DoD awards $19.5M construction contract for heavy civil engineering in Illinois
Contract Overview
Contract Amount: $19,560,296 ($19.6M)
Contractor: Bencor Petrifond a Joint Venture
Awarding Agency: Department of Defense
Start Date: 2007-09-18
End Date: 2011-09-30
Contract Duration: 1,473 days
Daily Burn Rate: $13.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BASE
Place of Performance
Location: CHICAGO HEIGHTS, COOK County, ILLINOIS, 60411
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $19.6 million to BENCOR PETRIFOND A JOINT VENTURE for work described as: BASE Key points: 1. Contract awarded for heavy and civil engineering construction. 2. Base value of $19.5 million. 3. Contract type is Firm Fixed Price. 4. Performance period spans over 4 years. 5. Awarded by the Department of the Army. 6. Competition was full and open. 7. Located in Illinois.
Value Assessment
Rating: fair
The base value of $19.5 million for this heavy and civil engineering construction contract appears to be within a reasonable range for projects of this nature, though specific benchmarks are unavailable without more detailed project scope. The firm fixed price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the initial pricing is competitive. However, without comparative data on similar projects in Illinois or nationally, a definitive assessment of value for money is challenging.
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 presence of 3 bidders suggests a moderate level of competition for this specific requirement. While more bidders could potentially drive prices lower, a competitive process was utilized, which is generally favorable for price discovery and ensuring a fair market price.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it allows for a wider pool of contractors to bid, potentially leading to more competitive pricing and better utilization of government funds.
Public Impact
Benefits the Department of Defense by providing necessary construction services. Services delivered include heavy and civil engineering construction. Geographic impact is concentrated in Illinois. Potential workforce implications for construction labor in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed scope of work makes it difficult to assess true value.
- Limited number of bidders (3) may indicate niche market or specific requirements.
- Firm Fixed Price contracts can sometimes lead to contractor cutting corners if not properly overseen.
Positive Signals
- Full and open competition is a positive signal for market fairness.
- Firm Fixed Price contract shifts cost risk to the contractor.
- Contract duration of over 4 years allows for project continuity.
Sector Analysis
This contract falls within the Heavy and Civil Engineering Construction sector, which encompasses a wide range of infrastructure projects. The market for such services is substantial, driven by government and private sector investments in transportation, utilities, and other public works. Benchmarking this specific contract's value is difficult without knowing the precise nature of the construction, but it represents a typical procurement for the Department of Defense's infrastructure needs.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans or goals, it's difficult to assess the direct impact on the small business ecosystem for this particular award.
Oversight & Accountability
The contract is a Definitive Contract, which implies a more defined scope and price than other contract types. Oversight would typically involve contract officers, quality assurance personnel, and potentially an Inspector General, depending on the project's scale and sensitivity. Transparency is generally maintained through contract award databases, but detailed project oversight reports are not publicly available.
Related Government Programs
- Military Construction
- Infrastructure Projects
- Heavy Construction Services
- Civil Engineering Contracts
Risk Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Risk of quality compromise if contractor faces financial pressure.
- Extended duration increases exposure to market volatility.
Tags
construction, heavy-civil-engineering, department-of-defense, department-of-the-army, illinois, firm-fixed-price, definitive-contract, full-and-open-competition, large-contract, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.6 million to BENCOR PETRIFOND A JOINT VENTURE. BASE
Who is the contractor on this award?
The obligated recipient is BENCOR PETRIFOND A JOINT VENTURE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $19.6 million.
What is the period of performance?
Start: 2007-09-18. End: 2011-09-30.
What specific type of heavy and civil engineering construction was performed under this contract?
The provided data indicates the contract falls under NAICS code 237990, which covers 'Other Heavy and Civil Engineering Construction.' This broad category can include a variety of projects such as the construction of tunnels, bridges, waterways, dams, and marine facilities, as well as site preparation for industrial facilities and the construction of pipelines. Without more specific contract details or project descriptions, the exact nature of the construction performed remains unspecified. However, given the Department of the Army as the awarding agency, it could relate to base infrastructure improvements, training facilities, or logistical support structures within Illinois.
How does the base contract value of $19.5 million compare to similar construction projects awarded by the Department of the Army?
Comparing the $19.5 million base value requires access to a database of similar Department of the Army construction contracts, ideally with comparable scope and location. Generally, heavy and civil engineering projects can vary significantly in cost based on complexity, materials, and duration. A $19.5 million contract is a substantial award, suggesting a project of moderate to significant scale. Without specific comparative data points, it's difficult to definitively state if this represents a high, low, or average cost. However, for large-scale infrastructure or specialized construction, this figure might be considered mid-range, while for simpler projects, it could be on the higher side. The firm fixed price nature suggests the initial bid was deemed competitive by the Army.
What are the potential risks associated with a Firm Fixed Price contract for heavy construction?
Firm Fixed Price (FFP) contracts, while shifting cost overrun risk to the contractor, can introduce other risks. For heavy and civil engineering construction, unforeseen site conditions (e.g., unexpected soil issues, environmental hazards) can significantly increase a contractor's costs beyond initial estimates, potentially leading to disputes or contractor financial distress if not managed carefully. There's also a risk that a contractor, to protect their profit margin, might compromise on quality or use lower-cost materials if oversight is insufficient. Furthermore, if the initial pricing was too low due to aggressive bidding, the contractor might struggle to complete the project, leading to delays and potential termination. Adequate pre-bid site investigations and robust contract oversight are crucial to mitigate these risks.
What does the 'IL' status code signify for this contract?
The 'IL' status code likely refers to the state of Illinois, indicating the primary geographic location where the contract's work is to be performed or where the contractor is based. In this case, 'SN' is 'ILLINOIS', confirming the state. This is important for understanding the regional economic impact, potential labor pool utilized, and any state-specific regulations or logistical considerations that might apply to the construction project. It also helps in analyzing spending patterns within specific geographic areas.
How does the contract duration of 1473 days (approximately 4 years) impact project management and cost?
A contract duration of approximately 4 years for heavy and civil engineering construction is quite substantial and suggests a project of significant scope and complexity. Longer durations can allow for more thorough planning and execution, potentially reducing rushed work and improving overall quality. However, extended timelines also increase exposure to market fluctuations in material costs, labor availability, and potential changes in project requirements or regulations. For the government, a longer duration means funds are committed over a longer period. For the contractor, it provides a stable revenue stream but also requires sustained management and resource allocation. Effective project management and clear communication are critical to ensure the project stays on track and within budget over such an extended period.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912EK07R0002
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2315 SOUTHWELL RD, DALLAS, TX, 75229
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $20,910,296
Exercised Options: $19,560,296
Current Obligation: $19,560,296
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-18
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2021-02-25
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