DoD's $44M Fort Bragg school construction contract awarded to Balfour Beatty Construction, LLC

Contract Overview

Contract Amount: $44,058,221 ($44.1M)

Contractor: Balfour Beatty Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2009-07-27

End Date: 2012-05-25

Contract Duration: 1,033 days

Daily Burn Rate: $42.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BUILD OF NEW ELEMENTARY AND MIDDLE SCHOOLS, FORT BRAGG, NC

Place of Performance

Location: FORT BRAGG, MENDOCINO County, CALIFORNIA, 95437

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $44.1 million to BALFOUR BEATTY CONSTRUCTION, LLC for work described as: DESIGN-BUILD OF NEW ELEMENTARY AND MIDDLE SCHOOLS, FORT BRAGG, NC Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns. 3. The project involved the design and build of elementary and middle schools, addressing educational infrastructure needs. 4. The contract duration of 1033 days points to a significant construction timeline. 5. The award was made by the Department of the Army, a component of the Department of Defense. 6. The North American Industry Classification System (NAICS) code 236220 categorizes this as Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific cost breakdowns for design and construction phases. However, the total award amount of approximately $44 million for two schools at Fort Bragg suggests a substantial investment in educational facilities. The firm-fixed-price nature of the contract shifts cost risk to the contractor, which can sometimes lead to higher initial bids to account for unforeseen expenses. Further analysis would require comparing per-square-foot costs against similar military or educational construction projects in the region and time period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 16 bids suggests a robust level of competition for this project. A higher number of bidders generally leads to more competitive pricing as contractors vie for the award. The specific details of the bidding process, such as the range of bids received, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. The multiple bids received indicate that taxpayer funds were used efficiently by leveraging market competition.

Public Impact

Military families stationed at Fort Bragg, North Carolina, will benefit from new and improved educational facilities for their children. The project delivers essential infrastructure by constructing new elementary and middle schools. The geographic impact is concentrated at Fort Bragg, North Carolina, a major U.S. Army installation. The construction activities will likely involve a significant workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract did not adequately account for all construction variables.
Delays in construction could impact the availability of educational facilities for military families.
Ensuring the quality of construction meets long-term durability standards for school buildings.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm-fixed-price contract places cost control responsibility on the contractor.
Addresses a critical need for educational infrastructure at a major military installation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for educational facility construction, particularly for government and military installations, is substantial. This project aligns with federal spending priorities on infrastructure development and support for military personnel and their families. Comparable spending benchmarks would involve analyzing the cost per square foot or per student capacity for similar school construction projects awarded by the Department of Defense or other federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements in the provided details. Therefore, the direct impact on the small business ecosystem is likely limited unless Balfour Beatty Construction, LLC voluntarily engages small businesses as subcontractors. Further investigation into the subcontracting plan would be necessary to assess the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon price. Transparency would be facilitated through contract award databases and potentially through public reporting on project milestones, though specific oversight mechanisms are not detailed in the provided data.

Related Government Programs

Military Construction (MILCON)
Department of Defense Education Activity (DoDEA) Schools
Federal Building and Facilities Construction

Risk Flags

Potential for cost overruns due to firm-fixed-price nature if not accurately estimated.
Schedule risk associated with large-scale construction projects.
Quality control and assurance during construction.
Impact of unforeseen site conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.1 million to BALFOUR BEATTY CONSTRUCTION, LLC. DESIGN-BUILD OF NEW ELEMENTARY AND MIDDLE SCHOOLS, FORT BRAGG, NC

Who is the contractor on this award?

The obligated recipient is BALFOUR BEATTY 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 $44.1 million.

What is the period of performance?

Start: 2009-07-27. End: 2012-05-25.

What was the track record of Balfour Beatty Construction, LLC on similar federal contracts prior to this award?

Assessing Balfour Beatty Construction, LLC's track record prior to this 2009 award would involve reviewing their past performance on federal contracts, particularly those involving educational facilities or large-scale construction projects for the Department of Defense. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would contain historical data on their performance, including any awards, terminations, or performance issues. A review of their portfolio would indicate their experience in design-build projects, adherence to schedules and budgets, and overall quality of work on government projects. Without specific historical data, it's difficult to definitively assess their prior performance, but their ability to win a contract of this magnitude suggests a level of established capability.

How does the awarded amount compare to the estimated cost or bids from other competitors?

The provided data indicates an award amount of $44,058,221.03 and notes that 16 bids were received. To compare this to estimated costs or other bids, one would need access to the government's cost estimate for the project and the bid amounts submitted by the other 15 competitors. Typically, a successful bid falls within a reasonable range of the government's estimate and is competitive relative to other offers. If the awarded amount was significantly higher than the estimate or other bids, it might suggest a less competitive outcome or unique project requirements. Conversely, if it was substantially lower, it could indicate aggressive pricing or potential risks for the contractor. Without this comparative data, the 'value for money' assessment remains preliminary.

What are the key risk indicators associated with this specific contract?

Key risk indicators for this design-build school construction contract include the inherent complexities of managing large-scale construction projects, potential for unforeseen site conditions at Fort Bragg, and the possibility of material or labor cost fluctuations over the project's duration (1033 days). As a firm-fixed-price contract, there's a risk of contractor financial distress if costs exceed projections, potentially leading to delays or disputes. Furthermore, ensuring timely completion is critical to meet the educational needs of military families, so schedule slippage represents a significant risk. The quality of construction is also a risk, as defects could lead to long-term maintenance issues and safety concerns for students and staff.

What was the historical spending pattern for similar school construction projects at Fort Bragg or within the Department of Defense?

Analyzing historical spending patterns for similar school construction projects at Fort Bragg or within the Department of Defense would involve examining past contracts for educational facilities on military bases. This would include looking at the number of projects awarded, the average contract values, the types of contracts used (e.g., design-build, traditional), and the primary contractors involved. Understanding these patterns helps establish benchmarks for cost, duration, and competition. For instance, if similar projects typically cost more or less per square foot, or if they consistently face delays, it provides context for evaluating the current contract's performance and potential risks. Data from the Federal Procurement Data System (FPDS) would be essential for this historical analysis.

How effective were the competition dynamics in ensuring a fair price for taxpayers?

The fact that this contract was awarded under 'full and open competition' with 16 bids received strongly suggests that competition dynamics were likely effective in ensuring a fair price for taxpayers. A larger number of bidders generally leads to a more competitive environment, driving down prices as contractors vie for the award. The firm-fixed-price contract structure further protects taxpayers by capping the government's cost exposure. While the exact price competitiveness cannot be determined without knowing the range of bids and the government's estimate, the high level of competition is a positive indicator that the government likely secured a reasonable price for the design and construction services.

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: W912HN09R0020

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Balfour Beatty PLC (UEI: 210042081)

Address: 3924 PENDER DRIVE STE 100, FAIRFAX, VA, 11

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,058,221

Exercised Options: $44,058,221

Current Obligation: $44,058,221

Contract Characteristics

Cost or Pricing Data: NO

Timeline