DoD awards $75.5M for advanced battle management ops facility, with construction expected to take over 3 years

Contract Overview

Contract Amount: $75,531,909 ($75.5M)

Contractor: ACC Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2022-04-15

End Date: 2026-03-16

Contract Duration: 1,431 days

Daily Burn Rate: $52.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ADVANCED BATTLE MANAGEMENT OPS FACILITY TO 5-FT LINE, COMPLETE

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $75.5 million to ACC CONSTRUCTION CO., INC. for work described as: ADVANCED BATTLE MANAGEMENT OPS FACILITY TO 5-FT LINE, COMPLETE Key points: 1. The contract value of $75.5 million for a battle management operations facility represents a significant investment in military infrastructure. 2. Competition dynamics for this large-scale construction project are crucial for ensuring taxpayer value. 3. The firm-fixed-price contract type suggests a defined scope and cost, potentially mitigating cost overrun risks. 4. The project's duration of over 3 years indicates a complex undertaking requiring substantial resources and oversight. 5. This facility's strategic importance for advanced battle management positions it as a key component of future military operations. 6. The contract's geographic location in Georgia may have implications for local workforce and economic development.

Value Assessment

Rating: fair

Benchmarking the value of this specific facility is challenging without detailed cost breakdowns and scope comparisons. However, the $75.5 million award for a definitive contract suggests a substantial project. The firm-fixed-price nature aims to control costs, but the long duration could introduce unforeseen challenges. Further analysis of the contractor's past performance on similar projects would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This level of competition is generally favorable for price discovery and achieving competitive pricing. The presence of 4 bids suggests a reasonably competitive environment for this type of specialized construction.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive bidding process that drives down costs.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will utilize the advanced battle management operations facility. The facility will support critical functions related to advanced battle management, enhancing military operational capabilities. The project's geographic impact is concentrated in Georgia, potentially creating local jobs and stimulating the regional economy. The construction phase will likely involve a significant workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration increases the risk of scope creep or unforeseen cost escalations despite the fixed-price contract.
Dependence on a single contractor for a multi-year project can create risks if performance issues arise.
The specialized nature of 'advanced battle management operations' may lead to unique requirements that are difficult to benchmark.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process that likely secured competitive pricing.
The award to ACC Construction Co., Inc. indicates they met the requirements for this complex project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The market for military construction is substantial, driven by defense spending and the need for specialized facilities. This project's focus on 'advanced battle management operations' suggests it is a niche within a niche, requiring specific technological and security considerations. Comparable spending benchmarks would typically involve other large-scale military facility constructions or specialized command and control centers.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides. Therefore, the direct impact on small business set-asides appears minimal. However, the prime contractor, ACC Construction Co., Inc., may engage small businesses as subcontractors for various construction trades and services, contributing to the small business ecosystem indirectly.

Oversight & Accountability

Oversight for this definitive contract will likely be managed by the contracting agency (Department of the Army) through contract officers and technical representatives. Transparency is facilitated by the contract award notice. Accountability measures are inherent in the firm-fixed-price structure and performance requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction
Command and Control Systems
Defense Infrastructure
Base Realignment and Closure (BRAC) Facilities
Department of Defense Facilities Modernization

Risk Flags

Long project duration
Potential for cost escalation despite fixed price
Dependence on contractor performance over extended period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.5 million to ACC CONSTRUCTION CO., INC.. ADVANCED BATTLE MANAGEMENT OPS FACILITY TO 5-FT LINE, COMPLETE

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 $75.5 million.

What is the period of performance?

Start: 2022-04-15. End: 2026-03-16.

What is the track record of ACC Construction Co., Inc. on similar large-scale government construction projects?

A review of ACC Construction Co., Inc.'s contract history would be necessary to assess their track record on similar projects. Key indicators would include their performance on previous firm-fixed-price contracts, their ability to complete projects on time and within budget, and any past performance evaluations or disputes. Understanding their experience with specialized facilities, particularly those related to defense or command operations, would provide further insight into their suitability for this advanced battle management operations facility.

How does the $75.5 million cost compare to similar advanced battle management operations facilities or command centers?

Direct cost comparisons for highly specialized facilities like an 'advanced battle management operations facility' are difficult without detailed scope and technical specification data. However, the $75.5 million award for a definitive contract suggests a significant investment. Benchmarking against other large-scale military construction projects or secure government facilities of comparable size and complexity would be the most appropriate approach. Factors such as location, security requirements, technological integration, and construction timelines heavily influence costs in this sector.

What are the primary risks associated with a firm-fixed-price contract for a project spanning over three years?

While firm-fixed-price contracts offer cost certainty, a project duration exceeding three years introduces specific risks. The primary risk is that the contractor may encounter unforeseen site conditions, material cost escalations, or labor shortages that strain their ability to deliver within the fixed price. This could lead to pressure on quality, potential disputes, or, in extreme cases, contractor default. The government's risk lies in ensuring the initial scope is comprehensive and that change order management is rigorous to prevent scope creep that could undermine the fixed-price benefit.

What specific capabilities will this advanced battle management operations facility enable for the Department of Defense?

The facility is intended to support 'advanced battle management operations,' which typically involves integrating data from various sensors and platforms to provide commanders with a comprehensive operational picture. This enables faster decision-making, improved coordination of forces, and enhanced situational awareness in complex combat environments. The facility likely houses command and control systems, communication infrastructure, data processing capabilities, and workspaces for personnel involved in planning and executing military operations.

What is the historical spending trend for similar types of military construction projects by the Department of the Army?

Analyzing historical spending for similar military construction projects by the Department of the Army would require access to detailed procurement data. Generally, the Army invests billions annually in military construction to maintain, modernize, and expand its infrastructure. Spending trends are influenced by geopolitical factors, defense strategies, and budget allocations. Projects focused on command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) facilities often represent a significant portion of this investment due to their critical operational importance.

How will the 'full and open competition' impact the long-term operational costs of the facility?

The 'full and open competition' primarily impacts the initial construction cost by fostering a competitive bidding environment that drives down the upfront price. Its direct impact on long-term operational costs is less pronounced. However, a well-competed and efficiently built facility may have lower maintenance requirements and be more adaptable to future technological upgrades, indirectly contributing to better long-term value. The competition ensures the government secured the best possible price for the construction phase, which is a crucial element of overall program cost-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: SEALED BID

Solicitation ID: W912HN22B3001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 635 NW FRONTAGE RD STE A, AUGUSTA, GA, 30907

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

Financial Breakdown

Contract Ceiling: $75,531,909

Exercised Options: $75,531,909

Current Obligation: $75,531,909

Actual Outlays: $11,900,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline