DWC Building Construction Company awarded $19.4M for KMOD Security Upgrades by the Department of the Army

Contract Overview

Contract Amount: $19,407,462 ($19.4M)

Contractor: DWC Building Construction Company

Awarding Agency: Department of Defense

Start Date: 2012-03-26

End Date: 2013-09-25

Contract Duration: 548 days

Daily Burn Rate: $35.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: KMOD SECURITY UPGRADES

Plain-Language Summary

Department of Defense obligated $19.4 million to DWC BUILDING CONSTRUCTION COMPANY for work described as: KMOD SECURITY UPGRADES Key points: 1. Contract value appears reasonable given the scope of security upgrades. 2. Limited competition may have impacted final pricing. 3. Contract duration of 548 days suggests a complex project. 4. Project falls within the broader construction sector, specifically commercial and institutional building. 5. Fixed-price contract type shifts risk to the contractor. 6. No small business set-aside was utilized.

Value Assessment

Rating: fair

The contract value of $19.4 million for security upgrades is substantial. Without specific benchmarks for 'KMOD Security Upgrades,' a direct value-for-money assessment is challenging. However, the firm-fixed-price structure indicates that the contractor bears the risk of cost overruns, which can be a positive indicator if the price was competitive. The duration of 548 days suggests a significant undertaking, and the final cost should be evaluated against the delivered security enhancements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicated as 'NOT AVAILABLE FOR COMPETITION'. This means there was likely a specific justification for not soliciting bids from multiple vendors, such as unique capabilities or an urgent need. The lack of competition limits the government's ability to explore a range of pricing and service options, potentially leading to a higher cost than if multiple firms had vied for the contract.

Taxpayer Impact: The absence of a competitive bidding process means taxpayers may not have received the most cost-effective solution. Without comparison, it's difficult to ascertain if the awarded price reflects true market value.

Public Impact

The Department of the Army benefits from enhanced security at the KMOD facility. Services delivered include construction and installation of security upgrades. Geographic impact is localized to the facility where the upgrades are performed. Workforce implications include employment for construction labor and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment.
Contract duration is lengthy, increasing the risk of unforeseen issues.
Specific details of 'KMOD Security Upgrades' are not publicly detailed, hindering performance assessment.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Contractor is DWC Building Construction Company, suggesting established capabilities.
Project completion within the specified duration would indicate successful execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. Federal spending in this sector often involves infrastructure, facility upgrades, and specialized construction projects. Benchmarking this contract's value would require comparison to similar-sized security enhancement projects for government facilities, considering factors like location, complexity, and specific security requirements.

Small Business Impact

The contract was not set aside for small businesses, nor does it indicate any subcontracting requirements for small businesses. This suggests that the primary contractor, DWC Building Construction Company, is likely a larger entity, and the project did not leverage the small business contracting program. The absence of small business involvement means potential opportunities for smaller firms in this specific project were not realized.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified security upgrades. Transparency is limited due to the sole-source nature and lack of detailed public information on the specific security measures implemented.

Related Government Programs

Department of Defense Facility Upgrades
Military Base Security Enhancements
Construction Services for Government Agencies
Commercial Building Security Systems

Risk Flags

Sole-source award limits price competition.
Lack of detailed scope hinders performance evaluation.
Contract duration is substantial.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to DWC BUILDING CONSTRUCTION COMPANY. KMOD SECURITY UPGRADES

Who is the contractor on this award?

The obligated recipient is DWC BUILDING CONSTRUCTION COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2012-03-26. End: 2013-09-25.

What specific security upgrades were included in the KMOD project, and what was the justification for a sole-source award?

The provided data does not detail the specific security upgrades encompassed by the 'KMOD Security Upgrades' contract. Similarly, the justification for awarding the contract on a sole-source basis ('NOT AVAILABLE FOR COMPETITION') is not publicly available in this dataset. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, such as in cases of urgent and compelling need, unique technical capabilities, or when a follow-on contract is required for compatibility. Without this information, it is impossible to fully assess the necessity of the upgrades or the fairness of the procurement process.

How does the contract duration of 548 days compare to similar construction projects of this value?

A contract duration of 548 days (approximately 18 months) for a $19.4 million construction project is within a reasonable range, particularly for specialized security upgrades which can involve complex integration and stringent compliance requirements. However, without knowing the exact nature of the 'KMOD Security Upgrades,' direct comparisons are difficult. Projects involving significant structural modifications, advanced technological installations, or extensive site work often require longer timelines. Shorter durations might be achievable for simpler upgrades or if the contractor had pre-existing site access and minimal logistical hurdles. The firm-fixed-price nature suggests the duration was factored into the contractor's cost and risk assessment.

What is the track record of DWC Building Construction Company in performing similar government contracts?

The provided data identifies DWC Building Construction Company as the contractor but does not offer details on their past performance or track record with government contracts. To assess their reliability and experience, one would need to consult databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). These systems track contract awards, performance history, and any past issues or successes. A review of their history would reveal if they have successfully completed similar-sized construction or security upgrade projects for the government, their on-time delivery rates, and their record regarding quality and cost control.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risk associated with a sole-source contract of this magnitude ($19.4 million) is the potential for inflated pricing due to the lack of competition. Without multiple bids, the government may not achieve the best possible price. Other risks include reduced incentive for the contractor to innovate or perform exceptionally, as there is no competitive pressure. Furthermore, if the sole-source justification was weak or based on incomplete information, it could indicate a flawed procurement process. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations to mitigate these risks and ensure value for taxpayer money.

How does the firm-fixed-price contract type benefit the government in this scenario?

The firm-fixed-price (FFP) contract type is generally advantageous for the government, especially in projects with well-defined scopes, as it shifts the majority of the financial risk to the contractor. For the KMOD security upgrades, this means DWC Building Construction Company is obligated to complete the project for the agreed-upon price, regardless of unforeseen cost increases they might encounter. This provides budget certainty for the Department of the Army. While it might lead to a higher initial price compared to a cost-reimbursement contract to account for contractor risk, it protects the government from cost overruns and simplifies financial management and oversight.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912ER12R0019

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: HOUSE NUMBER 8 BLOCK 2, EGAILA

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,279,247

Exercised Options: $19,407,462

Current Obligation: $19,407,462

Contract Characteristics

Cost or Pricing Data: YES

Timeline