Army Awards $7.9M Contract for Wichita Building Construction, Facing Limited Competition

Contract Overview

Contract Amount: $22,904,237 ($22.9M)

Contractor: THE LAW Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-08-30

End Date: 2008-05-31

Contract Duration: 1,370 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200411!000238!2100!W912JC!USPFO FOR KANSAS !W912JC04C0005 !A!N! !N! ! !20040830!20060317!007813587!007813587!007813587!N!THE LAW COMPANY, INC !345 RIVERVIEW !WICHITA !KS!67201!79000!173!20!WICHITA !SEDGWICK !KANSAS !+000007978100!N!N!000022202100!Y159!OTHER INDUSTRIAL BUILDINGS !C2 !CONSTRUCTION !000 !* !236210!A!B!3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!004!B! !Z!N!Z! ! !N!C!N! ! ! !C!D!A!A!000!A!B!Y! !N! ! ! ! !0001! !

Place of Performance

Location: MCCONNELL AFB, SEDGWICK County, KANSAS, 67221

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to THE LAW COMPANY, INC. for work described as: 200411!000238!2100!W912JC!USPFO FOR KANSAS !W912JC04C0005 !A!N! !N! ! !20040830!20060317!007813587!007813587!007813587!N!THE LAW COMPANY, INC !345 RIVERVIEW !WICHITA !KS!67201!79000!173!20!WICHITA !SEDG… Key points: 1. The contract is for construction of industrial buildings in Wichita, Kansas. 2. The awardee, The Law Company, Inc., has a history of receiving government contracts. 3. The contract was awarded under full and open competition, but the number of bids received is not specified. 4. The sector is Construction, specifically Commercial and Institutional Building Construction. 5. The contract duration is 1370 days, indicating a significant project.

Value Assessment

Rating: fair

The contract value of $7.9 million for industrial building construction appears within a reasonable range for such projects, though a direct per-unit cost comparison is difficult without more specific project details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a broad solicitation. However, the low number of bids (4) might indicate limited interest or a specialized market, potentially impacting price discovery.

Taxpayer Impact: The $7.9 million expenditure represents taxpayer funds allocated to infrastructure development. The competitive process aims to ensure value for money, but the limited bid count warrants attention.

Public Impact

Local economic impact through construction jobs and material sourcing in Wichita, Kansas. Development of essential industrial facilities for government operations. Potential for follow-on contracts or related infrastructure projects in the region. Ensures the availability of necessary facilities for the Department of the Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bids received (4) despite full and open competition.
Contract duration is long (1370 days), increasing risk of cost overruns or scope creep.
No indication of small business participation.

Positive Signals

Awarded under full and open competition, maximizing potential bidder pool.
Firm Fixed Price contract type helps control costs.
Project addresses a clear need for industrial building construction.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. Spending in this sector can fluctuate based on government infrastructure needs and economic conditions. Benchmarks for similar projects would require detailed specifications.

Small Business Impact

There is no indication of small business participation in this contract award. Further analysis would be needed to determine if opportunities were missed or if the nature of the work was unsuitable for small businesses.

Oversight & Accountability

The contract was awarded by the Department of the Army. Oversight would typically involve contract management by the contracting officer and quality assurance personnel to ensure compliance with terms and specifications.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited number of bids received.
Long contract duration.
No small business participation noted.
Potential for cost escalation over the contract period.
Unspecified site conditions or environmental factors.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to THE LAW COMPANY, INC.. 200411!000238!2100!W912JC!USPFO FOR KANSAS !W912JC04C0005 !A!N! !N! ! !20040830!20060317!007813587!007813587!007813587!N!THE LAW COMPANY, INC !345 RIVERVIEW !WICHITA !KS!67201!79000!173!20!WICHITA !SEDGWICK !KANSAS !+000007978100!N!N!000022202100!Y159!OTHER INDUSTRIAL BUILDINGS !C2 !CONSTRUCTION !000 !* !236210!A!B!3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is THE LAW COMPANY, 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 $22.9 million.

What is the period of performance?

Start: 2004-08-30. End: 2008-05-31.

What was the average bid price from the four received bids, and how did it compare to the awarded price?

The provided data does not detail the individual bid amounts from the four offers received. To assess value for money, comparing the awarded price of $7.9 million against the other bids would be crucial. A significant difference between the awarded price and other bids could suggest issues with the bidding process or the perceived value of the contract.

What specific risks are associated with a 1370-day construction contract for industrial buildings?

A long contract duration like 1370 days (nearly 4 years) for industrial building construction introduces several risks. These include potential material price escalation, labor shortages, unforeseen site conditions, changes in regulatory requirements, and the risk of the facility's intended use becoming obsolete before completion. Effective project management and contingency planning are vital.

How effectively does the 'full and open competition' designation align with the receipt of only four bids?

While 'full and open competition' theoretically allows all responsible sources to submit bids, receiving only four bids suggests potential limitations in the market or the solicitation's reach. Factors such as the project's complexity, geographic location, bonding requirements, or the timing of the solicitation could have deterred a larger number of bidders, impacting the competitive pressure on pricing.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 345 RIVERVIEW, WICHITA, KS, 04

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline