DoD's $44.4M housing project at JBLM awarded to TSS-GARCO JOINT VENTURE, completed on time

Contract Overview

Contract Amount: $44,380,360 ($44.4M)

Contractor: Tss-Garco Joint Venture

Awarding Agency: Department of Defense

Start Date: 2016-09-10

End Date: 2019-12-13

Contract Duration: 1,189 days

Daily Burn Rate: $37.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF UEPH CONSTRUCTION OF UNACCOMPANIED ENLISTED PERSONNEL HOUSING AT JOINT BASE LEWIS MCCHORD AT WASHINGTON

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $44.4 million to TSS-GARCO JOINT VENTURE for work described as: IGF::OT::IGF UEPH CONSTRUCTION OF UNACCOMPANIED ENLISTED PERSONNEL HOUSING AT JOINT BASE LEWIS MCCHORD AT WASHINGTON Key points: 1. Project delivered on schedule, indicating effective project management and execution. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type likely provided cost certainty for the government. 4. The project involved construction of unaccompanied enlisted personnel housing, addressing a critical military need. 5. The duration of the contract (1189 days) suggests a substantial and complex construction undertaking.

Value Assessment

Rating: good

The contract value of $44.4 million for constructing unaccompanied enlisted personnel housing at Joint Base Lewis-McChord appears reasonable given the scope and duration. While direct comparisons are difficult without specific project details, the fixed-price nature of the contract suggests that the initial bid was considered competitive. The project's completion within the estimated timeframe further supports the assessment of good value, implying efficient resource utilization and management by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on pre-defined criteria. Nine bidders participated in the process, suggesting a healthy level of competition. This level of competition is generally favorable for price discovery and achieving a fair market price for the government.

Taxpayer Impact: A competitive bidding process with multiple bidders helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

Service members at Joint Base Lewis-McChord will benefit from new, modern housing facilities. The project directly addresses the need for adequate unaccompanied enlisted personnel housing. The construction work was concentrated in Washington state, providing local economic stimulus. The project likely supported jobs in the construction sector within Washington.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial scope was underestimated, though mitigated by fixed-price contract.
Quality control during construction is crucial to ensure long-term durability of housing.
Dependence on specific construction materials and labor availability could pose risks.

Positive Signals

Project completed within the scheduled timeframe, indicating strong contractor performance.
Fixed-price contract provides cost certainty and limits the government's exposure to price fluctuations.
Awarded under full and open competition, suggesting a robust and fair bidding process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. Federal spending in this sector often supports infrastructure development and facility upgrades for government operations. Benchmarking this contract's value would require comparing it to similar military housing construction projects, considering factors like size, complexity, and location.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity or joint venture, and the direct impact on the small business ecosystem through this specific contract award is likely limited unless subcontracting opportunities were pursued independently by the prime contractor.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract management teams within the Army Corps of Engineers or relevant base command. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract. Transparency is generally maintained through contract award databases like FPDS.

Related Government Programs

Military Construction, Army
Family Housing Construction
Unaccompanied Personnel Housing
Base Realignment and Closure (BRAC) projects

Risk Flags

Potential for cost overruns if contractor mismanaged budget.
Quality control issues could lead to long-term maintenance problems.
Dependence on specific materials or labor could cause delays.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.4 million to TSS-GARCO JOINT VENTURE. IGF::OT::IGF UEPH CONSTRUCTION OF UNACCOMPANIED ENLISTED PERSONNEL HOUSING AT JOINT BASE LEWIS MCCHORD AT WASHINGTON

Who is the contractor on this award?

The obligated recipient is TSS-GARCO JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $44.4 million.

What is the period of performance?

Start: 2016-09-10. End: 2019-12-13.

What was the specific rationale for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' award?

The exclusion of specific sources in a 'Full and Open Competition After Exclusion of Sources' award typically occurs when certain pre-qualification criteria are established. These criteria might relate to a contractor's past performance on similar projects, specialized technical capabilities, security clearances, or financial stability. The goal is to ensure that only capable and responsible bidders participate, thereby reducing risk for the government while still allowing for broad competition among qualified entities. Without access to the specific solicitation documents, the exact reasons for exclusion remain unknown, but they are generally tied to ensuring project success and mitigating potential risks.

How does the $44.4 million cost compare to similar unaccompanied housing construction projects at other military bases?

Directly comparing the $44.4 million cost without detailed project specifications (e.g., square footage per unit, number of units, specific amenities, material costs, and regional labor rates) is challenging. However, for context, large-scale military barracks or unaccompanied housing projects can range from tens of millions to hundreds of millions of dollars. Factors like the specific base location (affecting labor and material costs), the type of construction (e.g., modular vs. traditional), and the required security or sustainability features significantly influence the total cost. The fixed-price nature of this contract suggests the government sought cost certainty, and the number of bidders indicates a competitive market assessment was performed.

What were the key performance indicators (KPIs) used to assess the contractor's performance during the project?

While specific KPIs are not detailed in the provided data, typical performance indicators for large construction contracts like this include adherence to schedule, budget compliance (especially critical for fixed-price contracts), quality of workmanship, safety record, and responsiveness to government directives. For a project involving housing, quality of construction, durability, and meeting building codes would be paramount. The fact that the project was completed within its duration (1189 days) suggests positive performance against schedule-related KPIs. Post-completion inspections and user feedback would also contribute to the overall performance assessment.

Were there any significant risks identified during the contract lifecycle, and how were they managed?

Large construction projects inherently carry risks such as unforeseen site conditions, material price volatility, labor shortages, weather delays, and design changes. For this fixed-price contract, the primary risk to the government was potential cost overruns if the contractor mismanaged the project or encountered unexpected issues. The contractor bore the risk of cost increases. Mitigation strategies likely included thorough pre-construction site assessments, robust contract clauses addressing change orders and unforeseen conditions, and active project management by the government to monitor progress and quality. The successful completion on time suggests effective risk management by both parties.

What is the historical spending trend for unaccompanied enlisted personnel housing construction at Joint Base Lewis-McChord?

Historical spending data for unaccompanied enlisted personnel housing construction at Joint Base Lewis-McChord is not provided. However, such projects are typically driven by military readiness needs, troop levels, and infrastructure modernization initiatives. Spending in this category can fluctuate based on congressional appropriations, specific military branch priorities, and the lifecycle of existing facilities. Major construction efforts like this often occur in phases or as part of larger base development plans, indicating that there may have been previous or subsequent investments in housing infrastructure at JBLM.

What is the typical profit margin for contractors on large federal construction projects of this nature?

Profit margins for federal construction projects can vary significantly based on project complexity, risk, competition, and contract type. For firm-fixed-price contracts, which offer cost certainty to the government, contractors aim to build in a margin that accounts for their overhead, direct costs, and a reasonable profit. Industry averages for general contractor profit margins on large projects often fall in the range of 5% to 15%. This margin is influenced by the contractor's efficiency, ability to manage costs effectively, and the competitive landscape. The number of bidders (9) suggests a competitive environment that would likely pressure margins towards the lower end of this range.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DW15R0007

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2780 SALK AVE, RICHLAND, WA, 99354

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $44,380,360

Exercised Options: $44,380,360

Current Obligation: $44,380,360

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline