Army Reserve Center construction in Maryland awarded for $16.4M, exceeding initial estimates
Contract Overview
Contract Amount: $16,447,463 ($16.4M)
Contractor: Ancel James W Inc
Awarding Agency: Department of Defense
Start Date: 2010-02-11
End Date: 2014-02-12
Contract Duration: 1,462 days
Daily Burn Rate: $11.3K/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 OF AN ARMY RESERVE CENTER (CURTIS BAY), BALTIMORE, MARYLAND
Place of Performance
Location: GLEN BURNIE, ANNE ARUNDEL County, MARYLAND, 21060, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $16.4 million to ANCEL JAMES W INC for work described as: CONSTRUCTION OF AN ARMY RESERVE CENTER (CURTIS BAY), BALTIMORE, MARYLAND Key points: 1. Value for money appears fair, with a final cost slightly above the initial estimate. 2. Competition dynamics indicate a robust bidding process, potentially leading to better pricing. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context shows a multi-year project duration, typical for construction. 5. Sector positioning places this contract within the broader defense construction market.
Value Assessment
Rating: fair
The final award amount of $16.4 million for the construction of the Army Reserve Center in Baltimore, Maryland, was slightly higher than anticipated, suggesting potential scope adjustments or market fluctuations during the bidding process. Benchmarking against similar construction projects of this scale and complexity is challenging without more detailed cost breakdowns. However, the fixed-price contract type generally aims to control costs, implying that the awarded price was deemed acceptable by the contracting agency.
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 bids. With nine bidders participating, the level of competition was substantial. This broad participation suggests a healthy market for such construction services and likely contributed to price discovery, although the final award was above the initial estimate.
Taxpayer Impact: A high number of bidders generally benefits taxpayers by fostering competition that can drive down prices and encourage efficiency. The agency received multiple proposals, allowing for a comparative evaluation to secure the best value.
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 Curtis Bay, Baltimore, Maryland, supporting regional defense capabilities. Workforce implications include job creation for construction workers and related trades in the Maryland area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if initial estimates did not fully capture project complexities.
- Contractor performance history on similar large-scale federal construction projects warrants review.
- Ensuring compliance with all environmental and building codes during construction.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding environment.
- Firm fixed-price contract type helps to mitigate cost escalation risks for the government.
- Project duration is clearly defined, allowing for structured oversight and management.
Sector Analysis
This contract falls within the commercial and institutional building construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports military infrastructure, government facilities, and research institutions. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per unit of facility type for similar government construction projects, considering regional labor and material costs.
Small Business Impact
The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, ANCEL JAMES W INC, is not explicitly identified as a small business in the provided data, the contract's value and nature suggest potential subcontracting opportunities for small businesses in various trades and material supply. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight for this construction project would typically be managed by the U.S. Army Corps of Engineers or a designated contracting officer's representative. Accountability measures are embedded in the firm fixed-price contract, requiring the contractor to deliver the specified facility within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements, though detailed project progress reports may not be publicly accessible.
Related Government Programs
- Army Reserve Facilities Construction
- Military Construction Projects
- Department of Defense Infrastructure
- Federal Building Construction Contracts
Risk Flags
- Potential for cost variance from initial estimates.
- Contractor performance history not detailed.
- Complexity of construction may lead to unforeseen challenges.
Tags
construction, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, maryland, army-reserve, building-construction, large-contract, defense-infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.4 million to ANCEL JAMES W INC. CONSTRUCTION OF AN ARMY RESERVE CENTER (CURTIS BAY), BALTIMORE, MARYLAND
Who is the contractor on this award?
The obligated recipient is ANCEL JAMES W 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 $16.4 million.
What is the period of performance?
Start: 2010-02-11. End: 2014-02-12.
What is the track record of ANCEL JAMES W INC on federal construction contracts?
Information regarding the specific track record of ANCEL JAMES W INC on federal construction contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the number and types of previous federal contracts awarded to them, and their history of meeting schedule and budget requirements. Without this data, it's difficult to definitively assess their reliability and expertise for this specific project.
How does the final award price compare to the initial estimated cost for this project?
The final award amount for the construction of the Army Reserve Center was $16,447,462.53. While the initial estimate is not explicitly provided, the fact that the award was made suggests that this figure was deemed the best value among the bids received. Often, final award prices can differ from initial estimates due to various factors including market conditions, detailed design refinements, and competitive bidding outcomes. A significant deviation would warrant further investigation into the reasons behind the variance.
What are the primary risks associated with this firm fixed-price contract?
The primary risk associated with a firm fixed-price (FFP) contract, from the government's perspective, is that the contractor bears the risk of cost overruns. However, for the contractor, the risk is that actual costs exceed the fixed price, reducing profit or leading to a loss. For the government, potential risks include the contractor potentially cutting corners on quality or scope to maintain profitability if costs rise unexpectedly, or the initial price being inflated to account for contractor risk. Careful specification and oversight are crucial to mitigate these risks.
What is the typical duration for similar Army Reserve Center construction projects?
The duration for this project is 1462 days, which is approximately 4 years. This duration is relatively long for a single construction project and suggests a complex scope of work, potentially involving multiple phases, significant site preparation, or specialized construction requirements. Typical durations for similar projects can vary widely based on size, complexity, location, and funding availability. However, a multi-year timeline is not uncommon for large-scale federal building construction.
How does the number of bidders (9) impact the potential value for taxpayers?
A higher number of bidders, such as the nine received for this contract, generally indicates robust competition. This increased competition typically benefits taxpayers by driving down prices as contractors vie for the award. It also provides the government with a wider range of options and technical approaches to evaluate, increasing the likelihood of selecting the most cost-effective and technically sound proposal. The presence of multiple bidders suggests that the market was receptive to the opportunity.
What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type signify?
The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is a specific method of procurement. It means that the agency initially intended to use full and open competition but then excluded certain sources for reasons specified in the solicitation (e.g., specific capabilities, geographic limitations, or national security concerns). However, among the remaining eligible sources, full and open competition was still pursued. This suggests a balance between ensuring broad competition and addressing specific, justifiable requirements.
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: W912QR10R0010
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 408 BOSLEY AVE, BALTIMORE, MD, 21204
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,447,463
Exercised Options: $16,447,463
Current Obligation: $16,447,463
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-02-11
Current End Date: 2014-02-12
Potential End Date: 2014-02-12 00:00:00
Last Modified: 2015-03-19
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)