DOD awards $13.3M for Georgia medical clinic construction, highlighting firm fixed-price contract

Contract Overview

Contract Amount: $13,316,142 ($13.3M)

Contractor: Rentenbach Constructors Incorporated

Awarding Agency: Department of Defense

Start Date: 2008-07-14

End Date: 2010-06-28

Contract Duration: 714 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEW HARMONY CHURCH TROOP MEDICAL AND DENTAL CLINIC

Place of Performance

Location: FORT BENNING, CHATTAHOOCHEE County, GEORGIA, 31905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $13.3 million to RENTENBACH CONSTRUCTORS INCORPORATED for work described as: NEW HARMONY CHURCH TROOP MEDICAL AND DENTAL CLINIC Key points: 1. Contract awarded for construction of a medical and dental clinic. 2. Project duration spans over 700 days, indicating a significant construction undertaking. 3. The contract utilized a firm fixed-price structure, aiming to control costs. 4. Competition was full and open, suggesting a potentially competitive bidding process. 5. The award value is substantial for a single facility construction project. 6. Geographic focus on Georgia for this defense-related infrastructure.

Value Assessment

Rating: fair

The contract value of $13.3 million for a medical and dental clinic appears within a reasonable range for a project of this scale and duration. Without specific details on the size and complexity of the facility, a direct comparison is challenging. However, the firm fixed-price nature suggests an effort to establish a clear cost ceiling. Benchmarking against similar military construction projects would provide a more precise assessment of value for money.

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. With three bids received, the level of competition was moderate. This suggests that while multiple companies were aware of and interested in the project, the number of actual bidders may not have been extensive enough to drive prices down to the absolute lowest possible point.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by encouraging competitive pricing and potentially leading to cost savings compared to sole-source or limited competition scenarios.

Public Impact

Military personnel and their families in Georgia will benefit from improved medical and dental facilities. The project delivers essential healthcare infrastructure for the Department of Defense. The construction work will have a localized economic impact in Georgia. The project supports the healthcare readiness and well-being of service members.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during construction, despite fixed-price contract.
Delays in construction could impact the availability of critical medical services.
Quality of construction needs to be monitored to ensure long-term durability and functionality.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a potentially robust bidding process.
Award to a construction firm indicates specialized expertise in building such facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for a government-owned facility. The construction industry is characterized by project-specific bidding and varying levels of competition. The value of this contract is moderate within the broader context of large-scale federal construction projects, which can range from tens of millions to billions of dollars for major infrastructure or base development.

Small Business Impact

The data indicates that this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, it is unlikely that small businesses were specifically targeted for this prime contract. However, the prime contractor, Rentenbach Constructors Inc., may engage small businesses as subcontractors for various aspects of the construction project, contributing to the small business ecosystem indirectly.

Oversight & Accountability

Oversight for this construction contract would typically be managed by the contracting officer's representative (COR) and the relevant Army Corps of Engineers district. Accountability measures are embedded in the firm fixed-price contract terms, with penalties for delays or non-compliance. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly accessible.

Related Government Programs

Military Construction, Army
Healthcare Facilities Construction
Department of Defense Facilities

Risk Flags

Moderate competition level (3 bidders)
Potential for construction delays impacting service availability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.3 million to RENTENBACH CONSTRUCTORS INCORPORATED. NEW HARMONY CHURCH TROOP MEDICAL AND DENTAL CLINIC

Who is the contractor on this award?

The obligated recipient is RENTENBACH CONSTRUCTORS 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 $13.3 million.

What is the period of performance?

Start: 2008-07-14. End: 2010-06-28.

What is the typical cost range for constructing a military medical and dental clinic of similar size and scope?

The cost for constructing military medical and dental clinics can vary significantly based on factors such as size (square footage), complexity of medical equipment integration, geographic location (influencing labor and material costs), and specific facility requirements (e.g., specialized wings, advanced imaging capabilities). A $13.3 million award for a clinic with a duration of over 700 days suggests a project of substantial size, likely encompassing multiple specialized areas. Benchmarking against publicly available data for similar Department of Defense construction projects, particularly those managed by the Army Corps of Engineers, would be necessary for a precise comparison. However, for context, smaller clinics might range from $5-10 million, while larger, more complex facilities could exceed $50 million.

How does the firm fixed-price contract type mitigate risks for the government in this construction project?

A firm fixed-price (FFP) contract is designed to provide the government with cost certainty. Under an FFP agreement, the contractor assumes the primary risk for any cost overruns. This means that the agreed-upon price is the maximum the government will pay, regardless of the contractor's actual costs incurred during construction. This structure incentivizes the contractor to manage their expenses efficiently and complete the project within budget. For the government, it simplifies financial planning and protects against unexpected increases in material, labor, or other project-related expenses. However, it also means the government may not benefit from any cost savings if the contractor completes the project under budget, as the contractor is entitled to the full contract price.

What are the potential implications of having only three bidders for this full and open competition?

While 'full and open competition' implies that all eligible sources could bid, receiving only three bids suggests a moderate level of market interest for this specific project. This could indicate several possibilities: the project may have been highly specialized, requiring specific expertise or certifications that limited the pool of qualified bidders; the geographic location or project timeline might have deterred some potential bidders; or the estimated value might have been at a level where only a certain number of large construction firms actively compete. From a taxpayer perspective, three bidders generally offer some price competition, but fewer bidders than ideal could mean less downward pressure on pricing compared to a scenario with five or more competitive offers. It warrants a review to ensure the bidding process was adequately publicized and that no barriers prevented broader participation.

What is the track record of Rentenbach Constructors Inc. in government contracting, particularly for similar projects?

Rentenbach Constructors Inc. has a history of engaging in government contracts, including construction projects. To assess their track record specifically for military medical and dental clinics, a detailed review of their past performance on similar projects would be necessary. This would involve examining contract completion timeliness, adherence to budget (especially on fixed-price contracts), quality of work, and any history of disputes or contract modifications. Information on their past performance can often be found in federal procurement databases and through sources like the Contractor Performance Assessment Reporting System (CPARS), although access to detailed CPARS data is typically restricted to government personnel. Their ability to win a full and open competition award suggests they met the government's pre-qualification criteria.

How does the $13.3 million award compare to historical spending on similar Department of the Army construction projects?

Comparing the $13.3 million award to historical spending requires identifying comparable projects within the Department of the Army, specifically focusing on medical and dental clinic construction. Factors such as project size (square footage), specific medical capabilities required, and the year of award (to account for inflation) are crucial for a meaningful comparison. Without access to a comprehensive database of past Army construction projects with these specific details, a precise benchmark is difficult. However, $13.3 million for a clinic project with a 714-day duration suggests a significant undertaking. Historical data might reveal that similar-sized clinics have been awarded in the $10-20 million range, indicating this award is within a typical band, or it could be an outlier if the scope differs significantly.

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: W912HN08R0003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rentenbach Engineering Company Construction Division Inc (UEI: 009823915)

Address: 2400 SUTHERLAND AVE, KNOXVILLE, TN, 02

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,316,142

Exercised Options: $13,316,142

Current Obligation: $13,316,142

Contract Characteristics

Cost or Pricing Data: NO

Timeline