Aspen Construction awarded $12.1M for Johnson County Phase II, a definitive contract with a 994-day duration

Contract Overview

Contract Amount: $12,106,476 ($12.1M)

Contractor: Aspen Construction Company

Awarding Agency: Department of Defense

Start Date: 2022-11-04

End Date: 2025-07-25

Contract Duration: 994 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: JOHNSON COUNTY PHASE II

Place of Performance

Location: PAINTSVILLE, JOHNSON County, KENTUCKY, 41240

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to ASPEN CONSTRUCTION COMPANY for work described as: JOHNSON COUNTY PHASE II Key points: 1. The contract's fixed-price nature offers cost certainty, but the duration presents potential for scope creep or unforeseen cost escalations. 2. Competition was robust, suggesting a competitive pricing environment, though specific bid details are not public. 3. The contract's value is substantial, requiring diligent oversight to ensure adherence to scope and budget. 4. Performance will be key, as delays or quality issues could impact downstream projects or operational readiness. 5. This contract falls within the heavy and civil engineering construction sector, a critical area for infrastructure development.

Value Assessment

Rating: good

The contract value of $12.1 million for heavy and civil engineering construction appears reasonable given the 994-day performance period. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment of value for money. The firm fixed-price structure mitigates significant cost overrun risk for the government, assuming the scope is well-defined.

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. With 3 bids received, the level of competition suggests a healthy market response. This competitive process is expected to drive more favorable pricing and terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a market where contractors vie for the best value. This reduces the likelihood of inflated costs and ensures the government receives competitive bids.

Public Impact

The primary beneficiaries are the Department of the Army and potentially local communities in Kentucky through infrastructure improvements. The contract will deliver heavy and civil engineering construction services, likely involving significant physical construction work. The geographic impact is centered in Kentucky, where the project is located. Workforce implications include the creation of construction jobs and potential demand for specialized engineering and labor skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (994 days) increases risk of scope creep and potential for cost escalation if not managed tightly.
Firm Fixed Price contracts can incentivize contractors to cut corners on quality if not adequately monitored.
Dependence on a single contractor for a long duration can create vendor lock-in risks.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm Fixed Price contract provides cost certainty for the government.
Clear performance period (end date) allows for focused oversight and accountability.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, which encompasses a wide range of infrastructure projects such as roads, bridges, utilities, and other large-scale public works. The market for such services is often characterized by large, established firms capable of undertaking complex, multi-year projects. Spending in this sector is cyclical and often tied to government infrastructure initiatives and economic conditions. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per mile for similar types of construction projects.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract may not directly benefit small businesses through set-asides, large prime contractors are often required to subcontract portions of their work. The extent to which Aspen Construction Company engages small businesses as subcontractors will determine the indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this definitive contract will likely be managed by the contracting officer's representative (COR) from the Department of the Army. Accountability measures will be tied to the contract's performance work statement and milestones. Transparency is facilitated by the contract award data being publicly available, though detailed project progress and financial expenditures may be less accessible.

Related Government Programs

Army Corps of Engineers Construction Contracts
Department of Defense Infrastructure Projects
Federal Heavy Civil Engineering Contracts
Kentucky State Infrastructure Funding

Risk Flags

Long contract duration may increase risk of unforeseen costs.
Firm Fixed Price contracts require diligent oversight to ensure quality.
Potential for scope creep over the 994-day performance period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to ASPEN CONSTRUCTION COMPANY. JOHNSON COUNTY PHASE II

Who is the contractor on this award?

The obligated recipient is ASPEN CONSTRUCTION COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2022-11-04. End: 2025-07-25.

What is the historical performance record of Aspen Construction Company with the Department of Defense?

A thorough review of Aspen Construction Company's past performance with the Department of Defense would involve examining contract histories, past performance evaluations (e.g., CPARS reports), and any documented instances of disputes or contract terminations. Without access to these specific performance metrics, it is difficult to definitively assess their track record. However, the award of a significant definitive contract suggests a level of confidence from the awarding agency based on prior experience or a competitive assessment that included past performance. Further investigation into their project completion rates, adherence to schedule and budget on previous DoD contracts, and any quality control issues would provide a more robust understanding of their reliability.

How does the awarded amount compare to similar heavy and civil engineering construction contracts awarded by the Department of the Army?

To benchmark the $12.1 million award for Johnson County Phase II, one would compare it against similar heavy and civil engineering construction contracts undertaken by the Department of the Army. This comparison should consider project scope, complexity, geographic location, and duration. For instance, if similar projects involving road construction or utility upgrades in the region have recently been awarded in the $10-15 million range with comparable timelines, then this award appears within a reasonable market band. Conversely, if comparable projects were significantly less expensive or awarded for substantially more work, it might indicate either an exceptionally good or potentially inflated price. The firm fixed-price nature also suggests the government has locked in costs, making direct comparison to cost-reimbursement contracts less straightforward.

What are the primary risks associated with a 994-day firm fixed-price contract in heavy construction?

A 994-day firm fixed-price contract in heavy construction presents several key risks. Firstly, the extended duration increases the likelihood of encountering unforeseen site conditions (e.g., unexpected soil issues, environmental discoveries) or material price fluctuations that are not adequately accounted for in the fixed price, potentially leading to disputes or claims from the contractor. Secondly, there's a risk of scope creep; if the project requirements evolve, managing changes within a fixed-price structure can be challenging and may lead to contract modifications that increase the overall cost. Thirdly, for the government, the risk lies in the contractor potentially cutting corners on quality or safety to maintain profitability over such a long period, necessitating robust quality assurance and oversight. Finally, market conditions or labor availability could change significantly over nearly three years, impacting the contractor's ability to perform as initially priced.

What specific infrastructure improvements or services does this contract aim to deliver?

The contract is categorized under 'Other Heavy and Civil Engineering Construction,' which is broad. Without a more detailed project description, it's challenging to specify the exact services. However, this category typically includes projects such as the construction or repair of roads, bridges, dams, levees, airports, utilities (water, sewer, power transmission), and other large-scale public works. Given it's for the Department of the Army, potential projects could relate to base infrastructure, training facilities, or support structures. The 'Johnson County Phase II' designation suggests it's a continuation or expansion of a previous project, implying a defined scope related to a larger development or improvement plan within that county.

How does the $12.1M contract value compare to the total federal spending on heavy and civil engineering construction annually?

The $12.1 million awarded to Aspen Construction Company represents a fraction of the total annual federal spending on heavy and civil engineering construction. Federal agencies, particularly the Department of Defense, Department of Transportation, and Army Corps of Engineers, collectively spend billions of dollars each year on infrastructure projects. For context, the federal government's total outlays for construction can range from tens to hundreds of billions annually, depending on economic conditions and infrastructure priorities. Therefore, while $12.1 million is a significant sum for a single contract, it is a relatively small component within the broader landscape of federal infrastructure investment. This contract's value is more meaningfully assessed against similar-sized projects within its specific domain.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912QR22B0008

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 3798 STATE 371 NW, HACKENSACK, MN, 56452

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

Financial Breakdown

Contract Ceiling: $12,106,476

Exercised Options: $12,106,476

Current Obligation: $12,106,476

Actual Outlays: $2,506,723

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline