Maron Construction Awarded $20.5M DoD Contract for New Building Construction
Contract Overview
Contract Amount: $20,512,944 ($20.5M)
Contractor: Maron Construction CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2012-07-20
End Date: 2014-12-01
Contract Duration: 864 days
Daily Burn Rate: $23.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BASE OFFER FOR CONSTRUCTION OF NEW
Place of Performance
Location: PROVIDENCE, PROVIDENCE County, RHODE ISLAND, 02909
Plain-Language Summary
Department of Defense obligated $20.5 million to MARON CONSTRUCTION CO., INC. for work described as: BASE OFFER FOR CONSTRUCTION OF NEW Key points: 1. Contract value represents a significant investment in infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Contract type indicates a fixed price, which can limit cost overruns. 4. Performance period spans over two years, allowing for substantial project execution. 5. Sector positioning within commercial and institutional building construction is a key area of federal spending. 6. Geographic focus on Rhode Island highlights regional development efforts.
Value Assessment
Rating: good
The awarded amount of $20.5 million for the construction of a new building appears to be within a reasonable range for a project of this scale, particularly given it is a definitive contract with a firm fixed price. Benchmarking against similar Department of Defense construction projects would provide a more precise value-for-money assessment. However, the fixed-price nature suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a broad solicitation process. While the exact number of bidders is not explicitly stated, the 'full and open' designation implies that multiple qualified contractors were likely considered. This level of competition is generally expected to drive competitive pricing and ensure fair market value.
Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and quality for the construction services rendered.
Public Impact
The primary beneficiaries are the Department of Defense and its personnel who will utilize the new facility. The contract delivers essential construction services for a new institutional building. The geographic impact is concentrated in Rhode Island, potentially stimulating local economic activity and employment. Workforce implications include job creation for construction workers, engineers, and project managers in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if project requirements are not clearly defined and managed.
- Risk of delays due to unforeseen site conditions or permitting issues.
- Ensuring compliance with all federal building codes and environmental regulations.
Positive Signals
- Firm fixed-price contract structure mitigates cost escalation risks for the government.
- Longer performance period allows for thorough execution and quality control.
- Award to a single contractor streamlines project management and accountability.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal procurement landscape. The Department of Defense is a major investor in construction projects to support its operational and administrative needs. Comparable spending benchmarks for similar-sized institutional buildings by federal agencies can be used to assess the reasonableness of this award.
Small Business Impact
The data indicates that small business participation was not a primary focus for this specific contract, as 'sb' is false. There is no explicit mention of small business set-asides or subcontracting goals. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses by the prime contractor, Maron Construction Co., Inc.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Accountability measures are inherent in the firm fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon cost. Transparency is generally maintained through contract award databases and public reporting mechanisms.
Related Government Programs
- Department of Defense Construction Contracts
- Federal Building and Infrastructure Projects
- Commercial and Institutional Building Construction
Risk Flags
- Potential for cost overruns if unforeseen issues arise in construction.
- Ensuring compliance with all environmental and safety regulations.
- Adequate oversight to ensure quality of construction meets specifications.
Tags
construction, department-of-defense, department-of-the-army, definitive-contract, firm-fixed-price, full-and-open-competition, commercial-and-institutional-building-construction, rhode-island, large-contract, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.5 million to MARON CONSTRUCTION CO., INC.. BASE OFFER FOR CONSTRUCTION OF NEW
Who is the contractor on this award?
The obligated recipient is MARON 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 $20.5 million.
What is the period of performance?
Start: 2012-07-20. End: 2014-12-01.
What is the track record of Maron Construction Co., Inc. with federal contracts?
Maron Construction Co., Inc. has been awarded federal contracts, including this definitive contract with the Department of the Army. A comprehensive review of their contract history would involve examining past performance on similar projects, including adherence to schedules, budget, and quality standards. Analyzing their award data across different agencies and contract types can provide insights into their experience and reliability as a federal contractor. Information on past performance, if available in federal databases, would be crucial for a complete assessment.
How does the $20.5 million award compare to similar construction projects by the DoD?
The $20.5 million award for new building construction by the Department of the Army can be benchmarked against similar projects within the DoD and other federal agencies. Factors such as building size, complexity, location, and specific functional requirements significantly influence construction costs. A comparative analysis would involve identifying contracts for institutional or administrative buildings of comparable square footage and purpose awarded within a similar timeframe. This comparison would help determine if the Maron Construction award represents a competitive price point or if it deviates significantly from market norms for federal construction.
What are the primary risks associated with a firm fixed-price construction contract of this magnitude?
While firm fixed-price (FFP) contracts are generally favorable for the government by capping costs, they do carry inherent risks. For a $20.5 million project, the primary risks include potential contractor underestimation of costs, leading to financial distress or a desire to cut corners on quality. Unforeseen site conditions, material price fluctuations beyond what was reasonably anticipated, or significant design changes requested by the government could also strain the FFP agreement. Effective risk mitigation relies on thorough pre-award due diligence, clear contract specifications, robust project management, and contingency planning for potential issues.
What is the expected impact of this contract on the Rhode Island construction market?
A contract of this magnitude, $20.5 million, is expected to have a positive impact on the Rhode Island construction market. It will likely generate direct employment opportunities for skilled trades, project managers, engineers, and support staff within the region. Furthermore, it can stimulate indirect economic activity through the procurement of local materials, equipment rentals, and services from subcontractors and suppliers. The successful completion of this project could also enhance Maron Construction Co., Inc.'s reputation and capacity, potentially positioning them for future large-scale projects in the area.
How does the 'Full and Open Competition After Exclusion of Sources' method affect price discovery?
The 'Full and Open Competition After Exclusion of Sources' method is a specific type of full and open competition. It implies that while the competition was open to all eligible sources, certain sources were excluded based on pre-defined criteria (e.g., specific capabilities, past performance, or security clearances). This method aims to ensure broad competition while also focusing on qualified bidders. The exclusion of sources, if not overly restrictive, should still allow for robust price discovery by encouraging multiple bids from capable firms. However, if the exclusion criteria are too narrow, it could limit the number of bidders and potentially impact the competitiveness of the pricing achieved.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912LD11R0002
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 180 BUTTONHOLE DR, PROVIDENCE, RI, 02909
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,512,944
Exercised Options: $20,512,944
Current Obligation: $20,512,944
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-07-20
Current End Date: 2014-12-01
Potential End Date: 2014-12-01 00:00:00
Last Modified: 2024-10-25
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