R.B. Construction Group awarded $38.4M for Fort Buchanan Readiness Center construction

Contract Overview

Contract Amount: $38,429,011 ($38.4M)

Contractor: R.B. Construction Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-07

End Date: 2015-07-20

Contract Duration: 1,046 days

Daily Burn Rate: $36.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FT BUCHANAN READINESS CENTER

Place of Performance

Location: FORT BUCHANAN, BAYAMON County, PUERTO RICO, 00934

Plain-Language Summary

Department of Defense obligated $38.4 million to R.B. CONSTRUCTION GROUP, INC. for work described as: FT BUCHANAN READINESS CENTER Key points: 1. Contract value represents a significant investment in military infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Definitive contract type indicates a single award for a defined scope. 4. Firm fixed price contract type offers cost certainty for the government. 5. Project duration of 1046 days points to a substantial construction undertaking. 6. Awarded by the Department of the Army, aligning with defense infrastructure needs.

Value Assessment

Rating: fair

The contract value of $38.4 million for the Fort Buchanan Readiness Center construction appears within a reasonable range for a project of this scale and complexity, especially considering it was awarded under full and open competition. Benchmarking against similar military construction projects would provide a more precise assessment of value for money. The firm fixed price structure suggests that the government has a degree of cost certainty, but the final cost is dependent on the contractor's ability to manage expenses within the agreed-upon price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 9 bidders participating, the level of competition appears robust. This suggests that the pricing is likely to be market-driven and that the government received a competitive offer. A higher number of bidders generally correlates with better price discovery and potentially lower costs for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down the final award price and ensured the government received a competitive offer for the construction services.

Public Impact

The primary beneficiaries are the U.S. Army personnel stationed at Fort Buchanan, who will utilize the new readiness center. The project delivers essential construction services for a military facility. The geographic impact is concentrated in Puerto Rico, supporting local military operations. The construction project likely created numerous jobs for skilled and unskilled labor in the region during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Dependence on the contractor's performance and adherence to schedule.
Long project duration could introduce risks related to material price fluctuations or labor availability.

Positive Signals

Firm fixed price contract provides cost predictability.
Full and open competition with multiple bidders suggests a competitive award.
Awarded by the Department of the Army, indicating a focus on critical defense infrastructure.

Sector Analysis

The construction industry, particularly for government and military facilities, is a significant sector. This contract falls under commercial and institutional building construction, a segment that requires specialized expertise and adherence to stringent building codes and security requirements. The market for such projects is often characterized by a mix of large, established construction firms and smaller, specialized contractors. The $38.4 million award is a substantial sum, placing it in the mid-to-large range for a single construction project within this sector.

Small Business Impact

The contract was awarded under full and open competition and there is no indication of a small business set-aside. The presence of 9 bidders suggests that both large and potentially smaller firms could have participated. Subcontracting opportunities for small businesses may have existed within the scope of the construction project, but this is not explicitly detailed in the provided data. The overall impact on the small business ecosystem would depend on the extent to which R.B. Construction Group utilized small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Readiness Centers
Government Building Construction

Risk Flags

Long project duration may increase exposure to market volatility.
Potential for unforeseen site conditions impacting cost and schedule.
Contractor performance risk over the 1046-day period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.4 million to R.B. CONSTRUCTION GROUP, INC.. FT BUCHANAN READINESS CENTER

Who is the contractor on this award?

The obligated recipient is R.B. CONSTRUCTION GROUP, 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 $38.4 million.

What is the period of performance?

Start: 2012-09-07. End: 2015-07-20.

What is the track record of R.B. Construction Group, Inc. with federal contracts, particularly with the Department of Defense?

A review of federal contract databases indicates that R.B. Construction Group, Inc. has been awarded multiple contracts, primarily with the Department of Defense and other federal agencies. Their contract history includes various construction and renovation projects. Analyzing the performance ratings and any past performance issues associated with their previous federal awards would provide a clearer picture of their reliability and capability. Specific details on past project success, on-time delivery, and adherence to budget would be crucial for a comprehensive assessment of their track record.

How does the awarded amount of $38.4 million compare to similar military readiness center construction projects?

Benchmarking this $38.4 million award against similar military readiness center construction projects requires access to a database of comparable contracts. Factors such as size, scope of work, location (which can impact labor and material costs), and specific facility requirements (e.g., specialized training areas, security features) significantly influence project costs. Generally, readiness centers can range from a few million to tens of millions of dollars. Without specific comparable data points, it's difficult to definitively state if this award represents exceptional value, but the robust competition suggests it was likely a market-driven price.

What are the primary risk indicators associated with a firm fixed-price construction contract of this magnitude and duration?

The primary risk indicators for a firm fixed-price contract of this magnitude ($38.4 million) and duration (1046 days) include potential for contractor cost overruns if initial estimates were inaccurate or unforeseen site conditions arise. There's also a risk of scope creep if modifications are not managed strictly. Contractor performance risk is significant; a poorly managed project can lead to delays and quality issues. Furthermore, long-term contracts are susceptible to market fluctuations in material costs and labor availability, which can strain the contractor's ability to maintain profitability without impacting the fixed price.

What is the historical spending pattern for construction at Fort Buchanan or similar Army installations in Puerto Rico?

Analyzing historical spending patterns for construction at Fort Buchanan or similar Army installations in Puerto Rico would require accessing historical contract data for that specific base and region. This would involve looking at the frequency, size, and types of construction contracts awarded over several years. Such an analysis could reveal trends in infrastructure investment, identify recurring needs, and provide context for the current $38.4 million award. It could also highlight any significant increases or decreases in construction spending, potentially indicating shifts in military priorities or infrastructure condition.

What are the implications of awarding a definitive contract versus other contract types for this type of construction project?

A definitive contract, in this context, likely refers to a single, fully defined contract award. For a construction project like a readiness center, awarding a definitive contract under full and open competition is standard practice. It signifies that the scope of work was well-defined, and a single contractor was selected to complete the entire project. This contrasts with indefinite-delivery/indefinite-quantity (IDIQ) contracts, which are used for services needed over a period but with uncertain quantities. For a project with a clear end goal like building a readiness center, a definitive contract provides clarity and accountability for the entire scope.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912LR12R0001

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 846 KM 1 5 BO LAS CUEVAS, TRUJILLO ALTO, PR, 00976

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Labor Surplus Area Firm, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,429,011

Exercised Options: $38,429,011

Current Obligation: $38,429,011

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline