DoD Awards $21.2M for Denver Maintenance Facility Construction to Peter Vander Werff Construction

Contract Overview

Contract Amount: $21,194,151 ($21.2M)

Contractor: Peter Vander Werff Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2026-01-06

Contract Duration: 830 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF JP MARTINEZ ARC - AREA MAINTENANCE SUPPORT ACTIVITY, DENVER, CO

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80239

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $21.2 million to PETER VANDER WERFF CONSTRUCTION, INC. for work described as: CONSTRUCTION OF JP MARTINEZ ARC - AREA MAINTENANCE SUPPORT ACTIVITY, DENVER, CO Key points: 1. Contract awarded for construction of JP Martinez ARC in Denver, CO. 2. Peter Vander Werff Construction, Inc. secured the $21.2 million contract. 3. The project falls under the Commercial and Institutional Building Construction sector. 4. Awarded via full and open competition after exclusion of sources, indicating a specific justification for the procurement method.

Value Assessment

Rating: good

The contract value of $21.2 million appears reasonable for a large-scale construction project of this nature. Benchmarking against similar Department of the Army maintenance facility projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement utilized 'full and open competition after exclusion of sources,' suggesting that while competition was sought, certain sources were initially excluded. This method can impact price discovery if the exclusion was not fully justified or if it limited the pool of qualified bidders.

Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure development, with competition aiming to secure the best value.

Public Impact

Enhances critical maintenance and support capabilities for the Department of the Army in Denver. Supports local economic activity through construction jobs and material procurement. Ensures operational readiness by providing a dedicated facility for maintenance activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in large construction projects.
  • Ensuring compliance with environmental and safety regulations during construction.

Positive Signals

  • Addresses a clear need for improved maintenance infrastructure.
  • Awarded through a competitive process, aiming for cost-effectiveness.
  • Long-term benefit to military operational capabilities.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. Spending in this sector is often driven by infrastructure needs, modernization efforts, and facility upgrades across various government agencies.

Small Business Impact

The data does not indicate specific subcontracting goals for small businesses on this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Army's oversight will be crucial to ensure the project stays on schedule, within budget, and meets all quality and safety standards.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for scope creep leading to budget increases.
  • Risk of delays due to unforeseen site conditions or material shortages.
  • Ensuring the selected contractor has adequate bonding and insurance.
  • Post-construction warranty and defect resolution.

Tags

commercial-and-institutional-building-co, department-of-defense, co, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to PETER VANDER WERFF CONSTRUCTION, INC.. CONSTRUCTION OF JP MARTINEZ ARC - AREA MAINTENANCE SUPPORT ACTIVITY, DENVER, CO

Who is the contractor on this award?

The obligated recipient is PETER VANDER WERFF CONSTRUCTION, 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 $21.2 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-01-06.

What specific factors led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' method, and how did this impact the final price?

The exclusion of sources typically occurs when specific capabilities, security clearances, or past performance are required that only a limited number of contractors possess. This can reduce competition, potentially leading to higher prices than a truly open competition. A detailed review of the solicitation documents and award justification would clarify the reasons for exclusion and its pricing implications.

What are the key performance indicators (KPIs) for this construction project, and how will their achievement be measured to ensure value for taxpayer money?

Key performance indicators for construction projects often include adherence to schedule, budget compliance, quality of workmanship, and safety record. The Department of the Army will likely establish specific metrics and inspection protocols to monitor progress and quality. Regular progress reports, site inspections, and final acceptance criteria will be used to measure performance and ensure the project delivers the intended value.

Beyond the initial construction, what is the long-term operational and maintenance cost projection for this facility, and has this been factored into the overall value assessment?

The initial contract focuses on construction. Long-term operational and maintenance costs are typically budgeted separately and are crucial for a complete value assessment. While not detailed here, the Department of the Army would consider lifecycle costs when planning for facilities. Understanding these future costs is essential for evaluating the true long-term investment and ensuring the facility remains cost-effective to operate.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912QR19R0011

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 125 W LEXINGTON AVE, EL CAJON, CA, 92020

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

Financial Breakdown

Contract Ceiling: $21,195,551

Exercised Options: $21,194,151

Current Obligation: $21,194,151

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912QR21D0084

IDV Type: IDC

Timeline

Start Date: 2023-09-29

Current End Date: 2026-01-06

Potential End Date: 2026-01-06 00:00:00

Last Modified: 2025-12-19

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