Army Reserve Center Construction in Puerto Rico Awarded for $21M Under Full and Open Competition
Contract Overview
Contract Amount: $21,022,612 ($21.0M)
Contractor: Federal Insurance Company
Awarding Agency: Department of Defense
Start Date: 2009-09-08
End Date: 2012-11-25
Contract Duration: 1,174 days
Daily Burn Rate: $17.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ARMY RESERVE CENTER, FT. BUCHANAN, PUERTO RICO
Place of Performance
Location: FORT BUCHANAN, BAYAMON County, PUERTO RICO, 00934
Plain-Language Summary
Department of Defense obligated $21.0 million to FEDERAL INSURANCE COMPANY for work described as: ARMY RESERVE CENTER, FT. BUCHANAN, PUERTO RICO Key points: 1. The contract was awarded for the construction of an Army Reserve Center in Puerto Rico. 2. Full and open competition was utilized, suggesting a robust market for construction services. 3. The project duration was 1174 days, indicating a significant construction undertaking. 4. The contract type was Firm Fixed Price, providing cost certainty for the government. 5. The award value of $21,012,612.25 is a key data point for this construction project.
Value Assessment
Rating: good
The contract value of $21 million for a significant construction project appears reasonable given the scope and duration. Benchmarking against similar large-scale government construction projects would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests that multiple qualified contractors were able to bid on the project. This method typically fosters competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing the value of taxpayer dollars spent on this essential facility.
Public Impact
Provides a new facility for Army Reserve operations in Puerto Rico. Supports local economic activity through construction jobs and material procurement. Enhances military readiness and training capabilities for Reserve personnel in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to project duration and complexity.
- Geographic location in Puerto Rico may present logistical challenges.
- Contract performance risks associated with construction projects of this scale.
Positive Signals
- Use of Firm Fixed Price contract limits cost uncertainty.
- Full and open competition promotes competitive pricing.
- Clear definition of scope for construction services.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for federal projects can vary significantly based on infrastructure needs and economic conditions. The $21 million award is substantial for a single facility.
Small Business Impact
The data indicates that small businesses were not directly involved as prime contractors (ss: false, sb: false). Future analysis could explore subcontracting opportunities for small businesses within this large construction project.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. The use of a definitive contract and full and open competition suggests established procurement processes were followed.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Project duration significantly exceeds typical construction timelines.
- Geographic location may introduce logistical and supply chain complexities.
- Lack of direct small business participation as prime contractors.
- Potential for scope creep or change orders during a long construction period.
Tags
commercial-and-institutional-building-co, department-of-defense, pr, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.0 million to FEDERAL INSURANCE COMPANY. ARMY RESERVE CENTER, FT. BUCHANAN, PUERTO RICO
Who is the contractor on this award?
The obligated recipient is FEDERAL INSURANCE COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $21.0 million.
What is the period of performance?
Start: 2009-09-08. End: 2012-11-25.
What was the primary driver for the $21 million investment in the Army Reserve Center?
The primary driver was likely the need for a modern, dedicated facility to support Army Reserve training, operations, and readiness in Puerto Rico. Existing facilities may have been inadequate, outdated, or insufficient to meet current military requirements, necessitating a new construction project to ensure effective mission accomplishment.
What are the key risks associated with a construction project of this magnitude and duration?
Key risks include potential cost overruns due to unforeseen site conditions, material price fluctuations, or extended timelines. Schedule delays can arise from weather, labor availability, or permitting issues. Furthermore, ensuring quality construction that meets military standards and long-term durability presents a significant risk that requires diligent oversight and quality control throughout the project lifecycle.
How effectively did the full and open competition ensure value for taxpayer money?
Full and open competition generally promotes value by allowing a wide range of qualified contractors to bid, fostering a competitive environment that drives down prices. The government can then select the offer that provides the best overall value, considering price, technical approach, and past performance. This process increases transparency and reduces the likelihood of paying an inflated price compared to sole-source or limited competition scenarios.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912QR09R0051
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chubb Corporation, the (UEI: 044168144)
Address: 15 MOUNTAINVIEW RD, WARREN, NJ, 07059
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,022,612
Exercised Options: $21,022,612
Current Obligation: $21,022,612
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-08
Current End Date: 2012-11-25
Potential End Date: 2012-11-25 00:00:00
Last Modified: 2015-12-28
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