DoD awards $32.7M construction contract for graded stone, with 4 bidders competing

Contract Overview

Contract Amount: $32,705,068 ($32.7M)

Contractor: Tktmj, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-08-01

End Date: 2024-09-27

Contract Duration: 788 days

Daily Burn Rate: $41.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GRADED STONE "C" - LONGITUDINAL STONE

Place of Performance

Location: VICKSBURG, WARREN County, MISSISSIPPI, 39183

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $32.7 million to TKTMJ, INC. for work described as: GRADED STONE "C" - LONGITUDINAL STONE Key points: 1. Contract awarded to TKTMJ, INC. for heavy civil engineering construction. 2. The contract has a firm fixed price structure, indicating cost certainty. 3. Competition was robust with 4 bidders, suggesting potential for competitive pricing. 4. The contract duration is 788 days, spanning over two years. 5. This contract falls under the 'Other Heavy and Civil Engineering Construction' NAICS code. 6. The contract is a definitive contract type, often used for ongoing needs.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed scope and unit pricing. However, the presence of four bidders in a full and open competition suggests a degree of market interest and potential for reasonable pricing. The firm fixed-price nature provides cost certainty for the government. Further analysis would require comparing unit costs for graded stone and related construction services against industry benchmarks and similar government contracts in the region.

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 offers. The participation of four bidders suggests a healthy level of competition for this type of construction service. A higher number of bidders generally correlates with better price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not overpaying for the required construction services.

Public Impact

The Department of the Army benefits from the acquisition of essential construction materials and services. This contract supports heavy and civil engineering construction projects, likely for infrastructure development or maintenance. The contract is geographically located in Mississippi, potentially impacting local construction businesses and workforce. The delivery of graded stone is crucial for various construction applications, ensuring project completion and structural integrity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific unit pricing makes it difficult to assess value for money.
The 'Other Heavy and Civil Engineering Construction' category is broad; specific project details are needed for deeper analysis.
Limited information on the contractor's past performance within this specific construction domain.

Positive Signals

Awarded under full and open competition with multiple bidders.
Firm fixed-price contract provides cost certainty.
Contract duration of over two years allows for planned execution.

Sector Analysis

The construction sector, particularly heavy and civil engineering, is a significant area of federal spending. This contract for graded stone falls within the broader category of construction materials and services. The market for such materials is typically competitive, with numerous suppliers and contractors. Federal spending in this area often supports infrastructure projects, military base improvements, and disaster recovery efforts. Comparable spending benchmarks would depend on the specific type and quantity of stone required, as well as the geographic location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The primary contractor, TKTMJ, INC., will likely manage the procurement of materials and services, potentially engaging subcontractors based on their own business needs and capabilities, which may or may not include small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. As a definitive contract, it likely involves ongoing monitoring of performance, quality control, and adherence to the firm fixed-price terms. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Infrastructure Projects
Heavy Construction Services
Materials Procurement

Risk Flags

Potential for cost overruns if contractor underestimates expenses over the contract duration.
Risk of material price volatility impacting contractor's profitability and project timeline.
Need for detailed oversight to ensure quality and adherence to specifications for graded stone.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.7 million to TKTMJ, INC.. GRADED STONE "C" - LONGITUDINAL STONE

Who is the contractor on this award?

The obligated recipient is TKTMJ, 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 $32.7 million.

What is the period of performance?

Start: 2022-08-01. End: 2024-09-27.

What is the specific type and quality of graded stone being procured, and how does it align with industry standards for heavy civil engineering projects?

The provided data identifies the material as 'GRADED STONE "C" - LONGITUDINAL STONE'. Without further specifications or access to the contract's detailed statement of work, it is difficult to ascertain the precise quality and grading standards. 'Graded stone' typically refers to aggregate material sorted into specific size ranges. The designation 'C' might refer to a specific grading standard or classification. For heavy civil engineering projects, such stone is often used as fill, base material for roads or foundations, or in drainage systems. Industry standards for such applications vary based on project requirements, load-bearing needs, and environmental considerations. A thorough analysis would require reviewing the contract's technical specifications to confirm compliance with relevant ASTM or other industry standards and to understand its intended application within the project.

How does the awarded amount of $32.7 million compare to similar heavy civil engineering construction contracts awarded by the Department of the Army or other federal agencies?

Comparing the $32.7 million award requires context regarding the scope, duration, and specific services included. Large-scale civil engineering projects, especially those involving significant material quantities like graded stone, can easily reach tens of millions of dollars. The contract duration of 788 days (over two years) suggests a substantial undertaking. To benchmark effectively, one would need to identify comparable contracts for similar types of stone, quantities, and construction activities (e.g., road base, fill, drainage) within the Department of Defense or other agencies like the Army Corps of Engineers. Factors such as geographic location (affecting material transport and labor costs), specific project complexity, and the prevailing market conditions at the time of award are crucial for a meaningful comparison. Without these details, the $32.7 million figure serves as a nominal value but lacks comparative depth.

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

Firm fixed-price (FFP) contracts offer cost certainty to the government but can introduce risks for the contractor, potentially impacting project execution. For a project valued at $32.7 million and spanning over two years, the primary risk for the contractor is underestimating costs. Unforeseen increases in material prices (like fuel or aggregate), labor shortages, or unexpected site conditions could erode profit margins or lead to financial losses if not adequately accounted for in the initial bid. Conversely, the government bears the risk of paying a premium if the contractor's initial estimate was overly conservative to cover potential risks. Effective risk mitigation for the government involves thorough pre-bid market research, robust technical specifications to minimize scope creep, and careful contractor selection based on demonstrated capacity and experience.

Given the 'Other Heavy and Civil Engineering Construction' NAICS code, what specific types of projects might this contract support?

The NAICS code 237990, 'Other Heavy and Civil Engineering Construction,' encompasses a wide range of non-building construction projects. This contract for graded stone could support various activities such as site preparation for new facilities, construction or repair of roadways and airfields, development of drainage systems, earthmoving and excavation projects, or the construction of levees and dams. The use of 'graded stone' specifically suggests applications like creating stable foundations, building roadbeds, providing drainage layers, or as structural fill. The Department of the Army often undertakes projects related to base infrastructure, training areas, and operational support facilities, all of which could utilize the services and materials covered under this classification.

What does the presence of 4 bidders in a full and open competition indicate about the market for this type of construction service?

The participation of four bidders in a full and open competition for this $32.7 million contract suggests a moderately competitive market for the specific heavy and civil engineering construction services required. It indicates that multiple firms possess the capability and interest to undertake projects of this scale and nature. A higher number of bidders generally leads to more robust price competition and potentially better value for the government. However, the optimal number of bidders can vary depending on the project's complexity, specialization, and geographic location. Four bidders suggest that the market is accessible enough for several companies to compete, but perhaps not so saturated that only a few dominant players exist.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912EE22B0004

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 109 ARTHUR ST, NATCHITOCHES, LA, 71457

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

Financial Breakdown

Contract Ceiling: $32,705,068

Exercised Options: $32,705,068

Current Obligation: $32,705,068

Actual Outlays: $8,613,218

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline