DoD's $13.8M construction contract awarded to RA-LIN & ASSOCIATES, INC. for unspecified building work

Contract Overview

Contract Amount: $13,834,106 ($13.8M)

Contractor: Ra-Lin & Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-02-27

End Date: 2008-05-13

Contract Duration: 806 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: FORT STEWART, LIBERTY County, GEORGIA, 31314

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to RA-LIN & ASSOCIATES, INC. for work described as: Key points: 1. The contract's value of $13.8 million represents a significant investment in infrastructure. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The firm fixed-price contract type shifts risk to the contractor. 4. The duration of 806 days indicates a substantial project timeline. 5. The contract was awarded by the Department of the Army, a major DoD component. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

Benchmarking the value of this $13.8 million contract is challenging without specific details on the construction scope. However, for a project spanning over two years, the allocated funds appear to be within a reasonable range for large-scale commercial or institutional building projects. The firm fixed-price nature suggests that the contractor is incentivized to manage costs effectively, but it also means that the government has limited recourse if costs exceed initial estimates, provided the scope is met. Further analysis would require comparing the cost per square foot or per unit of work against similar projects in the same geographic region and of comparable complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically involves a formal solicitation process, evaluation of proposals, and selection of the best value offer. The presence of 5 bids suggests a competitive environment, which generally leads to better pricing and terms for the government. The level of competition is a positive indicator for price discovery and ensures that the government is likely to receive a fair market price.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality proposals.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel who will utilize the constructed facility. The services delivered involve the construction of commercial and institutional buildings. The geographic impact is centered in Georgia, where the contract was awarded. Workforce implications include job creation for construction workers and related trades in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific project details makes it difficult to assess the true value for money.
Firm fixed-price contracts can lead to cost overruns if unforeseen issues arise and scope creep occurs.
The duration of the contract (806 days) increases the risk of material price fluctuations and labor availability issues.

Positive Signals

Awarded under full and open competition, suggesting a competitive market for the services.
The firm fixed-price contract structure places cost control responsibility on the contractor.
The contract was awarded to RA-LIN & ASSOCIATES, INC., a company with experience in construction.

Sector Analysis

The construction sector is a significant part of the US economy, encompassing a wide range of building projects from residential to large-scale commercial and institutional facilities. Federal spending in this sector often supports military infrastructure, government buildings, and research facilities. This contract, falling under NAICS code 236220, specifically relates to commercial and institutional building construction. Comparable spending benchmarks would depend heavily on the type and scale of the facility being built, but federal construction contracts can range from millions to billions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). With 5 bids received, it suggests that larger firms or joint ventures may have been the primary participants. There is no explicit information on subcontracting plans, but for a contract of this size and nature, it is common for prime contractors to engage small businesses for specialized services or material supply, potentially creating opportunities within the small business ecosystem.

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 firm fixed-price nature means that performance monitoring is crucial to ensure the contractor meets the specified requirements and quality standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Department of Defense Construction Contracts
Army Corps of Engineers Projects
Federal Building Construction
Infrastructure Development Contracts

Risk Flags

Lack of specific project details
Potential for cost overruns in long-duration FFP contracts
Risk of material price volatility over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to RA-LIN & ASSOCIATES, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is RA-LIN & ASSOCIATES, 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 $13.8 million.

What is the period of performance?

Start: 2006-02-27. End: 2008-05-13.

What specific type of commercial or institutional building was constructed under this contract?

The provided data does not specify the exact type of commercial or institutional building constructed under this contract. The NAICS code 236220 covers a broad range of projects, including the construction of office buildings, educational facilities, hospitals, warehouses, and other non-residential structures. Without further details from the contract's statement of work or award documentation, it is impossible to determine the specific nature of the facility. This lack of specificity hinders a precise assessment of the project's scope, complexity, and ultimate value to the government.

How does the awarded amount of $13.8 million compare to similar construction projects undertaken by the Department of the Army?

Comparing the $13.8 million award to similar Department of the Army construction projects requires access to a broader dataset of federal contracts, including project scope, location, and completion dates. However, for large-scale institutional or commercial building construction, $13.8 million can represent a mid-to-large-sized project. The Department of the Army, through the Army Corps of Engineers, manages numerous construction projects annually, with values varying significantly based on the facility's purpose and size. Without specific project details (e.g., square footage, type of construction, specific amenities), a direct comparison is difficult. Generally, projects of this magnitude are subject to competitive bidding to ensure fair pricing.

What are the potential risks associated with a firm fixed-price contract for a construction project of this duration?

A firm fixed-price (FFP) contract for a construction project lasting 806 days (approximately 2.2 years) carries several potential risks. The primary risk for the government is that the contractor may not be able to complete the project within the agreed-upon price if unforeseen issues arise, such as unexpected site conditions, material cost escalations, or labor shortages. While the FFP structure incentivizes the contractor to control costs, significant changes in market prices for materials like steel, concrete, or lumber over a two-year period could strain the contractor's budget. Conversely, the contractor bears the risk of cost overruns, which could lead to quality compromises if they attempt to cut corners to maintain profitability, or potential contractor default if the project becomes financially unviable.

What does the number of bidders (5) indicate about the market for this type of construction service?

Receiving 5 bids for a federal construction contract typically indicates a moderately competitive market for the specific services solicited. This number suggests that there were sufficient interested and capable contractors to ensure a degree of price discovery and selection of a qualified bidder. However, the optimal number of bidders can vary depending on the project's complexity, geographic location, and the availability of specialized construction firms. For a project valued at $13.8 million, 5 bidders is a reasonable outcome under full and open competition, implying that the government likely received multiple viable proposals, increasing the probability of selecting a contractor that offers good value.

What is the historical spending pattern for similar construction contracts awarded by the Department of the Army?

Analyzing historical spending patterns for similar construction contracts by the Department of the Army would require examining contract awards over several fiscal years, categorized by project type (e.g., building construction, infrastructure, renovation) and value. The Department of the Army, a major component of the DoD, consistently invests billions annually in construction to maintain and expand its facilities worldwide. Spending patterns are influenced by military readiness requirements, modernization efforts, and infrastructure replacement needs. Contracts like the one awarded to RA-LIN & ASSOCIATES, INC. are part of this ongoing investment. Trends might show shifts in funding towards specific types of construction (e.g., energy-efficient buildings, cybersecurity-resilient facilities) or changes in average contract values due to inflation and market conditions.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 PARKWOOD CIR, CARROLLTON, GA, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,908

Exercised Options: $30,908

Current Obligation: $13,834,106

Contract Characteristics

Cost or Pricing Data: NO

Timeline