Army Reserve Center Revitalization Contract Awarded to Collins-Russell 8(a), LLC for $26.6M

Contract Overview

Contract Amount: $26,641,969 ($26.6M)

Contractor: Collins-Russell 8(A), LLC.

Awarding Agency: Department of Defense

Start Date: 2021-05-27

End Date: 2026-02-24

Contract Duration: 1,734 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FULL FACILITY REVITALIZATION (FFR) OF AN EXISTING ARMY RESERVE CENTER (ARC)AND SITE AT CONROE, TX. POP IS 704 DAYS FROM NTP.

Place of Performance

Location: CONROE, MONTGOMERY County, TEXAS, 77303

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $26.6 million to COLLINS-RUSSELL 8(A), LLC. for work described as: FULL FACILITY REVITALIZATION (FFR) OF AN EXISTING ARMY RESERVE CENTER (ARC)AND SITE AT CONROE, TX. POP IS 704 DAYS FROM NTP. Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract is a firm-fixed-price definitive contract, which shifts cost risk to the contractor. 3. Project duration is 704 days from Notice to Proceed, suggesting a significant construction timeline. 4. The awardee, Collins-Russell 8(a), LLC, is an 8(a) certified small business, potentially impacting small business subcontracting. 5. The contract falls under Commercial and Institutional Building Construction NAICS code, placing it within the construction sector. 6. The base award amount is $26.6 million, with a potential for modifications or additional work indicated by the 'br' field. 7. The contract is for the full facility revitalization of an Army Reserve Center in Conroe, Texas.

Value Assessment

Rating: fair

The contract value of $26.6 million for a full facility revitalization of an Army Reserve Center appears to be within a reasonable range for a project of this scope and duration. Benchmarking against similar large-scale construction projects for federal facilities would provide a more precise assessment of value for money. The firm-fixed-price nature of the contract helps control costs, but the final cost will depend on the contractor's efficiency and any change orders.

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.' This suggests that while the competition was intended to be broad, specific sources may have been excluded for reasons not detailed in the provided data. The presence of 5 bidders indicates a degree of competition, which is generally positive for price discovery. However, the 'exclusion of sources' clause warrants further investigation to understand its impact on the competitive landscape.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to bid, potentially leading to lower prices and better terms.

Public Impact

The primary beneficiaries are the U.S. Army Reserve, who will receive a revitalized facility. The project will deliver updated and potentially improved infrastructure for the Army Reserve Center. The geographic impact is localized to Conroe, Texas, and the surrounding region. The construction project will likely create temporary jobs for skilled trades and laborers in the local workforce. The revitalization aims to ensure the facility meets current operational and safety standards for reserve personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen construction challenges.
Risk associated with the 'exclusion of sources' clause, which could limit competition and potentially increase costs.
Dependence on the contractor's ability to manage the project timeline effectively over 704 days.
Ensuring compliance with all environmental and safety regulations during a large-scale construction project.

Positive Signals

Firm-fixed-price contract structure transfers cost risk to the contractor.
Award to an 8(a) certified firm supports small business development goals.
Full and open competition, even with exclusions, suggests an effort to achieve a competitive price.
The project addresses a clear need for facility modernization within the Army Reserve.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal construction spending is a key driver in this sector, with agencies like the Department of the Army frequently undertaking large-scale facility upgrades and new builds. The market for federal construction is competitive, with numerous firms vying for contracts. This specific project, involving the revitalization of an existing military facility, is typical of government spending aimed at maintaining and modernizing its infrastructure.

Small Business Impact

The award to Collins-Russell 8(a), LLC, an 8(a) certified small business, directly supports small business contracting goals. As an 8(a) firm, they are eligible for sole-source or competitive set-aside contracts, though this particular award was made under full and open competition. The contract's value may necessitate significant subcontracting, providing opportunities for other small businesses, including those beyond the 8(a) program, to participate in the project. The agency's commitment to utilizing 8(a) firms is evident in this award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, with specific contracting officers and project managers responsible for monitoring progress, quality, and adherence to terms. The firm-fixed-price nature of the contract implies less direct oversight on cost management compared to cost-plus contracts, but performance and schedule oversight remain critical. Transparency is facilitated through contract award databases, and the Inspector General's office for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Army Reserve Facilities Modernization Program
Department of Defense Construction Contracts
Federal Building and Infrastructure Projects
8(a) Small Business Contracting Initiatives
Commercial and Institutional Building Construction

Risk Flags

Potential for scope creep or change orders impacting final cost and schedule.
Adequacy of the 'exclusion of sources' clause in ensuring maximum competition.
Contractor's capacity to manage a complex construction project over an extended period.
Ensuring compliance with environmental regulations during revitalization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.6 million to COLLINS-RUSSELL 8(A), LLC.. FULL FACILITY REVITALIZATION (FFR) OF AN EXISTING ARMY RESERVE CENTER (ARC)AND SITE AT CONROE, TX. POP IS 704 DAYS FROM NTP.

Who is the contractor on this award?

The obligated recipient is COLLINS-RUSSELL 8(A), LLC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $26.6 million.

What is the period of performance?

Start: 2021-05-27. End: 2026-02-24.

What is the track record of Collins-Russell 8(a), LLC in completing federal construction projects of similar size and scope?

Assessing the track record of Collins-Russell 8(a), LLC is crucial for understanding their capacity and reliability. While the provided data indicates they are an 8(a) certified firm awarded this $26.6 million contract, further investigation into their past performance is necessary. This would involve reviewing their contract history with federal agencies, looking for projects of comparable value and complexity, and examining performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS). A history of successful project completion, on time and within budget, would increase confidence in their ability to execute the Army Reserve Center revitalization. Conversely, a pattern of delays, cost overruns, or quality issues would raise concerns about potential risks associated with this contract.

How does the awarded amount of $26.6 million compare to the estimated cost or market rates for similar Army Reserve Center revitalization projects?

Benchmarking the $26.6 million award against similar projects is essential for evaluating value for money. This comparison should consider the scope of work (e.g., square footage, types of renovations, structural upgrades), the geographic location (as construction costs vary regionally), and the project duration (704 days). Data from similar Army Reserve Center or other military facility revitalization projects, especially those awarded through competitive bidding, would serve as a valuable benchmark. If this contract's value is significantly higher than comparable projects, it could indicate potential overpricing or less effective competition. Conversely, if it aligns with or is lower than market rates, it suggests a more favorable outcome for the government and taxpayers.

What are the specific reasons for the 'exclusion of sources' in this 'full and open competition' award, and what was the impact on the number of bids received?

The designation 'full and open competition after exclusion of sources' is noteworthy and requires clarification. Typically, 'full and open competition' implies soliciting offers from all responsible sources without restriction. The 'exclusion of sources' clause suggests that certain potential bidders were intentionally not considered. Understanding the rationale behind these exclusions is important. Reasons could range from specific technical requirements that only a limited number of firms could meet, to national security considerations, or even previous performance issues with certain contractors. The fact that 5 bidders submitted offers indicates some level of competition was maintained, but the exclusions might have limited the pool further than a truly unrestricted full and open competition. Analyzing the impact requires knowing who was excluded and why, and whether these exclusions potentially led to a higher price than might have been achieved otherwise.

What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure the successful completion of the facility revitalization within the 704-day timeframe?

Effective oversight and clearly defined Key Performance Indicators (KPIs) are critical for managing a large construction project like the Army Reserve Center revitalization, which has a 704-day duration. The Department of the Army will likely establish specific KPIs related to schedule adherence, quality of work (e.g., compliance with building codes and specifications), safety compliance, and budget management. Oversight mechanisms would include regular site inspections, progress meetings between the contracting officer's representative (COR) and the contractor, review of progress reports, and potentially independent quality assurance checks. The firm-fixed-price contract shifts cost risk, but the government retains oversight responsibility to ensure the contractor meets all contractual obligations. Failure to meet KPIs could result in contractual remedies, such as liquidated damages for delays.

How does this contract align with the Army's broader strategy for modernizing its reserve facilities across the country, and what is the historical spending trend for such projects?

This contract for the Conroe, TX Army Reserve Center revitalization aligns with the broader Army Reserve initiative to modernize aging infrastructure and ensure facilities meet current operational needs. Such revitalization projects are essential for maintaining readiness and providing adequate training and administrative spaces for reserve components. Historical spending trends for Army facility modernization can be analyzed through federal procurement data, looking at the aggregate annual spending on construction and renovation contracts for Army Reserve installations over the past several years. Understanding these trends can reveal patterns in investment, identify periods of increased or decreased spending, and provide context for the scale and frequency of similar projects. This specific contract represents a portion of that ongoing investment in facility upkeep and improvement.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912QR20R0040

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 111 OAK ST, BUFFALO, IA, 52728

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,641,969

Exercised Options: $26,641,969

Current Obligation: $26,641,969

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline