Army contract for building maintenance awarded to McDaniel's Construction for $15.7M, exceeding initial estimates

Contract Overview

Contract Amount: $11,253,240 ($11.3M)

Contractor: Mcdaniels Construction Corporation, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-29

End Date: 2007-12-31

Contract Duration: 823 days

Daily Burn Rate: $13.7K/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: 200512!500874!2100!W91364!USPFO FOR OHIO !W9136405C0018 !A!N! !N! ! !20050929!20070531!157347287!157347287!157347287!N!MC DANIEL S CONSTRUCTION CORPO!1069 WOODLAND AVE !COLUMBUS !OH!43219!18000!049!39!COLUMBUS !FRANKLIN !OHIO !+000011298000!N!N!000011298000!Y152!MAINTENANCE BUILDINGS !C2 !CONSTRUCTION !000 !* !236210!A!B!3! ! ! ! ! !20200930!B! ! !N!Z!A!U!J!2!003!K! !D!N!C! ! !N!A!N!Y!C! ! ! !D!A!000!A!B!Y!U!N! ! ! ! !0001! !

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43235

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $11.3 million to MCDANIELS CONSTRUCTION CORPORATION, INC. for work described as: 200512!500874!2100!W91364!USPFO FOR OHIO !W9136405C0018 !A!N! !N! ! !20050929!20070531!157347287!157347287!157347287!N!MC DANIEL S CONSTRUCTION CORPO!1069 WOODLAND AVE !COLUMBUS !OH!43219!18000!049!39!COLUMBUS !FRAN… Key points: 1. The contract value significantly surpassed the initial estimated value, suggesting potential cost overruns or scope expansion. 2. Awarded through full and open competition, indicating a competitive bidding process was utilized. 3. The contractor, McDaniel's Construction Corporation, Inc., has a track record that warrants further investigation for performance and pricing. 4. This contract falls under industrial building construction, a sector with varying market dynamics and cost drivers. 5. The duration of the contract (823 days) is substantial, requiring sustained performance and oversight. 6. The contract was awarded by the Department of the Army, a major federal entity with significant construction needs.

Value Assessment

Rating: fair

The final award amount of $15.7 million is considerably higher than the initial estimated value of $11.2 million. This substantial difference raises questions about the accuracy of the initial estimate, potential scope creep during the contract period, or unforeseen cost increases. Benchmarking against similar building maintenance contracts within the Department of Defense would be necessary to determine if the final price represents fair value for the services rendered. The contractor's performance history on this and other contracts should be reviewed to assess if the higher cost was justified by quality and timeliness.

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,' which typically means that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this contract. While competition is generally positive for price discovery, the significant difference between the estimated and awarded amount warrants a review of the bidding process and the final pricing structure to ensure taxpayer value.

Taxpayer Impact: The competitive nature of the award is a positive sign for taxpayers, as it theoretically drives down costs. However, the substantial increase in the final award amount compared to the estimate suggests that further scrutiny of the pricing and potential cost drivers is warranted to ensure optimal use of public funds.

Public Impact

The primary beneficiary is the Department of the Army, which receives essential maintenance services for its facilities. The contract supports the upkeep and operational readiness of military buildings. The geographic impact is concentrated in Ohio, specifically within Franklin County, where the contractor is located. The contract likely supported local employment in the construction and maintenance sectors in the Columbus, Ohio area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant increase between estimated and awarded contract value requires explanation.
Contract duration is lengthy, necessitating ongoing performance monitoring.
Need to assess contractor's past performance and any potential issues.
Understanding the specific maintenance services provided is crucial for value assessment.

Positive Signals

Awarded through full and open competition, indicating a fair bidding process.
Multiple bidders participated, suggesting market interest and potential for competitive pricing.
Contract supports essential facility maintenance for a major government agency.

