Army awards $35.4M contract for primary facility construction in North Carolina

Contract Overview

Contract Amount: $35,445,148 ($35.4M)

Contractor: ACC Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-28

End Date: 2024-09-23

Contract Duration: 1,456 days

Daily Burn Rate: $24.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE BID CONSTRUCT PRIMARY FACILITY

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $35.4 million to ACC CONSTRUCTION CO., INC. for work described as: BASE BID CONSTRUCT PRIMARY FACILITY Key points: 1. Contract awarded to ACC Construction Co., Inc. for industrial building construction. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. The contract duration is 1456 days, indicating a significant, long-term project. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. The base bid amount of $35.4 million sets a benchmark for this type of construction. 6. North Carolina is the specified location for this facility.

Value Assessment

Rating: good

The contract value of $35.4 million for industrial building construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government, contributing to predictable spending.

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 bids. The presence of 6 bids suggests a healthy level of competition for this project, which typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: The robust competition for this construction project likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiary is the Department of the Army, which will receive a new primary facility. The services delivered include the construction of an industrial building. The geographic impact is focused on North Carolina, where the facility will be located. The project will likely create jobs in the construction sector in the local North Carolina area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Ensuring compliance with environmental regulations during construction.
Managing the complexity of a large-scale industrial facility build.

Positive Signals

Firm Fixed Price contract helps control costs.
Full and open competition suggests competitive pricing.
Long-term contract duration allows for phased development and resource allocation.

Sector Analysis

Industrial building construction is a significant sector within the broader construction industry. This contract falls under the umbrella of government infrastructure development, which often involves large-scale projects. Comparable spending benchmarks would typically be found in other large federal construction awards for similar facilities, such as manufacturing plants or large storage depots.

Small Business Impact

The data indicates that small business participation was not a primary set-aside factor for this contract (sb: false). However, the prime contractor, ACC Construction Co., Inc., may engage small businesses as subcontractors to fulfill specific aspects of the construction project, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army project management office. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the facility as specified. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Military Construction
Industrial Facility Development
Department of Defense Construction Contracts

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Contractor performance risk on long-duration projects.
Dependency on specific material and labor availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.4 million to ACC CONSTRUCTION CO., INC.. BASE BID CONSTRUCT PRIMARY FACILITY

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 $35.4 million.

What is the period of performance?

Start: 2020-09-28. End: 2024-09-23.

What is the track record of ACC Construction Co., Inc. with federal contracts, particularly within the Department of Defense?

A thorough review of ACC Construction Co., Inc.'s past performance with federal agencies, especially the Department of Defense, is crucial. This would involve examining their history of on-time delivery, adherence to budget, quality of work, and any past disputes or contract terminations. Analyzing their experience with similar industrial building projects would provide further insight into their capability to successfully execute this $35.4 million contract. Information on their past performance ratings and any awards or commendations received would also be valuable in assessing their reliability.

How does the $35.4 million base bid compare to similar industrial facility construction projects awarded by the Department of Defense in the last five years?

To benchmark the value of this $35.4 million contract, a comparative analysis with similar industrial building construction projects awarded by the Department of Defense over the past five years is necessary. This comparison should consider factors such as square footage, complexity of the facility, geographic location, and specific construction requirements. If comparable projects show significantly lower or higher costs for similar scope, it could indicate potential overpricing or exceptional value in this award. Analyzing the number of bids received for comparable contracts can also shed light on market competitiveness.

What are the key risk indicators associated with a firm fixed-price contract for a large-scale construction project of this duration?

While a firm fixed-price (FFP) contract is generally favorable for cost control, large-scale construction projects over a 1456-day duration carry inherent risks. Key indicators include potential for scope creep if change orders are not managed rigorously, contractor underestimation of material or labor costs leading to financial distress, and unforeseen site conditions that could necessitate costly modifications. The contractor's financial stability and capacity to absorb unexpected costs are critical. Furthermore, the government must ensure clear and comprehensive specifications to avoid disputes arising from differing interpretations of the work required.

What is the expected impact of this new primary facility on the operational effectiveness of the relevant Army unit or command?

The construction of this primary facility is intended to enhance the operational effectiveness of the associated Army unit or command. The specific impact will depend on the facility's intended purpose, such as providing enhanced training capabilities, improved logistical support, modernized administrative spaces, or specialized operational infrastructure. A detailed understanding of the facility's design and its role within the unit's mission set is required to quantify the expected improvements in efficiency, readiness, or capacity. This could range from enabling new types of operations to simply providing a more modern and functional working environment.

How has federal spending on industrial building construction, specifically for the Department of Defense, trended over the past decade?

Analyzing federal spending trends on industrial building construction for the Department of Defense over the past decade would reveal patterns related to infrastructure investment, modernization efforts, and strategic priorities. This trend analysis could show periods of increased spending driven by new military initiatives or base realignments, and periods of decreased spending due to budget constraints or shifting defense needs. Understanding these historical patterns provides context for the current $35.4 million award, indicating whether it aligns with or deviates from established spending levels and priorities within the DoD's construction portfolio.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial 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: W912PM20R0001

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: $35,445,148

Exercised Options: $35,445,148

Current Obligation: $35,445,148

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline