DoD Awards $45.8M Contract for Murrieta Creek Phase 2B Construction

Contract Overview

Contract Amount: $45,787,959 ($45.8M)

Contractor: Empire Equipment Service, Inc.

Awarding Agency: Department of Defense

Start Date: 2028-07-10

End Date: 2028-12-15

Contract Duration: 158 days

Daily Burn Rate: $289.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MURRIETA CREEK PHASE 2B

Place of Performance

Location: TEMECULA, RIVERSIDE County, CALIFORNIA, 92589

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $45.8 million to EMPIRE EQUIPMENT SERVICE, INC. for work described as: MURRIETA CREEK PHASE 2B Key points: 1. Contract awarded to Empire Equipment Service, Inc. for construction services. 2. The contract is for 'Other Heavy and Civil Engineering Construction' (NAICS 237990). 3. This is a definitive contract with a firm fixed price. 4. The project is located in California and has a duration of 158 days.

Value Assessment

Rating: fair

The awarded amount of $45.8M appears to be within a reasonable range for a large-scale civil engineering project of this nature. Benchmarking against similar DoD construction contracts would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery, potentially leading to higher costs than full and open competition.

Taxpayer Impact: Taxpayer funds are being utilized for this infrastructure project. The limited competition raises questions about whether the most cost-effective solution was secured.

Public Impact

Infrastructure development in California will be supported by this contract. The project aims to improve civil engineering infrastructure, potentially benefiting local communities. The Department of Defense is investing in construction projects, indicating ongoing federal infrastructure priorities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may result in suboptimal pricing.
  • Contract duration seems relatively short for a project of this scale.

Positive Signals

  • Firm fixed price contract provides cost certainty.
  • Project addresses critical infrastructure needs.

Sector Analysis

This contract falls under the heavy and civil engineering construction sector. Federal spending in this area is often driven by infrastructure needs, military base improvements, and disaster recovery efforts. Benchmarks vary widely based on project scope and location.

Small Business Impact

The contract was awarded to Empire Equipment Service, Inc. There is no indication of specific small business set-asides or subcontracting goals within the provided data. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is the awarding agency. Standard oversight mechanisms for federal construction contracts would apply, including monitoring progress, quality, and adherence to contract terms.

Related Government Programs

  • Other Heavy and Civil Engineering Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Limited competition raises concerns about potential overpricing.
  • The contract's short duration for a large project may pose execution risks.
  • Lack of explicit small business participation data.

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, ca, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.8 million to EMPIRE EQUIPMENT SERVICE, INC.. MURRIETA CREEK PHASE 2B

Who is the contractor on this award?

The obligated recipient is EMPIRE EQUIPMENT SERVICE, 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 $45.8 million.

What is the period of performance?

Start: 2028-07-10. End: 2028-12-15.

What specific factors led to the exclusion of sources in this 'full and open competition after exclusion of sources' award, and how did this impact the final price?

The exclusion of sources suggests specific technical requirements, past performance considerations, or unique capabilities were sought, limiting the pool of eligible bidders. This restriction can reduce competitive pressure, potentially leading to a higher price than if all potential sources were allowed to compete. A detailed review of the solicitation and award justification would clarify the reasons and their pricing implications.

How does the $45.8M contract value compare to the estimated cost and the bids received from other potential competitors, if any were considered?

Without access to the bid tabulation or pre-solicitation estimates, it's difficult to definitively assess value. The 'fair' rating suggests the price is not egregiously high but doesn't confirm it's the best possible price. Comparing the awarded amount to the government's estimate and any other submitted bids would reveal the degree of price competition and potential savings.

What are the key performance indicators and oversight mechanisms in place to ensure the successful and timely completion of Murrieta Creek Phase 2B within the $45.8M budget?

Standard federal contract oversight would involve project managers monitoring progress against milestones, quality control inspections, and financial tracking. Specific KPIs would likely include adherence to schedule, quality standards for construction, and budget management. The firm fixed-price nature incentivizes the contractor to manage costs effectively, but robust government oversight is crucial to ensure contract compliance and prevent cost overruns or scope creep.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912PL25BA004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5271 AGATE ST, RIVERSIDE, CA, 92509

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $47,949,080

Exercised Options: $45,787,959

Current Obligation: $45,787,959

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2028-07-10

Current End Date: 2028-12-15

Potential End Date: 2028-12-15 00:00:00

Last Modified: 2025-12-12

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