Department of the Army awards $16.9M contract for hangar and shop maintenance, highlighting construction sector activity

Contract Overview

Contract Amount: $16,946,555 ($16.9M)

Contractor: Bbl-Carlton, L.L.C

Awarding Agency: Department of Defense

Start Date: 2008-09-12

End Date: 2011-11-07

Contract Duration: 1,151 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MAINTENANCE HANGAR AND SHOPS

Place of Performance

Location: CHARLESTON, KANAWHA County, WEST VIRGINIA, 25311

State: West Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to BBL-CARLTON, L.L.C for work described as: MAINTENANCE HANGAR AND SHOPS Key points: 1. Contract value of $16.9M for building construction indicates significant investment in infrastructure. 2. Full and open competition suggests a healthy market with multiple potential bidders. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Contract duration of 1151 days points to a substantial, long-term project. 5. Award to BBL-Carlton, L.L.C. represents a specific instance of contractor engagement in this sector. 6. Geographic focus on West Virginia highlights regional construction needs.

Value Assessment

Rating: good

The contract value of $16.9 million for maintenance hangar and shops construction appears reasonable for a project of this scope and duration. Benchmarking against similar large-scale commercial and institutional building construction projects within the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator if the final price reflects efficient execution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders (no) suggests a competitive environment, which generally leads to better pricing and value for the government. The level of competition is a positive sign for price discovery and ensures that the government is likely receiving a fair market price for the construction services.

Taxpayer Impact: The robust competition in this procurement process is beneficial for taxpayers as it likely drove down the final contract price, maximizing the value of federal investment in this infrastructure project.

Public Impact

The primary beneficiaries are the Department of the Army, which will receive essential maintenance facilities. The contract delivers critical infrastructure in the form of a maintenance hangar and associated shops. The project's geographic impact is concentrated in West Virginia, supporting regional economic activity. The construction services will likely involve a significant workforce, including skilled trades and laborers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen construction challenges.
Dependence on contractor's ability to meet quality and timeline specifications for a complex facility.
Risk associated with the contractor's past performance, though not explicitly detailed here.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that likely yielded a fair price.
Firm fixed-price contract type transfers cost overrun risk to the contractor.
Long contract duration (1151 days) allows for thorough project execution and quality assurance.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical infrastructure for defense, research, and public services. The market size for federal construction projects is substantial, with agencies like the Department of Defense frequently awarding large contracts for facilities maintenance and development. This specific award represents a typical investment in operational support facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and opportunities for small businesses would likely be through direct subcontracting by the prime contractor, BBL-Carlton, L.L.C. Further investigation into the prime contractor's subcontracting plan would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract structure, which penalizes the contractor for cost overruns. Transparency is generally facilitated through contract award databases like FPDS, where basic details are publicly available. Inspector General jurisdiction may be invoked if fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Facilities
Department of Defense Facilities Maintenance
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for cost overruns due to fixed-price nature
Contractor performance risk
Quality control during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to BBL-CARLTON, L.L.C. MAINTENANCE HANGAR AND SHOPS

Who is the contractor on this award?

The obligated recipient is BBL-CARLTON, L.L.C.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2008-09-12. End: 2011-11-07.

What is the track record of BBL-Carlton, L.L.C. in performing similar federal construction contracts?

Assessing the track record of BBL-Carlton, L.L.C. requires a review of their past performance on federal contracts, particularly those involving similar scope and complexity such as hangar construction or large institutional buildings. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A positive performance history on comparable projects would increase confidence in their ability to successfully execute this current $16.9 million contract. Conversely, a history of delays, cost overruns, or quality issues would raise concerns about potential risks.

How does the awarded price of $16.9 million compare to similar hangar and maintenance facility construction projects?

To benchmark the value for money, the $16.9 million award should be compared against the costs of similar hangar and maintenance facility construction projects undertaken by the federal government or even in the private sector. Key comparison points would include square footage, complexity of specialized equipment installation (e.g., aircraft maintenance systems), geographic location (which affects labor and material costs), and the specific year of award (to account for inflation). If comparable projects of similar size and complexity were completed for significantly less, it might indicate that this contract's price is on the higher side. Conversely, if it aligns with or is lower than benchmarks, it suggests good value.

What are the primary risks associated with a firm fixed-price contract for a construction project of this magnitude?

The primary risk associated with a firm fixed-price (FFP) contract for a construction project of this magnitude ($16.9 million) is that the contractor may face significant financial losses if their cost estimates are inaccurate or if unforeseen issues arise during construction. While FFP shifts cost overrun risk to the contractor, it can incentivize them to cut corners on quality or safety to maintain profitability, potentially leading to defects or premature failures. Additionally, contractors might be less willing to accommodate reasonable changes requested by the government, as any deviation from the original scope typically requires formal change orders and price adjustments, which can be contentious. The government's risk is primarily in ensuring the contract is well-defined upfront to minimize the need for changes and in diligently overseeing quality.

What is the expected effectiveness of the new maintenance hangar and shops in supporting Army operations?

The effectiveness of the new maintenance hangar and shops hinges on their design, functionality, and integration into the Army's operational workflow. Assuming the facility is built to modern standards and equipped to handle the specific maintenance requirements of the aircraft or equipment it serves, it should significantly enhance operational readiness and efficiency. This includes providing a controlled environment for repairs, reducing downtime, improving safety for maintenance personnel, and potentially accommodating larger or more complex maintenance tasks. The long-term effectiveness will also depend on the quality of construction and the Army's ability to staff and equip the facility appropriately.

How has federal spending on commercial and institutional building construction evolved over the past five years?

Federal spending on commercial and institutional building construction has likely fluctuated over the past five years, influenced by factors such as defense spending priorities, infrastructure initiatives, and the overall economic climate. Agencies like the Department of Defense, Department of Homeland Security, and the General Services Administration are major contributors to this spending category. Trends may show increases driven by modernization efforts or new facility requirements, and decreases during periods of budget austerity. Analyzing specific agency budgets and major construction programs would provide a clearer picture of the spending trajectory and identify any significant shifts in investment within this sector.

What is the significance of the contract being awarded in West Virginia?

The significance of this contract being awarded in West Virginia relates to its potential economic impact on the state and the specific military installation it serves. Construction projects of this scale ($16.9 million) typically generate numerous jobs for local residents, including skilled tradespeople, engineers, and support staff. Furthermore, it stimulates local economies through the procurement of materials and services from regional suppliers. For the Army, it signifies an investment in critical infrastructure at a specific base or facility within West Virginia, enhancing its operational capabilities or support functions in that geographic area.

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: W912L808R0004

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BBL L.L.C. (UEI: 103306465)

Address: 900 LEE ST E STE 1400, CHARLESTON, WV, 01

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,676,343

Exercised Options: $16,946,555

Current Obligation: $16,946,555

Contract Characteristics

Cost or Pricing Data: NO

Timeline