DoD's $72.5M MATOC for wall construction in Florida awarded to Bauer Foundation Corp

Contract Overview

Contract Amount: $72,544,394 ($72.5M)

Contractor: Bauer Foundation Corp

Awarding Agency: Department of Defense

Start Date: 2019-04-22

End Date: 2023-10-16

Contract Duration: 1,638 days

Daily Burn Rate: $44.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HHD MATOC CUTOFF WALL CONSTRUCTION

Place of Performance

Location: CLEWISTON, HENDRY County, FLORIDA, 33440

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $72.5 million to BAUER FOUNDATION CORP for work described as: HHD MATOC CUTOFF WALL CONSTRUCTION Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering construction. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of over 4 years indicates a substantial, long-term project. 5. Project located in Florida, a state with significant infrastructure needs. 6. No small business set-aside noted, potentially limiting small business participation.

Value Assessment

Rating: good

The contract value of approximately $72.5 million for a Multiple Award Task Order Contract (MATOC) for heavy and civil engineering construction, specifically wall construction, appears within a reasonable range for large-scale infrastructure projects. Benchmarking against similar large-scale construction contracts awarded by the Department of Defense or other federal agencies for border infrastructure or significant civil works would provide a more precise value-for-money assessment. The firm fixed-price contract type is generally favorable for the government, as it shifts cost overrun risks to the contractor.

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 MATOC. While more bidders would typically indicate stronger price discovery, three bidders for a specialized heavy construction contract is not necessarily indicative of a lack of competition. The specific details of the bidding process and the number of proposals received would offer further insight.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions. A moderate number of bidders suggests that taxpayers likely received a fair price, though a higher number of bidders could have potentially driven prices lower.

Public Impact

The primary beneficiaries are the Department of Defense and potentially border security agencies requiring enhanced infrastructure. The contract delivers heavy and civil engineering construction services, specifically focused on wall construction. The geographic impact is concentrated in Florida, as indicated by the awardee's state. Workforce implications include the potential for skilled labor in heavy construction, engineering, and project management within the affected region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business participation goals or set-asides could limit opportunities for smaller firms in this large contract.
The specialized nature of heavy civil engineering construction may present barriers to entry for less experienced contractors.
The long duration of the contract could lead to contractor complacency if not actively managed.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential contractors could bid.
Firm fixed-price contract type provides cost certainty for the government.
The MATOC structure allows for flexibility in awarding task orders for specific wall construction needs.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a significant segment of the federal procurement landscape. This sector encompasses a wide range of projects, from infrastructure development to specialized construction. The North American Industry Classification System (NAICS) code 237990, 'Other Heavy and Civil Engineering Construction,' covers establishments primarily engaged in constructing heavy and civil engineering projects not elsewhere classified. Federal spending in this sector often supports national infrastructure, defense installations, and public works projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that the competition was open to all eligible businesses, including large corporations. While this ensures broad competition, it may limit direct opportunities for small businesses unless they are involved as subcontractors. The absence of specific subcontracting requirements or goals for small businesses could mean that the prime contractor has discretion in how much work, if any, is subcontracted to them, potentially impacting the small business ecosystem in this sector.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, a component of the Department of Defense. Mechanisms likely include contract administration, performance monitoring, and quality assurance reviews. Transparency is generally maintained through federal procurement databases like FPDS-NG. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. The firm fixed-price nature of the contract also provides a degree of oversight by limiting the government's exposure to cost increases.

Related Government Programs

Border Infrastructure Projects
Department of Defense Construction Contracts
Heavy and Civil Engineering Services
MATOC Contracts

Risk Flags

Potential for cost overruns if contractor underestimates expenses.
Risk of performance delays due to unforeseen site conditions or contractor capacity.
Limited visibility into subcontracting opportunities for small businesses.
Need for robust oversight to ensure quality and adherence to specifications over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.5 million to BAUER FOUNDATION CORP. HHD MATOC CUTOFF WALL CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is BAUER FOUNDATION CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $72.5 million.

What is the period of performance?

Start: 2019-04-22. End: 2023-10-16.

What is the track record of Bauer Foundation Corp. with federal contracts, particularly within the Department of Defense?

Bauer Foundation Corp. has a history of federal contracting, though specific details on their track record with the Department of Defense (DoD) require deeper analysis of federal procurement databases. As a recipient of this $72.5 million MATOC, it indicates a level of capability and experience deemed sufficient by the Army for heavy and civil engineering construction. Further investigation into their past performance ratings, any past performance issues, and the types and values of previous DoD contracts would provide a more comprehensive understanding of their reliability and expertise. Examining their financial stability and any history of litigation or contract disputes would also be crucial for a complete assessment of their track record.

How does the awarded value of $72.5 million compare to similar heavy and civil engineering construction contracts for wall construction?

Benchmarking the $72.5 million value requires comparing it to similar large-scale heavy and civil engineering construction contracts, specifically those involving wall construction, awarded by federal agencies, particularly the Department of Defense. Factors such as project scope, complexity, location, materials, and duration significantly influence contract value. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, for a MATOC with a multi-year duration and significant construction scope, $72.5 million appears to be within a plausible range for major infrastructure undertakings. A detailed analysis would involve identifying contracts with similar NAICS codes (e.g., 237990) and project types.

What are the primary risks associated with this firm fixed-price MATOC for wall construction?

The primary risks associated with this firm fixed-price MATOC for wall construction, while generally favorable for the government, include potential contractor underestimation of costs leading to performance issues or contractor default, especially given the long duration and potential for unforeseen site conditions. While the fixed price limits cost escalation for the government, it places the risk of cost overruns on Bauer Foundation Corp. If the contractor struggles to absorb unexpected costs, it could lead to delays, quality compromises, or even contract termination. Another risk is ensuring adequate competition across multiple task orders issued under the MATOC, as the initial competition is for the contract vehicle itself, not individual task orders.

How effective is the 'full and open competition' strategy for specialized heavy construction contracts like this one?

The effectiveness of 'full and open competition' for specialized heavy construction contracts like this MATOC is generally high in theory, as it aims to maximize the pool of potential bidders and foster robust price discovery. However, the practical effectiveness depends on the number of qualified bidders available for highly specialized work. With three bidders in this instance, it suggests a moderate level of competition. While more bidders could potentially drive prices lower, three may represent a significant portion of the qualified contractors capable of undertaking such projects. The effectiveness is also measured by the quality of proposals received and the ultimate performance of the selected contractor.

What are the historical spending patterns for heavy and civil engineering construction by the Department of the Army?

Historical spending patterns for heavy and civil engineering construction by the Department of the Army (DoA) are substantial, reflecting its role in maintaining and developing military infrastructure, bases, and support facilities. The DoA frequently procures services under NAICS codes such as 237990 (Other Heavy and Civil Engineering Construction) for projects ranging from airfield construction and upgrades to facility expansion and specialized infrastructure like retaining walls or flood control systems. Spending in this category can fluctuate based on modernization initiatives, new construction requirements, and geopolitical factors influencing base development. Analyzing past annual reports, budget allocations, and contract award data from FPDS-NG would reveal trends in spending volume, types of projects prioritized, and key contracting vehicles utilized.

What are the implications of the contract being awarded in Florida for state and local infrastructure initiatives?

The implications of this $72.5 million Department of Defense contract for wall construction being awarded in Florida are multifaceted. Primarily, it signifies federal investment in infrastructure within the state, potentially complementing or supporting existing state and local initiatives related to coastal protection, flood control, or other civil engineering needs. The presence of federal funding and construction activity can stimulate the local economy through job creation and demand for materials and services. However, it's crucial to ascertain if this federal project aligns with or potentially conflicts with state and local infrastructure planning and priorities. Coordination between federal and state agencies would be essential to maximize synergistic benefits and avoid duplication of efforts or resources.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912EP18R0019

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bauer AG

Address: 13203 BYRD LEGG DR, ODESSA, FL, 33556

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

Financial Breakdown

Contract Ceiling: $72,727,437

Exercised Options: $72,544,394

Current Obligation: $72,544,394

Actual Outlays: $15,070,793

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EP19D0012

IDV Type: IDC

Timeline