Army awards $17.7M contract for interior renovation and exterior improvements to Reliance Construction Management Company

Contract Overview

Contract Amount: $17,697,906 ($17.7M)

Contractor: Reliance Construction Management Company

Awarding Agency: Department of Defense

Start Date: 2025-03-07

End Date: 2026-11-19

Contract Duration: 622 days

Daily Burn Rate: $28.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE BID-CONSTR-INTERI RENO AND EXT IMPR

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $17.7 million to RELIANCE CONSTRUCTION MANAGEMENT COMPANY for work described as: BASE BID-CONSTR-INTERI RENO AND EXT IMPR Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Firm-fixed-price contract type indicates price certainty for the government. 3. The contract duration of 622 days suggests a significant scope of work. 4. Project located in Washington D.C. may have implications for local workforce and materials. 5. No small business set-aside noted, potentially limiting direct participation for smaller firms. 6. The contract's value falls within a moderate range for construction projects of this nature.

Value Assessment

Rating: good

The contract value of $17.7 million for interior renovation and exterior improvements appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects for government facilities suggests this price is within expected parameters. The firm-fixed-price structure helps mitigate cost overrun risks for the government, contributing to overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 5 bids received. This indicates a healthy level of interest from qualified contractors, which typically drives competitive pricing and encourages contractors to offer their best value. The presence of multiple bidders suggests that the government had a good selection of capable firms to choose from.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition award. It ensures that taxpayer funds are used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the Department of the Army, which will receive updated facilities. Services delivered include interior renovation and exterior improvements to unspecified facilities. The geographic impact is concentrated in Washington D.C. Workforce implications include potential job creation for construction trades in the local D.C. area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial renovation plans are not clearly defined.
Reliance Construction Management Company's track record on similar government projects needs review to ensure successful execution.
Delays in material procurement or labor availability could impact the project timeline.
Coordination with existing facility operations during renovation could pose challenges.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive bid process leading to potentially better pricing.
The project aims to improve essential government infrastructure.
A defined project duration (622 days) provides a clear timeline for completion.

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 the maintenance and modernization of government infrastructure, including administrative buildings, barracks, and other facilities. Comparable spending benchmarks for similar renovation and improvement projects can vary widely based on scale, location, and specific requirements, but projects in the multi-million dollar range are common for substantial facility upgrades.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of subcontracting goals for small businesses in the provided data. This means that while Reliance Construction Management Company may choose to subcontract portions of the work to small businesses, there is no mandatory requirement for them to do so. The impact on the small business ecosystem is therefore indirect, relying on the prime contractor's discretion.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and relevant project managers within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases, though specific project details and oversight reports may not always be publicly accessible.

Related Government Programs

Military Construction
Facility Maintenance and Repair
Government Building Renovations
Department of Defense Construction Contracts

Risk Flags

Potential for cost increases if unforeseen site conditions are encountered.
Risk of project delays due to supply chain disruptions or labor shortages.
Contractor performance history requires verification for successful project completion.
Scope definition clarity is important to prevent change orders and cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.7 million to RELIANCE CONSTRUCTION MANAGEMENT COMPANY. BASE BID-CONSTR-INTERI RENO AND EXT IMPR

Who is the contractor on this award?

The obligated recipient is RELIANCE CONSTRUCTION MANAGEMENT COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.7 million.

What is the period of performance?

Start: 2025-03-07. End: 2026-11-19.

What is Reliance Construction Management Company's past performance record with the Department of Defense on similar renovation projects?

A thorough review of Reliance Construction Management Company's past performance is crucial. This would involve examining their history of completing similar interior renovation and exterior improvement projects for the Department of Defense or other federal agencies. Key metrics to assess include on-time completion rates, adherence to budget, quality of work, and any instances of disputes or contract terminations. Past performance evaluations, if available through federal databases like the Contractor Performance Assessment Reporting System (CPARS), would provide valuable insights into their reliability and capability to successfully execute this $17.7 million contract within the specified 622-day timeframe.

How does the awarded price of $17.7 million compare to market rates for similar construction projects in the Washington D.C. area?

To benchmark the $17.7 million award, a comparison with market rates for similar construction projects in the Washington D.C. metropolitan area is necessary. This involves analyzing data from construction cost databases, recent bids on comparable private and public sector projects, and consulting with industry cost estimators. Factors such as the specific scope of interior renovations (e.g., office spaces, specialized facilities), exterior improvements (e.g., landscaping, structural repairs), and the complexity of the site will influence the cost. Given the firm-fixed-price nature, the government has secured a defined cost, but understanding the market context helps assess the competitiveness of the bid received.

What are the primary risks associated with the 622-day duration of this renovation project?

The 622-day duration for this renovation project presents several potential risks. Firstly, extended project timelines increase the exposure to fluctuating material costs and labor availability, even with a firm-fixed-price contract, if unforeseen circumstances arise that necessitate contract modifications. Secondly, a longer duration means the facility will be out of service for an extended period, potentially impacting operational readiness or requiring costly temporary relocation solutions for personnel. Thirdly, the risk of encountering unforeseen site conditions (e.g., hazardous materials, structural issues) increases with the length of the project, which could lead to delays and necessitate change orders if not adequately addressed during the planning phase. Finally, maintaining consistent project oversight and contractor engagement over such a long period requires sustained effort.

What specific improvements are included in the 'interior renovation and exterior improvements' scope of work?

The provided data abbreviates the scope as 'BASE BID-CONSTR-INTERI RENO AND EXT IMPR,' which translates to 'Base Bid-Construction-Interior Reno and Exterior Improvements.' However, the specific details of these improvements are not itemized. Typically, interior renovations could encompass upgrades to HVAC systems, electrical and plumbing, finishes (flooring, paint, ceilings), lighting, and reconfiguration of interior spaces. Exterior improvements might include roofing, facade repairs, window replacement, site drainage, landscaping, or sidewalk/parking lot work. A detailed breakdown of the Statement of Work (SOW) within the contract documents would clarify the exact nature and extent of these improvements.

How many other contracts of similar value and scope has the Department of the Army awarded for facility renovations in the past three fiscal years?

To contextualize this $17.7 million contract, analyzing the Department of the Army's historical spending patterns for similar facility renovation projects over the past three fiscal years is essential. This involves querying federal procurement databases for contracts with comparable values (e.g., $10-$25 million) and scopes (interior renovation, exterior improvements, building construction/modernization). Identifying the number of such awards, the types of contractors selected, and the competition levels (full and open vs. other methods) would reveal trends in Army's facility upgrade strategies and spending priorities. This analysis helps determine if this award is part of a larger modernization effort or an isolated investment.

What are the potential long-term operational and maintenance implications of these renovations?

The long-term operational and maintenance implications of these renovations depend heavily on the specific upgrades performed. If the project includes modernizing HVAC, plumbing, and electrical systems with energy-efficient and durable components, it could lead to reduced utility costs and lower maintenance expenditures over the life of the facility. Conversely, if the renovations involve integrating complex new technologies or materials that require specialized maintenance, the long-term operational costs could increase. A thorough assessment would require reviewing the specifications for new equipment and materials to understand their expected lifespan, energy efficiency ratings, and maintenance requirements, as well as the availability of trained personnel to service them.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY21R0005

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 302 DAVIS GROVE CIR OFC 6005, CARY, NC, 27519

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $18,247,309

Exercised Options: $17,697,906

Current Obligation: $17,697,906

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY22D0047

IDV Type: IDC

Timeline