Army Reserve Center construction contract awarded to E.W. Howell Co. for over $13.6 million

Contract Overview

Contract Amount: $13,614,816 ($13.6M)

Contractor: E. W. Howell CO., Inc

Awarding Agency: Department of Defense

Start Date: 2009-06-18

End Date: 2014-01-06

Contract Duration: 1,663 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ARMY RESERVE CENTER , SHOREHAM, NY

Place of Performance

Location: SHOREHAM, SUFFOLK County, NEW YORK, 11786

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to E. W. HOWELL CO., INC for work described as: ARMY RESERVE CENTER , SHOREHAM, NY Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Contract duration of over 4 years indicates a significant, long-term project. 4. Fixed-price contract type may offer cost certainty but limits flexibility for scope changes. 5. Project location in Shoreham, NY, suggests a specific regional need for facility expansion. 6. No small business set-aside was utilized, indicating the primary awardee is not an SMB.

Value Assessment

Rating: good

The contract value of $13.6 million for the construction of an Army Reserve Center is within a typical range for such projects, especially considering the duration and scope. Benchmarking against similar large-scale institutional construction projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the contractor assumed most of the cost risk, which can be beneficial for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 6 bidders participating, this suggests a healthy level of competition for the project. A higher number of bidders generally leads to more competitive pricing and better value for the government.

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 Shoreham, NY. The contract delivers a new construction project, likely a significant facility to support military readiness and operations. The geographic impact is localized to Shoreham, New York, providing a critical infrastructure asset for the region. The project likely created numerous jobs in the construction sector, including skilled trades and project management roles in the New York area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extended construction period, despite the fixed-price nature.
Risk of schedule delays impacting the operational readiness of the Army Reserve unit.
Quality control during a multi-year construction project requires diligent oversight to ensure standards are met.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Full and open competition with multiple bidders suggests a competitive award process.
The contractor, E.W. Howell Co., Inc., has experience in commercial and institutional building construction.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for government construction projects is substantial, with agencies like the Department of Defense frequently awarding contracts for facilities. Comparable spending benchmarks would involve analyzing the cost per square foot or per project for similar military or government building constructions across different regions.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, E.W. Howell Co., Inc., is likely a larger entity given the contract value. There is no explicit indication of subcontracting plans for small businesses within the provided data, which could represent a missed opportunity to engage the small business ecosystem. Further analysis would be needed to determine if subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant Army Corps of Engineers or facility management personnel. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified facility within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed project progress and specific oversight activities may not be publicly available.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Army Reserve Facilities
General Building Construction

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep.
Fixed-price contract requires careful management to avoid contractor claims for unforeseen issues.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to E. W. HOWELL CO., INC. ARMY RESERVE CENTER , SHOREHAM, NY

Who is the contractor on this award?

The obligated recipient is E. W. HOWELL CO., 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 $13.6 million.

What is the period of performance?

Start: 2009-06-18. End: 2014-01-06.

What is the track record of E.W. Howell Co., Inc. with federal contracts, particularly with the Department of Defense?

E.W. Howell Co., Inc. has a history of securing contracts with various government entities, including the Department of Defense. While this specific contract for the Shoreham Army Reserve Center is a significant award, their broader federal contracting portfolio would need to be examined to fully assess their track record. This would involve reviewing past performance evaluations, any history of contract disputes or terminations, and the types and values of previous federal projects they have completed. A consistent record of successful project delivery and adherence to contract terms would indicate a reliable contractor, whereas any significant issues could raise concerns about future performance.

How does the awarded amount compare to the estimated cost or budget for this Army Reserve Center project?

The provided data indicates the awarded amount was $13,614,816.25. Without access to the government's initial cost estimates or the bids submitted by the other five competitors, it is difficult to definitively assess if this award represents optimal value. However, the fact that it was awarded under full and open competition with six bidders suggests that the price was deemed acceptable and competitive by the contracting agency. A detailed comparison would require access to the bid tabulation and potentially the government's independent government cost estimate (IGCE) to understand the variance and the rationale behind the final award price.

What are the key performance indicators (KPIs) used to monitor the progress and success of this construction contract?

For a large construction contract like this, key performance indicators would likely include adherence to the project schedule, quality of workmanship, safety compliance, and budget management. Progress payments would be tied to the achievement of specific milestones. The government's contracting officer's representative (COR) or a designated construction representative would be responsible for monitoring these KPIs through site inspections, progress reports, and regular meetings with the contractor. Failure to meet KPIs could result in corrective actions, withholding of payments, or even contract termination, depending on the severity.

What is the historical spending pattern for similar Army Reserve Center construction projects by the Department of the Army?

Historical spending on similar Army Reserve Center construction projects can vary significantly based on location, size, complexity, and the specific year of construction due to inflation and market conditions. The Department of the Army, through various commands like the Army Corps of Engineers, manages numerous construction projects annually. Analyzing past contracts for facilities of comparable square footage and function in similar geographic regions would provide a benchmark. This analysis would reveal average contract values, typical durations, and common contracting approaches (e.g., fixed-price vs. cost-plus) used for such infrastructure development.

What are the potential risks associated with the long duration (1663 days) of this construction contract?

A contract duration of 1663 days (approximately 4.5 years) for a construction project introduces several potential risks. Material costs can fluctuate significantly over such a long period, potentially impacting the contractor's profitability or leading to claims if not adequately managed within the fixed-price structure. Labor availability and costs can also change. Furthermore, extended project timelines increase the risk of encountering unforeseen site conditions, design changes, or regulatory updates that may necessitate modifications to the original scope, potentially leading to delays and cost adjustments. Maintaining consistent quality control and project oversight over several years also requires sustained effort.

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: W912QR09R0025

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Obayashi Corporation (UEI: 690540075)

Address: 113 CROSSWAYS PARK DR, WOODBURY, NY, 11797

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,251,616

Exercised Options: $16,519,499

Current Obligation: $13,614,816

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline