Army awards $19.1M for civil engineering construction, with a significant portion for non-building facilities

Contract Overview

Contract Amount: $19,119,830 ($19.1M)

Contractor: R J Zavoral ED'S Construction Joint Venture

Awarding Agency: Department of Defense

Start Date: 2004-08-06

End Date: 2008-04-04

Contract Duration: 1,337 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200412!000362!96CE!W912ES!USA ENGINEER DISTRICT ST PAUL !W912ES04C0013 !A!N! !N! ! !20040806!20060820!146848762!146848762!146848762!N!R J ZAVORAL-ED S CONSTRUCTION!18297 COUNTY HWY 72 SW !EAST GRAND FOR !MN!56721!17612!119!27!EAST GRAND FORKS !POLK !MINNESOTA !+000000500000!N!N!000017768659!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!005!K! !D!N!Z! ! !N!A!N!N!E!B! ! !D!A!00 !A!B!Y!M!N! ! ! ! !0001! !

Place of Performance

Location: EAST GRAND FORKS, POLK County, MINNESOTA, 56721

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to R J ZAVORAL ED'S CONSTRUCTION JOINT VENTURE for work described as: 200412!000362!96CE!W912ES!USA ENGINEER DISTRICT ST PAUL !W912ES04C0013 !A!N! !N! ! !20040806!20060820!146848762!146848762!146848762!N!R J ZAVORAL-ED S CONSTRUCTION!18297 COUNTY HWY 72 SW !EAST GRAND FOR !MN!56721!17612!119!27!EAST GRAND FORKS !POLK… Key points: 1. Contract awarded for heavy and civil engineering construction, specifically for non-building facilities. 2. The contract was competed fully and openly after exclusion of sources, indicating a structured procurement process. 3. The duration of the contract was over 3 years, suggesting a substantial project scope. 4. The awardee, R J ZAVORAL ED'S CONSTRUCTION JOINT VENTURE, has experience in this sector. 5. The contract value is substantial, requiring careful monitoring for performance and cost-effectiveness. 6. The geographic focus is Minnesota, impacting local workforce and resources.

Value Assessment

Rating: good

The contract value of $19.1 million for civil engineering construction appears reasonable given the project scope and duration. Benchmarking against similar large-scale civil engineering projects would provide a more precise value-for-money assessment. The fixed-price nature of the contract shifts some risk to the contractor, which can be beneficial for cost control if well-managed. However, without specific details on the deliverables and market rates for comparable services, a definitive assessment of cost-effectiveness is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, certain sources may have been excluded based on specific criteria, possibly related to past performance, security, or specialized capabilities. The number of bidders is not explicitly stated, but the 'full and open' nature implies multiple interested parties were considered. This approach aims to balance competition with ensuring the most suitable contractor is selected.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best possible price for taxpayers by encouraging multiple firms to bid. Transparency in the exclusion criteria is important for ensuring fairness and maximizing taxpayer value.

Public Impact

The primary beneficiaries are likely the Department of the Army and potentially other federal agencies requiring similar civil engineering construction services. The services delivered include the construction or renovation of 'all other non-building facilities,' which could encompass a wide range of infrastructure. The geographic impact is concentrated in Minnesota, specifically the area served by the US Engineer District St. Paul. The contract likely has implications for the local construction workforce in Minnesota, providing employment opportunities and economic activity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'non-building facilities' is not precisely defined.
Risk of delays if unforeseen site conditions or material shortages occur during construction.
Ensuring compliance with environmental regulations during construction activities.

Positive Signals

Fixed-price contract structure incentivizes contractor efficiency and cost control.
Award to a joint venture may indicate a capacity to handle large, complex projects.
The contract duration suggests a commitment to a significant infrastructure development.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a critical component of national infrastructure. The North American Industry Classification System (NAICS) code 237990 covers 'Other Heavy and Civil Engineering Construction,' which includes projects like pipelines, water and sewer systems, and other infrastructure not elsewhere classified. Spending in this sector is often driven by government investment in public works and military installations. Comparable spending benchmarks would involve analyzing other large federal construction contracts for similar infrastructure projects.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-value contract, it is unlikely that small businesses would be primary awardees unless through subcontracting. The prime contractor, R J ZAVORAL ED'S CONSTRUCTION JOINT VENTURE, may engage small businesses as subcontractors, contributing to the small business ecosystem. However, the primary impact on small businesses would depend on the specific subcontracting plan, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. The US Army Corps of Engineers, specifically the St. Paul District, would likely be involved in project oversight and quality assurance. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, which provide public access to award details.

