DoD's $14.9M Fort Jackson construction contract awarded to Tyler Construction Company, Inc

Contract Overview

Contract Amount: $14,944,275 ($14.9M)

Contractor: Tyler Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-08-29

End Date: 2008-03-17

Contract Duration: 566 days

Daily Burn Rate: $26.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: AR RRSC, FORT JACKSON, SC

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29207

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to TYLER CONSTRUCTION COMPANY, INC. for work described as: AR RRSC, FORT JACKSON, SC Key points: 1. Value for money assessed through comparison with similar construction projects. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include fixed-price contract type and duration, which can shift risk to the contractor. 4. Performance context is within the broader landscape of military base construction and maintenance. 5. Sector positioning is within the commercial and institutional building construction industry.

Value Assessment

Rating: fair

The contract value of $14.9 million for construction services at Fort Jackson appears within a reasonable range for a project of this scope. Benchmarking against similar institutional building construction contracts awarded by the Department of Defense or other federal agencies would provide a clearer picture of value. The fixed-price nature of the contract suggests that the initial bid was considered competitive and sufficient to cover anticipated costs and profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this project. While more bidders could potentially lead to lower prices, three offers generally indicate that market forces were at play in determining the final award price.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it encourages multiple companies to bid, driving down costs through competitive pressure.

Public Impact

The primary beneficiaries are the Department of Defense and military personnel stationed at Fort Jackson, SC, who will utilize the newly constructed or improved facilities. Services delivered include commercial and institutional building construction, likely encompassing barracks, administrative buildings, or training facilities. The geographic impact is localized to Fort Jackson, South Carolina, supporting military operations and infrastructure in that region. Workforce implications include employment opportunities for construction workers and related trades in the South Carolina area during the contract performance period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
Contract duration of 566 days could be subject to delays impacting operational readiness.
Quality control and adherence to construction standards require diligent oversight.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Fixed-price contract type shifts cost risk to the contractor, potentially benefiting the government.
Clear definition of scope (commercial and institutional building construction) aids in performance management.

Sector Analysis

The commercial and institutional building construction sector is a significant part of the U.S. economy, with federal agencies being major clients. This contract fits within the broader category of government infrastructure development and maintenance. Comparable spending benchmarks would involve analyzing the cost per square foot or per project for similar military construction projects across different branches of the armed forces.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Accountability measures are inherent in the fixed-price contract terms, requiring the contractor to deliver specified work within the agreed budget. Transparency is generally maintained through contract award databases, though detailed project progress reports may not always be publicly available.

Related Government Programs

Military Construction Projects
Department of Defense Facilities Management
General Services Administration (GSA) Construction Contracts
Army Corps of Engineers Construction Projects

Risk Flags

Potential for schedule delays
Risk of cost overruns for contractor
Quality control concerns in construction
Dependency on contractor's past performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to TYLER CONSTRUCTION COMPANY, INC.. AR RRSC, FORT JACKSON, SC

Who is the contractor on this award?

The obligated recipient is TYLER CONSTRUCTION COMPANY, 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 $14.9 million.

What is the period of performance?

Start: 2006-08-29. End: 2008-03-17.

What is the track record of Tyler Construction Company, Inc. with federal contracts?

Information on Tyler Construction Company, Inc.'s specific track record with federal contracts is not detailed in the provided data snippet. A comprehensive assessment would require reviewing their past performance on similar government projects, including contract history, any past performance evaluations, and any instances of disputes or contract terminations. Federal procurement databases like SAM.gov or FPDS can provide historical contract awards and performance information for contractors. Understanding their experience with fixed-price contracts and projects of similar scale and complexity would be crucial for evaluating their capability to successfully execute this $14.9 million Fort Jackson construction project.

How does the $14.9 million contract value compare to similar construction projects at military installations?

The $14.9 million contract value for construction at Fort Jackson needs to be benchmarked against similar projects to assess its value. Factors such as the type of facility being built (e.g., barracks, training center, administrative building), the square footage, the complexity of the construction, and the specific location's cost of living and labor can significantly influence project costs. A comparison with other Department of Defense construction contracts awarded around the same period for similar scope and scale would reveal if this price is competitive. For instance, if similar projects averaged $10-12 million or exceeded $20 million, it would provide context for the fairness of this award. Without specific comparable project data, it's difficult to definitively state if $14.9 million represents excellent or questionable value.

What are the primary risks associated with this fixed-price construction contract?

The primary risks associated with this fixed-price construction contract, awarded to Tyler Construction Company, Inc., revolve around potential cost overruns for the contractor and schedule delays. While the fixed-price structure shifts the financial risk to the contractor, unforeseen issues like unexpected site conditions, material price escalations beyond what was anticipated, or labor shortages could strain the contractor's budget. For the government, the main risk is that the contractor might cut corners on quality to maintain profitability, or that delays could impact the operational readiness or planned use of the facility. The contract duration of 566 days (approximately 1.5 years) also presents a risk of schedule slippage due to weather, permitting issues, or contractor performance.

How effective is full and open competition in ensuring competitive pricing for construction contracts of this size?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for construction contracts of this size ($14.9 million). By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving multiple competitive proposals. This competitive pressure incentivizes bidders to offer their best pricing and terms to win the contract. The fact that three bids were received indicates a reasonable level of competition, suggesting that the pricing is likely to be fair. However, the effectiveness can be further enhanced if the solicitation is well-defined and the evaluation criteria are clear, ensuring that the lowest price technically acceptable or best value is truly achieved.

What are the implications of the contract duration (566 days) on project delivery and potential cost impacts?

A contract duration of 566 days, approximately 1.5 years, for a $14.9 million construction project at Fort Jackson implies a significant undertaking. From a cost perspective, a longer duration can increase the risk of material price fluctuations and labor cost changes, which are typically borne by the contractor under a fixed-price agreement. However, extended timelines can also lead to increased indirect costs for the government, such as extended project management oversight. For project delivery, a longer duration provides more buffer for potential delays caused by weather, supply chain issues, or unforeseen site conditions. It is crucial that the contract includes clear milestones and performance metrics to ensure timely progress and mitigate the risk of significant delays that could impact the facility's readiness or intended use.

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: W912QR06R0049

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 433 RABON RD, COLUMBIA, SC, 29223

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $14,944,275

Exercised Options: $14,944,275

Current Obligation: $14,944,275

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline