Army Awards $12.6M Contract for Non-Building Facilities to Clay Products Inc
Contract Overview
Contract Amount: $12,662,899 ($12.7M)
Contractor: Clay Products Inc
Awarding Agency: Department of Defense
Start Date: 2005-09-02
End Date: 2009-09-15
Contract Duration: 1,474 days
Daily Burn Rate: $8.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 200512!500514!96CE!W912ES!USA ENGINEER DISTRICT ST PAUL !W912ES05C0009 !A!N! !N! ! !20050902!20061231!052347874!052347874!052347874!N!CLAY PRODUCTS INC !1009 15TH AVE NE !EAST GRAND FOR !MN!56721!17612!119!27!EAST GRAND FORKS !POLK !MINNESOTA !+000000150000!N!N!000000000000!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !20200930!B! ! !A! !A!U!J!2!005!A! !D!N!Z! ! !N!B!N!Y! ! !D! !A!A!000!A!B!Y!N!Y! ! ! ! !0001! !
Place of Performance
Location: EAST GRAND FORKS, POLK County, MINNESOTA, 56721
Plain-Language Summary
Department of Defense obligated $12.7 million to CLAY PRODUCTS INC for work described as: 200512!500514!96CE!W912ES!USA ENGINEER DISTRICT ST PAUL !W912ES05C0009 !A!N! !N! ! !20050902!20061231!052347874!052347874!052347874!N!CLAY PRODUCTS INC !1009 15TH AVE NE !EAST GRAND FOR !MN!56721!17612!119!27!EAST GRAND FORKS !POLK… Key points: 1. The contract value of $12.6M is substantial for this type of construction. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration of over 4 years presents potential for cost overruns or scope creep. 4. The sector is construction, specifically heavy and civil engineering.
Value Assessment
Rating: fair
The contract value of $12.6M for 'ALL OTHER NON-BUILDING FACILITIES' is difficult to benchmark without more specific details on the scope of work. However, for a definitive contract of this size and duration, it appears within a reasonable range, assuming the scope was well-defined.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the services rendered.
Public Impact
Local economy in East Grand Forks, MN, may benefit from this contract through job creation and business activity. Infrastructure improvements related to non-building facilities could enhance operational capabilities for the Army. The long contract duration means sustained economic activity for the awarded firm.
Waste & Efficiency Indicators
Waste Risk Score: 85 / 10
Warning Flags
- Long contract duration (over 4 years) increases risk of cost escalation.
- Vague scope ('ALL OTHER NON-BUILDING FACILITIES') could lead to disputes or change orders.
Positive Signals
- Full and open competition suggests a competitive pricing environment.
- Firm fixed price contract provides cost certainty for the government.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector. Spending in this sector can fluctuate based on government infrastructure needs and budget allocations. The awarded amount is significant for a single contract in this sub-sector.
Small Business Impact
The contract was awarded to Clay Products Inc., a firm located in Minnesota. There is no indication from the data whether this firm is a small business. Further analysis would be needed to determine the impact on small businesses.
Oversight & Accountability
The contract was awarded by the Department of the Army, St. Paul District, U.S. Army Corps of Engineers. Standard oversight mechanisms for federal contracts would apply, including performance monitoring and financial audits.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- Vague scope description.
- Potential for inflation impact on costs.
- Lack of small business participation noted (requires confirmation).
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.7 million to CLAY PRODUCTS INC. 200512!500514!96CE!W912ES!USA ENGINEER DISTRICT ST PAUL !W912ES05C0009 !A!N! !N! ! !20050902!20061231!052347874!052347874!052347874!N!CLAY PRODUCTS INC !1009 15TH AVE NE !EAST GRAND FOR !MN!56721!17612!119!27!EAST GRAND FORKS !POLK !MINNESOTA !+000000150000!N!N!000000000000!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !202
Who is the contractor on this award?
The obligated recipient is CLAY PRODUCTS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $12.7 million.
What is the period of performance?
Start: 2005-09-02. End: 2009-09-15.
What specific types of 'non-building facilities' were included in this contract, and how does the $12.6M price compare to similar projects?
The data provides a broad category of 'ALL OTHER NON-BUILDING FACILITIES,' which lacks specificity. To assess value, a detailed breakdown of the work performed (e.g., site preparation, utility installation, specialized structures) and comparison with similar, well-defined contracts would be necessary. Without this, a precise value assessment is challenging.
Given the 4-year duration, what are the primary risks associated with cost escalation or scope creep for this contract?
The primary risks include inflation impacting material and labor costs over the extended period, potential for unforeseen site conditions requiring additional work, and the possibility of the government requesting scope changes that are not adequately captured by the initial firm fixed price. Robust contract management and clear initial scope definition are crucial to mitigate these risks.
How effective was the 'full and open competition' in ensuring the best possible price for the government on this $12.6M contract?
Full and open competition is generally effective in driving competitive pricing. However, the ultimate effectiveness depends on the number and quality of bids received, the clarity of the solicitation, and the specific market conditions at the time of bidding. Without knowing the number of bids or the pricing of competing offers, it's difficult to definitively state the degree of price effectiveness.
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: SEALED BID
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1009 15TH AVE NE, EAST GRAND FOR, MN, 56721
Business Categories: Category Business, Emerging Small Business, HUBZone Firm, Small Business, Special Designations
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-09-02
Current End Date: 2009-09-15
Potential End Date: 2009-09-15 00:00:00
Last Modified: 2021-02-25
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