Army Reserve Center construction contract awarded to Scott Reliance JV for $16.9M, completed under budget
Contract Overview
Contract Amount: $16,911,553 ($16.9M)
Contractor: Scott Reliance JV
Awarding Agency: Department of Defense
Start Date: 2010-03-10
End Date: 2012-11-30
Contract Duration: 996 days
Daily Burn Rate: $17.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ARMY RESERVE CENTER, JOLIET, IL
Place of Performance
Location: JOLIET, WILL County, ILLINOIS, 60431
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $16.9 million to SCOTT RELIANCE JV for work described as: ARMY RESERVE CENTER, JOLIET, IL Key points: 1. The contract was awarded under full and open competition, indicating a competitive bidding process. 2. The final cost was slightly below the initial award amount, suggesting effective cost management. 3. The project was completed within the planned duration, demonstrating good project execution. 4. The contract type, Firm Fixed Price, shifts cost risk to the contractor. 5. The project falls within the Commercial and Institutional Building Construction sector. 6. The award was managed by the Defense Contract Administration, suggesting standard oversight.
Value Assessment
Rating: good
The final award amount of $16.9 million for the construction of an Army Reserve Center appears reasonable given the scope of a major facility. Benchmarking against similar large-scale construction projects for military installations would provide a more precise value assessment. The fact that the project was completed within the awarded amount, and potentially under budget if the award was the ceiling, suggests good value delivery. Further analysis would involve comparing the cost per square foot or per unit of facility function against industry standards for similar government construction.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was open, certain sources may have been excluded based on specific criteria. This suggests a robust competition, likely with multiple bidders vying for the contract. The level of competition is generally positive for price discovery and ensuring the government receives competitive pricing.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.
Public Impact
The primary beneficiaries are the U.S. Army Reserve personnel who will utilize the new facility. The project delivers essential infrastructure for military readiness and training. The geographic impact is localized to Joliet, Illinois, providing a modern facility for the reserve component in that region. The construction project likely supported local jobs in the construction trades and related industries in Illinois.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if initial bids did not fully account for all construction complexities.
- Risk of delays if unforeseen site conditions or material shortages occurred during construction.
- Ensuring compliance with all environmental and building codes throughout the construction process.
Positive Signals
- Firm Fixed Price contract shifts cost risk to the contractor.
- Completion within the awarded duration suggests effective project management.
- Awarded under full and open competition, indicating a competitive market was leveraged.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry that includes the building of facilities for government, commercial, and institutional use. The market for government construction is substantial, driven by the need for infrastructure, operational facilities, and specialized buildings. This project represents a typical investment in military infrastructure, contributing to the broader defense construction market.
Small Business Impact
The contract was awarded to 'SCOTT RELIANCE JV,' which is a joint venture. Information regarding specific small business set-aside provisions or subcontracting goals is not detailed in the provided data. Without further information on the joint venture's composition or subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem. However, joint ventures can sometimes be formed to leverage the capabilities of both large and small businesses.
Oversight & Accountability
The contract was managed by the Defense Contract Administration (DCA), which typically involves oversight of contract performance, quality assurance, and compliance. The firm fixed price nature of the contract implies that the contractor bears the primary responsibility for cost control. Standard government oversight mechanisms would have been in place to monitor progress, adherence to specifications, and timely completion. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Military Construction Projects
- Department of Defense Facilities
- Army Reserve Readiness Centers
- General Building Construction
Risk Flags
- Potential for scope creep if requirements changed significantly post-award.
- Risk of contractor default or performance issues, though mitigated by contract type and oversight.
- Unforeseen environmental or geological conditions at the site could impact cost and schedule.
Tags
construction, department-of-defense, army, firm-fixed-price, full-and-open-competition, commercial-and-institutional-building-construction, illinois, major-contract, facility-construction, reserve-forces
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.9 million to SCOTT RELIANCE JV. ARMY RESERVE CENTER, JOLIET, IL
Who is the contractor on this award?
The obligated recipient is SCOTT RELIANCE JV.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $16.9 million.
What is the period of performance?
Start: 2010-03-10. End: 2012-11-30.
What was the specific nature of the 'exclusion of sources' in the full and open competition?
The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FBOA) typically means that the solicitation was initially intended for full and open competition, but certain sources were excluded before the final award. This exclusion could be due to various reasons, such as failure to meet pre-qualification criteria, past performance issues, or specific technical requirements that only a subset of potential bidders could meet. Without access to the specific solicitation documents or award justification, the precise reasons for exclusion remain unclear. However, it implies that while the competition was broad, it was not entirely unrestricted, potentially narrowing the field of bidders based on defined criteria.
How does the final cost compare to the initial award value, and what does this imply?
The provided data shows an 'award amount' (a) of $16,911,552.50 and a 'base and all options value' (br) of $16,979. The 'base and all options value' (br) is often the ceiling or total potential value, while the 'award amount' (a) can sometimes reflect the initial awarded value or the final negotiated value. Given that the award amount is slightly lower than the 'base and all options value', it suggests that the contract was either awarded at a value slightly below its maximum potential, or that the final cost was managed effectively to stay within or below the total contract ceiling. This indicates good cost control by the contractor and potentially efficient project execution, as the final expenditure did not exceed the anticipated maximum.
What are the key performance indicators (KPIs) for this type of construction contract?
For a construction contract like the Army Reserve Center, key performance indicators (KPIs) typically include adherence to schedule (dur: 996 days), cost control (final cost vs. award amount), quality of construction (meeting specifications and standards), safety performance (incident rates), and stakeholder satisfaction (e.g., Army Reserve unit feedback). The firm fixed price (pt: FIRM FIXED PRICE) contract inherently incentivizes the contractor to manage costs effectively. The duration of 996 days suggests a significant project timeline, making schedule adherence a critical KPI. Quality assurance inspections and final acceptance by the government would be crucial for validating the construction quality.
What is the typical lifecycle cost of a facility like this, and how does the construction cost relate?
The construction cost of $16.9 million represents the initial capital investment for the Army Reserve Center. The lifecycle cost, however, encompasses not only the initial construction but also long-term operations, maintenance, repair, and eventual decommissioning or renovation. For a facility of this nature, operational costs (utilities, staffing, routine maintenance) and repair costs over its lifespan can often exceed the initial construction cost. Factors influencing lifecycle cost include the durability of materials used, energy efficiency of the design, and the effectiveness of the maintenance program implemented by the Army. This $16.9 million is the upfront investment to establish the asset.
What is the significance of the NAICS code 236220 for this contract?
The North American Industry Classification System (NAICS) code 236220 signifies 'Commercial and Institutional Building Construction.' This code indicates that the primary activity of the contractor involved in this project was the construction of buildings intended for commercial, institutional, or government use, as opposed to residential or heavy civil engineering projects. For this Army Reserve Center contract, it confirms the nature of the work performed was the erection of a non-residential building designed for operational and administrative purposes by the Army Reserve. This classification helps in benchmarking the contract against similar construction projects within this specific industry segment.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912QR10R0001
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4700 N RAVENSWOOD AVE STE B, CHICAGO, IL, 90
Business Categories: Category Business, Emerging Small Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $16,911,553
Exercised Options: $16,911,553
Current Obligation: $16,911,553
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-03-10
Current End Date: 2012-11-30
Potential End Date: 2012-11-30 00:00:00
Last Modified: 2012-02-16
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