Related Government Programs

US Army Corps of Engineers Civil Works Projects
Federal Infrastructure Construction Contracts
Department of Defense Facilities Modernization
Heavy and Civil Engineering Construction Services

Risk Flags

Potential for scope creep in 'non-building facilities'.
Contract duration may exceed actual need if project phases are completed early.
Reliance on a joint venture could introduce coordination challenges.
Geographic concentration may limit broader market testing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.1 million to R J ZAVORAL ED'S CONSTRUCTION JOINT VENTURE. 200412!000362!96CE!W912ES!USA ENGINEER DISTRICT ST PAUL !W912ES04C0013 !A!N! !N! ! !20040806!20060820!146848762!146848762!146848762!N!R J ZAVORAL-ED S CONSTRUCTION!18297 COUNTY HWY 72 SW !EAST GRAND FOR !MN!56721!17612!119!27!EAST GRAND FORKS !POLK !MINNESOTA !+000000500000!N!N!000017768659!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is R J ZAVORAL ED'S CONSTRUCTION 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 $19.1 million.

What is the period of performance?

Start: 2004-08-06. End: 2008-04-04.

What specific types of 'non-building facilities' are covered under this contract, and what is the breakdown of costs associated with each type?

The contract specifies 'ALL OTHER NON-BUILDING FACILITIES' under NAICS code 237990. This broad category typically includes infrastructure such as roads, bridges, tunnels, dams, levees, pipelines, power generation facilities (excluding buildings), and site preparation work. Without a detailed breakdown in the provided data, it's impossible to ascertain the exact allocation of the $19.1 million. Further analysis of the contract's Statement of Work (SOW) or task orders would be necessary to identify specific projects and their associated costs. This information is crucial for understanding the precise nature of the construction and for benchmarking against similar infrastructure projects.

How does the awarded price of $19.1 million compare to the estimated cost or independent government cost estimate for this project?

The provided data shows the awarded amount ($19,119,830.48) but does not include the government's estimated cost or the initial solicitation's estimated value. To assess if this represents good value, a comparison with the Independent Government Cost Estimate (IGCE) is essential. If the awarded price is significantly below the IGCE, it could indicate strong competition or favorable market conditions. Conversely, if it's close to or above the IGCE, it might warrant further scrutiny regarding the accuracy of the estimate or the competitiveness of the bids. Without the IGCE, assessing the price's reasonableness is speculative.

What is the track record of R J ZAVORAL ED'S CONSTRUCTION JOINT VENTURE on similar federal contracts, particularly regarding performance, timeliness, and budget adherence?

R J ZAVORAL ED'S CONSTRUCTION JOINT VENTURE was awarded this contract. To assess their track record, one would need to examine their past performance on federal contracts, ideally those of similar scope and value within the heavy and civil engineering construction sector. Key metrics to review include on-time completion rates, adherence to budget, quality of work, and any instances of disputes or contract terminations. Information on past performance is often available through sources like the Contractor Performance Assessment Reporting System (CPARS), though this data is not directly provided here. A positive track record would increase confidence in their ability to successfully execute this current project.

What are the potential risks associated with the 'full and open competition after exclusion of sources' procurement method for this contract?

The 'full and open competition after exclusion of sources' method, while aiming for broad competition, introduces specific risks. The 'exclusion of sources' implies that certain potential bidders were deemed ineligible based on predefined criteria. If these criteria are overly restrictive or not clearly justified, it could inadvertently limit competition, potentially leading to higher prices or fewer qualified bidders. The risk lies in ensuring that the exclusion process is fair, transparent, and genuinely serves the government's interest in obtaining the best value, rather than arbitrarily narrowing the field. Proper documentation and justification for any exclusions are critical to mitigate this risk.

How has federal spending in the 'Other Heavy and Civil Engineering Construction' (NAICS 237990) sector trended over the past five years, and how does this award fit into that trend?

Federal spending in the 'Other Heavy and Civil Engineering Construction' sector (NAICS 237990) is often cyclical and influenced by infrastructure initiatives, economic conditions, and national security priorities. Historically, this sector sees significant investment during periods of infrastructure renewal or expansion. This $19.1 million award represents a single data point within that broader trend. To understand its context, one would need to analyze aggregate federal spending data for NAICS 237990 over recent years. If overall federal spending in this sector has been increasing, this award aligns with that trend. Conversely, if spending has been declining, this award might represent a targeted investment or a deviation from the norm.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18297 COUNTY HWY 72 SW, EAST GRAND FOR, MN, 56721

Business Categories: Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline