Department of the Army awards $10.99M construction contract for industrial buildings, highlighting full and open competition

Contract Overview

Contract Amount: $10,986,882 ($11.0M)

Contractor: Cutler Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-09-27

End Date: 2007-08-17

Contract Duration: 1,054 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200412!000367!2100!W912SV!USPFO FOR MASSACHUSETTS !W912SV04C0017 !A!N! !N! ! !20040927!20060428!065781643!065781643!065781643!N!CUTLER ASSOCIATES INC !43 HARVARD ST !WORCESTER !MA!01609!51615!001!25!OTIS AGB !BARNSTABLE !MASS !+000010728320!N!N!000010728320!Y119!OTHER ADMINISTRATIVE & SERVICE BUILDINGS !C2 !CONSTRUCTION !000 !* !236210!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!006!B! !D!N!Z! ! !N!C!U! ! ! !Z!Z!A!A!000!A!B!Y! !N! ! ! ! !0001! !

Place of Performance

Location: BUZZARDS BAY, BARNSTABLE County, MASSACHUSETTS, 02542

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to CUTLER ASSOCIATES, INC. for work described as: 200412!000367!2100!W912SV!USPFO FOR MASSACHUSETTS !W912SV04C0017 !A!N! !N! ! !20040927!20060428!065781643!065781643!065781643!N!CUTLER ASSOCIATES INC !43 HARVARD ST !WORCESTER !MA!01609!51615!001!25!OTIS AGB !BARN… Key points: 1. Contract awarded to Cutler Associates, Inc. for industrial building construction. 2. The contract utilized full and open competition, suggesting a competitive bidding process. 3. Performance period spans from September 2004 to August 2007. 4. The contract value is approximately $10.99 million. 5. The North American Industry Classification System (NAICS) code is 236210, pertaining to industrial building construction. 6. The contract was awarded by the USPFO for Massachusetts.

Value Assessment

Rating: good

The contract value of $10.99 million for industrial building construction appears reasonable given the duration of over 3 years and the nature of the work. Without specific details on the scope of construction, direct comparison to similar contracts is challenging. However, the firm fixed-price nature of the contract suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data shows 6 bids were received, suggesting a healthy level of competition for this construction project. A competitive bidding process generally leads to better price discovery and can result in more favorable pricing for the government.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down costs and ensuring the government receives competitive pricing for construction services.

Public Impact

The primary beneficiary is the Department of the Army, which will receive the constructed industrial buildings. The services delivered include the construction of industrial buildings. The geographic impact is concentrated in Massachusetts, where the construction will take place. The contract will likely have implications for the local construction workforce in Massachusetts, providing employment opportunities.

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 all construction variables.
Delays in construction could impact the operational readiness of the facility.
Quality control issues during construction could lead to long-term maintenance problems.

Positive Signals

The use of full and open competition suggests a robust bidding process, likely leading to competitive pricing.
The firm fixed-price contract structure shifts cost risk to the contractor.
The contract duration of over 3 years allows for comprehensive project execution.

Sector Analysis

This contract falls within the Construction sector, specifically NAICS code 236210 for Industrial Building Construction. This sector involves the construction of new buildings and additions/alterations to existing buildings. The market for federal construction contracts is substantial, with significant annual spending across various agencies. This particular contract represents a portion of the Department of the Army's infrastructure investment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. However, the prime contractor, Cutler Associates, Inc., may still engage small businesses as subcontractors as part of their overall project execution strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Army Corps of Engineers district or USPFO. The firm fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction
Facility Sustainment, Restoration, and Modernization
Department of Defense Construction Projects
Industrial Facility Development

Risk Flags

Contract Duration
Firm Fixed Price Risk
Scope Definition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to CUTLER ASSOCIATES, INC.. 200412!000367!2100!W912SV!USPFO FOR MASSACHUSETTS !W912SV04C0017 !A!N! !N! ! !20040927!20060428!065781643!065781643!065781643!N!CUTLER ASSOCIATES INC !43 HARVARD ST !WORCESTER !MA!01609!51615!001!25!OTIS AGB !BARNSTABLE !MASS !+000010728320!N!N!000010728320!Y119!OTHER ADMINISTRATIVE & SERVICE BUILDINGS !C2 !CONSTRUCTION !000 !* !236210!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is CUTLER ASSOCIATES, 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 $11.0 million.

