DOD awards $15.3M construction contract to Pike Wohlson, LLC for AFRC at Newark, DE

Contract Overview

Contract Amount: $15,339,715 ($15.3M)

Contractor: Pike Wohlsen, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-23

End Date: 2012-04-05

Contract Duration: 925 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AFRC AT NEWARK, DE

Place of Performance

Location: NEWARK, NEW CASTLE County, DELAWARE, 19711

State: Delaware Government Spending

Plain-Language Summary

Department of Defense obligated $15.3 million to PIKE WOHLSEN, LLC for work described as: AFRC AT NEWARK, DE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 925 days indicates a significant, long-term project. 3. Fixed-price contract type may offer cost certainty for the government. 4. The award was made by the Department of the Army, part of the larger Department of Defense. 5. The project is located in Newark, Delaware, with implications for local construction workforce and economy. 6. The contract value of $15.3 million falls within a moderate spending range for construction projects of this nature.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar construction projects within the Department of Defense. Without specific details on the scope of work, it's difficult to definitively assess if the $15.3 million represents excellent value for money. However, the fixed-price nature of the contract can provide some assurance against cost overruns.

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 a bid. The presence of 11 bids indicates a healthy level of interest and competition for this project. A higher number of bidders generally suggests a more competitive environment, which can lead to better pricing and terms 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 Department of Defense and its personnel at the AFRC facility in Newark, Delaware, who will receive improved infrastructure. The services delivered include commercial and institutional building construction, likely involving renovation, new construction, or facility upgrades. The geographic impact is concentrated in Newark, Delaware, potentially creating local jobs and stimulating the regional economy. The project will likely involve a significant construction workforce, including skilled trades and project management personnel.

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 AFRC facility.
Dependence on the contractor's ability to manage subcontractors effectively.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Fixed-price contract type provides cost predictability for the government.
The project addresses a clear need for infrastructure improvement within the Department of Defense.
The contractor, Pike Wohlson, LLC, has experience in commercial and institutional building construction.

Sector Analysis

This contract falls within the construction sector, specifically for commercial and institutional buildings. The Department of Defense is a significant client for construction services, with substantial annual spending on facility maintenance, upgrades, and new builds. Comparable spending benchmarks would typically be derived from other large-scale military construction projects, considering factors like project scope, location, and material costs.

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. Further analysis would be needed to determine if Pike Wohlson, LLC has a history of subcontracting with small businesses on similar projects.

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 would be defined in the contract terms and conditions, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Department of Defense Facilities
Base Realignment and Closure (BRAC) Projects
Federal Building Construction
Army Corps of Engineers Projects

Risk Flags

Potential for cost overruns
Risk of project delays
Contractor performance monitoring required
Scope creep potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.3 million to PIKE WOHLSEN, LLC. AFRC AT NEWARK, DE

Who is the contractor on this award?

The obligated recipient is PIKE WOHLSEN, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.3 million.

What is the period of performance?

Start: 2009-09-23. End: 2012-04-05.

What is the track record of Pike Wohlson, LLC with the Department of Defense?

Pike Wohlson, LLC has a history of receiving contracts from the Department of Defense, as evidenced by this award. To fully assess their track record, a deeper dive into their past performance on similar projects would be necessary. This would involve reviewing contract completion history, any past performance evaluations, and any instances of contract disputes or terminations. Understanding their experience with fixed-price contracts and projects of similar scale and complexity would also be crucial for evaluating their reliability and capability in executing this current award effectively.

How does the $15.3 million award compare to similar construction projects for the Department of Defense?

Comparing the $15.3 million award requires context regarding the specific scope of work, location, and type of construction. For instance, a new barracks construction might differ significantly in cost from a renovation of existing administrative buildings. However, for a substantial commercial or institutional building project within the Department of Defense, $15.3 million represents a moderate to significant investment. Benchmarking against other awarded contracts for similar facilities, adjusted for inflation and regional cost differences, would provide a clearer picture of whether this award represents a competitive price point. The 11 bids received suggest a competitive market for this type of work.

What are the primary risks associated with this fixed-price construction contract?

The primary risks associated with this fixed-price construction contract include potential cost overruns if the contractor underestimated project expenses, scope creep if additional requirements are added without proper change order procedures, and delays due to unforeseen site conditions or contractor performance issues. While the fixed-price nature protects the government from direct cost increases, it places the financial risk on the contractor. If the contractor faces significant unexpected costs, they might cut corners on quality or attempt to expedite work, potentially leading to subpar results or safety concerns. Effective oversight and clear contract terms are crucial to mitigate these risks.

How effective is full and open competition in ensuring value for money for construction contracts of this size?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for construction projects of this size. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. The fact that 11 bids were received for this $15.3 million contract indicates that the market was receptive and that the government likely received competitive offers. This broad competition increases the likelihood that the government is obtaining the best possible price and quality for the services rendered, minimizing the risk of paying inflated prices due to a lack of market engagement.

What is the historical spending trend for similar construction services by the Department of the Army?

The Department of the Army, as a major component of the Department of Defense, consistently spends billions of dollars annually on construction services to maintain and upgrade its vast infrastructure. Historical spending trends for similar construction projects would show a significant and ongoing investment in facilities across various types, including administrative buildings, housing, training facilities, and specialized infrastructure. Factors influencing these trends include military readiness requirements, modernization efforts, and infrastructure lifecycle management. Analyzing specific categories like 'Commercial and Institutional Building Construction' (NAICS 236220) over several fiscal years would reveal patterns in contract values, award volumes, and the types of construction services most frequently procured.

What are the potential implications of the contract duration (925 days) on project management and oversight?

A contract duration of 925 days (approximately 2.5 years) for a construction project of this magnitude necessitates robust project management and sustained oversight. The extended timeline increases the potential for changes in requirements, economic fluctuations affecting material costs, and the need for continuous monitoring of contractor performance and quality control. The government's project managers and contracting officers must maintain consistent engagement to ensure adherence to the schedule, budget, and specifications. This duration also implies a significant commitment of resources and attention from both the contractor and the overseeing agency throughout the project lifecycle.

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: W912QR09R0070

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 548 STEEL WAY, LANCASTER, PA, 11

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,339,715

Exercised Options: $15,339,715

Current Obligation: $15,339,715

Contract Characteristics

Cost or Pricing Data: NO

Timeline