DOD awards $19.1M contract for Commercial Building Construction to LDV, INC
Contract Overview
Contract Amount: $19,085,648 ($19.1M)
Contractor: LDV, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-06-30
End Date: 2012-05-01
Contract Duration: 2,497 days
Daily Burn Rate: $7.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: TWINSBURG, SUMMIT County, OHIO, 44087
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $19.1 million to LDV, INC. for work described as: Key points: 1. The contract value is $19.1 million. 2. LDV, INC. is the sole awardee. 3. The contract was awarded under full and open competition. 4. The contract duration is 2497 days.
Value Assessment
Rating: fair
The contract value of $19.1 million for commercial building construction over approximately 7 years suggests a moderate annual spend. Benchmarking requires more specific details on the scope of work and location.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price, though the total cost over nearly 7 years is substantial.
Public Impact
Taxpayers funded a significant construction project over several years. The Department of the Army secured necessary building infrastructure. The long duration suggests a sustained need for the construction services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2497 days) may indicate potential for scope creep or changing requirements.
- Lack of specific details on the construction scope makes it difficult to assess value comprehensively.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction. Spending in this sector can vary widely based on infrastructure needs, economic conditions, and government priorities.
Small Business Impact
The data indicates that small business participation was not a factor in this award (sb: false). Further analysis would be needed to determine if opportunities were missed.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for federal contracts would apply.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- Lack of detailed scope of work.
- No small business participation noted.
- Potential for changing requirements over a long period.
Tags
commercial-and-institutional-building-co, department-of-defense, oh, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.1 million to LDV, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is LDV, 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 $19.1 million.
What is the period of performance?
Start: 2005-06-30. End: 2012-05-01.
What was the specific scope of work for this construction contract, and how does the $19.1 million value compare to similar projects in the same region?
The provided data lacks specific details on the scope of work, making a precise value assessment difficult. However, $19.1 million spread over nearly 7 years for commercial building construction suggests an average annual expenditure of approximately $2.7 million. This figure needs to be compared against regional construction costs for similar-sized projects to determine if it represents good value.
Given the long duration, what mechanisms were in place to manage potential cost overruns or changes in project requirements?
The contract is a Firm Fixed Price (FFP) type, which generally shifts the risk of cost overruns to the contractor. However, mechanisms for change orders or contract modifications would still exist to address unforeseen issues or evolving requirements. The effectiveness of oversight would depend on the agency's contract management practices throughout the 2497-day period.
How effectively did the full and open competition process ensure the best possible outcome for this significant construction expenditure?
Full and open competition is designed to maximize the pool of potential bidders, thereby increasing the likelihood of receiving competitive offers and achieving best value. Without access to the bids received, it's impossible to definitively state the effectiveness. However, the process itself is a strong indicator of an attempt to secure a favorable outcome for the government and taxpayers.
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
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: HZE
Contractor Details
Address: 9014 KEMPTON AVENUE, CLEVELAND, OH, 90
Business Categories: Category Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $7,020
Exercised Options: $7,020
Current Obligation: $19,085,648
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-06-30
Current End Date: 2012-05-01
Potential End Date: 2012-05-01 00:00:00
Last Modified: 2012-10-24
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