Altech Inc. awarded $14.6M construction contract for Red River Army Depot, TX

Contract Overview

Contract Amount: $14,606,205 ($14.6M)

Contractor: Altech Inc

Awarding Agency: Department of Defense

Start Date: 2009-12-16

End Date: 2012-03-31

Contract Duration: 836 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION CONTRACT - RED RIVER ARMY DEPOT AFRC, TX

Place of Performance

Location: HOOKS, BOWIE County, TEXAS, 75561

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.6 million to ALTECH INC for work described as: CONSTRUCTION CONTRACT - RED RIVER ARMY DEPOT AFRC, TX Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of 836 days indicates a significant construction project. 4. The award was made by the Department of the Army, a major federal agency. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded in late 2009, with completion in early 2012.

Value Assessment

Rating: fair

Benchmarking the value of this $14.6 million construction contract is challenging without specific project details or comparable bids. However, the firm fixed-price nature suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator for the government if the project is completed within budget. The duration of 836 days for a project of this magnitude appears reasonable, but a detailed cost-per-day analysis would be needed for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific designation implies that while the competition was intended to be broad, certain sources were excluded, potentially limiting the pool of bidders. The number of bidders (9) is a healthy sign, indicating some level of interest and competition. However, the exclusion of sources warrants further investigation to understand its impact on the final price and overall value.

Taxpayer Impact: While 9 bidders participated, the exclusion of certain sources could have potentially led to a higher price than if all qualified sources had been allowed to bid. Taxpayers benefit from competition, but the specific nature of this competition requires scrutiny.

Public Impact

The primary beneficiaries are the Department of the Army and personnel at the Red River Army Depot, who will receive improved or new facilities. The services delivered include commercial and institutional building construction, likely involving new structures or significant renovations. The geographic impact is localized to Red River Army Depot, Texas. Workforce implications would include construction jobs for skilled laborers and tradespeople during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in the competition type raises concerns about whether the government received the maximum possible competition and potentially the best price.
Lack of detailed project scope makes it difficult to assess if the $14.6 million represents a fair market value for the construction services rendered.

Positive Signals

The award to Altech Inc. through a competitive process (9 bidders) suggests a degree of market validation.
The Firm Fixed Price contract type is a positive signal, indicating that cost risk was transferred to the contractor.
The contract was awarded by a major federal agency (Department of the Army), implying adherence to standard procurement processes.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). The federal government is a significant consumer of construction services for military bases, government buildings, and infrastructure projects. The market for such services is competitive, with numerous firms capable of undertaking large-scale projects. This contract represents a portion of the Department of Defense's broader spending on facilities maintenance and development.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Altech Inc., is likely a larger entity. There is no direct information on subcontracting plans or their impact on the small business ecosystem from the provided data. Future analysis would need to examine subcontracting reports to assess small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and project management offices. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally facilitated through contract award databases like FPDS, where basic award details are published. However, detailed project oversight and performance monitoring are internal agency functions.

Related Government Programs

Military Base Construction
Department of Defense Facilities
Army Corps of Engineers Projects
General Building Construction Services

Risk Flags

Potential limitation of competition due to source exclusion.
Lack of detailed project scope for value assessment.
Need for further analysis on contractor performance history.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.6 million to ALTECH INC. CONSTRUCTION CONTRACT - RED RIVER ARMY DEPOT AFRC, TX

Who is the contractor on this award?

The obligated recipient is ALTECH 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 $14.6 million.

What is the period of performance?

Start: 2009-12-16. End: 2012-03-31.

What is the track record of Altech Inc. in securing and performing federal construction contracts?

A review of federal procurement data would be necessary to fully assess Altech Inc.'s track record. This would involve examining the number and value of contracts previously awarded to the company, the agencies they have served, and their performance ratings on past projects. Without this specific data, it's difficult to comment on their reliability or expertise beyond this single award. However, being awarded a $14.6 million contract suggests they possess the capacity and qualifications to handle significant federal projects.

How does the awarded amount of $14.6 million compare to similar construction projects at military depots?

Comparing this $14.6 million contract requires access to a database of similar construction projects at military depots, including their scope, size, and duration. Factors such as location, specific construction needs (e.g., new build vs. renovation, specialized facilities), and prevailing market rates for labor and materials in Texas would influence cost. A preliminary assessment suggests the amount is substantial, indicative of a significant project, but a direct comparison to benchmarks is needed for a definitive value assessment. The firm fixed-price nature also implies that the contractor bore the risk of cost fluctuations.

What are the specific risks associated with a Firm Fixed Price contract for a large construction project?

Firm Fixed Price (FFP) contracts place the primary responsibility for cost control and performance risk on the contractor. For the government, the main benefit is cost certainty. However, risks for the contractor include underestimating costs, encountering unforeseen site conditions, or material price escalations, which could lead to financial losses for them. If the contractor struggles, it could result in delays or quality issues. For the government, the risk is that the contractor may cut corners to maintain profitability, or in extreme cases, default. Robust oversight and clear contract specifications are crucial to mitigate these risks.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for price discovery?

This designation suggests a complex procurement strategy. 'Full and Open Competition' aims to maximize the number of potential bidders. However, 'After Exclusion of Sources' means that specific potential bidders were deliberately excluded from the process. This exclusion could be due to various reasons, such as national security, past performance issues, or specific technical requirements that only a subset of companies could meet. While 9 bidders participated, the exclusion of certain entities might have limited the competitive pressure, potentially impacting the final price achieved compared to a scenario with truly unrestricted competition. The rationale behind the exclusion is key to understanding its effect on price discovery.

What is the typical duration for construction contracts of this value and type in the federal sector?

A duration of 836 days (approximately 2.3 years) for a $14.6 million construction contract is within a reasonable range for federal projects of this magnitude. Large-scale construction, especially at military installations which may have unique security or logistical requirements, often spans multiple years. Factors influencing duration include project complexity, site conditions, weather, and the specific requirements of the agency. Shorter durations might be achievable for simpler projects or with more intensive resource allocation, while more complex or phased projects could extend beyond this timeframe.

How does the geographic location (Red River Army Depot, TX) potentially influence construction costs and timelines?

The geographic location in Texas, specifically at Red River Army Depot, can influence construction costs and timelines in several ways. Local labor costs, availability of skilled construction workers, and prevailing wage rates in the region are significant factors. The cost and accessibility of construction materials, including transportation expenses, also play a role. Furthermore, regional weather patterns (e.g., potential for extreme heat or storms) can impact scheduling and necessitate specific construction methods or materials. Proximity to suppliers and transportation infrastructure can affect project efficiency.

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: W912QR09R0081

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8530 W NEW BOSTON RD, TEXARKANA, TX, 75501

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,606,205

Exercised Options: $14,606,205

Current Obligation: $14,606,205

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline