DoD awards $15.6M for SOF Hanger construction to Baggette Construction, Inc
Contract Overview
Contract Amount: $15,605,739 ($15.6M)
Contractor: Baggette Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-04-30
End Date: 2008-12-31
Contract Duration: 611 days
Daily Burn Rate: $25.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SOF HANGER
Place of Performance
Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28307
Plain-Language Summary
Department of Defense obligated $15.6 million to BAGGETTE CONSTRUCTION, INC. for work described as: SOF HANGER Key points: 1. Contract value of $15.6M for construction services. 2. Awarded via full and open competition. 3. Potential risk associated with firm fixed-price contract in construction. 4. Sector: Commercial and Institutional Building Construction.
Value Assessment
Rating: fair
The contract value of $15.6M for a SOF Hanger is difficult to benchmark without specific project details. However, construction projects of this nature can vary significantly in cost based on location, complexity, and materials.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for soliciting bids. This method generally promotes competitive pricing and allows for a wide range of contractors to participate.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by encouraging multiple bids and potentially driving down costs.
Public Impact
Supports military readiness by providing necessary infrastructure for Special Operations Forces. Creates jobs in the construction sector in North Carolina. Ensures specialized facilities are built to meet operational requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Firm Fixed Price contract in construction can lead to cost overruns if not managed carefully.
- Potential for scope creep in complex construction projects.
- Contract duration of 611 days indicates a significant project timeline.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Clear contract type (Firm Fixed Price) provides cost certainty if managed well.
Sector Analysis
The Commercial and Institutional Building Construction sector is a significant part of the economy, often involving large-scale projects for government and private entities. Spending benchmarks vary widely based on project type and location.
Small Business Impact
While awarded through full and open competition, there is no specific indication of small business participation or set-asides in this award. Larger construction contracts often involve prime contractors who may then subcontract portions of the work.
Oversight & Accountability
The Department of the Army's contracting process, including the use of full and open competition, is subject to oversight to ensure fairness and value. Post-award monitoring would be crucial for managing this construction project.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Firm Fixed Price contract risk
- Long project duration (611 days)
- Potential for scope creep in construction
- Lack of specific small business participation details
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 $15.6 million to BAGGETTE CONSTRUCTION, INC.. SOF HANGER
Who is the contractor on this award?
The obligated recipient is BAGGETTE CONSTRUCTION, 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 $15.6 million.
What is the period of performance?
Start: 2007-04-30. End: 2008-12-31.
What specific features or complexities of the SOF Hanger influenced the $15.6M price tag?
The $15.6M price tag for the SOF Hanger is likely influenced by specialized requirements for Special Operations Forces, such as enhanced security, specific environmental controls, advanced technological integration, and potentially unique structural demands. The size, complexity of internal layouts, and the need for durable, high-performance materials would also contribute significantly to the overall cost.
What are the primary risks associated with a firm fixed-price contract for a 611-day construction project?
The primary risks with a firm fixed-price contract for a long construction project include potential cost overruns for the contractor if unforeseen issues arise (e.g., material price increases, labor shortages, site conditions). For the government, the risk is paying a premium if the contractor's bid includes significant contingency, or if scope creep occurs without proper change order management, leading to higher final costs than initially anticipated.
How effectively does full and open competition ensure optimal value for this type of specialized construction?
Full and open competition is generally effective in driving value by encouraging multiple qualified contractors to bid, fostering price discovery and innovation. For specialized construction like a SOF Hanger, its effectiveness depends on the clarity of the solicitation documents and the government's ability to accurately define requirements. If requirements are well-defined, competition can lead to the best technical solution at a competitive price.
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
Solicitation ID: W912HN06R0068
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4603 MARSHA AVE SE, DECATUR, AL, 05
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $16,149,739
Exercised Options: $15,605,739
Current Obligation: $15,605,739
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-04-30
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2008-11-13
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