvement.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. Spending in this sector can fluctuate based on government infrastructure needs and budget allocations. Benchmarks for similar projects would typically consider square footage, complexity, and location.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.

Oversight & Accountability

The Department of the Army awarded this contract, implying oversight from within the Department of Defense. Standard procurement regulations and oversight mechanisms would apply to ensure compliance and accountability.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Large contract value increases financial exposure.
  • Construction projects are inherently subject to delays.
  • Potential for change orders to increase final cost.
  • Dependence on contractor performance for quality and timeliness.

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 $20.7 million to LYDIG CONSTRUCTION, INC.. CONSTRUCT FITNESS CENTER

Who is the contractor on this award?

The obligated recipient is LYDIG 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 $20.7 million.

What is the period of performance?

Start: 2010-04-29. End: 2012-09-30.

What was the competitive landscape like for this specific fitness center construction project?

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a competitive environment where multiple construction firms likely vied for the project, potentially driving down costs and ensuring a fair market price was achieved through the bidding process.

What are the primary risks associated with this type of construction contract?

Key risks include potential construction delays due to unforeseen site conditions, weather, or supply chain issues. Cost overruns are also a concern, even with a firm fixed price, if scope changes or significant change orders are required. Ensuring quality of construction and adherence to specifications throughout the project lifecycle is another critical risk area.

How effectively does this contract contribute to the Department of Defense's mission?

This fitness center contract directly supports the Department of Defense's mission by enhancing the physical readiness and morale of service members stationed at the facility. A modern, well-equipped fitness center is crucial for maintaining troop health, well-being, and overall operational effectiveness, contributing to a higher quality of life.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DW10R0012

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11001 E MONTGOMERY DR, SPOKANE VALLEY, WA, 05

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,742,037

Exercised Options: $20,742,037

Current Obligation: $20,742,037

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2010-04-29

Current End Date: 2012-09-30

Potential End Date: 2012-09-30 00:00:00

Last Modified: 2012-09-27

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