Barber Corp awarded $12M contract for construction services, with a significant portion allocated to materials

Contract Overview

Contract Amount: $11,970,298 ($12.0M)

Contractor: Barber Corp

Awarding Agency: Department of Defense

Start Date: 2007-09-21

End Date: 2009-03-14

Contract Duration: 540 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT MATES PHASE II

Place of Performance

Location: WATERTOWN, JEFFERSON County, NEW YORK, 13601

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to BARBER CORP for work described as: CONSTRUCT MATES PHASE II Key points: 1. Contract value suggests substantial material procurement, indicating potential for bulk discounts or specialized sourcing. 2. The firm-fixed-price structure shifts cost risk to the contractor, potentially incentivizing efficient material management. 3. A 540-day duration for this construction project implies a moderate complexity and scale. 4. The contract was awarded by the Department of the Army, indicating a focus on defense infrastructure. 5. The project is located in New York, suggesting a regional economic impact. 6. The absence of small business set-asides may limit direct opportunities for smaller firms in this specific award.

Value Assessment

Rating: good

The contract value of approximately $12 million for commercial and institutional building construction appears reasonable given the project duration and the nature of construction services. Benchmarking against similar Department of the Army construction projects of comparable scope and complexity would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the contractor has assumed the primary cost risk, which can be a positive indicator for cost control if the contractor is experienced.

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 bids. With four bidders participating, the competition level appears adequate for price discovery. A higher number of bidders generally correlates with more competitive pricing, but the specific nature of specialized construction services can influence the number of viable participants.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best value.

Public Impact

The primary beneficiaries are the Department of the Army, receiving construction services for its facilities. The contract delivers commercial and institutional building construction, likely for operational or support infrastructure. The geographic impact is concentrated in New York, potentially benefiting local suppliers and labor. Workforce implications include employment opportunities for construction workers, project managers, and support staff in the New York region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if material prices escalate unexpectedly, despite the fixed-price nature.
Dependence on a single contractor for a significant construction project could lead to delays if the contractor faces unforeseen challenges.
The specific nature of 'CONSTRUCT MATES PHASE II' is not detailed, raising questions about the project's criticality and potential risks.
Limited visibility into the specific construction materials and their sourcing could obscure potential value-engineering opportunities.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process was utilized.
Award to an established entity like Barber Corp may indicate a track record of successful project completion.
The contract is for construction services, a critical need for military infrastructure.
The project is located in New York, potentially stimulating the local economy.

Sector Analysis

The construction sector is a significant component of federal spending, particularly for infrastructure development and facility maintenance across various agencies. This contract falls under commercial and institutional building construction, a broad category encompassing a wide range of projects from barracks to administrative buildings. The market for federal construction is competitive, with numerous firms vying for contracts. Benchmarks for similar projects would typically consider factors like square footage, complexity, and location to assess value.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting goals for small businesses. This means that opportunities for small businesses would primarily arise if Barber Corp voluntarily engages them as subcontractors. Without explicit set-aside provisions or mandated subcontracting plans, the direct impact on the small business ecosystem for this particular award is likely limited.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army, responsible for monitoring performance, quality, and compliance. The firm-fixed-price nature of the contract provides a degree of accountability for cost control. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight mechanisms are internal to the agency.

Related Government Programs

Military Construction
Facility Sustainment, Restoration, and Modernization
General Services Administration (GSA) Construction Contracts
Department of Veterans Affairs (VA) Construction

Risk Flags

Potential for cost escalation on materials despite fixed-price contract.
Project duration of 540 days may indicate complexity or potential for delays.
Lack of specific details on 'CONSTRUCT MATES PHASE II' limits risk assessment.
Absence of small business subcontracting requirements may limit broader economic impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to BARBER CORP. CONSTRUCT MATES PHASE II

Who is the contractor on this award?

The obligated recipient is BARBER CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2007-09-21. End: 2009-03-14.

What is Barber Corp's track record with the Department of Defense and similar construction projects?

Barber Corp has a history of securing contracts with the Department of Defense, as indicated by this award. To fully assess their track record, a deeper dive into their past performance on similar-sized and complex construction projects would be necessary. This would involve reviewing past contract awards, performance evaluations (if publicly available), and any history of disputes or contract modifications. Understanding their experience with firm-fixed-price contracts and projects within the New York region would also be crucial for evaluating their capability and reliability on the 'CONSTRUCT MATES PHASE II' project.

How does the awarded amount compare to the estimated cost or budget for this construction project?

The awarded amount of $11,970,298 represents the total value of the contract. Without access to the government's initial cost estimates or budget allocations for 'CONSTRUCT MATES PHASE II,' it is difficult to definitively state whether the award represents exceptional value or if it came in significantly under or over budget. However, the fact that it was awarded under full and open competition with four bidders suggests that the pricing was likely competitive. A comparison to industry cost-per-square-foot benchmarks for similar institutional buildings in New York would provide further context on the reasonableness of the price.

What are the primary risks associated with this specific construction contract, and how are they being mitigated?

Key risks for this construction contract include potential material cost escalations, unforeseen site conditions, labor shortages, and project delays. The firm-fixed-price structure mitigates the risk of cost overruns for the government, placing that burden on Barber Corp. Mitigation strategies for other risks would likely involve detailed project planning, robust site investigations, adherence to strict safety protocols, and proactive schedule management by the contractor, overseen by the Army's COR. The 540-day duration suggests a phased approach which could allow for risk mitigation at different stages.

What is the expected effectiveness and impact of the 'CONSTRUCT MATES PHASE II' project on Department of the Army operations?

The effectiveness and impact of 'CONSTRUCT MATES PHASE II' are directly tied to its purpose within the Department of the Army's operational framework. As a commercial and institutional building construction project, it likely aims to enhance or provide essential facilities, such as administrative offices, training centers, or support buildings. Improved facilities can lead to increased operational efficiency, better living or working conditions for personnel, and enhanced mission readiness. The specific impact will depend on the nature of the facility being constructed and its role in supporting Army functions in the New York region.

How has federal spending on commercial and institutional building construction in New York trended over the past five years?

Analyzing federal spending trends on commercial and institutional building construction in New York over the past five years would require accessing historical contract award data from agencies like the Army, GSA, and others operating in the state. Generally, federal construction spending can fluctuate based on infrastructure needs, military base modernizations, and broader economic conditions. A trend analysis would reveal if spending in this category has been increasing, decreasing, or remaining stable, providing context for the significance of this $12 million award within the broader spending landscape.

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: W912PQ07R0011

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 22686A FISHER RD, WATERTOWN, NY, 90

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,970,298

Exercised Options: $11,970,298

Current Obligation: $11,970,298

Contract Characteristics

Cost or Pricing Data: NO

Timeline