DoD's $10.3M Army contract for building construction awarded to TEAM CONSTRUCTION LLC via full and open competition
Contract Overview
Contract Amount: $10,229,473 ($10.2M)
Contractor: Team Construction LLC
Awarding Agency: Department of Defense
Start Date: 2005-09-29
End Date: 2008-04-25
Contract Duration: 939 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28307
Plain-Language Summary
Department of Defense obligated $10.2 million to TEAM CONSTRUCTION LLC for work described as: Key points: 1. The contract value of $10.3 million falls within a moderate spending range for construction projects. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a potentially limited but structured bidding process. 3. The fixed-price contract type shifts risk to the contractor, potentially impacting final costs. 4. The sector is Commercial and Institutional Building Construction, a common area for federal procurement.
Value Assessment
Rating: fair
The award amount of $10.3 million for a 939-day duration appears reasonable for a construction project of this scope. Benchmarking against similar large-scale building construction contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be broad, specific sources were excluded. This could limit the number of bidders and potentially affect price discovery.
Taxpayer Impact: Taxpayer funds were used for a competitive bid process, aiming for a fair market price. The effectiveness of price discovery depends on the number and quality of bids received after source exclusions.
Public Impact
This contract supports infrastructure development within the Department of the Army. The project likely involves significant local economic activity through employment and material sourcing. The duration of the contract suggests a substantial construction undertaking.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to source exclusion.
- Fixed-price contract may not fully account for unforeseen construction challenges.
- Contract awarded in 2005, performance concluded in 2008; data may not reflect current market conditions.
Positive Signals
- Utilized a competitive bidding process.
- Fixed-price contract type provides cost certainty for the government.
- Contract duration aligns with the scope of a large construction project.
Sector Analysis
The Commercial and Institutional Building Construction sector is a significant area of federal spending, encompassing a wide range of projects from office buildings to specialized facilities. Benchmarks vary widely based on project size, complexity, and location.
Small Business Impact
The data indicates that TEAM CONSTRUCTION LLC, the awardee, is not a small business (sb: false). This contract did not appear to be specifically set aside for small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, a major component of the Department of Defense, which has established oversight mechanisms for procurement. The 'exclusion of sources' clause warrants scrutiny to ensure fairness and compliance.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for limited competition.
- Contract awarded over 15 years ago.
- Lack of detail on specific source exclusions.
- No indication of small business participation.
Tags
commercial-and-institutional-building-co, department-of-defense, nc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.2 million to TEAM CONSTRUCTION LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is TEAM CONSTRUCTION LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.2 million.
What is the period of performance?
Start: 2005-09-29. End: 2008-04-25.
What was the rationale for excluding specific sources in the 'full and open competition after exclusion of sources' process, and did this exclusion impact the final price?
The rationale for excluding sources typically involves specific technical requirements, past performance issues, or national security considerations. Without further details on the specific exclusions, it's difficult to definitively assess their impact on price discovery. However, any exclusion inherently limits the competitive pool, potentially leading to higher prices than a truly unrestricted open competition.
How did the fixed-price contract type perform in managing cost overruns, given the project's 939-day duration and potential for unforeseen construction issues?
Fixed-price contracts place the risk of cost overruns on the contractor. For a project spanning nearly three years, the contractor would have needed robust contingency planning. Performance success would depend on the accuracy of the initial cost estimates and the contractor's ability to manage risks like material price fluctuations or unexpected site conditions within the agreed-upon price.
What was the overall effectiveness of this procurement in achieving the Army's infrastructure goals at a reasonable cost, considering the competition method used?
The effectiveness hinges on whether the final built facility met the Army's requirements and if the price paid was competitive given the market conditions and the specific competition constraints. The 'exclusion of sources' method suggests a trade-off between maximizing competition and ensuring suitability or addressing specific needs. A thorough review would compare the final cost against independent cost estimates and similar projects.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 317-C CENTER ST, JACKSONVILLE, NC, 03
Business Categories: 8(a) Program Participant, Category Business, Emerging Small Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business
Financial Breakdown
Contract Ceiling: $2,418
Exercised Options: $2,418
Current Obligation: $10,229,473
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-09-29
Current End Date: 2008-04-25
Potential End Date: 2008-04-25 00:00:00
Last Modified: 2008-05-07
More Contracts from Team Construction LLC
- Base — $18.3M (Department of Defense)
- Mcon Project P-1135, Modify K-Ranges Phase I AT Marine Corps Base, Camp Lejeune, North Carolina — $13.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)