Army awards $23.2M construction contract to Construction Engineers, Ltd. for non-building facilities

Contract Overview

Contract Amount: $23,254,708 ($23.3M)

Contractor: Construction Engineers, Ltd.

Awarding Agency: Department of Defense

Start Date: 2004-03-16

End Date: 2009-07-15

Contract Duration: 1,947 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200408!000150!96CE!W912ES!USA ENGINEER DISTRICT ST PAUL !W912ES04C0005 !A!N! !N! ! !20040316!20060329!098275118!098275118!098275118!N!CONSTRUCTION ENGINEERS LTD !200 NORTH 69TH STREET !GRAND FORKS !ND!58208!32060!035!38!GRAND FORKS !GRAND FORKS !N DAKOTA !+000005000000!N!N!000000000000!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!006!A! !D!N!C! ! !N!B!N!N! ! !C! !A!A!00 !A!B!Y!T!N! ! ! ! !0001! !

Place of Performance

Location: GRAND FORKS, GRAND FORKS County, NORTH DAKOTA, 58201

State: North Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to CONSTRUCTION ENGINEERS, LTD. for work described as: 200408!000150!96CE!W912ES!USA ENGINEER DISTRICT ST PAUL !W912ES04C0005 !A!N! !N! ! !20040316!20060329!098275118!098275118!098275118!N!CONSTRUCTION ENGINEERS LTD !200 NORTH 69TH STREET !GRAND FORKS !ND!58208!32060!035!38!GRAND FORKS !GRAN… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of over 5 years indicates a significant, long-term project. 3. The North Dakota location may have implications for regional economic impact and workforce. 4. The firm fixed-price contract type suggests cost certainty for the government. 5. The specific NAICS code (237990) points to a specialized construction sector.

Value Assessment

Rating: fair

The contract value of $23.2 million for construction services appears to be within a reasonable range for a multi-year federal project of this nature. Benchmarking against similar large-scale civil engineering or facility construction contracts would provide a more precise assessment of value for money. The firm fixed-price structure helps manage cost overruns, but the total expenditure over nearly five years warrants careful performance monitoring.

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 6 bidders suggests a healthy level of competition for this particular construction project. A competitive environment generally leads to better pricing and service offerings for the government.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiary is the Department of the Army, receiving construction services for non-building facilities. The contract supports the development or maintenance of critical infrastructure. The geographic impact is concentrated in Grand Forks, North Dakota, potentially creating local jobs and economic activity. The project may involve a significant number of construction workers and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite firm fixed-price contract.
Dependence on a single contractor for a long duration could pose risks if performance issues arise.
Geographic concentration might limit local subcontractor availability or create logistical challenges.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract provides cost predictability for the government.
Long contract duration suggests a stable, ongoing need for the services.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically NAICS code 237990 (Other Heavy and Civil Engineering Construction). This sector includes the construction of infrastructure such as highways, streets, bridges, and utilities. Federal spending in this area is substantial, supporting national infrastructure development and military readiness. Comparable spending benchmarks would typically be found in large-scale public works projects or military base construction initiatives.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract. Given the large dollar value and the nature of the work, it is likely that larger firms were the primary bidders. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the specific needs of the project. The impact on the small business ecosystem is likely indirect, through potential subcontracting.

Oversight & Accountability

Oversight for this Department of the Army contract would typically be managed by contracting officers and program managers within the Army Corps of Engineers or relevant command. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is facilitated by federal procurement data systems, though detailed project-specific oversight reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Construction Contracts
Department of Defense Facilities Construction
Civil Engineering Projects
Non-Building Facility Construction

Risk Flags

Long contract duration may increase exposure to economic fluctuations or changes in government priorities.
Concentration in a single geographic region could pose risks related to local labor availability or unforeseen site conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to CONSTRUCTION ENGINEERS, LTD.. 200408!000150!96CE!W912ES!USA ENGINEER DISTRICT ST PAUL !W912ES04C0005 !A!N! !N! ! !20040316!20060329!098275118!098275118!098275118!N!CONSTRUCTION ENGINEERS LTD !200 NORTH 69TH STREET !GRAND FORKS !ND!58208!32060!035!38!GRAND FORKS !GRAND FORKS !N DAKOTA !+000005000000!N!N!000000000000!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is CONSTRUCTION ENGINEERS, LTD..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2004-03-16. End: 2009-07-15.

What is the specific nature of the 'non-building facilities' being constructed or maintained under this contract?

The data indicates the NAICS code is 237990, which covers 'Other Heavy and Civil Engineering Construction.' This typically includes projects like roads, bridges, pipelines, utility lines, and other infrastructure that are not part of a building structure. For the Department of the Army, 'non-building facilities' could encompass a wide range of infrastructure essential for base operations, training, or logistical support. Examples might include runways, taxiways, aprons, vehicle maintenance pads, drainage systems, utility distribution networks, or specialized outdoor training areas. The exact nature would be detailed in the contract's Statement of Work (SOW).

How does the awarded price of $23.2 million compare to similar construction projects for non-building facilities by the Department of Defense?

Direct comparison of the $23.2 million award to similar projects requires access to a database of comparable federal construction contracts, including their scope, location, and duration. However, for a multi-year project involving heavy civil engineering, this value is substantial but not unusual for federal infrastructure work. The number of bidders (6) suggests the price was likely competitive within the market for such services. To provide a precise benchmark, one would need to analyze contracts with similar NAICS codes, project complexity, and contract types awarded over a similar timeframe by agencies like the Army Corps of Engineers or Naval Facilities Engineering Command.

What are the key performance indicators (KPIs) or metrics used to assess the performance of Construction Engineers, Ltd. on this contract?

While the specific KPIs are not detailed in the provided data, federal construction contracts typically include performance standards related to schedule adherence, quality of work, safety compliance, and adherence to specifications. For a firm fixed-price contract, meeting milestones and delivering the final product within budget and according to the SOW are paramount. Performance evaluations are often conducted at key project stages and upon completion, contributing to the contractor's past performance record for future bids. The contracting officer's representative (COR) or quality assurance personnel would be responsible for monitoring these aspects.

What is the historical spending pattern for this specific type of construction (NAICS 237990) by the Department of the Army over the last decade?

The Department of the Army consistently spends significant amounts on heavy and civil engineering construction (NAICS 237990) to maintain and upgrade its infrastructure. Historical data from sources like USAspending.gov would show fluctuations based on military readiness needs, base realignment and closure actions, and overall federal budget allocations. Spending in this category often increases during periods of heightened military activity or when major infrastructure modernization programs are undertaken. Analyzing trends would reveal if this $23.2 million award is in line with historical averages or represents a significant deviation.

What is the track record of Construction Engineers, Ltd. with federal contracts, particularly with the Department of Defense?

Construction Engineers, Ltd. has been awarded this specific contract, indicating they possess the necessary qualifications and were deemed a responsible source. To assess their broader track record, one would need to examine their contract history across federal agencies, looking at the number, value, and types of contracts previously awarded. Key aspects to review include past performance ratings, any instances of contract disputes or terminations, and their experience with similar large-scale construction projects. A positive performance history is crucial for securing future federal work.

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

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 NORTH 69TH STREET, GRAND FORKS, ND, 58208

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $140,590

Exercised Options: $140,590

Current Obligation: $23,254,708

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline