DoD's $86M Commercial Building Contract Awarded to ACC Construction Co., Inc. for Firm Fixed Price
Contract Overview
Contract Amount: $86,389,254 ($86.4M)
Contractor: ACC Construction CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2006-05-18
End Date: 2009-12-12
Contract Duration: 1,304 days
Daily Burn Rate: $66.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310
Plain-Language Summary
Department of Defense obligated $86.4 million to ACC CONSTRUCTION CO., INC. for work described as: Key points: 1. The contract value is substantial at $86.4 million. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is over three years, indicating a significant project. 4. No small business participation was noted, which could be a point of concern.
Value Assessment
Rating: fair
The contract value of $86.4 million for commercial and institutional building construction appears to be within a reasonable range for a project of this scale and duration, though specific benchmarks are not provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, as it allows multiple qualified contractors to bid. This method generally leads to more competitive pricing.
Taxpayer Impact: The competitive bidding process likely resulted in a fair price for taxpayers, maximizing value for the government's investment.
Public Impact
Construction projects of this magnitude can impact local economies through job creation and material sourcing. The Department of the Army's investment in infrastructure supports its operational readiness and personnel. The duration of the contract suggests a long-term commitment to a specific construction need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could lead to cost overruns if not managed effectively.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type helps control costs.
Sector Analysis
The contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector by the Department of Defense is crucial for maintaining and developing facilities necessary for military operations and support.
Small Business Impact
The data indicates that this contract was not awarded to a small business, nor does it appear to have provisions for small business subcontracting. Further analysis would be needed to determine if this aligns with overall small business utilization goals.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for its procurement processes. The firm fixed price contract type also provides a degree of cost control.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- No small business participation.
- Long contract duration.
- Potential for cost escalation if not managed tightly.
- Lack of detailed project scope for value assessment.
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 $86.4 million to ACC CONSTRUCTION CO., INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is ACC CONSTRUCTION CO., 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 $86.4 million.
What is the period of performance?
Start: 2006-05-18. End: 2009-12-12.
What specific type of commercial and institutional building is being constructed, and how does its scope align with the $86.4 million budget?
The provided data does not specify the exact nature of the commercial and institutional building. Understanding the project's scope, such as whether it's barracks, administrative offices, or specialized training facilities, is crucial for a thorough value assessment. Comparing the budget against similar construction projects of comparable size and complexity would be necessary to definitively determine if the $86.4 million represents excellent, good, or fair value.
What were the key factors that led to the exclusion of small businesses from this large contract, and are there opportunities for them in future related procurements?
The data indicates the contract was not awarded to a small business and does not explicitly mention subcontracting goals. This could be due to the specialized nature of the work, the large contract size making it less accessible for small businesses, or a lack of targeted outreach. Future procurements could explore set-asides or tiered subcontracting requirements to encourage small business involvement.
How effectively has the firm fixed price contract structure mitigated potential cost overruns given the contract's duration of over three years?
A firm fixed price contract is designed to shift cost risk to the contractor, providing budget certainty. However, the effectiveness in mitigating overruns over a 1304-day period depends heavily on the initial bid accuracy, the contractor's management capabilities, and the presence of any contingency clauses or change order processes. Post-award performance data would be needed to assess actual cost control effectiveness.
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: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 635 NW FRONTAGE RD, AUGUSTA, GA, 12
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-05-18
Current End Date: 2009-12-12
Potential End Date: 2009-12-12 00:00:00
Last Modified: 2010-02-10
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