Army's $24.4M Design/Build contract for USARC facilities awarded to Plata-Mota JV, highlighting construction sector spending

Contract Overview

Contract Amount: $24,408,749 ($24.4M)

Contractor: Plata -Mota Joint Venture

Awarding Agency: Department of Defense

Start Date: 2008-06-12

End Date: 2011-11-29

Contract Duration: 1,265 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD USARC MILCON

Place of Performance

Location: FOREST PARK, COOK County, ILLINOIS, 60130

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to PLATA -MOTA JOINT VENTURE for work described as: DESIGN/BUILD USARC MILCON Key points: 1. Contract awarded for design and build services for U.S. Army Reserve Command (USARC) facilities. 2. The contract value of approximately $24.4 million falls within a moderate spending range for military construction projects. 3. Awarded under Full and Open Competition after Exclusion of Sources, indicating a competitive process with specific source considerations. 4. The contract duration of 1265 days suggests a significant project timeline, typical for design-build military construction. 5. The project is located in Illinois, indicating a specific geographic focus for this infrastructure investment. 6. The contractor, Plata-Mota Joint Venture, is responsible for both the design and construction phases.

Value Assessment

Rating: fair

Benchmarking the value of this $24.4 million design-build contract requires comparison to similar military construction projects. Without specific cost breakdowns for design versus construction, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract shifts some risk to the contractor, which can be beneficial for the government if managed effectively. The contract's duration suggests a substantial undertaking, and its cost should be evaluated against the scope of work and the complexity of the facilities being designed and built.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This procurement method suggests that while the competition was intended to be open, certain sources were excluded, possibly due to specific qualifications, past performance, or other pre-determined criteria. The fact that there were two bidders indicates a degree of competition, but the exclusion of other potential bidders might have limited the overall competitive landscape and potentially impacted price discovery.

Taxpayer Impact: The limited competition, even after an initial open phase, may have resulted in a higher price for taxpayers than if a broader range of contractors had been able to bid without exclusions.

Public Impact

The primary beneficiaries are the U.S. Army Reserve Command, which will receive new or improved facilities. Services delivered include the design and construction of military construction facilities, enhancing operational readiness. The geographic impact is concentrated in Illinois, where the facilities will be located. Workforce implications include employment opportunities for construction workers, engineers, architects, and project managers involved in the design and build process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if design complexities are underestimated in the fixed-price contract.
Risk of schedule delays due to the inherent complexities of design-build projects.
Ensuring quality control across both design and construction phases under a single joint venture.

Positive Signals

Fixed-price contract structure incentivizes contractor efficiency and cost control.
Joint venture structure may bring together specialized expertise for complex design-build requirements.
Awarding to a joint venture can foster collaboration and share risk.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Military construction (MILCON) projects represent a specialized niche within this sector, often involving stringent requirements for security, durability, and functionality. Spending in this area is driven by defense needs and infrastructure modernization efforts. Comparable spending benchmarks would involve analyzing other design-build contracts for federal facilities, particularly those for military branches.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb: false'. The award to a joint venture suggests a focus on larger, capable entities for this significant military construction project. There is no explicit information provided regarding subcontracting plans or their impact on the small business ecosystem. Future analysis could explore subcontracting opportunities that may arise from this prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Army Corps of Engineers district responsible for military construction. Accountability measures are embedded in the firm-fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon cost and schedule. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Military Construction (MILCON)
Design-Build Contracts
U.S. Army Reserve Command Facilities
Federal Building Construction

Risk Flags

Limited competition may impact price.
Potential for cost growth in fixed-price contracts if scope is not well-defined.
Contractor's past performance on similar projects needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to PLATA -MOTA JOINT VENTURE. DESIGN/BUILD USARC MILCON

Who is the contractor on this award?

The obligated recipient is PLATA -MOTA JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.4 million.

What is the period of performance?

Start: 2008-06-12. End: 2011-11-29.

What is the track record of Plata-Mota Joint Venture in executing similar design-build military construction projects?

Information regarding the specific track record of the 'Plata - Mota Joint Venture' in executing similar design-build military construction projects is not detailed in the provided data. To assess their capability, one would need to review their past performance on federal contracts, particularly those involving military facilities and the design-build delivery method. Key indicators would include successful completion of projects on time and within budget, quality of work, and any history of disputes or contract modifications. Without this specific performance history, it is difficult to definitively gauge their experience and reliability for this particular $24.4 million contract.

How does the awarded price of $24.4 million compare to market rates for similar design-build military construction projects?

A direct comparison of the $24.4 million award price to market rates for similar design-build military construction projects is challenging without detailed project specifications, location-specific cost indices, and a robust database of comparable contract awards. However, the contract's firm-fixed-price nature suggests that the government sought to establish a definitive cost upfront. To benchmark effectively, one would need to analyze the square footage, complexity of facilities (e.g., specialized training areas, barracks, administrative buildings), and the specific region's construction cost environment. The number of bidders (two) also provides a limited insight; a more competitive field might typically drive prices closer to market averages.

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

The primary risks associated with this design-build contract include potential cost overruns if the fixed-price contract does not adequately account for unforeseen design complexities or material cost escalations, and schedule delays inherent in integrating design and construction phases. Mitigation strategies likely involve rigorous government oversight during the design review process, clear performance milestones, and potentially liquidated damages clauses for late completion. The contractor, Plata-Mota Joint Venture, assumes significant risk under the firm-fixed-price structure, incentivizing them to manage these risks proactively through detailed planning and execution.

How effective is the 'Full and Open Competition after Exclusion of Sources' method in ensuring optimal value for taxpayers in this context?

The 'Full and Open Competition after Exclusion of Sources' method aims to balance broad competition with the need for specific capabilities. While it allows for a wider pool than sole-source, excluding certain sources might limit the number of competitive bids received. If the excluded sources were highly capable or competitive, this could potentially lead to a higher price for taxpayers than a truly unrestricted full and open competition. The effectiveness hinges on whether the exclusions were justified by essential requirements and if the remaining bidders provided sufficient price competition. With only two bidders, the price discovery mechanism might be less robust.

What is the historical spending pattern for U.S. Army Reserve Command (USARC) facility construction, and how does this contract fit within it?

Historical spending patterns for USARC facility construction typically fluctuate based on military readiness needs, aging infrastructure, and congressional appropriations. This $24.4 million design-build contract represents a specific investment in upgrading or expanding USARC facilities. To understand its place in the broader pattern, one would need to examine multi-year spending data for USARC MILCON projects, looking at average contract values, project types, and geographic distribution. This contract appears to be a moderate-sized project within the typical scope of federal military construction investments, contributing to the overall modernization and maintenance of USARC infrastructure.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912QR08R0015

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3854 W IRVING PARK RD, CHICAGO, IL, 90

Business Categories: Category Business, Emerging Small Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $24,408,749

Exercised Options: $24,408,749

Current Obligation: $24,408,749

Contract Characteristics

Cost or Pricing Data: NO

Timeline