Sector Analysis

This contract falls within the Construction sector, specifically Industrial Building Construction. This sector is characterized by project-based work, fluctuating material costs, and labor availability. The market size for federal construction and maintenance services is substantial, with agencies like the Department of Defense being major clients. Comparable spending benchmarks would involve analyzing other federal contracts for similar building maintenance and repair services across different agencies and geographic locations to assess cost-effectiveness.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false'. Furthermore, there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary contractor, McDaniel's Construction Corporation, Inc., may not be obligated to engage small businesses for a significant portion of the work, potentially limiting opportunities for the small business ecosystem on this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the Department of the Army's procurement and inspection personnel. Accountability measures would include performance reviews, adherence to contract terms, and quality control. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction may be involved if allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Facility Maintenance Contracts
Industrial Building Construction Services
Army Corps of Engineers Construction Projects
Federal Building Repair and Maintenance

Risk Flags

Potential cost overrun indicated by award value exceeding estimate.
Contract duration requires sustained performance monitoring.
Need for detailed review of contractor's past performance.
Scope of work clarity is essential for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to MCDANIELS CONSTRUCTION CORPORATION, INC.. 200512!500874!2100!W91364!USPFO FOR OHIO !W9136405C0018 !A!N! !N! ! !20050929!20070531!157347287!157347287!157347287!N!MC DANIEL S CONSTRUCTION CORPO!1069 WOODLAND AVE !COLUMBUS !OH!43219!18000!049!39!COLUMBUS !FRANKLIN !OHIO !+000011298000!N!N!000011298000!Y152!MAINTENANCE BUILDINGS !C2 !CONSTRUCTION !000 !* !236210!A!B!3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is MCDANIELS CONSTRUCTION CORPORATION, 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 $11.3 million.

What is the period of performance?

Start: 2005-09-29. End: 2007-12-31.

What was the specific nature of the building maintenance services provided under this contract?

The contract specifies 'MAINTENANCE BUILDINGS' under the Product Service Code (PSC) '236210' (Industrial Building Construction). This generally encompasses a broad range of services necessary for the upkeep and repair of industrial facilities. These services could include structural repairs, HVAC maintenance, plumbing, electrical system upkeep, roofing, and general janitorial or custodial services related to the building's infrastructure. The exact scope would be detailed in the contract's Statement of Work (SOW), which outlines the specific tasks, performance standards, and deliverables expected from McDaniel's Construction Corporation, Inc. Without the SOW, the precise nature of the maintenance is inferred from the PSC and contract title.

How did the final award price of $15.7 million compare to the initial estimated value of $11.2 million, and what factors might explain this difference?

The final award price of $15.7 million is approximately 39.7% higher than the initial estimated value of $11.2 million. This significant variance could be attributed to several factors. Firstly, initial estimates are often preliminary and may not fully capture the complexity or extent of the required work. Secondly, market conditions, such as fluctuations in material costs or labor rates, could have increased during the contract's performance period. Thirdly, the scope of work may have been modified or expanded after the initial estimate, leading to change orders that increased the total contract value. Lastly, the competitive bidding process itself, while intended to secure fair pricing, might have resulted in a higher-than-expected final bid if the initial estimate was overly conservative or if bidders factored in significant risk premiums.

What is McDaniel's Construction Corporation, Inc.'s track record with federal contracts, particularly with the Department of the Army?

McDaniel's Construction Corporation, Inc. has been awarded federal contracts, including this one from the Department of the Army. To assess their track record, a review of their past performance on similar contracts would be necessary. This would involve examining contract completion records, any documented instances of performance issues, timeliness of delivery, quality of work, and any disputes or claims filed. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable in understanding their reliability and effectiveness as a federal contractor. Without access to detailed performance data, it's difficult to definitively assess their track record beyond the fact that they were awarded this significant contract.

What are the potential risks associated with a contract of this size and duration for building maintenance?

Contracts of this magnitude and duration carry several potential risks. For the government, risks include cost overruns if the initial estimate was inaccurate or if unforeseen issues arise, potential for contractor underperformance leading to facility degradation, and the administrative burden of managing a long-term contract. For the contractor, risks involve market fluctuations in material and labor costs, potential for scope creep without adequate compensation adjustments, and the challenge of maintaining consistent quality and performance over an extended period. Ensuring robust oversight, clear performance metrics, and effective change management processes are crucial to mitigate these risks for both parties.

How does this contract fit within the broader context of federal spending on facility maintenance and construction?

This $15.7 million contract for building maintenance represents a component of the vast federal spending allocated annually to maintaining and constructing government facilities. Agencies like the Department of Defense have extensive real estate portfolios requiring continuous upkeep. Spending in this area is influenced by factors such as aging infrastructure, modernization efforts, and national security requirements. Benchmarking this contract's value and terms against other similar federal facility maintenance contracts can provide insights into its relative cost-effectiveness and alignment with broader federal spending patterns in the construction and maintenance sector.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1069 WOODLAND AVE, COLUMBUS, OH, 90

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Timeline