DoD Awards $51.6M Construction Contract to Bauer Foundation Corp for Florida Project

Contract Overview

Contract Amount: $51,559,156 ($51.6M)

Contractor: Bauer Foundation Corp

Awarding Agency: Department of Defense

Start Date: 2020-04-17

End Date: 2023-08-06

Contract Duration: 1,206 days

Daily Burn Rate: $42.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HHD TO 0005

Place of Performance

Location: CLEWISTON, HENDRY County, FLORIDA, 33440

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $51.6 million to BAUER FOUNDATION CORP for work described as: HHD TO 0005 Key points: 1. The contract value of $51.6 million is significant for a single delivery order. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project duration of 1206 days indicates a long-term commitment and potential for cost escalation. 4. The sector is Other Heavy and Civil Engineering Construction, which can be subject to material and labor cost fluctuations.

Value Assessment

Rating: good

The award amount of $51.6 million appears reasonable given the project's scope and duration. Benchmarking against similar large-scale civil engineering projects would provide further context on pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The presence of two bids suggests a moderately competitive environment.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it drives down costs through market forces.

Public Impact

This contract supports infrastructure development within Florida. The project's long duration may impact local employment and economic activity over several years. Successful completion of this construction project is crucial for the intended military or civil purpose.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration increases risk of cost overruns due to inflation.
Limited number of bids (2) could indicate potential market concentration or specific expertise required.
Fixed-price contract may not fully account for unforeseen site conditions or material price spikes.

Positive Signals

Awarded under full and open competition.
Project contributes to critical infrastructure.
Clear end date provides a defined project timeline.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, which is characterized by large-scale projects, significant material requirements, and often long lead times. Spending in this sector can be cyclical and influenced by government infrastructure initiatives.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large construction projects often involve prime contractors who may subcontract portions of the work, potentially creating opportunities for SMBs.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure compliance and performance.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration increases risk of cost escalation.
Limited number of bids received.
Firm fixed price contract may not fully cover unforeseen site conditions.
Potential for material price volatility in the construction sector.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.6 million to BAUER FOUNDATION CORP. HHD TO 0005

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 $51.6 million.

What is the period of performance?

Start: 2020-04-17. End: 2023-08-06.

What specific type of heavy and civil engineering construction is being undertaken, and how does its complexity justify the $51.6 million price tag?

The specific nature of the construction (e.g., airfield, port, specialized facility) is not detailed. However, large civil engineering projects often involve extensive site preparation, specialized materials, complex logistics, and adherence to stringent environmental and safety regulations. The $51.6 million cost likely reflects these factors, along with labor, equipment, and overhead over a multi-year period.

Given the long duration (1206 days), what risk mitigation strategies are in place to manage potential cost increases due to inflation or unforeseen site conditions?

While the contract is firm fixed price, the government may have included contingency clauses or escalation factors for specific materials. Robust project management, regular site assessments, and clear communication channels with the contractor are crucial. The contracting officer should actively monitor market trends for key commodities and labor rates to anticipate potential issues.

How effectively did the full and open competition process ensure the best value was achieved, considering only two bids were received?

The effectiveness of the competition hinges on whether the two bidders represented a sufficient range of qualified contractors capable of performing the work. If the market for this specific type of construction is inherently limited, two bids might represent robust competition. However, if more contractors could have bid, the limited number might suggest barriers to entry or insufficient outreach, potentially impacting the final price.

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: 2

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: $51,696,518

Exercised Options: $51,559,156

Current Obligation: $51,559,156

Actual Outlays: $11,058,174

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