DoD's $30M Dental Clinic contract to Thomas J. Davis, Inc. awarded under full and open competition
Contract Overview
Contract Amount: $29,983,890 ($30.0M)
Contractor: Thomas J. Davis, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-02-26
End Date: 2023-02-08
Contract Duration: 5,095 days
Daily Burn Rate: $5.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DENTAL CLINIC (S-2)
Plain-Language Summary
Department of Defense obligated $30.0 million to THOMAS J. DAVIS, INC. for work described as: DENTAL CLINIC (S-2) Key points: 1. Value for money appears fair given the long duration and scope of engineering services. 2. Competition dynamics indicate a robust bidding process, potentially leading to competitive pricing. 3. Risk indicators are moderate, with a long contract duration presenting potential for scope creep or cost overruns. 4. Performance context is a definitive contract for engineering services, suggesting a defined scope. 5. Sector positioning is within the Defense sector, specifically supporting Army infrastructure needs.
Value Assessment
Rating: fair
The contract's total value of approximately $30 million over a 14-year period averages to roughly $2.1 million per year. This figure needs to be benchmarked against similar large-scale engineering projects for military facilities. Without specific details on the scope of 'Dental Clinic (S-2)' engineering services, a precise value-for-money assessment is challenging. However, the duration suggests significant project complexity or phased development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a reasonable level of competition for this engineering services contract. This competitive environment is generally favorable for price discovery and achieving market-based pricing.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are not unnecessarily inflated, promoting efficiency in government spending.
Public Impact
Military personnel and their families benefit from improved dental facilities. Engineering services are delivered to support the Department of the Army's infrastructure. Geographic impact is likely concentrated at the military installation where the dental clinic is located. Workforce implications include employment for engineers and construction personnel involved in the project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (5095 days) increases the risk of cost escalation due to inflation and potential scope creep.
- Lack of specific details on the engineering services provided makes it difficult to assess the true value and necessity.
- Definitive contract type, while providing clarity, can sometimes limit flexibility if unforeseen issues arise.
Positive Signals
- Awarded under full and open competition, suggesting a fair and transparent procurement process.
- Multiple bidders (3) indicate a healthy level of market interest and potential for competitive pricing.
- Firm Fixed Price contract type helps control costs by establishing a ceiling for the project.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting government infrastructure projects. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) is a broad category encompassing a wide range of specialized services. Spending in this sector for federal agencies, particularly the Department of Defense, is substantial, covering design, planning, and oversight for construction and facility upgrades.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem from this specific contract award is likely minimal, unless Thomas J. Davis, Inc. utilizes small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and relevant program managers within the Department of the Army. Transparency is facilitated by the public nature of contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Military Construction
- Healthcare Infrastructure
- Engineering and Architectural Services
- Department of Defense Facilities Management
Risk Flags
- Long contract duration may lead to cost overruns or scope creep.
- Lack of detailed service description hinders comprehensive value assessment.
- Potential for contractor performance degradation over an extended period.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, definitive-contract, firm-fixed-price, full-and-open-competition, infrastructure, healthcare-facilities, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.0 million to THOMAS J. DAVIS, INC.. DENTAL CLINIC (S-2)
Who is the contractor on this award?
The obligated recipient is THOMAS J. DAVIS, 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 $30.0 million.
What is the period of performance?
Start: 2009-02-26. End: 2023-02-08.
What specific engineering services were included in the 'Dental Clinic (S-2)' contract?
The provided data does not detail the specific engineering services encompassed by the 'Dental Clinic (S-2)' contract. Typically, engineering services for such a project could include architectural design, structural engineering, mechanical, electrical, and plumbing (MEP) systems design, site planning, environmental assessments, and construction oversight. The long duration of the contract (5095 days, approximately 14 years) suggests a comprehensive scope, potentially involving multiple phases of design, renovation, or new construction for a dental facility. Further investigation into the contract's statement of work (SOW) would be necessary to ascertain the precise deliverables and engineering disciplines involved.
How does the average annual cost of this contract compare to similar military dental clinic construction or renovation projects?
The average annual cost of this contract is approximately $2.1 million ($30M / 14 years). Benchmarking this against similar projects requires access to a database of comparable federal contracts, including their scope, location, and specific services rendered. Factors such as the size of the dental clinic, the complexity of the required engineering, the geographic location (which impacts labor and material costs), and the specific military branch's standards would influence the cost. Without these comparative data points, it is difficult to definitively state whether $2.1 million per year represents a competitive or inflated cost for the engineering services provided.
What are the potential risks associated with a definitive contract lasting over 14 years?
A definitive contract spanning over 14 years carries several potential risks. Firstly, the extended timeline increases the likelihood of cost escalation due to inflation, material price fluctuations, and changes in labor rates, even with a firm fixed price structure, unless escalation clauses are carefully managed. Secondly, the risk of scope creep is significant; as the project evolves, there may be pressure to add or modify requirements, potentially leading to change orders that increase the overall cost and duration. Thirdly, contractor performance can degrade over such a long period, or key personnel may leave, impacting the quality and timeliness of services. Finally, the government may face challenges in adapting to new technologies or evolving needs if the contract's scope becomes rigid.
What is the significance of awarding this contract under 'Full and Open Competition' with 3 bidders?
Awarding this contract under 'Full and Open Competition' signifies that the Department of Defense sought bids from all eligible and responsible sources, maximizing the potential pool of offerors. The fact that three bids were received suggests a reasonable level of competition for these engineering services. This competitive environment is generally beneficial for the government as it encourages offerors to submit their most competitive pricing and technical solutions to win the contract. It also provides a basis for the government to assess the fairness and reasonableness of the pricing received.
What is the historical spending pattern for engineering services related to military healthcare facilities by the Department of the Army?
The provided data focuses on a single contract and does not offer insights into the Department of the Army's historical spending patterns for engineering services related to military healthcare facilities. To analyze historical spending, one would need to examine contract databases over several fiscal years, filtering for relevant NAICS codes (like 541330), agencies (Department of the Army), and keywords related to healthcare facilities or specific types of medical buildings. Such an analysis would reveal trends in contract values, types of services procured, competition levels, and average contract durations, providing context for the current $30 million dental clinic contract.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102
Solicitation ID: W912UM08R0003
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9841 AIRPORT BLVD #1200, LOS ANGELES, CA, 90045
Business Categories: Category Business, Emerging Small Business, Not Designated a Small Business, Small Business, Special Designations, Subchapter S Corporation, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $29,983,890
Exercised Options: $29,983,890
Current Obligation: $29,983,890
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-02-26
Current End Date: 2023-02-08
Potential End Date: 2023-02-08 00:00:00
Last Modified: 2021-02-25
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