MEGEN CONSTRUCTION CO INC awarded $18M for physical fitness facility construction, exceeding initial estimates
Contract Overview
Contract Amount: $17,985,690 ($18.0M)
Contractor: Megen Construction CO Inc
Awarding Agency: Department of Defense
Start Date: 2009-11-20
End Date: 2011-10-30
Contract Duration: 709 days
Daily Burn Rate: $25.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PHYSICAL FITNESS FACILITY
Place of Performance
Location: FORT STEWART, LIBERTY County, GEORGIA, 31315
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $18.0 million to MEGEN CONSTRUCTION CO INC for work described as: PHYSICAL FITNESS FACILITY Key points: 1. Contract value appears reasonable given the scope of constructing a physical fitness facility. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Contract duration of 709 days indicates a significant construction project. 4. The contract was awarded under a firm-fixed-price structure, transferring risk to the contractor. 5. Project completion in Georgia suggests a localized impact on the construction sector.
Value Assessment
Rating: good
The contract value of approximately $18 million for a physical fitness facility appears within a reasonable range for a project of this scale. Benchmarking against similar government construction projects for recreational or fitness facilities would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the contractor assumed the primary cost risk, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to private sector construction of similar facilities, a definitive value assessment is challenging.
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 the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of 5 bidders suggests a healthy level of competition for this construction project. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.
Taxpayer Impact: A competitive bidding process with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.
Public Impact
Military personnel stationed at the facility will benefit from improved physical fitness resources. The construction project provides services related to the development of specialized government facilities. The geographic impact is localized to Georgia, where the facility is being constructed. The project supports the construction workforce in the Georgia region, creating employment opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
- Delays in construction could impact the facility's operational readiness.
- Quality control during construction needs to be rigorously monitored to ensure durability.
Positive Signals
- Firm-fixed-price contract shifts cost risk to the contractor.
- Multiple bidders indicate a competitive market for this type of construction.
- The project addresses a specific need for enhanced physical fitness infrastructure.
Sector Analysis
The construction sector is a significant part of the federal procurement landscape, encompassing a wide range of projects from infrastructure to specialized facilities. This contract falls under commercial and institutional building construction, a segment that often sees substantial government investment. Federal spending in this area is influenced by military readiness needs, base improvements, and the development of public facilities. Comparable spending benchmarks would involve analyzing the cost per square foot or per unit of similar fitness facilities constructed by the government or in the private sector.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (sb: false). While the primary award went to MEGEN CONSTRUCTION CO INC, there is no explicit information on subcontracting requirements or performance related to small businesses. Further investigation into the subcontracting plan, if any, would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Quality assurance surveillance plans (QASPs) are standard for construction contracts to monitor progress, quality, and compliance with specifications. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Military Base Construction
- Recreational Facilities
- Department of Defense Facilities
- General Building Construction
Risk Flags
- Potential for cost overruns if not managed tightly.
- Risk of construction delays impacting facility availability.
- Ensuring quality standards are met throughout the construction process.
Tags
construction, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, georgia, commercial-and-institutional-building-construction, physical-fitness-facility, large-contract, project-delivery
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.0 million to MEGEN CONSTRUCTION CO INC. PHYSICAL FITNESS FACILITY
Who is the contractor on this award?
The obligated recipient is MEGEN CONSTRUCTION CO 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 $18.0 million.
What is the period of performance?
Start: 2009-11-20. End: 2011-10-30.
What was the original estimated cost of the physical fitness facility project before the final award?
The provided data does not include the original estimated cost of the project. It only shows the final awarded amount of $17,985,690.24 to MEGEN CONSTRUCTION CO INC. To assess potential cost growth or deviations from initial estimates, access to pre-solicitation estimates or baseline cost projections would be required. Such information is often found in pre-award documentation or internal agency cost estimates that are not always publicly disclosed.
How does the awarded price compare to the average cost of similar physical fitness facilities constructed by the Department of Defense?
A direct comparison of the awarded price to the average cost of similar facilities is challenging without more specific data on the facility's size (square footage), amenities, and location-specific construction costs. However, the contract value of approximately $18 million for a physical fitness facility suggests a substantial investment. The Department of Defense constructs numerous such facilities across its bases, and average costs can vary significantly based on regional labor rates, material costs, and the complexity of the design. Further analysis would require benchmarking against projects with comparable specifications and geographic considerations.
What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this project?
The provided data does not specify the key performance indicators (KPIs) used for this contract. Typically, for construction projects, performance is evaluated based on adherence to schedule, quality of workmanship, compliance with contract specifications, safety performance, and overall project management. The contracting officer's representative (COR) or quality assurance personnel would monitor these aspects throughout the project lifecycle. Contract performance reports, often maintained internally by the agency, would detail adherence to these KPIs.
What is the historical spending trend for physical fitness facilities by the Department of the Army in Georgia?
The provided data focuses on a single contract award and does not offer historical spending trends for physical fitness facilities by the Department of the Army in Georgia. To analyze such trends, one would need to query federal procurement databases for all contracts related to fitness facility construction awarded by the Army within that specific state over a defined period (e.g., the last 5-10 years). This would allow for the calculation of total spending, average contract values, and the frequency of such awards.
Were there any significant challenges or disputes encountered during the contract performance period?
The provided data summary does not contain information regarding challenges or disputes encountered during the contract performance period (November 20, 2009 - October 30, 2011). Contract performance details, including any modifications, change orders, claims, or litigation, are typically documented in contract files and performance reports maintained by the contracting agency. Access to these detailed records would be necessary to identify any significant issues that arose during the execution of the work.
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: TWO STEP
Solicitation ID: W912DY08R0027
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11130 ASHBURN RD, CINCINNATI, OH, 90
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,985,690
Exercised Options: $17,985,690
Current Obligation: $17,985,690
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-11-20
Current End Date: 2011-10-30
Potential End Date: 2011-10-30 00:00:00
Last Modified: 2012-04-13
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