Army awards $20.3M contract for water and sewer line construction in South Carolina

Contract Overview

Contract Amount: $20,334,121 ($20.3M)

Contractor: Chandler Construction Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-12-29

End Date: 2026-01-30

Contract Duration: 763 days

Daily Burn Rate: $26.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LAKE MARION ORANGEBURG BERKELEY WATER LINES PHASE 1

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29403

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to CHANDLER CONSTRUCTION SERVICES, INC. for work described as: LAKE MARION ORANGEBURG BERKELEY WATER LINES PHASE 1 Key points: 1. Contract awarded to Chandler Construction Services, Inc. for water and sewer line construction. 2. Project scope includes Phase 1 of water line improvements in the Lake Marion area. 3. The contract is a firm-fixed-price definitive contract. 4. Performance period spans over two years, from late 2023 to early 2026. 5. The contract was awarded under full and open competition. 6. The North American Industry Classification System (NAICS) code is 237110, indicating construction of water and sewer lines.

Value Assessment

Rating: good

The contract value of $20.3 million for water and sewer line construction appears reasonable given the scope and duration. Benchmarking against similar projects would provide a more precise value-for-money assessment. The firm-fixed-price structure shifts risk to the contractor, which can be beneficial for cost control if managed effectively. The number of bids received (7) suggests a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple potential bidders were solicited and considered. Seven bids were received, suggesting a healthy level of interest and competition for this project. This broad competition is generally expected to lead to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the final price and ensured the government received proposals from capable firms.

Public Impact

Residents and businesses in the Lake Marion, Orangeburg, and Berkeley areas of South Carolina will benefit from improved water and sewer infrastructure. The project will deliver essential construction services for water and sewer lines. The geographic impact is concentrated in South Carolina, specifically within the named counties. The construction activities will likely create temporary employment opportunities for skilled laborers and tradespeople in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting service delivery timelines.
Ensuring adherence to environmental regulations during excavation and construction.
Managing potential cost overruns if unforeseen site conditions arise.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded under full and open competition, indicating a competitive bidding process.
Contractor has a defined performance period, allowing for structured oversight.

Sector Analysis

The construction of water and sewer lines falls under the heavy and civil engineering construction sector. This sector is critical for public infrastructure development and maintenance. The market size for such projects can be substantial, driven by municipal, state, and federal funding initiatives aimed at upgrading aging infrastructure and expanding services. This contract represents a specific instance of federal investment in essential public works.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, Chandler Construction Services, Inc., may engage small businesses as subcontractors to fulfill portions of the work, contributing to the small business ecosystem indirectly.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and relevant project managers within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to complete the work to specified standards. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not provided.

Related Government Programs

Army Corps of Engineers Civil Works Projects
EPA Water Infrastructure Grants
State and Local Water and Sewer Improvement Projects

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Ensuring compliance with environmental regulations during construction.
Contractor performance and adherence to quality standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to CHANDLER CONSTRUCTION SERVICES, INC.. LAKE MARION ORANGEBURG BERKELEY WATER LINES PHASE 1

Who is the contractor on this award?

The obligated recipient is CHANDLER CONSTRUCTION SERVICES, 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 $20.3 million.

What is the period of performance?

Start: 2023-12-29. End: 2026-01-30.

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

Information regarding Chandler Construction Services, Inc.'s specific track record with federal contracts, especially with the Department of Defense, is not detailed in the provided data. A comprehensive review would involve examining past performance evaluations, contract history, and any reported disputes or awards. Federal procurement databases like SAM.gov or FPDS can offer insights into their previous federal engagements, including contract values, agencies served, and performance ratings. Understanding their history with similar infrastructure projects would be crucial for assessing their capability and reliability for this specific water and sewer line construction contract.

How does the awarded price of $20.3 million compare to similar water and sewer line construction projects awarded by the Department of Defense or other federal agencies?

Benchmarking the $20.3 million contract against similar projects is essential for a value-for-money assessment. Without specific comparable project data (e.g., length of lines, complexity of terrain, specific materials used, geographic location), a precise comparison is difficult. However, the number of bids received (7) suggests a competitive market, which typically leads to prices that are in line with market rates. A detailed analysis would involve identifying projects with similar scope, scale, and location, and comparing their unit costs (e.g., cost per linear foot of pipe installed) or total contract values relative to project complexity.

What are the primary risks associated with this specific contract, and how are they being mitigated?

Primary risks for this contract include potential unforeseen subsurface conditions (e.g., rock, utilities, contaminated soil) that could increase costs or delay the schedule, environmental compliance issues during excavation and construction, and potential contractor performance issues. Mitigation strategies likely include thorough site investigations prior to award, robust contract language requiring adherence to environmental regulations, and the firm-fixed-price structure which incentivizes the contractor to manage costs efficiently. The Army's project management and oversight will also play a key role in identifying and addressing risks as they emerge.

What is the expected effectiveness of the completed water and sewer lines in improving public services for the affected communities?

The effectiveness of the completed water and sewer lines is expected to be high, as they address fundamental public infrastructure needs. Improvements in water and sewer systems typically lead to enhanced public health, reduced environmental risks from inadequate sanitation, and increased reliability of essential services for residents and businesses. The specific benefits will depend on the current state of the existing infrastructure and the capacity of the new or upgraded lines to meet current and future demand in the Lake Marion, Orangeburg, and Berkeley areas.

What has been the historical federal spending on water and sewer line construction, and how does this contract fit into that pattern?

Historical federal spending on water and sewer line construction is significant, often channeled through agencies like the Army Corps of Engineers, EPA, and USDA's Rural Development, as well as direct procurements by military installations. This $20.3 million contract represents a specific instance of the Department of Defense investing in critical infrastructure, likely related to base operations or community support. It fits within a broader pattern of federal investment aimed at maintaining and upgrading essential public works across the nation, particularly in areas supporting military installations or federal interests.

Are there any specific performance metrics or key performance indicators (KPIs) defined in the contract to measure success?

The provided data does not specify the exact performance metrics or Key Performance Indicators (KPIs) for this contract. However, typical KPIs for construction contracts include adherence to schedule, quality of workmanship (meeting specifications), safety compliance, and timely completion of milestones. The firm-fixed-price nature of the contract implies that meeting the defined scope of work within the agreed-upon price and timeframe is the primary measure of success. The government will likely conduct inspections and reviews to ensure compliance with contract requirements.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912HP24R0001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1511 NINETY SIX HWY, NINETY SIX, SC, 29666

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

Financial Breakdown

Contract Ceiling: $20,334,121

Exercised Options: $20,334,121

Current Obligation: $20,334,121

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline