DoD's $47.5M Commercial Building Construction Contract Awarded to Undisclosed Domestic Firms

Contract Overview

Contract Amount: $47,513,358 ($47.5M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2008-02-28

End Date: 2013-02-11

Contract Duration: 1,810 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PRIME POWER PLANT/

Plain-Language Summary

Department of Defense obligated $47.5 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: PRIME POWER PLANT/ Key points: 1. The contract value represents a significant investment in commercial and institutional building construction. 2. Competition dynamics for this contract are unclear due to undisclosed awardees. 3. The firm-fixed-price contract type suggests a defined scope and cost structure. 4. The contract duration of 1810 days indicates a substantial, long-term project. 5. The absence of small business set-aside flags warrants further investigation into subcontracting opportunities. 6. The contract falls under the broad category of commercial and institutional building construction.

Value Assessment

Rating: fair

Benchmarking the value of this $47.5 million contract is challenging without knowing the specific scope of work or the identity of the awardees. However, for a multi-year construction project of this magnitude, the price appears within a reasonable range, assuming standard construction complexities. Without comparable projects or detailed cost breakdowns, a precise value-for-money assessment is difficult. The firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. However, the disclosure of 'DOMESTIC AWARDEES (UNDISCLOSED)' prevents an analysis of the number of bids received and the specific competitive landscape. This lack of transparency regarding the awardees makes it difficult to assess if the competition effectively drove down prices or if there were any potential limitations on the bidding pool.

Taxpayer Impact: While full and open competition is generally beneficial for taxpayers by promoting a wider range of offers, the undisclosed awardees obscure the direct impact on price discovery and potential savings.

Public Impact

The primary beneficiaries are likely the awarded domestic construction firms and their workforces. The contract supports the delivery of commercial and institutional building construction services for the Department of the Army. The geographic impact is likely localized to where the construction projects are situated, though specific locations are not provided. Workforce implications include job creation and demand for skilled labor within the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding specific awardees hinders a thorough assessment of contractor performance and potential conflicts of interest.
The absence of small business participation details raises concerns about equitable distribution of subcontracting opportunities.
The broad nature of 'Commercial and Institutional Building Construction' makes it difficult to assess the specific risks associated with the project without more detail.

Positive Signals

Awarded under full and open competition, indicating a broad initial search for qualified contractors.
Firm-fixed-price contract type generally provides cost certainty for the government.
The contract duration suggests a significant and potentially impactful construction project.

Sector Analysis

This contract falls within the broad 'Commercial and Institutional Building Construction' sector, which encompasses a wide range of projects from office buildings to public facilities. The Department of Defense is a significant consumer of construction services, often awarding large-scale contracts for infrastructure development and facility upgrades. Comparable spending benchmarks would typically involve analyzing other large DoD construction contracts or major federal building projects, but specific project details are needed for a precise comparison.

Small Business Impact

The contract does not indicate any specific small business set-aside. The fact that the awardees are undisclosed makes it impossible to determine if any subcontracting opportunities were specifically directed towards small businesses. Further analysis would be required to ascertain if the prime contractor(s) engaged in subcontracting and the extent of small business participation in those subcontracts, which is crucial for understanding the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant program management offices within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which places cost risk on the contractor. Transparency is limited by the undisclosed nature of the awardees, making it difficult to assess public accountability beyond the initial award announcement.

Related Government Programs

Department of Defense Construction Contracts
Army Corps of Engineers Construction Projects
Federal Building and Infrastructure Spending
Commercial Construction Services

Risk Flags

Undisclosed Awardees: Lack of transparency regarding the prime contractors awarded this significant contract.
Potential for Limited Small Business Subcontracting: Absence of explicit small business set-aside or reporting requirements.
Broad Scope Definition: 'Commercial and Institutional Building Construction' is a general category, making specific risk and value assessment difficult without project details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.5 million to DOMESTIC AWARDEES (UNDISCLOSED). PRIME POWER PLANT/

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $47.5 million.

What is the period of performance?

Start: 2008-02-28. End: 2013-02-11.

What specific types of commercial and institutional buildings were constructed under this contract?

The provided data categorizes this contract under 'Commercial and Institutional Building Construction' (NAICS 236220) but does not specify the exact types of buildings. This could range from administrative facilities, barracks, training centers, or other support structures. Without further details on the project scope, it's impossible to determine the specific nature of the construction. Understanding the building types is crucial for assessing the contract's alignment with military needs and for comparing its value and complexity to similar projects.

What was the rationale for keeping the domestic awardees undisclosed?

The reason for the 'DOMESTIC AWARDEES (UNDISCLOSED)' status is not provided in the data. Typically, awardee information is made public to ensure transparency and accountability in federal contracting. Undisclosed awardees could stem from various reasons, such as proprietary business information, national security concerns (though less likely for standard construction), or administrative oversight. This lack of transparency hinders public scrutiny and makes it difficult to assess the contractor's track record or potential conflicts of interest.

How does the $47.5 million contract value compare to similar construction projects awarded by the Department of the Army?

Comparing this $47.5 million contract requires access to data on similar Department of the Army construction projects, ideally with similar scopes of work and durations. Given the 1810-day duration, this represents a substantial, multi-year undertaking. Without specific project details (e.g., square footage, type of facility, specific construction requirements), a direct comparison is difficult. However, for large-scale federal construction, this value is not unusual, but its 'value for money' depends heavily on the specifics of the work performed and the market conditions at the time of award.

What are the potential risks associated with a firm-fixed-price contract of this duration and value?

Firm-fixed-price contracts aim to provide cost certainty. However, for a long-duration, high-value project like this ($47.5M over 1810 days), risks include potential scope creep if not managed tightly, contractor underestimation of costs leading to quality compromises, or unforeseen market fluctuations (labor, materials) that could strain the contractor. The government's risk is primarily ensuring the contractor delivers the specified quality and scope within the fixed price, requiring robust oversight and performance management.

What historical spending patterns exist for 'Commercial and Institutional Building Construction' by the Department of the Army?

Historical spending patterns for 'Commercial and Institutional Building Construction' by the Department of the Army are substantial, reflecting ongoing needs for infrastructure and facilities. The Army, often through the Army Corps of Engineers, awards numerous contracts in this category annually. Analyzing past spending would involve looking at total annual outlays for NAICS code 236220, average contract values, and the frequency of large-scale projects. This specific $47.5M contract would be one data point within a much larger trend of federal investment in construction.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W917PM08R0016

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $47,513,358

Exercised Options: $47,513,358

Current Obligation: $47,513,358

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline