DoD awards $2.75M for building envelope repair, raising questions on competition and value

Contract Overview

Contract Amount: $2,753,979 ($2.8M)

Contractor: Ma-Chis C & C Contractors LLC

Awarding Agency: Department of Defense

Start Date: 2024-11-01

End Date: 2026-06-20

Contract Duration: 596 days

Daily Burn Rate: $4.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION - BLDG. 89 ENVELOPE REPAIR

Place of Performance

Location: FORT BENNING, CHATTAHOOCHEE County, GEORGIA, 31905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $2.8 million to MA-CHIS C & C CONTRACTORS LLC for work described as: CONSTRUCTION - BLDG. 89 ENVELOPE REPAIR Key points: 1. Contract awarded on a firm-fixed-price basis, providing cost certainty. 2. Limited competition raises concerns about potential overpayment and lack of market pressure. 3. Project duration of 596 days suggests a significant scope of work. 4. Geographic focus on Georgia indicates a localized impact. 5. The contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: questionable

The contract's value of $2.75 million for building envelope repair requires careful benchmarking against similar projects. Without competitive bids, it is difficult to ascertain if the firm-fixed-price was optimal. The lack of a clear per-unit cost benchmark makes it challenging to assess value for money definitively. Further analysis of the scope of work and historical repair costs for similar facilities would be necessary to provide a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' status, indicating a sole-source or limited competition scenario. The specific reasons for this designation are not provided, but it suggests that only one contractor was considered capable or available to perform the work. This lack of broad competition limits the government's ability to solicit multiple bids and potentially secure a lower price through market forces.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not benefit from the price reductions typically achieved through competitive bidding processes.

Public Impact

The Department of the Army will benefit from the repair of Building 89. The services delivered include envelope repair, crucial for facility maintenance and operational integrity. The geographic impact is concentrated in Georgia, specifically within the St. Simons (ST) area. Workforce implications are likely to involve skilled construction labor within the local Georgia economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Opaque award justification for sole-source contract.
Potential for cost overruns if scope is not well-defined despite fixed-price.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Project addresses critical building maintenance needs.
Awarded to a contractor with a presence in the local area.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). The market for building envelope repairs is substantial, driven by the need to maintain aging infrastructure and improve energy efficiency. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar repair projects across federal and commercial sectors, adjusted for geographic location and scope complexity.

Small Business Impact

The contract data indicates that small business participation was not a primary consideration, as the 'sb' field is false and the 'ss' field is also false. There is no indication of a small business set-aside or subcontracting plan. This suggests that the prime contractor, MA-CHIS C & C CONTRACTORS LLC, is likely not a small business, and opportunities for small business involvement may be limited unless they are subcontracted independently.

Oversight & Accountability

Oversight for this contract will likely fall under the Department of the Army's contracting and facilities management divisions. Accountability measures are inherent in the firm-fixed-price structure, which shifts some risk to the contractor. Transparency regarding the justification for the sole-source award would be crucial for assessing accountability. Inspector General jurisdiction may be invoked if specific allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Facilities Maintenance
Army Corps of Engineers Construction Projects
Building Envelope Repair Contracts
Federal Building Modernization Programs

Risk Flags

Limited competition raises concerns about fair pricing.
Lack of justification for sole-source award.
Potential for cost overruns if scope is not precisely defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.8 million to MA-CHIS C & C CONTRACTORS LLC. CONSTRUCTION - BLDG. 89 ENVELOPE REPAIR

Who is the contractor on this award?

The obligated recipient is MA-CHIS C & C CONTRACTORS 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 $2.8 million.

What is the period of performance?

Start: 2024-11-01. End: 2026-06-20.

What is the track record of MA-CHIS C & C CONTRACTORS LLC with the Department of Defense?

Information regarding the specific track record of MA-CHIS C & C CONTRACTORS LLC with the Department of Defense is not detailed in the provided data. A comprehensive review would require accessing historical contract databases to identify past performance, contract values, and any reported issues or successes. Understanding their prior experience with similar envelope repair projects and their performance on previous DoD contracts is essential for assessing their capability and reliability for this current award. Without this historical context, it is difficult to gauge their suitability beyond the basic award information.

How does the awarded amount compare to similar building envelope repair contracts?

The awarded amount of $2.75 million for building envelope repair needs to be benchmarked against similar projects to assess value. Factors such as the size of the building, the extent of the damage, the materials used, and the geographic location significantly influence costs. Without specific details on the scope of work for Building 89 and comparable contract data, a precise comparison is challenging. However, given the sole-source nature of this award, there is a heightened need to ensure this price is competitive with market rates for similar repair services to avoid potential overpayment.

What are the primary risks associated with this sole-source contract?

The primary risks associated with this sole-source contract stem from the limited competition. The most significant risk is the potential for the government to pay a higher price than would be achievable in a competitive bidding environment. Without multiple bids, there is less pressure on the contractor to offer their most competitive pricing. Additionally, a sole-source award can sometimes indicate a lack of available qualified contractors or a rushed procurement process, which might introduce risks related to the quality of work or adherence to schedule if not managed carefully by the contracting agency.

What is the expected effectiveness of the building envelope repair?

The expected effectiveness of the building envelope repair hinges on the thoroughness of the scope of work and the quality of execution by MA-CHIS C & C CONTRACTORS LLC. A well-executed repair should enhance the building's structural integrity, improve energy efficiency by preventing leaks and drafts, and protect against further environmental degradation. The firm-fixed-price contract structure aims to ensure that the contractor is incentivized to complete the work within the agreed budget. However, the long-term effectiveness will also depend on proper maintenance and the initial assessment of the building's condition.

What are the historical spending patterns for building envelope repairs by the Department of the Army?

Historical spending patterns for building envelope repairs by the Department of the Army are not provided in the current data. To analyze this, one would need to examine past contract awards for similar services across various Army installations. This analysis would reveal trends in contract values, the frequency of such repairs, the typical duration of projects, and the prevalence of competitive versus sole-source awards. Understanding these patterns can help contextualize the current $2.75 million award and identify any significant deviations or emerging trends in repair spending.

What specific components of the building envelope are being repaired?

The provided data specifies 'BUILDING 89 ENVELOPE REPAIR' but does not detail the specific components of the building envelope that are being addressed. A comprehensive understanding would require reviewing the contract's statement of work (SOW). Typically, envelope repairs can include work on the roof, walls, windows, doors, foundations, and associated sealing or insulation. The scope could range from minor patching and sealing to complete replacement of certain elements, significantly impacting the project's cost and duration.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912HN22R4000

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2948 COUNTY ROAD 377, ELBA, AL, 36323

Business Categories: American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,753,979

Exercised Options: $2,753,979

Current Obligation: $2,753,979

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HN22D4003

IDV Type: IDC

Timeline