DoD's $25.4M Army Reserve Center construction contract awarded to ACCEL PACIFIC JV shows fair competition
Contract Overview
Contract Amount: $25,384,714 ($25.4M)
Contractor: Accel Pacific JV
Awarding Agency: Department of Defense
Start Date: 2013-08-22
End Date: 2017-12-15
Contract Duration: 1,576 days
Daily Burn Rate: $16.1K/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: IGF::OT::IGF SHERIDAN, IL ARMY RESERVE CENTER
Place of Performance
Location: FORT SHERIDAN, LAKE County, ILLINOIS, 60037
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $25.4 million to ACCEL PACIFIC JV for work described as: IGF::OT::IGF SHERIDAN, IL ARMY RESERVE CENTER Key points: 1. The contract was awarded under full and open competition, indicating a competitive bidding process. 2. The fixed-price contract type suggests a defined scope and cost control measures. 3. The contract duration of over four years implies a significant construction project. 4. The award to a joint venture may indicate specialized capabilities or capacity requirements. 5. The project is located in Illinois, potentially impacting the local construction workforce and economy.
Value Assessment
Rating: fair
The contract value of $25.4 million for a large construction project like an Army Reserve Center appears within a reasonable range for similar federal building projects. Benchmarking against other institutional construction contracts of comparable size and complexity would be necessary for a definitive value assessment. The firm fixed-price structure suggests that cost overruns beyond the agreed-upon price are the contractor's responsibility, which is a positive indicator for cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while the competition was generally open, certain sources may have been excluded for specific reasons. With four bidders, the competition level appears moderate, providing some price discovery. However, the exclusion of sources warrants further investigation to ensure it did not unduly limit competition or result in a less favorable price for the government.
Taxpayer Impact: A moderate level of competition, even with exclusions, generally benefits taxpayers by encouraging competitive pricing. However, understanding the rationale behind source exclusion is crucial to confirm that the government secured the best possible value.
Public Impact
The primary beneficiaries are the U.S. Army Reserve personnel who will utilize the new facility. The contract delivers construction services for a new Army Reserve Center, providing essential infrastructure. The geographic impact is localized to Sheridan, Illinois, supporting regional development. The project likely created jobs for construction workers and related trades in the Illinois area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'EXCLUSION OF SOURCES' clause in the competition type requires scrutiny to ensure it was justified and did not limit competitive options.
- The long contract duration could present risks related to material cost fluctuations or unforeseen site conditions over time.
Positive Signals
- The firm fixed-price contract type provides cost certainty for the government.
- Awarding to a joint venture (ACCEL PACIFIC JV) may indicate the contractor possesses the necessary expertise and capacity for this complex project.
Sector Analysis
The construction sector is a significant component of federal spending, particularly for infrastructure projects like military facilities. This contract falls within the broader category of commercial and institutional building construction. Federal spending in this area is often driven by the need for new or upgraded facilities to support military readiness and operations. Benchmarks for similar projects would typically consider square footage, complexity of systems, and location.
Small Business Impact
The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity or joint venture, and the direct impact on the small business ecosystem may be limited unless the joint venture partners themselves are small businesses or have robust subcontracting plans.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is generally facilitated through contract award databases like FPDS, though detailed project progress and performance data may be less publicly accessible.
Related Government Programs
- Military Construction
- Army Facilities
- Reserve Component Facilities
- General Building Construction
Risk Flags
- Potential for limited competition due to source exclusion.
- Risk of cost escalation over a long contract duration.
- Need to verify contractor's past performance and capacity.
Tags
construction, department-of-defense, department-of-the-army, illinois, firm-fixed-price, large-contract, full-and-open-competition, army-reserve, infrastructure, joint-venture
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.4 million to ACCEL PACIFIC JV. IGF::OT::IGF SHERIDAN, IL ARMY RESERVE CENTER
Who is the contractor on this award?
The obligated recipient is ACCEL PACIFIC 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 $25.4 million.
What is the period of performance?
Start: 2013-08-22. End: 2017-12-15.
What is the track record of ACCEL PACIFIC JV in completing federal construction contracts?
A review of federal contract databases would be necessary to ascertain the track record of ACCEL PACIFIC JV. This would involve examining past performance on similar projects, including contract values, completion timeliness, and any reported disputes or terminations. Understanding their history with the Department of Defense or other federal agencies would provide insight into their reliability and capability to execute this specific Army Reserve Center construction.
How does the awarded price compare to similar Army Reserve Center construction projects?
To compare the awarded price of $25.4 million, one would need to identify comparable Army Reserve Center construction projects awarded within a similar timeframe and geographic region. Key comparison metrics would include square footage, number of personnel supported, specific facility features (e.g., training areas, administrative spaces), and the complexity of site work or environmental considerations. Without access to detailed cost breakdowns or a database of comparable projects, a precise value-for-money assessment is challenging, but the overall contract value appears substantial for a single facility.
What are the specific risks associated with the 'EXCLUSION OF SOURCES' in the competition type?
The 'EXCLUSION OF SOURCES' clause indicates that not all potential bidders were considered, even under a generally 'full and open' competition. This could stem from specific technical requirements, security clearances, or past performance issues with certain contractors. The primary risk is that this exclusion may have limited the pool of qualified bidders, potentially leading to higher prices or reduced innovation than if all capable sources had been allowed to compete. It also raises questions about the fairness and transparency of the procurement process, necessitating a review of the justification for exclusion.
What is the expected effectiveness of the completed Army Reserve Center?
The effectiveness of the completed Army Reserve Center will be measured by its ability to meet the operational and training needs of the Army Reserve unit it serves. Key indicators include the adequacy of space for personnel, equipment storage, training facilities, and administrative functions. The facility's design, construction quality, and integration of necessary technology will contribute to its long-term effectiveness and the readiness of the reserve component. User feedback and operational metrics post-completion would provide the best assessment.
What have been historical spending patterns for Army Reserve Center construction?
Historical spending on Army Reserve Center construction has varied significantly based on military needs, congressional appropriations, and the condition of existing facilities. Over the past decade, federal budgets have allocated billions to military construction, including projects for reserve components. Spending patterns are influenced by geopolitical events, modernization efforts, and the lifecycle replacement of aging infrastructure. Analyzing historical data would reveal trends in contract values, types of construction, and geographic distribution of these projects.
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: W912QR13R0036
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4753 N. BROADWAY, SUITE 915, CHICAGO, IL, 60640
Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,384,714
Exercised Options: $25,384,714
Current Obligation: $25,384,714
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-08-22
Current End Date: 2017-12-15
Potential End Date: 2017-12-15 00:00:00
Last Modified: 2021-02-25
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