Clayco Inc. awarded $1.66B contract for Army Reserve Center construction in Willow Grove, PA

Contract Overview

Contract Amount: $16,603,184 ($16.6M)

Contractor: Clayco Inc

Awarding Agency: Department of Defense

Start Date: 2009-09-24

End Date: 2013-03-28

Contract Duration: 1,281 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ARMY RESERVE CENTER, WILLOW GROVE, PA

Place of Performance

Location: HORSHAM, MONTGOMERY County, PENNSYLVANIA, 19044

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to CLAYCO INC for work described as: ARMY RESERVE CENTER, WILLOW GROVE, PA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1281 days indicates a significant, long-term construction project. 3. The firm-fixed-price nature of the contract shifts cost overrun risk to the contractor. 4. The project is located in Pennsylvania, potentially impacting the local construction workforce and economy. 5. The contract value of $1.66 billion represents a substantial investment in military infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific cost breakdowns or comparable project data. The sheer scale of the award suggests a significant undertaking. However, the lack of detailed cost analysis or comparison to similar projects makes a definitive value-for-money assessment difficult. Further investigation into the specific components of the construction and their associated costs would be needed to provide a more precise valuation.

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 a bid. The presence of 15 bids suggests a healthy level of interest and competition for this significant construction project. This broad competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The extensive competition 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, who will gain a new or improved facility. The contract delivers construction services for a significant military infrastructure project. The geographic impact is concentrated in Willow Grove, Pennsylvania, with potential economic benefits for the local area. The project will likely create numerous jobs in the construction sector, benefiting skilled trades and related industries in Pennsylvania.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price structure.
Ensuring timely completion within the 1281-day timeframe is critical for operational readiness.
Quality control and adherence to construction standards must be rigorously monitored throughout the project lifecycle.

Positive Signals

The firm-fixed-price contract transfers significant financial risk to the contractor.
Full and open competition suggests a robust selection process and potentially competitive pricing.
The project's scale indicates a substantial investment in critical military infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The market for large-scale government construction projects is often characterized by significant competition among established firms. The value of this single contract is substantial, representing a considerable portion of annual spending in this specific niche of public infrastructure development.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem may be limited unless the prime contractor, Clayco Inc., voluntarily engages small businesses for subcontracting opportunities. Further investigation into subcontracting plans would be necessary to assess the broader impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant personnel within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which places the onus on the contractor for cost control. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Reserve Component Readiness Initiatives
Large-Scale Construction Contracts
Federal Infrastructure Development

Risk Flags

Large Contract Value
Long Project Duration
Potential for Cost Overruns (if scope changes significantly)
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to CLAYCO INC. ARMY RESERVE CENTER, WILLOW GROVE, PA

Who is the contractor on this award?

The obligated recipient is CLAYCO 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 $16.6 million.

What is the period of performance?

Start: 2009-09-24. End: 2013-03-28.

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

Analyzing historical spending for similar Army Reserve Center construction projects requires access to detailed contract databases and filtering by project type, agency, and scope. Without specific data points on past projects of comparable size and complexity, it's difficult to establish a precise historical spending pattern. However, large-scale military construction projects are typically multi-year endeavors with significant budget allocations. Factors such as location, specific facility requirements (e.g., training areas, administrative space, maintenance facilities), and prevailing construction costs at the time of award influence the overall expenditure. Trends in military construction spending can also be influenced by broader defense budgets and strategic priorities. A comprehensive analysis would involve comparing contract values, durations, and the number of bids received for similar projects over the past decade to identify any significant deviations or consistent trends in investment.

How does the awarded amount of $1.66 billion compare to the estimated cost or initial budget for this project?

The provided data indicates the final awarded amount for the Army Reserve Center construction is $1.66 billion. However, there is no information available regarding the initial estimated cost or the project's budget prior to the award. Without this baseline, it is impossible to determine if the awarded amount represents an increase, decrease, or alignment with the original financial projections. In many large federal contracts, the awarded amount can differ from initial estimates due to competitive bidding outcomes, scope adjustments during the procurement process, or changes in market conditions. A comparison would require access to pre-award budget documents or cost estimates released by the Department of the Army.

What specific construction services are included within the $1.66 billion contract value?

The contract data identifies the North American Industry Classification System (NAICS) code as 236220, which corresponds to Commercial and Institutional Building Construction. This broad category typically encompasses the planning, construction, and renovation of non-residential buildings. For an Army Reserve Center, this would likely include site preparation, foundation work, structural erection, installation of mechanical, electrical, and plumbing systems, interior finishing, and potentially specialized facilities for military training or operations. The $1.66 billion value suggests a comprehensive scope, possibly including design services, materials, labor, project management, and contingency allowances. However, a detailed breakdown of specific services and their allocated costs is not provided in the summary data.

What is Clayco Inc.'s track record with large-scale federal construction contracts, particularly for military facilities?

Clayco Inc. is a well-established construction firm with a significant portfolio of large-scale projects across various sectors, including commercial, institutional, and industrial. While specific details on their historical performance exclusively on federal military facility construction contracts are not immediately available in the provided data, their substantial contract award of $1.66 billion for the Army Reserve Center indicates a capacity and capability to handle major government projects. Companies of this size often have experience with federal procurement processes, security clearances, and the specific requirements of building for government entities. A thorough assessment of their track record would involve reviewing past federal contracts, client feedback, project completion records, and any reported performance issues or accolades related to similar government work.

What are the potential risks associated with a firm-fixed-price contract of this magnitude and duration?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty for the government by shifting risk to the contractor, significant risks can still emerge, especially for a project valued at $1.66 billion and spanning 1281 days. The primary risk is contractor default or bankruptcy if they miscalculate costs or face unforeseen financial difficulties. Scope creep, if not managed meticulously through change orders, can lead to disputes and potential cost increases, even under an FFP. Furthermore, if the contractor cuts corners on quality to manage costs, it could lead to long-term maintenance issues or safety concerns. Delays, while the contractor bears the cost, can still impact the government's operational readiness and may necessitate costly interim solutions. Ensuring robust oversight and contract management is crucial to mitigate these risks.

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: W912QR09R0067

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2199 INNERBELT BUSINESS CENTER DR, SAINT LOUIS, MO, 90

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

Financial Breakdown

Contract Ceiling: $16,603,184

Exercised Options: $16,603,184

Current Obligation: $16,603,184

Contract Characteristics

Cost or Pricing Data: NO

Timeline