DoD Awards $24.1M Construction Contract to PWS INC for Heavy Civil Engineering in Minnesota
Contract Overview
Contract Amount: $24,139,139 ($24.1M)
Contractor: PWS Inc
Awarding Agency: Department of Defense
Start Date: 2024-05-30
End Date: 2027-09-30
Contract Duration: 1,218 days
Daily Burn Rate: $19.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FMM SE-4 CONSTRUCTION
Place of Performance
Location: COMSTOCK, CLAY County, MINNESOTA, 56525
Plain-Language Summary
Department of Defense obligated $24.1 million to PWS INC for work described as: FMM SE-4 CONSTRUCTION Key points: 1. Contract awarded to PWS INC for heavy civil engineering construction. 2. Full and open competition was utilized for this procurement. 3. The contract has a duration of 1218 days. 4. This is a firm-fixed-price definitive contract. 5. The contract is valued at $24.1 million.
Value Assessment
Rating: good
The contract value of $24.1 million for heavy civil engineering construction appears reasonable given the 1218-day duration. Benchmarking against similar large-scale civil engineering projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified contractors to bid, potentially leading to more competitive pricing.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for this significant construction project.
Public Impact
Infrastructure development in Minnesota will be supported by this contract. Local employment opportunities may arise from this construction project. The Department of the Army will benefit from upgraded facilities or infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized
- Firm fixed price contract type
- Long contract duration allowing for phased execution
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which includes large-scale infrastructure projects. Spending in this sector can vary significantly based on government infrastructure initiatives and economic conditions.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, nor is there an indication of subcontracting goals for small businesses. Further investigation into subcontracting opportunities would be beneficial.
Oversight & Accountability
The contract is managed by the Department of the Army, part of the Department of Defense. Standard oversight mechanisms for federal construction contracts are expected to be in place.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation noted
- Potential for cost escalation over the long contract duration
- Scope definition clarity needed for long-term project
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 $24.1 million to PWS INC. FMM SE-4 CONSTRUCTION
Who is the contractor on this award?
The obligated recipient is PWS 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 $24.1 million.
What is the period of performance?
Start: 2024-05-30. End: 2027-09-30.
What specific heavy and civil engineering construction activities are included in the PWS?
The specific activities are not detailed in the provided data. A review of the Performance Work Statement (PWS) would be necessary to understand the scope, which could include site preparation, excavation, foundation work, utility installation, paving, or other specialized civil engineering tasks relevant to the project's objectives.
Are there any identified risks associated with the long contract duration of 1218 days?
A long duration can introduce risks such as material cost escalation, potential for scope creep, and contractor performance degradation over time. However, it also allows for complex projects to be executed in phases and can provide stability. Mitigation strategies like price adjustment clauses or regular performance reviews are crucial.
How does the awarded price compare to industry benchmarks for similar heavy civil engineering projects?
Without specific details on the project's scope and location, a precise benchmark comparison is difficult. However, the value of $24.1 million for over three years of work suggests a substantial project. Comparing cost per square foot or per linear foot for similar types of construction in the region would be the next step.
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: SEALED BID
Solicitation ID: W912ES23B0015
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8601 73RD AVE N STE 21, BROOKLYN PARK, MN, 55428
Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,139,139
Exercised Options: $24,139,139
Current Obligation: $24,139,139
Actual Outlays: $2,925,350
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-05-30
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-10-03
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