DoD Awards $24.7M Construction Contract to Cerris Builders, Inc. for Las Vegas ARC Facility
Contract Overview
Contract Amount: $24,754,077 ($24.8M)
Contractor: Cerris Builders, Inc
Awarding Agency: Department of Defense
Start Date: 2010-09-01
End Date: 2013-10-17
Contract Duration: 1,142 days
Daily Burn Rate: $21.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 18
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF LAS VEGAS ARC, NV
Place of Performance
Location: LAS VEGAS, CLARK County, NEVADA, 89115
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $24.8 million to CERRIS BUILDERS, INC for work described as: CONSTRUCTION OF LAS VEGAS ARC, NV Key points: 1. The contract value of $24.7 million falls within typical ranges for large-scale construction projects. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project duration of 1142 days indicates a significant and complex undertaking. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.
Value Assessment
Rating: good
The contract value of $24.7 million appears reasonable for a large construction project of this nature. Benchmarking against similar Department of Defense construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers, maximizing value for the government's investment.
Public Impact
Construction of a new facility can stimulate local economic activity through job creation and material sourcing. The project's success impacts the operational readiness and capabilities of the Department of Defense in the Las Vegas area. Long-term maintenance and operational costs of the new facility will be a subsequent consideration for the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Project duration significantly exceeds typical construction timelines.
- Lack of specific performance metrics makes assessing contractor efficiency difficult.
- Potential for cost overruns despite fixed-price contract if scope changes occur.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits government cost exposure.
- Contract awarded to a single entity, simplifying management.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense can fluctuate based on infrastructure needs and modernization efforts.
Small Business Impact
The contract was awarded to Cerris Builders, Inc., a single entity. There is no indication of small business participation in this specific award, which warrants further investigation if small business utilization is a priority.
Oversight & Accountability
Standard oversight mechanisms for large construction contracts are presumed to be in place. Monitoring progress, quality, and adherence to the contract terms by the Department of Defense is crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Extended project duration.
- Lack of small business participation.
- Potential for scope creep impacting fixed price.
- Limited public information on contractor past performance.
Tags
commercial-and-institutional-building-co, department-of-defense, nv, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to CERRIS BUILDERS, INC. CONSTRUCTION OF LAS VEGAS ARC, NV
Who is the contractor on this award?
The obligated recipient is CERRIS BUILDERS, 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 $24.8 million.
What is the period of performance?
Start: 2010-09-01. End: 2013-10-17.
What specific factors contributed to the extended project duration of 1142 days, and were these factored into the initial pricing?
The extended duration of 1142 days for this construction project warrants further investigation. Factors such as complex site requirements, unforeseen environmental challenges, or extended permitting processes could contribute. It is crucial to understand if these were adequately assessed and incorporated into the Firm Fixed Price to prevent potential disputes or change orders that could impact the final cost to taxpayers.
How does the awarded price of $24.7 million compare to industry benchmarks for similar ARC facility construction projects, considering the project's scope and location?
Benchmarking the $24.7 million contract against similar ARC facility construction projects is essential for validating value. Factors like square footage, specific technological integrations, and regional construction cost indices in Las Vegas should be considered. A comparative analysis would reveal if the price is competitive and reflects fair market value, ensuring taxpayer funds are used efficiently.
What mechanisms are in place to ensure the quality of construction meets DoD standards throughout the 1142-day project lifecycle?
Ensuring construction quality over an extended period requires robust oversight. The Department of Defense likely employs a combination of on-site inspections, material testing, and phased quality assurance reviews. Adherence to specific military construction standards and regular progress reporting from the contractor are critical to maintaining quality and mitigating risks of defects.
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: W912QR09R0104
Offers Received: 18
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: MMC Corp (UEI: 622211712)
Address: 1701 N. GENERAL BRUCE DR, TEMPLE, TX, 76504
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,754,077
Exercised Options: $24,754,077
Current Obligation: $24,754,077
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-01
Current End Date: 2013-10-17
Potential End Date: 2013-10-17 00:00:00
Last Modified: 2021-06-04
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