DOD's $26.7M Hangar Annex Contract Awarded to Cosmopolitan Inc. for Commercial Building Construction

Contract Overview

Contract Amount: $26,727,297 ($26.7M)

Contractor: Cosmopolitan Incorporated

Awarding Agency: Department of Defense

Start Date: 2007-07-25

End Date: 2009-02-09

Contract Duration: 565 days

Daily Burn Rate: $47.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HANGAR ANNEX &

Plain-Language Summary

Department of Defense obligated $26.7 million to COSMOPOLITAN INCORPORATED for work described as: HANGAR ANNEX & Key points: 1. Contract awarded for hangar annex construction. 2. Cosmopolitan Incorporated is the contractor. 3. The contract falls under commercial and institutional building construction. 4. Full and open competition was utilized. 5. The award value is $26.7 million.

Value Assessment

Rating: fair

The contract value of $26.7 million for a hangar annex appears within a reasonable range for large construction projects. However, without specific details on the scope of work, size, and complexity of the hangar, a precise benchmark is difficult. Comparison to similar military construction projects would be necessary for a more definitive 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, theoretically driving down costs and ensuring the government receives competitive pricing. The number of bids received (6) further supports the effectiveness of this approach.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes efficiency and cost-effectiveness in government spending.

Public Impact

Construction of essential military infrastructure. Potential for job creation in the construction sector. Ensures operational readiness for the Department of the Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Small business participation not indicated.
  • Contract duration is relatively long (565 days).

Positive Signals

  • Full and open competition utilized.
  • Multiple bids received (6).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense can vary significantly based on infrastructure needs, modernization efforts, and geopolitical requirements. Benchmarks for similar hangar construction projects would be essential for detailed analysis.

Small Business Impact

The provided data does not indicate any specific provisions or participation by small businesses in this contract. Further investigation would be needed to determine if small business concerns were considered or involved in the subcontracting process.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for its procurement processes. The use of full and open competition suggests adherence to standard procurement regulations.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Lack of small business participation.
  • Potential for cost overruns in large construction projects.
  • Contract duration may indicate complexity or potential for delays.
  • Need for detailed scope of work to fully assess value.

Tags

commercial-and-institutional-building-co, department-of-defense, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to COSMOPOLITAN INCORPORATED. HANGAR ANNEX &

Who is the contractor on this award?

The obligated recipient is COSMOPOLITAN INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.7 million.

What is the period of performance?

Start: 2007-07-25. End: 2009-02-09.

What was the specific scope of work and technical requirements for the hangar annex, and how did these influence the final contract price?

The specific scope of work and technical requirements are crucial for understanding the contract's value. Factors such as size, specialized equipment integration, environmental controls, and security features would directly impact the cost. Without these details, it's challenging to assess if the $26.7 million award represents fair market value for the services rendered and materials provided.

Were there any performance issues or disputes during the contract period (2007-2009) that might indicate underlying risks or inefficiencies?

Assessing performance issues or disputes is vital for understanding contract effectiveness and potential risks. Any delays, cost overruns, or quality deficiencies could signal problems with contractor performance, project management, or unforeseen site conditions. Reviewing contract close-out documentation and any associated claims or litigation would provide insight into the actual execution and success of the project.

How does the cost per square foot or per cubic foot of this hangar annex compare to industry benchmarks for similar facilities, considering its military application?

Benchmarking the cost per unit area (square foot or cubic foot) against industry standards for similar facilities, especially military-grade hangars, is essential for evaluating value. Military construction often involves higher security, durability, and specialized requirements, which can increase costs. A detailed comparison, accounting for these unique factors, would reveal whether the $26.7 million expenditure was cost-effective.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912GB07R0013

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9375 GERWIG LANE # F, COLUMBIA, MD, 03

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $27,894,126

Exercised Options: $26,727,297

Current Obligation: $26,727,297

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2007-07-25

Current End Date: 2009-02-09

Potential End Date: 2009-02-09 00:00:00

Last Modified: 2008-03-23

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