Army Reserve Center Construction in California Awarded $21.6M to Jaynes Corporation

Contract Overview

Contract Amount: $21,572,078 ($21.6M)

Contractor: Jaynes Corporation of California

Awarding Agency: Department of Defense

Start Date: 2008-07-09

End Date: 2012-04-30

Contract Duration: 1,391 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: U.S. ARMY RESERVE CENTER, GARDEN GROVE, CA

Place of Performance

Location: GARDEN GROVE, ORANGE County, CALIFORNIA, 92840

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to JAYNES CORPORATION OF CALIFORNIA for work described as: U.S. ARMY RESERVE CENTER, GARDEN GROVE, CA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $21.6 million for construction services indicates a significant investment. 3. The duration of the contract (1391 days) suggests a complex and lengthy construction project. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. Awarded by the Department of the Army, this project falls under defense infrastructure spending. 6. The North American Industry Classification System (NAICS) code 237990 points to heavy and civil engineering construction.

Value Assessment

Rating: fair

Benchmarking the value of this specific construction contract is challenging without comparable projects in the immediate vicinity or for similar facility types. The firm-fixed-price structure is standard for construction, but the total award amount of $21.6 million for a reserve center suggests a substantial project. Further analysis would require detailed cost breakdowns and comparisons to industry standards for similar square footage and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 8 bidders, the competition level appears healthy, which typically aids in price discovery and can lead to more competitive pricing for the government. The presence of multiple bidders suggests a market capable of supporting such projects.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the U.S. Army Reserve personnel who will utilize the new facility in Garden Grove, California. The contract delivers essential construction services for a significant piece of military infrastructure. The geographic impact is localized to Garden Grove, California, and surrounding areas. The project likely created temporary construction jobs and supported the local economy through material procurement and services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Delays in construction could impact the operational readiness of the Army Reserve unit.
Quality control during a lengthy construction project requires diligent oversight.

Positive Signals

Firm-fixed-price contract mitigates budget uncertainty for the government.
Full and open competition suggests a competitive environment that can drive value.
Award to an established contractor (Jaynes Corporation) may indicate a level of confidence in their capability.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically for government facilities. The market for large-scale construction projects, particularly for defense infrastructure, is substantial. Comparable spending benchmarks would typically involve other military construction projects or large public works initiatives, where costs can vary widely based on location, complexity, and specific requirements.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, 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 construction contract would typically be managed by the U.S. Army Corps of Engineers or a designated contracting officer's representative. Accountability measures would include adherence to the contract's specifications, schedule, and quality standards. Transparency is generally maintained through contract award databases and reporting requirements, though detailed project oversight specifics are not publicly available.

Related Government Programs

Military Construction, Army
Reserve Forces Facilities
Defense Infrastructure Projects
Heavy and Civil Engineering Construction Contracts

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Quality control during extended construction period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to JAYNES CORPORATION OF CALIFORNIA. U.S. ARMY RESERVE CENTER, GARDEN GROVE, CA

Who is the contractor on this award?

The obligated recipient is JAYNES CORPORATION OF CALIFORNIA.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2008-07-09. End: 2012-04-30.

What is the track record of Jaynes Corporation of California on similar federal construction contracts?

Jaynes Corporation of California has a history of performing construction services for various government agencies, including military branches. Analyzing their past performance on similar projects, such as other reserve centers or military facilities, would provide insight into their ability to manage scope, budget, and schedule effectively. A review of their contract history, including any past performance evaluations or disputes, is crucial for assessing their reliability and suitability for large-scale projects like the U.S. Army Reserve Center in Garden Grove.

How does the awarded price compare to industry benchmarks for similar construction projects?

Directly comparing the $21.6 million award to industry benchmarks requires detailed project specifications, such as square footage, site conditions, and specific construction elements (e.g., specialized training areas, security features). However, the firm-fixed-price nature of the contract suggests that the contractor assumed the risk of cost overruns. Benchmarking would involve analyzing cost-per-square-foot data for similar government or commercial construction projects in Southern California, considering the complexity and specialized requirements of a military facility.

What are the primary risks associated with this specific construction contract?

The primary risks associated with this construction contract include potential delays due to unforeseen site conditions (e.g., soil issues, environmental concerns), contractor performance issues leading to schedule slippage or quality defects, and potential cost increases if the fixed-price contract contains escalation clauses or if change orders are extensive. Given the project's duration (1391 days), managing scope creep and ensuring consistent quality control throughout the construction lifecycle are also significant risk factors.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for the government by shifting the risk of cost overruns to the contractor. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. While FFP provides budget certainty, it can sometimes lead to contractors incorporating higher contingency into their bids to cover potential risks, potentially resulting in a higher initial price. For this project, FFP provides a clear ceiling for government expenditure.

What is the historical spending pattern for similar Army Reserve construction projects?

Historical spending patterns for similar Army Reserve construction projects can vary significantly based on location, size, and specific facility requirements. Projects can range from tens of millions to hundreds of millions of dollars. Factors influencing spending include land acquisition costs, site preparation complexity, building materials, labor rates in the region, and the inclusion of specialized infrastructure. Analyzing past awards for Army Reserve centers provides context for the $21.6 million awarded to Jaynes Corporation, helping to determine if it falls within typical cost ranges for comparable facilities.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912QR08R0033

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jaynes Corporation (UEI: 007112253)

Address: 111 ELM ST 4TH FL, SAN DIEGO, CA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,572,078

Exercised Options: $21,572,078

Current Obligation: $21,572,078

Contract Characteristics

Cost or Pricing Data: NO

Timeline