What is the period of performance?

Start: 2004-09-27. End: 2007-08-17.

What is the specific scope of work for the industrial buildings to be constructed under this contract?

The provided data identifies the contract under NAICS code 236210, 'Industrial Building Construction,' and the Product Service Code (PSC) as 'C2,' which also relates to construction. However, the specific details regarding the type, size, purpose, and features of the industrial buildings are not present in the abbreviated data. Further investigation into the original contract documents or related procurement information would be necessary to ascertain the precise scope of work, such as whether these are manufacturing facilities, warehouses, maintenance depots, or other specialized industrial structures.

How does the awarded amount of $10.99 million compare to the average cost of similar industrial building construction projects for the Department of the Army?

Benchmarking the $10.99 million award against similar Department of the Army industrial building construction projects requires access to a broader dataset of comparable contracts. Factors such as project size (square footage), complexity, location, and specific functional requirements significantly influence costs. Without detailed project specifications and a comparative analysis of contracts with similar scopes and durations, it is difficult to definitively state whether this award represents a high, low, or average cost. However, the firm fixed-price nature and full and open competition suggest an effort to secure competitive pricing.

What were the specific reasons for awarding this contract to Cutler Associates, Inc. over the other five bidders?

The provided data indicates that the contract was awarded under 'FULL AND OPEN COMPETITION' and received 6 bids. While the data confirms the awardee and the number of bids, it does not detail the evaluation criteria or the specific reasons why Cutler Associates, Inc. was selected. Typically, in competitive procurements, awards are made to the responsible bidder whose proposal is determined to be the best value to the government, considering factors such as price, technical approach, past performance, and other evaluation criteria outlined in the solicitation. A full review of the source selection decision document would be needed to understand the specific rationale.

What is the track record of Cutler Associates, Inc. in performing federal construction contracts, particularly for the Department of the Army?

The data confirms Cutler Associates, Inc. as the awardee for this $10.99 million industrial building construction contract. To assess their track record, one would need to examine their performance history on other federal contracts, specifically those with the Department of the Army or similar agencies. This would involve looking at past performance evaluations, any instances of contract disputes, timely completion rates, and overall client satisfaction. The presence of this award suggests they have successfully competed for and been awarded federal construction work, but a comprehensive assessment requires a broader review of their contract history.

What are the potential risks associated with the firm fixed-price contract type for this industrial building construction project?

Firm fixed-price (FFP) contracts place the majority of the cost risk on the contractor. For industrial building construction, potential risks include unforeseen site conditions, material price fluctuations, labor shortages, or design changes that could increase costs beyond the contractor's initial estimates. If these risks materialize and are not adequately managed by Cutler Associates, Inc., it could lead to financial strain for the contractor, potentially impacting project timelines or quality. However, FFP also provides cost certainty for the government, assuming the initial price was competitive and well-estimated.

How has federal spending on industrial building construction (NAICS 236210) trended over the past decade, and where does this contract fit within that trend?

Analyzing the trend of federal spending on industrial building construction (NAICS 236210) over the past decade would require accessing historical federal procurement data. This contract, awarded in 2004 for approximately $10.99 million, represents a single data point within that broader trend. To understand its place, one would need to aggregate spending data for this NAICS code across all federal agencies over time. This would reveal whether federal investment in industrial construction has been increasing, decreasing, or remaining stable, and whether this contract's value is typical, large, or small relative to the overall federal commitment in this sector during that period.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 43 HARVARD ST, WORCESTER, MA, 02

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline