DoD's $16.2M Railhead Construction Contract Awarded to C-2 Construction Inc. for Industrial Building Needs

Contract Overview

Contract Amount: $16,206,959 ($16.2M)

Contractor: C-2 Construction Inc

Awarding Agency: Department of Defense

Start Date: 2009-01-16

End Date: 2012-06-27

Contract Duration: 1,258 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RAILHEAD PH 1

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Defense obligated $16.2 million to C-2 CONSTRUCTION INC for work described as: RAILHEAD PH 1 Key points: 1. The contract's value of $16.2 million for industrial building construction appears reasonable given the scope of a phased railhead project. 2. Full and open competition was utilized, suggesting a competitive bidding process that should have driven favorable pricing. 3. The contract duration of 1258 days indicates a significant, long-term project with potential for cost overruns if not managed effectively. 4. Fixed-price contract type generally shifts risk to the contractor, which can be beneficial for the government if well-defined. 5. The project falls under industrial building construction, a sector requiring specialized expertise and adherence to strict safety and quality standards. 6. The award to C-2 Construction Inc. warrants a review of their past performance on similar large-scale industrial projects.

Value Assessment

Rating: good

The contract value of $16.2 million for the construction of a railhead facility is within a typical range for such specialized industrial projects. Benchmarking against similar Department of Defense construction contracts for rail infrastructure or large industrial facilities would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the government has secured a defined cost, assuming the scope was accurately defined and managed.

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 while the competition was broad, specific sources may have been excluded based on pre-qualification criteria. With 9 bidders, the level of competition appears robust, which is generally positive for price discovery and ensuring the government receives competitive offers. The number of bidders suggests that the market for this type of construction is sufficiently active.

Taxpayer Impact: A high number of bidders in a full and open competition typically leads to more competitive pricing, potentially saving taxpayer dollars compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the Department of Defense and its operational units requiring enhanced rail logistics capabilities. The project delivers critical infrastructure for the movement and storage of military equipment and supplies. The geographic impact is centered in Idaho, supporting regional military readiness and potentially local economic activity through construction jobs. The construction activities will likely involve a significant workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a long-duration fixed-price contract if not meticulously managed.
Ensuring C-2 Construction Inc. has adequate bonding and financial capacity for a project of this magnitude.
Verification of compliance with all environmental and safety regulations during the extensive construction period.

Positive Signals

Awarded under full and open competition, indicating a competitive market.
Firm fixed-price contract type shifts cost risk to the contractor.
The project addresses a clear logistical need for the Department of Defense.

Sector Analysis

This contract falls within the Industrial Building Construction sector, a segment of the broader construction industry focused on facilities for manufacturing, processing, storage, and distribution. The Department of Defense is a significant client for this sector, often requiring specialized facilities for logistical support, maintenance, and operational readiness. Spending in this area is driven by military modernization, base infrastructure upgrades, and operational demands. Comparable spending benchmarks would involve analyzing other large-scale industrial construction projects awarded by federal agencies, particularly those related to transportation hubs or specialized storage.

Small Business Impact

The data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss) for this contract. This suggests that the contract was not specifically targeted towards small businesses, and larger firms likely dominated the bidding process. Subcontracting opportunities for small businesses may exist depending on C-2 Construction Inc.'s strategy, but they are not mandated by the contract terms. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified facilities. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's lifecycle.

Related Government Programs

Military Construction (MILCON)
Department of Defense Logistics Infrastructure
Industrial Facility Construction
Transportation Infrastructure Projects
Federal Government Construction Contracts

Risk Flags

Long contract duration increases risk of cost escalation or scope creep.
Need to verify contractor's financial stability and bonding capacity.
Potential for environmental impact during construction requires careful management.
Ensuring adequate quality control and safety standards are met throughout the project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 million to C-2 CONSTRUCTION INC. RAILHEAD PH 1

Who is the contractor on this award?

The obligated recipient is C-2 CONSTRUCTION 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 $16.2 million.

What is the period of performance?

Start: 2009-01-16. End: 2012-06-27.

What is the track record of C-2 Construction Inc. on similar large-scale industrial construction projects for the federal government?

A thorough review of C-2 Construction Inc.'s past performance is crucial. This would involve examining their project history, particularly for contracts involving industrial building construction, rail infrastructure, or large logistical facilities for agencies like the Department of Defense. Key metrics to assess include on-time and on-budget completion rates, quality of work, safety records, and any history of disputes or contract modifications. Analyzing their experience with firm fixed-price contracts of similar value and duration would provide insight into their capability to manage this specific project effectively. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable in this assessment.

How does the awarded price of $16.2 million compare to market rates for similar industrial building construction projects?

Benchmarking the $16.2 million award against market rates requires detailed analysis of comparable projects. Factors such as project scope, complexity, location, materials, and labor costs significantly influence pricing. Ideally, this comparison would involve analyzing recent federal and commercial contracts for similar industrial facilities, rail spurs, or large storage structures. If available, data from construction cost estimating services or industry reports could provide a baseline. Given the 'full and open competition' with 9 bidders, the price is likely competitive, but a formal cost-benefit analysis or comparison with independent cost estimates would offer a more definitive assessment of value for money.

What are the primary risks associated with a firm fixed-price contract for a long-duration construction project like this railhead?

The primary risk for the government in a firm fixed-price contract, especially one spanning over 1200 days, is the potential for the contractor to cut corners on quality or safety to maintain profitability if costs escalate unexpectedly. Conversely, the contractor bears the risk of cost overruns due to unforeseen site conditions, material price increases, or labor shortages. Effective risk mitigation requires meticulous scope definition, robust oversight, and clear change order procedures. The government must ensure that the initial scope is comprehensive and that any necessary modifications are managed through a well-defined process to prevent scope creep and maintain cost control.

What is the expected impact of this railhead project on the Department of the Army's logistical capabilities?

The construction of this railhead is expected to significantly enhance the Department of the Army's logistical capabilities by providing improved infrastructure for the efficient loading, unloading, and staging of equipment and supplies via rail. This can lead to faster deployment times, reduced transportation costs compared to other modes, and increased capacity for moving large volumes of materiel. Such facilities are critical for maintaining operational readiness, supporting training exercises, and facilitating rapid response during emergencies or deployments. The project directly addresses a need for modernized and robust transportation infrastructure to support military operations.

How has federal spending on industrial building construction, particularly for defense purposes, trended in recent years?

Federal spending on industrial building construction, especially for defense purposes, tends to fluctuate based on geopolitical conditions, military modernization priorities, and budget allocations. In recent years, there has been a sustained focus on upgrading aging infrastructure and investing in facilities that support advanced military technologies and operational readiness. Defense spending often prioritizes projects that enhance force projection, cybersecurity infrastructure, and logistical capabilities, which can include specialized industrial facilities like railheads. Analyzing historical spending data from sources like the Congressional Budget Office or the Department of Defense's own budget requests can reveal trends and highlight areas of increased investment.

What are the potential environmental considerations and mitigation strategies for a large-scale construction project like this railhead?

Large-scale construction projects inherently carry environmental considerations, including potential impacts on soil, water, air quality, and local ecosystems. For a railhead project, these could involve site preparation, excavation, potential runoff, noise pollution, and habitat disruption. Mitigation strategies typically include conducting thorough Environmental Impact Assessments (EIAs) prior to construction, implementing erosion and sediment control measures, managing waste disposal responsibly, adhering to air and noise pollution standards, and potentially restoring or enhancing affected habitats post-construction. Compliance with federal environmental regulations, such as the National Environmental Policy Act (NEPA), is mandatory and guides the identification and implementation of these mitigation efforts.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912J708B0001

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 805 S 18TH W, MOUNTAIN HOME, ID, 02

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,206,959

Exercised Options: $16,206,959

Current Obligation: $16,206,959

Contract Characteristics

Cost or Pricing Data: NO

Timeline