DoD awards $51.6M construction contract to ACC Construction Co. for facility upgrades in Georgia

Contract Overview

Contract Amount: $51,570,582 ($51.6M)

Contractor: ACC Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2025-01-17

End Date: 2028-04-27

Contract Duration: 1,196 days

Daily Burn Rate: $43.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PRIMARY FACILITY

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $51.6 million to ACC CONSTRUCTION CO., INC. for work described as: PRIMARY FACILITY Key points: 1. Contract value of $51.6M represents a significant investment in infrastructure. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type aims to control costs and provide predictability. 4. Performance period spans over three years, indicating a substantial project scope. 5. The contract falls under Commercial and Institutional Building Construction NAICS code. 6. Focus on facility upgrades suggests a need for modernization or expansion.

Value Assessment

Rating: good

The contract value of $51.6 million for commercial building construction appears reasonable given the project's duration and scope. Without specific details on the scope of work, direct comparison to similar contracts is challenging. However, the firm fixed-price nature of the award suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the initial pricing was competitive. Benchmarking against average construction costs for similar facilities in Georgia would provide further insight into the pricing.

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 two bids suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, two bids still provide a basis for price discovery and comparison. The agency's decision to proceed with this method implies confidence in the competitive process.

Taxpayer Impact: A competitive bidding process, even with two bidders, is generally favorable for taxpayers as it encourages multiple companies to offer their best pricing and terms, potentially leading to cost savings compared to non-competitive awards.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel stationed in Georgia, who will utilize the upgraded facilities. The contract will deliver essential construction and renovation services for institutional buildings. The geographic impact is concentrated in Georgia, supporting local economic activity. The project is expected to create or sustain jobs within the construction sector in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial project requirements are not clearly defined.
Risk of unforeseen site conditions impacting project timeline and budget.
Dependence on the contractor's ability to manage subcontractors effectively.
Potential for delays if permitting or regulatory approvals are not secured promptly.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Awarded through full and open competition, indicating a fair and transparent process.
Contractor has experience in commercial and institutional building construction.
Project duration allows for phased completion and integration of upgrades.

Sector Analysis

The construction sector is a vital part of the U.S. economy, with significant government spending on infrastructure and facilities. This contract falls under the Commercial and Institutional Building Construction category, which includes a wide range of projects from office buildings to specialized government facilities. The Department of Defense is a major client within this sector, consistently awarding contracts for new construction, renovation, and maintenance of its vast real estate portfolio. Benchmarking this $51.6 million award against other large-scale DoD construction projects would place it within a typical range for significant facility upgrades.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While ACC Construction Co., Inc. is the prime contractor, there is no explicit information on subcontracting plans for small businesses within this award notice. The absence of a small business set-aside suggests that the competition was open to all eligible firms, and the prime contractor will determine subcontracting opportunities. Further analysis would be needed to ascertain if subcontracting goals for small businesses are included in the contract terms or if the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and relevant project managers within the Department of the Army. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the project within the agreed-upon budget. Transparency is facilitated by the public award notice. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Construction
Facility Sustainment, Restoration, and Modernization
General Services Administration (GSA) Public Buildings Service Contracts
Department of Defense Base Realignment and Closure (BRAC) Projects

Risk Flags

Potential for cost overruns if contractor underestimates project expenses.
Risk of quality compromises if contractor faces financial pressure.
Dependence on subcontractor performance.
Unforeseen site conditions could delay project completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.6 million to ACC CONSTRUCTION CO., INC.. PRIMARY FACILITY

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 $51.6 million.

What is the period of performance?

Start: 2025-01-17. End: 2028-04-27.

What is the specific scope of work for this facility upgrade project?

The provided data does not detail the specific scope of work for this $51.6 million contract. It is categorized under NAICS code 236220 (Commercial and Institutional Building Construction). Typically, such contracts involve the construction, alteration, or repair of commercial and institutional buildings. For a Department of Defense facility, this could encompass a wide range of activities, including but not limited to, building new structures, renovating existing ones, upgrading HVAC systems, improving electrical and plumbing infrastructure, enhancing security features, or modernizing administrative or operational spaces. A detailed review of the contract's Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary to understand the precise nature and extent of the upgrades.

How does the awarded amount compare to similar construction projects by the Department of the Army in Georgia?

Comparing the $51.6 million award to similar projects by the Department of the Army in Georgia requires access to historical contract data for the region and sector. Without a specific database of comparable projects, a precise benchmark is difficult. However, $51.6 million is a substantial sum, suggesting a significant undertaking, potentially a major renovation or new construction of a sizable facility. The Department of the Army manages numerous installations and facilities, and construction projects can range from minor repairs to multi-million dollar new builds. The firm fixed-price nature and full and open competition indicate an effort to secure competitive pricing for this investment within the Georgia construction market.

What are the potential risks associated with a firm fixed-price contract for a large construction project?

While firm fixed-price (FFP) contracts are designed to provide cost certainty for the buyer, they can introduce risks for the contractor. For a large construction project like this $51.6 million award, the primary risk for ACC Construction Co., Inc. is underestimating costs. If unforeseen site conditions arise, material prices escalate unexpectedly, or labor shortages occur, the contractor may have to absorb these additional expenses, potentially impacting their profitability or even leading to financial losses. Conversely, for the government, the risk is that the contractor may cut corners on quality or scope to protect their profit margin if they encounter cost overruns. Robust contract administration and quality assurance are crucial to mitigate these risks.

What is the track record of ACC Construction Co., Inc. with federal contracts, particularly with the Department of Defense?

Information regarding the specific track record of ACC Construction Co., Inc. with federal contracts, especially with the Department of Defense, is not provided in the given data. To assess their track record, one would typically look at past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the number and value of previous federal awards, and their history of completing projects on time and within budget. A company awarded a $51.6 million contract likely has prior experience, but a deeper dive into their federal contracting history would be necessary to evaluate their reliability and expertise for this specific project.

How does the competition level (2 bidders) impact the value for taxpayers on this contract?

A competition level with two bidders, as seen in this $51.6 million award, offers a moderate benefit to taxpayers. It signifies that at least two companies found the opportunity attractive enough to invest resources in preparing a bid. This competition generally drives prices down compared to a sole-source or limited-source scenario. However, a higher number of bidders (e.g., 3-5 or more) often leads to even more aggressive pricing as companies vie more intensely for the contract. The government's ability to negotiate favorable terms and ensure the bids received represent fair market value is key. The firm fixed-price structure further enhances taxpayer value by capping the government's expenditure.

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: W912HN24R3005

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 635 NW FRONTAGE RD, 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: $110,269,206

Exercised Options: $97,077,919

Current Obligation: $51,570,582

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline