DoD's $33.2M Fort Bragg facility construction contract awarded to ACC Construction Co., Inc. under full and open competition

Contract Overview

Contract Amount: $33,207,816 ($33.2M)

Contractor: ACC Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2016-11-21

End Date: 2019-06-07

Contract Duration: 928 days

Daily Burn Rate: $35.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT BATTALION OPERATION FACILITY FORT BRAGG, NC PROJECT NUMBER 80773 IGF::OT::IGF

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28307

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $33.2 million to ACC CONSTRUCTION CO., INC. for work described as: CONSTRUCT BATTALION OPERATION FACILITY FORT BRAGG, NC PROJECT NUMBER 80773 IGF::OT::IGF Key points: 1. The contract value of $33.2 million for a battalion operation facility represents a significant investment in military infrastructure. 2. Awarded under full and open competition, this suggests a robust bidding process aimed at achieving competitive pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor, ACC Construction Co., Inc. 4. The project duration of 928 days indicates a substantial construction undertaking. 5. The contract was awarded by the Department of the Army, a major component of the Department of Defense. 6. The North Carolina location highlights regional economic impact and specific installation needs.

Value Assessment

Rating: fair

Benchmarking the value of this specific construction project is challenging without detailed cost breakdowns and comparable project scopes. However, the $33.2 million award for a battalion operation facility at Fort Bragg suggests a significant investment. The firm-fixed-price contract type implies that the contractor is responsible for cost overruns, which can be a positive indicator for the government if managed effectively. Further analysis would require comparing the cost per square foot or per functional unit against similar military construction projects to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders, as noted in the data, suggests a healthy level of competition for this project. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government.

Taxpayer Impact: The full and open competition for this construction project likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. The multiple bids received indicate that the government had options to select the most cost-effective and technically capable offer.

Public Impact

Military personnel at Fort Bragg will benefit from improved operational facilities. The construction project provides services related to building and infrastructure development. The geographic impact is concentrated in North Carolina, specifically at Fort Bragg. The project likely created temporary employment opportunities for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for all project contingencies.
Risk of delays in project completion impacting operational readiness if unforeseen issues arise.
Quality of construction may vary between bidders, requiring robust oversight.
Contractor's past performance on similar large-scale construction projects needs thorough vetting.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition with multiple bidders suggests a competitive pricing environment.
Award to ACC Construction Co., Inc. implies they met technical and performance requirements.
The project addresses a specific need for operational facilities at a key military installation.

Sector Analysis

The construction sector is a significant part of the federal procurement landscape, encompassing a wide range of projects from infrastructure to facility development. This contract falls under Commercial and Institutional Building Construction, a sub-sector that includes the building of non-residential structures. Federal spending in this area is often driven by the need to maintain, upgrade, or expand military bases and government facilities. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar military barracks, administrative buildings, or operational facilities constructed by the government or in the private sector.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. However, the prime contractor, ACC Construction Co., Inc., may still engage small businesses as subcontractors based on their own procurement strategies and the availability of specialized services. The absence of a small business set-aside means the primary competition was open to all eligible firms, regardless of size.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. The firm-fixed-price nature of the contract places a significant portion of the financial risk on the contractor, but government oversight is still crucial to ensure adherence to specifications, quality standards, and timelines. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

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

Risk Flags

Contract Type Risk (Firm Fixed Price)
Potential for Cost Overruns
Project Schedule Delays
Quality Control Concerns
Contractor Performance History

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.2 million to ACC CONSTRUCTION CO., INC.. CONSTRUCT BATTALION OPERATION FACILITY FORT BRAGG, NC PROJECT NUMBER 80773 IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is ACC 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 $33.2 million.

What is the period of performance?

Start: 2016-11-21. End: 2019-06-07.

What is the track record of ACC Construction Co., Inc. on similar federal construction projects?

Assessing the track record of ACC Construction Co., Inc. requires a review of their past performance on federal contracts, particularly those involving military construction or similar institutional building projects. 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 strong track record with successful project completion, adherence to schedule and budget, and positive performance reviews would indicate a lower risk for this current project. Conversely, a history of performance issues could raise concerns about the contractor's ability to deliver this $33.2 million facility on time and to the required standards.

How does the awarded price compare to similar construction projects in the region or for the Department of Defense?

To benchmark the $33.2 million award, a comparative analysis of similar construction projects is necessary. This would involve identifying other battalion operation facilities, barracks, or administrative buildings constructed for the Department of Defense or other federal agencies in North Carolina or comparable regions. Key metrics for comparison include cost per square foot, cost per bed (if applicable), or cost per functional unit. Without access to detailed project scopes and cost breakdowns, a precise comparison is difficult. However, if data suggests that similar projects were completed at a significantly lower cost, it could indicate that this contract may not represent optimal value for money, assuming comparable quality and scope.

What are the primary risks associated with a firm-fixed-price contract for a large-scale construction project?

The primary risks associated with a firm-fixed-price (FFP) contract for a large-scale construction project, such as the $33.2 million Fort Bragg facility, primarily fall on the contractor. The contractor assumes the risk of cost overruns due to unforeseen site conditions, material price fluctuations, labor issues, or project management inefficiencies. If the contractor underestimates costs or encounters significant unexpected challenges, they may incur losses. For the government, the main risk is that the contractor might cut corners on quality or safety to maintain profitability, necessitating robust oversight. Additionally, if the contractor faces severe financial distress due to cost overruns, it could lead to project delays or abandonment, impacting the government's objectives.

How effective is full and open competition in ensuring competitive pricing for military construction projects?

Full and open competition is generally considered the most effective method for ensuring competitive pricing in federal contracting, including military construction projects. By allowing all responsible sources to submit bids, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. The presence of multiple bidders, such as the 6 bidders in this case, creates a dynamic where contractors must offer their best prices and terms to win the contract. This process helps prevent price gouging and encourages efficiency. While it doesn't guarantee the lowest possible price in all circumstances, it provides a strong foundation for achieving value for money and taxpayer savings.

What is the historical spending trend for similar construction projects at Fort Bragg or within the Department of the Army?

Analyzing historical spending trends for similar construction projects at Fort Bragg or within the Department of the Army provides crucial context for evaluating the $33.2 million award. This involves examining past contract awards for facility construction, infrastructure development, and renovation projects at the installation or across the Army. Trends might reveal whether construction costs have been rising, falling, or remaining stable. It can also highlight the typical contract values, durations, and types of contractors frequently engaged. Understanding these patterns helps determine if the current contract's value and terms are consistent with historical norms or if they represent an anomaly, potentially indicating either exceptional value or an area for further scrutiny.

What are the potential impacts of this contract on the local North Carolina economy?

This $33.2 million construction contract is likely to have a positive short-to-medium term impact on the local North Carolina economy, particularly in the vicinity of Fort Bragg. The project will necessitate the hiring of construction labor, potentially creating numerous temporary jobs for skilled tradespeople, laborers, and project managers. Furthermore, the prime contractor and any subcontractors will procure materials, equipment, and services from local suppliers and vendors whenever feasible, injecting capital into the regional economy. This increased economic activity can lead to higher demand for local goods and services, benefiting businesses and potentially increasing tax revenues for the state and local governments.

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: W912PM16R0020

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 635 NW FRONTAGE RD STE A, AUGUSTA, GA, 30907

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,721,022

Exercised Options: $33,207,816

Current Obligation: $33,207,816

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline