Department of the Army awards $26.6M contract for construction services to LDV, INC

Contract Overview

Contract Amount: $26,637,210 ($26.6M)

Contractor: LDV, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-11-05

End Date: 2011-11-21

Contract Duration: 1,477 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C0120-WHITEHALL AFRC COLUMBUS, OH

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43213

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $26.6 million to LDV, INC. for work described as: C0120-WHITEHALL AFRC COLUMBUS, OH Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1477 days indicates a significant, long-term project. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 5. Awarded by the Department of the Army, indicating a defense-related construction need. 6. The contract was awarded in Ohio, suggesting a specific geographic focus for the construction.

Value Assessment

Rating: fair

The total award amount of $26.6 million for a construction project of this duration appears within a reasonable range for large-scale institutional building. However, without specific details on the scope of work, materials, and labor involved, a precise value-for-money assessment is challenging. Benchmarking against similar large-scale construction projects by the Department of Defense or other federal agencies would provide a clearer picture of whether this represents competitive pricing.

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 5 bidders indicates a healthy level of competition for this project. This competitive environment generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The full and open competition process likely resulted in a more favorable price for taxpayers by encouraging multiple firms to offer their best pricing and capabilities.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel who will utilize the constructed facilities. The contract delivers essential construction services for institutional or commercial buildings. The geographic impact is concentrated in Ohio, where the construction work will take place. The project will likely involve a significant workforce of construction laborers, tradespeople, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen construction challenges.
Risk of delays impacting the operational readiness of the facility if project timelines are not met.
Quality control concerns inherent in large construction projects require diligent oversight.

Positive Signals

Firm Fixed Price contract provides cost certainty and limits the government's exposure to price fluctuations.
Full and open competition suggests a robust selection process, likely resulting in a qualified contractor.
The contract's duration indicates a substantial project, potentially leading to long-term infrastructure improvements.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building of non-residential structures such as government facilities, educational institutions, and healthcare buildings. Federal spending in this area is crucial for maintaining and expanding government infrastructure. Comparable spending benchmarks would involve analyzing other large federal construction awards for similar types of facilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases, though specific project details might be less public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Construction Contracts
Department of Defense Facilities Construction
Federal Building and Infrastructure Projects
General Services Administration (GSA) Construction

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of schedule delays impacting operational needs.
Quality assurance requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.6 million to LDV, INC.. C0120-WHITEHALL AFRC COLUMBUS, OH

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 $26.6 million.

What is the period of performance?

Start: 2007-11-05. End: 2011-11-21.

What was the specific scope of work for this construction contract?

The provided data indicates the contract falls under NAICS code 236220 (Commercial and Institutional Building Construction) and was awarded to LDV, INC. by the Department of the Army. However, the specific scope of work, such as whether it involved new construction, renovation, or specific types of facilities (e.g., barracks, administrative buildings, training centers), is not detailed. Further investigation into the contract's statement of work would be necessary to understand the precise nature of the construction services delivered and their intended purpose.

How does the $26.6 million award compare to similar construction projects by the Department of Defense?

A direct comparison of the $26.6 million award requires identifying similar projects in terms of scope, complexity, and location. For instance, comparing it to other firm-fixed-price contracts for institutional building construction awarded by the Army or other DoD branches over the past decade would be informative. Factors like inflation, regional labor costs, and specific project requirements (e.g., security, environmental standards) heavily influence costs. Without these comparative data points, it's difficult to definitively state if $26.6 million represents a high, low, or average cost for such a project.

What were the key performance indicators (KPIs) and success metrics for this contract?

The provided data does not specify the key performance indicators or success metrics established for this contract. Typically, for construction projects, KPIs would include adherence to schedule, budget compliance (especially critical for a fixed-price contract), quality of workmanship, safety record, and successful completion of all specified deliverables. The contract's performance would be evaluated against these metrics by the contracting officer's representative (COR) or a similar designated official.

What is the track record of LDV, INC. with federal construction contracts?

The provided data identifies LDV, INC. as the contractor for this $26.6 million Department of the Army construction contract. To assess their track record, one would need to examine their past performance on other federal contracts, particularly those with the Department of Defense or other agencies. This would involve looking at contract history, any reported performance issues, past performance evaluations, and the types and values of previous contracts awarded to them. A review of federal procurement databases would be essential for this analysis.

Were there any significant challenges or disputes during the execution of this contract?

The available data does not contain information regarding challenges or disputes encountered during the execution of this contract. Large construction projects can sometimes face issues such as unforeseen site conditions, material shortages, labor disputes, or scope changes, which may lead to contract modifications, claims, or formal disputes. Information on such events would typically be found in contract modification records, legal filings, or agency Inspector General reports, none of which are included in the provided summary data.

How did the 5 bidders in the full and open competition influence the final contract price?

The presence of 5 bidders in a full and open competition generally exerts downward pressure on the contract price. Each bidder, knowing they are competing against multiple other firms, is incentivized to offer a competitive price to win the contract. The final price is a result of the bidding process, where the lowest priced, technically acceptable offer (or best value, depending on evaluation criteria) is typically selected. The more bidders there are, the higher the likelihood that the government secures a price reflecting market value and efficiency.

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: TWO STEP

Solicitation ID: W912QR07R0055

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 1551 E 105 ST, CLEVELAND, OH, 90

Business Categories: 8(a) Program Participant, Category 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: $26,637,210

Exercised Options: $26,637,210

Current Obligation: $26,637,210

Contract Characteristics

Cost or Pricing Data: NO

Timeline