STAFFCO CONSTRUCTION INC awarded $14.68M for building construction at Springfield AFRC/FMS, with 5 bids received

Contract Overview

Contract Amount: $14,680,886 ($14.7M)

Contractor: Staffco Construction Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2011-04-15

Contract Duration: 927 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SPRINGFIELD AFRC/FMS

Place of Performance

Location: SPRINGFIELD, CLARK County, OHIO, 45502

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $14.7 million to STAFFCO CONSTRUCTION INC for work described as: SPRINGFIELD AFRC/FMS Key points: 1. Contract value of $14.68M for construction services. 2. Competition involved 5 bidders, indicating a moderately competitive environment. 3. Contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Performance period spans over 927 days, suggesting a substantial project. 5. The contract was awarded under full and open competition after exclusion of sources. 6. The project is located in Ohio, with the agency being the Department of the Army.

Value Assessment

Rating: fair

The contract value of $14.68M for commercial and institutional building construction appears to be within a reasonable range for a project of this scope and duration. Without specific details on the scope of work, it is difficult to benchmark against similar contracts precisely. However, the firm fixed-price nature suggests that the initial pricing was intended to cover all costs and profit, with the onus on the contractor to manage expenses effectively. The number of bids received (5) suggests a degree of market interest, which can contribute to fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, certain sources were initially excluded before the final competition. Five bids were received, suggesting a reasonable level of interest from the market. This level of competition generally allows for price discovery and can lead to more competitive pricing compared to sole-source or limited competition scenarios.

Taxpayer Impact: The use of full and open competition, even with initial source exclusions, provides a better opportunity for taxpayers to receive value by encouraging multiple contractors to bid and potentially lower their prices to secure the award.

Public Impact

The primary beneficiaries are the Department of the Army and potentially military personnel or support staff at the Springfield AFRC/FMS facility. The services delivered include commercial and institutional building construction, likely involving new construction, renovation, or repair of facilities. The geographic impact is concentrated in Ohio, specifically at the Springfield Air Force Reserve Command (AFRC) and Field Maintenance Shop (FMS). Workforce implications include employment opportunities for construction workers, project managers, engineers, and support staff in the Ohio region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work was not fully defined or if unforeseen site conditions arise, despite the firm fixed-price contract.
The 'exclusion of sources' clause warrants further investigation to understand the rationale and ensure it did not unduly limit competition.
Long performance period (927 days) increases the risk of material price fluctuations or labor availability issues impacting project completion.
Dependence on a single contractor for a significant construction project carries inherent risks related to performance and quality.

Positive Signals

Firm Fixed Price contract structure transfers cost risk to the contractor.
Multiple bidders (5) suggest market interest and potential for competitive pricing.
Awarded by the Department of the Army, a major federal agency with established procurement processes.
Project located at a specific military installation (Springfield AFRC/FMS), implying a clear operational need.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The federal government is a significant consumer of construction services, awarding billions annually for infrastructure, facilities, and base support. This contract represents a portion of that spending, contributing to the maintenance and development of military infrastructure. Comparable spending benchmarks would depend on the specific type and scale of construction, but projects of this magnitude are common across various federal agencies.

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, STAFFCO CONSTRUCTION INC, may choose to subcontract portions of the work to small businesses as part of their overall business operations or supply chain management, but this is not a contractual requirement based on the provided data.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Department of the Army contracting and project management offices responsible for the Springfield AFRC/FMS. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified construction within the agreed-upon price and timeline. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Base Operations Support
Facility Maintenance and Repair
Department of Defense Construction Contracts
General Building Construction Services

Risk Flags

Long performance period increases risk of cost escalation or contractor performance issues.
Potential for scope creep if not managed tightly under a fixed-price contract.
The 'exclusion of sources' clause requires scrutiny to ensure fair competition.
Contractor's past performance on similar large-scale construction projects should be thoroughly reviewed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.7 million to STAFFCO CONSTRUCTION INC. SPRINGFIELD AFRC/FMS

Who is the contractor on this award?

The obligated recipient is STAFFCO 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 $14.7 million.

What is the period of performance?

Start: 2008-09-30. End: 2011-04-15.

What is the track record of STAFFCO CONSTRUCTION INC with federal contracts, particularly in construction?

STAFFCO CONSTRUCTION INC has been awarded federal contracts, with this particular award for $14.68M being a significant one. Analyzing their past performance on similar federal projects would be crucial. Key indicators to examine include on-time and on-budget completion rates, quality of work, and any history of disputes or contract modifications. A review of their contract history within the Federal Procurement Data System (FPDS) or other relevant databases would reveal the extent of their federal contracting experience and their performance trends. Understanding their specialization within construction (e.g., new builds, renovations, specific types of facilities) would also provide context for their suitability for this project.

How does the awarded amount of $14.68M compare to similar building construction projects for the Department of the Army?

Benchmarking the $14.68M award requires detailed comparison with similar projects undertaken by the Department of the Army or other federal agencies. Factors such as project scope (e.g., square footage, type of facility, complexity of systems), geographic location (which influences labor and material costs), and the specific year of award are critical. Without these specifics, a direct comparison is challenging. However, the fact that 5 bids were received suggests that the market perceived the contract value as potentially viable. A deeper analysis would involve identifying comparable projects from FPDS, looking at their awarded values, contract types, and performance periods to ascertain if $14.68M represents a competitive price point for the services rendered.

What are the primary risks associated with a firm fixed-price contract for a project with a 927-day performance period?

A firm fixed-price (FFP) contract shifts the primary cost risk to the contractor. For a long-duration project like this (927 days), the main risks for the contractor include significant fluctuations in material costs (e.g., steel, concrete, lumber) and labor rates over the performance period. Unexpected inflation or supply chain disruptions could erode profit margins or lead to financial distress for the contractor. For the government, the risk is that the contractor might cut corners on quality or safety to maintain profitability if costs escalate unexpectedly, or that the contractor may go out of business, leading to project delays and potential re-procurement costs. Robust oversight and clear performance standards are essential to mitigate these risks.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for this contract?

This designation indicates that the procurement process aimed for broad competition but initially excluded certain potential sources before opening it up. The reasons for initial exclusion could vary, such as pre-qualification requirements, specific technical capabilities, or past performance issues. After this initial screening, the remaining pool of sources was then subjected to full and open competition. The fact that 5 bids were ultimately received suggests that the exclusion process did not unduly stifle competition, allowing for a reasonable number of qualified bidders to participate. However, understanding the specific criteria for exclusion is important to ensure fairness and prevent anti-competitive practices.

How has federal spending on commercial and institutional building construction trended in recent years, and where does this contract fit?

Federal spending on commercial and institutional building construction is a substantial category, often fluctuating based on defense needs, infrastructure initiatives, and agency modernization efforts. Historically, agencies like the Department of Defense, General Services Administration (GSA), and Department of Veterans Affairs are major contributors to this spending. This $14.68M contract for the Department of the Army fits within this broader trend. Analyzing historical spending data from sources like FPDS or Congressional Budget Office (CBO) reports would reveal overall trends. This specific contract contributes to the ongoing investment in maintaining and upgrading federal facilities, particularly those critical for military operations and support at installations like Springfield AFRC/FMS.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional 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: SEALED BID

Solicitation ID: W9136408B0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1340 SPANGLER RD, FAIRBORN, OH, 45324

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,680,886

Exercised Options: $14,680,886

Current Obligation: $14,680,886

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline