DoD's $22.4M Barracks Construction Contract Awarded to ACC Construction Co., Inc. for Value

Contract Overview

Contract Amount: $22,434,485 ($22.4M)

Contractor: ACC Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2013-10-30

End Date: 2015-10-19

Contract Duration: 719 days

Daily Burn Rate: $31.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF THE BARRACK BUILDING(S),

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29207

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $22.4 million to ACC CONSTRUCTION CO., INC. for work described as: CONSTRUCTION OF THE BARRACK BUILDING(S), Key points: 1. The contract was awarded under 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 duration of 719 days suggests a significant construction undertaking. 4. The contract was awarded to ACC Construction Co., Inc., a company with a track record in construction. 5. The barracks construction falls under the broader category of commercial and institutional building construction. 6. The contract was awarded by the Department of the Army, a component of the Department of Defense.

Value Assessment

Rating: good

The contract value of $22.4 million for barracks construction appears reasonable given the scope and duration. Without specific benchmarks for barracks construction in South Carolina or comparable military projects, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract shifts cost risk to the contractor, which can be a positive indicator for the government. Further analysis would require comparing the cost per square foot or per bed to similar military housing projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of 10 bids indicates a healthy level of competition for this project. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government.

Taxpayer Impact: The robust competition for this barracks construction project likely resulted in a more cost-effective outcome for taxpayers, ensuring that the government received competitive pricing for the services rendered.

Public Impact

Service members will benefit from improved barracks accommodations, enhancing quality of life. The construction project directly supports the operational readiness of the Department of the Army. The project is geographically located in South Carolina, potentially impacting the local construction workforce. The delivery of new barracks facilities is crucial for troop housing and retention efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting troop readiness if not managed effectively.
Ensuring the quality of construction meets long-term durability and safety standards.
Managing the impact of construction on the local environment and community.

Positive Signals

Firm-fixed-price contract mitigates cost overrun risk for the government.
Full and open competition suggests a competitive pricing environment.
Award to an established construction company may indicate a lower risk of performance issues.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for military construction is substantial, driven by the Department of Defense's continuous need for infrastructure upgrades and new facilities. Comparable spending benchmarks would involve analyzing other military barracks or dormitory construction projects across different branches and geographic locations to assess cost efficiency.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. Therefore, the direct impact on the small business ecosystem is not discernible from this information alone. Further investigation into the contractor's subcontracting practices would be needed to assess any indirect benefits or opportunities for small businesses.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of the Army is responsible for monitoring contract performance and ensuring compliance with terms and conditions. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction, Army
Barracks and Dormitory Construction
Department of Defense Facilities Management
General Building Construction, Repair, and Maintenance

Risk Flags

Potential for construction delays
Ensuring long-term quality and durability
Managing environmental impact during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.4 million to ACC CONSTRUCTION CO., INC.. CONSTRUCTION OF THE BARRACK BUILDING(S),

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 $22.4 million.

What is the period of performance?

Start: 2013-10-30. End: 2015-10-19.

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

ACC Construction Co., Inc. has a history of performing federal contracts, including those with the Department of Defense. While this specific contract for barracks construction is a significant award, a comprehensive review of their past performance would involve examining the number and value of previous contracts, their on-time and on-budget completion rates, and any documented performance issues or awards. Analyzing their experience with similar types of construction projects, such as institutional or government buildings, would also provide valuable insight into their capabilities and reliability as a contractor for the Army.

How does the cost per square foot or per bed for this barracks construction compare to similar projects awarded by the Department of Defense or other federal agencies?

To benchmark the value of this $22.4 million contract, a comparison of cost per square foot or cost per bed against similar barracks or dormitory construction projects is essential. Without access to detailed project specifications (e.g., square footage, number of beds, amenities), a precise comparison is difficult. However, general industry data suggests that military barracks construction can range significantly based on location, materials, and complexity. A thorough analysis would involve identifying comparable projects awarded within the last 2-3 years by the Army, Navy, or Air Force, and then normalizing the costs based on inflation and regional construction cost indices to determine if this contract represents a fair and reasonable price.

What are the primary risk indicators associated with this contract, and how were they mitigated?

Primary risk indicators for this construction contract could include potential for schedule delays due to weather, material shortages, or labor issues; risks associated with ensuring the quality and durability of the construction; and potential for cost overruns if the firm-fixed-price contract was not adequately scoped or if unforeseen site conditions arise. Mitigation strategies likely included thorough pre-award assessments of the contractor's capabilities, detailed contract specifications, robust oversight during construction, and contingency planning. The firm-fixed-price nature itself mitigates financial risk for the government, placing that burden on the contractor, provided the initial price was competitive and well-justified.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific barracks construction project?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money in construction projects where the scope of work is well-defined and risks can be reasonably anticipated. For this barracks construction, the FFP structure incentivizes ACC Construction Co., Inc. to manage costs efficiently and complete the project within the agreed-upon budget. This shifts the financial risk of cost overruns to the contractor, protecting the government from unexpected increases. However, the initial price must be competitive and reflect a realistic cost estimate; otherwise, the government might overpay. The success of FFP in delivering value hinges on the thoroughness of the initial bid evaluation and the clarity of the contract's scope.

What is the historical spending pattern for barracks construction by the Department of the Army, and how does this contract fit within that trend?

Historical spending on barracks construction by the Department of the Army is substantial, reflecting the ongoing need to maintain and upgrade troop housing across numerous installations. This $22.4 million contract represents a single project within that larger spending trend. To understand its place, one would analyze the Army's annual budget allocations for military construction (MILCON), specifically for barracks and family housing. Comparing the size and cost of this contract to the average size and cost of previously awarded barracks projects would reveal if it is typical, larger, or smaller than usual. Trends in military construction spending are often influenced by readiness requirements, troop levels, and infrastructure modernization initiatives.

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: W912HP13R0016

Offers Received: 10

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: $22,503,730

Exercised Options: $22,503,730

Current Obligation: $22,434,485

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline