Army awards $17.6M contract for site preparation in North Carolina, highlighting full and open competition

Contract Overview

Contract Amount: $17,603,286 ($17.6M)

Contractor: Neuber Environmental Service Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-29

End Date: 2027-07-12

Contract Duration: 1,747 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY22 BRAGG DEMO OF 12 VOLAR BARRACKS

Place of Performance

Location: FAYETTEVILLE, CUMBERLAND County, NORTH CAROLINA, 28303

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to NEUBER ENVIRONMENTAL SERVICE INC for work described as: FY22 BRAGG DEMO OF 12 VOLAR BARRACKS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for site preparation services, a critical step in infrastructure development. 3. Fixed-price contract type may offer cost certainty for the government. 4. The duration of the contract extends over several years, indicating a significant project. 5. The awardee, NEUBER ENVIRONMENTAL SERVICE INC, is a new entity in federal contracting based on this data. 6. The contract is not set aside for small businesses, implying larger firms participated. 7. The project is located in North Carolina, potentially impacting the local economy and workforce.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable site preparation projects of similar scope and location. The firm fixed-price structure provides some cost predictability. However, the absence of detailed performance metrics or historical data for the contractor makes a comprehensive value assessment difficult. Further analysis would require understanding the specific scope of work and comparing it to industry standards for site preparation in similar environments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and terms for the government. The open competition suggests that the agency sought the best value from a wide range of potential contractors.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and encourages a broader pool of contractors to participate, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the Department of the Army and potentially future users of the developed site. Services delivered include site preparation, which is foundational for construction or infrastructure projects. The geographic impact is concentrated in North Carolina, where the project is located. Workforce implications may include job creation for skilled labor in the construction and environmental services sectors within North Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited track record for the awarded contractor in federal systems.
Scope of work for 'site preparation' is broad and requires detailed understanding for performance assessment.
Potential for cost overruns if unforeseen environmental or geological conditions are encountered, despite fixed-price terms.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract type offers cost certainty.
Contract duration suggests a significant and potentially impactful project.

Sector Analysis

Site preparation is a foundational service within the construction and engineering sectors, often preceding major infrastructure or facility development. This contract falls under the broader umbrella of construction services, specifically focusing on preparing land for subsequent building or operational use. The market for site preparation can be influenced by factors such as local development trends, environmental regulations, and government infrastructure spending priorities. Comparable spending benchmarks would typically be found within the broader construction services category, often tracked by industry associations and government agencies.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no explicit subcontracting goals were mandated. This suggests that the primary award went to a larger entity or a joint venture capable of handling the scope and scale of the project. The absence of small business set-asides means that opportunities for small businesses to directly participate as prime contractors were limited in this specific award, though they might still engage as subcontractors if opportunities arise.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified site preparation services within the agreed-upon price. Transparency is facilitated through federal procurement data systems where contract awards are reported. Inspector General jurisdiction may apply if fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Environmental Remediation Services
Infrastructure Development Contracts

Risk Flags

Contractor Performance Risk (due to limited history)
Scope Definition Risk (broad 'site preparation' term)
Unforeseen Site Conditions Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to NEUBER ENVIRONMENTAL SERVICE INC. FY22 BRAGG DEMO OF 12 VOLAR BARRACKS

Who is the contractor on this award?

The obligated recipient is NEUBER ENVIRONMENTAL SERVICE 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 $17.6 million.

What is the period of performance?

Start: 2022-09-29. End: 2027-07-12.

What is the specific scope of 'site preparation' covered under this contract, and what are the key deliverables?

The term 'site preparation' is broad and can encompass a range of activities. For this specific contract, the scope likely includes tasks such as clearing and grubbing (removing vegetation), grading and excavation to achieve desired elevations, demolition of existing structures if present, soil compaction, and potentially basic utility trenching or preparation for drainage systems. Key deliverables would typically involve a prepared site meeting specific engineering and environmental standards, documented through progress reports, inspection records, and final acceptance of the prepared land. Without the detailed Statement of Work (SOW), the precise activities and deliverables remain generalized.

How does the $17.6 million award compare to typical costs for similar site preparation projects for military installations?

Comparing this $17.6 million award to typical costs for similar site preparation projects is challenging without more specific details on the project's scope, scale, and location. Site preparation costs are highly variable, influenced by factors such as acreage, terrain complexity, soil conditions, environmental remediation requirements, and the extent of demolition or existing infrastructure removal. For large-scale military projects, $17.6 million could represent a significant investment, but it could also be within the expected range for preparing substantial areas for new barracks or facilities. Benchmarking would require access to databases of comparable projects, considering factors like square footage prepared, cubic yards of earth moved, and specific environmental compliance costs.

What is the track record of NEUBER ENVIRONMENTAL SERVICE INC with federal contracts, particularly in site preparation?

Based on the provided data, NEUBER ENVIRONMENTAL SERVICE INC appears to be a relatively new or less experienced entity in the federal contracting space, as this award is highlighted without prior extensive contract history. Federal procurement systems often track a contractor's past performance, including their history of on-time delivery, quality of work, and adherence to budget on previous contracts. A limited track record, as suggested here, might indicate a higher risk profile for the government, necessitating closer monitoring of performance. Further investigation into federal databases like SAM.gov or FPDS would be needed to confirm their full federal contracting history and any past performance evaluations.

What are the potential risks associated with a firm fixed-price contract for site preparation, and how are they mitigated?

Firm fixed-price (FFP) contracts place the majority of the risk on the contractor, as they are obligated to complete the work for the agreed-upon price, regardless of unforeseen cost increases. For site preparation, potential risks include encountering unexpected subsurface conditions (e.g., hazardous materials, difficult soil strata, underground utilities), which can significantly increase costs. Mitigation strategies employed by the government often involve thorough pre-award site investigations, detailed contract language defining responsibilities for unforeseen conditions, and robust oversight during contract performance. The government may also include contingency clauses or allow for contract modifications under specific, predefined circumstances to address truly unavoidable cost escalations.

What is the historical spending trend for site preparation contractors by the Department of the Army?

Historical spending trends for site preparation by the Department of the Army are substantial, reflecting ongoing infrastructure modernization, new construction, and base development needs. The Army consistently invests billions annually in construction and related services, with site preparation being a critical early-stage component. Spending can fluctuate based on military readiness requirements, congressional appropriations, and specific large-scale projects like barracks replacements or new training facilities. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) would reveal patterns in the number of contracts awarded, average contract values, and the types of contractors (e.g., large vs. small business) that have historically secured these agreements.

Given the contract is for 'BRAGG DEMO OF 12 VOLAR BARRACKS', what does this imply about the project's purpose and potential future development?

The designation 'BRAGG DEMO OF 12 VOLAR BARRACKS' strongly suggests that this contract is related to the demolition and subsequent site preparation for twelve barracks buildings at Fort Bragg, North Carolina. This implies that the existing barracks are being removed to make way for new construction or redevelopment. The site preparation work would be essential to clear the area, ensure environmental safety post-demolition, and prepare the ground for whatever new facilities are planned, likely new barracks or related support infrastructure to modernize the installation's housing capabilities.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › Site Preparation Contractors

Product/Service Code: SALVAGE SERVICES › DEMOLITION OF NONBUILDING FACILITY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY20R0031

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1100 GROSSER RD STE C, GILBERTSVILLE, PA, 19525

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

Financial Breakdown

Contract Ceiling: $17,603,286

Exercised Options: $17,603,286

Current Obligation: $17,603,286

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY21D0066

IDV Type: IDC

Timeline