Army awards $35.8M construction contract to Gilbane Federal, highlighting strong competition and long-term project duration

Contract Overview

Contract Amount: $35,852,558 ($35.9M)

Contractor: Gilbane Federal

Awarding Agency: Department of Defense

Start Date: 2017-09-30

End Date: 2022-06-05

Contract Duration: 1,709 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONSTRUCTION- REPAIR / RENEWAL

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29207

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $35.9 million to GILBANE FEDERAL for work described as: IGF::OT::IGF CONSTRUCTION- REPAIR / RENEWAL Key points: 1. Contract value of $35.8 million indicates significant investment in infrastructure. 2. Full and open competition suggests a robust market for construction services. 3. A long contract duration of 1709 days points to a complex, multi-phase project. 4. The firm-fixed-price structure shifts risk to the contractor, potentially stabilizing costs. 5. Awarded by the Department of the Army, this contract supports critical defense infrastructure needs. 6. The project is located in South Carolina, potentially impacting local employment and businesses.

Value Assessment

Rating: good

The contract value of $35.8 million for commercial and institutional building construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale military construction projects suggests that the pricing is competitive, especially considering the firm-fixed-price nature which includes contractor risk. The award to Gilbane Federal, a known entity in government contracting, further supports the assessment of fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The presence of 6 bidders suggests a healthy level of competition for this significant construction project. This competitive environment is generally favorable for price discovery and ensures that the government receives proposals from a range of capable firms.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers, as contractors vied to win the award. It also suggests that the government secured services from a qualified provider at a market-driven rate.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential construction services for its facilities. The contract delivers commercial and institutional building construction, likely involving new builds or significant renovations. The geographic impact is concentrated in South Carolina, potentially creating local jobs and stimulating the regional economy. Workforce implications include employment opportunities for construction workers, project managers, and support staff in the project's vicinity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1709 days) could lead to scope creep or unforeseen cost increases if not managed meticulously.
Firm-fixed-price contracts can sometimes disincentivize contractors from seeking cost-saving efficiencies if the initial price is set too high.
Reliance on a single contractor for an extended period may limit flexibility in adapting to changing requirements.

Positive Signals

Full and open competition ensures a wide pool of bidders, increasing the likelihood of selecting a highly qualified and cost-effective contractor.
The firm-fixed-price contract structure provides cost certainty for the government, minimizing the risk of budget overruns due to contractor-incurred expenses.
The award to Gilbane Federal, a company with a track record in government projects, suggests a level of contractor reliability and experience.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The market for government construction is substantial, driven by the need to maintain and upgrade federal facilities across various agencies. This specific award represents a significant investment within this sector, comparable to other large-scale infrastructure projects undertaken by defense and civilian agencies. The presence of established players like Gilbane Federal indicates a mature and competitive market for federal construction services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While there is no direct small business set-aside, the prime contractor, Gilbane Federal, may engage small businesses as subcontractors. The extent of subcontracting to small businesses will be crucial in determining the overall impact on the small business ecosystem for this project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army. The firm-fixed-price nature shifts much of the cost risk to the contractor, but performance monitoring remains critical. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Department of Defense Facilities Maintenance
Federal Building and Infrastructure Contracts
Construction Services for Government Agencies

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep.
Firm-fixed-price contracts require careful monitoring to ensure quality is maintained.
Potential for contractor to underperform if initial pricing is too aggressive.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.9 million to GILBANE FEDERAL. IGF::OT::IGF CONSTRUCTION- REPAIR / RENEWAL

Who is the contractor on this award?

The obligated recipient is GILBANE FEDERAL.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.9 million.

What is the period of performance?

Start: 2017-09-30. End: 2022-06-05.

What is Gilbane Federal's track record with similar large-scale construction contracts for the Department of Defense?

Gilbane Federal has a substantial history of performing large-scale construction and renovation projects for the Department of Defense and other federal agencies. Their portfolio often includes barracks, administrative buildings, training facilities, and infrastructure upgrades. Analyzing their past performance on similar firm-fixed-price contracts, particularly those with long durations and complex requirements, would provide insight into their ability to manage scope, schedule, and budget effectively. Past performance reviews and contract close-out data from previous DoD projects would be key indicators of their reliability and success rate in delivering projects on time and within budget, while adhering to stringent government specifications and quality standards.

How does the $35.8 million award compare to the average cost of similar institutional building construction projects for the military?

Benchmarking the $35.8 million award requires comparing it against similar projects in terms of scope (e.g., square footage, type of facility), complexity, and geographic location. The average cost for military institutional building construction can vary significantly based on these factors. However, given that this was awarded under full and open competition with 6 bidders, it suggests the price is likely competitive within the market. A detailed comparison would involve analyzing cost-per-square-foot metrics for comparable projects, factoring in inflation and specific construction challenges in South Carolina. Without specific project details, it's difficult to provide a precise benchmark, but the competitive bidding process implies a reasonable market-driven price.

What are the primary risks associated with a firm-fixed-price contract lasting over 1700 days?

The primary risks associated with a firm-fixed-price (FFP) contract of this duration (1709 days) revolve around potential cost overruns for the contractor and potential for scope creep or change orders that could impact the government's budget. For the contractor, unforeseen material price escalations, labor shortages, or unexpected site conditions can erode profit margins. For the government, the risk lies in the contractor potentially cutting corners on quality to maintain profitability, or in the need for significant changes to the original scope that, if not managed through formal change orders, could lead to disputes. Effective contract administration, clear initial scope definition, and robust oversight are crucial to mitigate these risks.

What is the historical spending pattern for commercial and institutional building construction by the Department of the Army in South Carolina?

Historical spending patterns for commercial and institutional building construction by the Department of the Army in South Carolina would reveal the frequency and scale of such investments in the region. Analyzing past contract awards for similar construction services within the state would indicate whether this $35.8 million contract represents a typical investment or an outlier. Trends in spending could be influenced by military base expansions, modernization efforts, or specific infrastructure needs unique to installations in South Carolina. Understanding these patterns can help assess the current contract's significance and anticipate future federal construction requirements in the area.

How does the number of bidders (6) influence the government's ability to secure competitive pricing for construction services?

A higher number of bidders, such as the 6 observed in this procurement, generally enhances the government's ability to secure competitive pricing. When multiple qualified contractors submit proposals, they are incentivized to offer their best possible pricing and terms to win the contract. This competitive pressure helps drive down costs and ensures that the government is not locked into a single provider's pricing structure. The presence of 6 bidders suggests a healthy market response and increases the likelihood that the awarded price reflects a fair market value, minimizing the risk of overpayment compared to a situation with fewer bidders.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY10R0005

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2730 SHADELANDS DR, WALNUT CREEK, CA, 94598

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

Financial Breakdown

Contract Ceiling: $35,852,558

Exercised Options: $35,852,558

Current Obligation: $35,852,558

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY12D0014

IDV Type: IDC

Timeline