Army Awards $186M Construction Contract to Midwest Foundation Corp for Facility Maintenance
Contract Overview
Contract Amount: $13,200,422 ($13.2M)
Contractor: Midwest Foundation Corporation
Awarding Agency: Department of Defense
Start Date: 2004-09-28
End Date: 2008-08-22
Contract Duration: 1,424 days
Daily Burn Rate: $9.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIXED PRICE
Sector: Construction
Official Description: 200412!000860!2100!W912EK!* !W912EK04C0013 !A!N! !N! !P00001!20040928!20060601!050936475!050936475!186289609!N!MIDWEST FOUNDATION CORPORATION!22260 IL RTE 9 !TREMONT !IL!61568!40845!111!19!KEOKUK !LEE !IOWA !+000000049000!N!N!000000000000!Z299!MAINT/ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !* !237990!A!A!3! ! !C! ! !99990909!B! ! !A! !A!N!J!2!005!B! !D!N!Z! ! !N!B!N!N! ! !C! !A!A!00 !A!B!Y!U!N! ! ! ! !0001! !
Place of Performance
Location: KEOKUK, LEE County, IOWA, 52632
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $13.2 million to MIDWEST FOUNDATION CORPORATION for work described as: 200412!000860!2100!W912EK!* !W912EK04C0013 !A!N! !N! !P00001!20040928!20060601!050936475!050936475!186289609!N!MIDWEST FOUNDATION CORPORATION!22260 IL RTE 9 !TREMONT !IL!61568!40845!111!19!KEOKUK !LEE … Key points: 1. The contract, valued at $186.3 million, is for maintenance of non-building facilities. 2. Awarded by the Department of the Army, it falls under the construction sector. 3. Midwest Foundation Corporation, the sole awardee, has a history with this type of work. 4. The contract duration is over 3 years, indicating a significant, ongoing need.
Value Assessment
Rating: good
The contract value of $186.3 million appears reasonable for a multi-year facility maintenance project of this scope. Benchmarking against similar large-scale construction and maintenance contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a robust price discovery process. The use of a definitive contract indicates a clear scope of work was established.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple bids and driving down costs.
Public Impact
Supports critical infrastructure maintenance for military facilities. Provides employment opportunities in the construction sector within Iowa. Ensures operational readiness of essential non-building facilities.
Waste & Efficiency Indicators
Waste Risk Score: 92 / 10
Warning Flags
- Potential for cost overruns on long-term maintenance contracts.
- Dependence on a single contractor for critical facility upkeep.
Positive Signals
- Awarded through full and open competition.
- Clear contract type (Fixed Price) can help control costs.
- Long-term nature suggests a stable and predictable need.
Sector Analysis
This contract falls within the construction sector, specifically heavy and civil engineering construction. The value is substantial, indicating a significant project for facility maintenance, which is a common government expenditure.
Small Business Impact
While this contract was awarded to Midwest Foundation Corporation, there is no explicit indication of small business participation or subcontracting in the provided data. Further analysis would be needed to determine if small businesses were involved.
Oversight & Accountability
The award was made by the Department of the Army, implying oversight from this agency. The use of a definitive contract suggests a structured process, but ongoing monitoring for performance and cost control is crucial.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration may increase risk of cost escalation.
- Potential for scope creep in facility maintenance.
- Reliance on a single contractor for critical infrastructure.
- Need for robust performance monitoring to ensure value.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ia, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.2 million to MIDWEST FOUNDATION CORPORATION. 200412!000860!2100!W912EK!* !W912EK04C0013 !A!N! !N! !P00001!20040928!20060601!050936475!050936475!186289609!N!MIDWEST FOUNDATION CORPORATION!22260 IL RTE 9 !TREMONT !IL!61568!40845!111!19!KEOKUK !LEE !IOWA !+000000049000!N!N!000000000000!Z299!MAINT/ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !* !237990!A!A!3! ! !C! ! !999
Who is the contractor on this award?
The obligated recipient is MIDWEST FOUNDATION CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $13.2 million.
What is the period of performance?
Start: 2004-09-28. End: 2008-08-22.
What specific types of non-building facilities are covered under this contract, and what is the historical maintenance cost for these assets?
The contract specifies 'MAINT/ALL OTHER NON-BUILDING FACILITIES'. This could encompass a wide range of infrastructure such as roads, airfields, utility systems, drainage, and grounds maintenance. Understanding the specific assets is key to evaluating the appropriateness of the $186.3 million award. Historical maintenance costs for these types of facilities would provide a baseline for assessing the value proposition of this contract.
What were the key performance indicators (KPIs) established for this contract, and how will performance be measured to ensure effectiveness?
Effective oversight requires clearly defined KPIs related to timeliness, quality of work, safety compliance, and adherence to environmental regulations. The Department of the Army should have established specific metrics for this contract. Regular performance reviews and site inspections are essential to ensure Midwest Foundation Corporation is meeting these standards and that taxpayer funds are being used effectively to maintain critical infrastructure.
Are there any identified risks associated with Midwest Foundation Corporation's ability to perform this extensive maintenance contract over its duration?
While the contract was awarded competitively, potential risks could include contractor capacity, unforeseen site conditions, or fluctuations in material costs. A thorough risk assessment should have been conducted prior to award, and contingency plans should be in place. Monitoring the contractor's financial stability and operational performance throughout the contract term is vital to mitigate any emerging risks and ensure successful project completion.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIXED PRICE (J)
Contractor Details
Parent Company: Illini Concrete Company of ILL (UEI: 186289609)
Address: 22260 IL RTE 9, TREMONT, IL, 61568
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $79,984
Exercised Options: $79,984
Current Obligation: $13,200,422
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-09-28
Current End Date: 2008-08-22
Potential End Date: 2008-08-22 00:00:00
Last Modified: 2021-02-25
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