Army awards $58.9M contract for barracks construction, highlighting firm fixed-price terms

Contract Overview

Contract Amount: $58,905,903 ($58.9M)

Contractor: Absher Construction CO

Awarding Agency: Department of Defense

Start Date: 2024-04-28

End Date: 2027-02-12

Contract Duration: 1,020 days

Daily Burn Rate: $57.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY24 UEPH BARRACKS

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $58.9 million to ABSHER CONSTRUCTION CO for work described as: FY24 UEPH BARRACKS Key points: 1. Contract awarded using full and open competition, suggesting a competitive bidding process. 2. The firm fixed-price contract type shifts cost risk to the contractor. 3. The contract duration of 1020 days indicates a significant construction project. 4. The award amount of $58.9 million positions this as a substantial investment in military infrastructure. 5. The project is located in Washington state, potentially impacting local construction workforce and businesses.

Value Assessment

Rating: good

The contract's firm fixed-price structure is generally favorable for the government, locking in costs. Benchmarking against similar institutional building construction projects would provide a clearer picture of value. The base contract value of $57.75 million before potential modifications suggests a significant investment. Without specific cost breakdowns or comparisons to similar barracks projects, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bidders indicates a moderate level of competition for this project. While more bidders could potentially drive prices lower, three offers suggest that the market for this type of construction in the specified region is not overly concentrated.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better quality services. The presence of multiple bidders suggests that taxpayer funds are being utilized efficiently through a market-driven process.

Public Impact

Service members will benefit from improved living quarters, enhancing morale and readiness. The contract delivers essential construction services for military housing infrastructure. The project's geographic impact is concentrated in Washington state. The construction project will likely create or sustain jobs within the local construction industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price terms.
Delays in construction could impact soldier readiness and housing availability.
Quality control during construction will be critical to ensure long-term durability of barracks.

Positive Signals

Firm fixed-price contract mitigates budget uncertainty for the government.
Competitive bidding process likely secured a reasonable price for the scope of work.
The project addresses a critical need for military housing infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector often supports infrastructure development, including military facilities, government buildings, and public works. The market size for federal construction is substantial, with agencies like the Department of Defense being major clients. This contract represents a specific investment in military barracks, a recurring need for the armed forces.

Small Business Impact

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

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a firm fixed-price contract, oversight will focus on ensuring adherence to the contract terms, schedule, and quality standards. The Department of the Army's contracting office is responsible for administration and oversight. Inspector General involvement would typically occur if specific allegations of fraud, waste, or abuse arise.

Related Government Programs

Military Construction, Army
Barracks and Dormitory Construction
Defense Infrastructure Projects
Federal Building Construction Contracts

Risk Flags

Potential for cost overruns due to fixed-price nature on long-term project.
Risk of construction delays impacting military readiness.
Ensuring quality of construction for long-term durability.
Contractor's capacity to manage complex construction project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.9 million to ABSHER CONSTRUCTION CO. FY24 UEPH BARRACKS

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 $58.9 million.

What is the period of performance?

Start: 2024-04-28. End: 2027-02-12.

What is the track record of ABSHER CONSTRUCTION CO with federal contracts, particularly within the Department of Defense?

ABSHEER CONSTRUCTION CO has a history of federal contract awards. While the provided data doesn't detail their entire federal contract history, their selection for this significant barracks construction project suggests they have experience and qualifications deemed suitable by the Department of the Army. A deeper dive into their past performance ratings, previous contract values, and any past performance issues or commendations would provide a more comprehensive understanding of their reliability and capability as a federal contractor. Examining their portfolio of completed military construction projects would be particularly relevant.

How does the awarded amount compare to the estimated cost or budget for this barracks construction project?

The provided data indicates an award amount of $58,905,902.71, with a base contract value of $57,751,000. Without access to the government's initial cost estimates or budget allocations for this specific project, it is difficult to definitively state how the awarded amount compares. However, the fact that it was awarded under full and open competition with three bidders suggests that the pricing achieved is likely competitive. If the award was significantly below estimates, it could indicate efficient procurement; if it was significantly over, it might warrant further scrutiny of the bidding process or the initial estimates.

What are the primary risks associated with a firm fixed-price contract for a project of this scale and duration?

The primary risk with a firm fixed-price (FFP) contract for a large, long-duration project like barracks construction is that the contractor may face unforeseen cost increases due to factors like material price volatility, labor shortages, or unexpected site conditions. While the FFP shifts most cost risk to the contractor, significant issues could lead to contractor default, requests for equitable adjustments, or disputes, potentially causing delays and impacting the government's final cost. The government's risk is primarily related to ensuring the contractor has the capacity and foresight to manage these risks and deliver the project as specified.

What is the expected impact of these new barracks on soldier morale and operational readiness?

The construction of new barracks is expected to have a positive impact on soldier morale and operational readiness. Modern, well-maintained living quarters are crucial for troop welfare, contributing to a more comfortable and secure environment. Improved barracks can reduce distractions, enhance rest, and foster a sense of value among service members, which can translate into higher morale. Operationally, having adequate and up-to-date housing is a fundamental requirement for maintaining troop readiness, ensuring that personnel are well-rested and prepared for their duties. This investment directly supports the quality of life for soldiers stationed at the facility.

How does the spending on this specific barracks project compare to historical federal spending on similar military construction initiatives?

To compare this $58.9 million barracks project to historical federal spending, one would need to analyze trends in military construction budgets over time, specifically looking at appropriations for barracks and dormitory facilities. Factors like inflation, the scale of military operations, and overall defense spending priorities influence historical figures. For instance, periods of significant troop deployment or base expansion often correlate with increased spending on housing infrastructure. Without specific historical data points for comparable projects (e.g., cost per square foot, cost per bed), a precise comparison is difficult, but this award represents a substantial, single-project investment typical of major military infrastructure upgrades.

What are the key performance indicators (KPIs) that will be used to measure the success of this construction contract?

Key performance indicators for this construction contract would likely include adherence to the project schedule (delivery by February 12, 2027), meeting quality standards and specifications outlined in the contract, and ensuring the final construction is safe and fully functional for occupancy. Financial performance, specifically staying within the firm fixed-price budget, is also a critical KPI. The government will likely monitor progress through regular site inspections, review of contractor submittals, and milestone completion reports. Ultimately, successful completion means delivering habitable, durable barracks that meet all contractual requirements and serve the intended purpose for service members.

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: W912DW23R0023

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1001 SHAW RD, PUYALLUP, WA, 98372

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

Financial Breakdown

Contract Ceiling: $58,905,903

Exercised Options: $58,905,903

Current Obligation: $58,905,903

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $35,200,137

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline