ASRC Construction Technologies awarded $15.7M contract for commercial and institutional building construction by the Department of the Army

Contract Overview

Contract Amount: $15,674,683 ($15.7M)

Contractor: Asrc Construction Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-06-10

End Date: 2011-03-31

Contract Duration: 1,024 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE BID

Place of Performance

Location: ELMENDORF AFB, ANCHORAGE County, ALASKA, 99506

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to ASRC CONSTRUCTION TECHNOLOGIES, INC. for work described as: BASE BID Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1024 days indicates a significant, long-term project. 3. The base bid of $15.3M suggests a substantial investment in construction services. 4. The firm fixed-price contract type shifts cost risk to the contractor. 5. Awarded by the Department of the Army, indicating a defense-related construction need. 6. The contract is for commercial and institutional building construction, a broad category.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar construction projects of comparable scope and complexity. The base bid of $15.3 million for a project spanning over 1000 days is a significant sum, but its value-for-money can only be assessed against specific construction requirements, material costs, and labor rates prevalent during the contract period. Without further data on the project's specifics, it's difficult to definitively assess if the pricing was competitive or represented a good deal for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 4 bids indicates a degree of competition, which is generally positive for price discovery and ensuring the government receives competitive pricing. However, the exact number of bidders does not inherently guarantee the most optimal price without knowing the bid spread and the specific requirements of the construction project.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a more competitive environment, which can lead to lower prices and better quality services. It ensures that the government is not limited to a single provider, increasing the likelihood of a cost-effective outcome.

Public Impact

The primary beneficiaries are the Department of the Army and potentially military personnel or civilian staff who will utilize the constructed facilities. The contract delivers essential commercial and institutional building construction services, likely for infrastructure development or modernization. The geographic impact is concentrated in Alaska (ST: AK, SN: ALASKA), where the construction activities will take place. The contract implies a need for skilled labor in the construction trades, potentially creating or sustaining jobs in the local Alaskan economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Dependence on the contractor's ability to manage complex construction projects effectively within the specified timeline.
Risk associated with the long duration of the contract, which could see market conditions or requirements change.

Positive Signals

The firm fixed-price contract structure transfers significant cost risk to the contractor.
Awarded through full and open competition, suggesting a robust bidding process.
The contractor, ASRC CONSTRUCTION TECHNOLOGIES, INC., has secured a substantial contract, indicating a level of established capability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures such as offices, schools, hospitals, and government facilities. The market size for federal construction is substantial, driven by the need to maintain and upgrade existing infrastructure and build new facilities. This specific contract represents a portion of the Department of Defense's significant investment in its physical infrastructure.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides. Therefore, the direct impact on small business set-asides appears minimal for this particular award. However, the prime contractor, ASRC CONSTRUCTION TECHNOLOGIES, INC., may engage small businesses as subcontractors to fulfill portions of the construction work, which would have an indirect positive impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified construction within budget. Transparency is generally facilitated through contract award databases like FPDS, though detailed project-specific oversight reports may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Federal Building Construction
Department of Defense Infrastructure Projects

Risk Flags

Long contract duration may increase exposure to market volatility.
Potential for unforeseen site conditions in Alaska's environment.
Contractor performance history needs thorough review for similar large-scale projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to ASRC CONSTRUCTION TECHNOLOGIES, INC.. BASE BID

Who is the contractor on this award?

The obligated recipient is ASRC CONSTRUCTION TECHNOLOGIES, 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 $15.7 million.

What is the period of performance?

Start: 2008-06-10. End: 2011-03-31.

What is the track record of ASRC CONSTRUCTION TECHNOLOGIES, INC. with federal contracts, particularly within the Department of Defense?

ASRC CONSTRUCTION TECHNOLOGIES, INC. has a history of securing federal contracts, including those with the Department of Defense. Analyzing their past performance on similar construction projects would provide insight into their reliability, quality of work, and ability to meet deadlines and budgets. A review of their contract history might reveal patterns in project types, award values, and any instances of contract modifications, disputes, or terminations. This information is crucial for assessing the risk associated with the current contract and understanding the contractor's overall capability and experience in executing large-scale federal construction projects.

How does the awarded amount of $15.7 million compare to similar commercial and institutional building construction contracts awarded by the Department of the Army in Alaska?

To assess the value, this $15.7 million contract should be benchmarked against similar construction projects awarded by the Department of the Army in Alaska over the past several years. Factors such as project scope, square footage, complexity of construction, and prevailing market rates for labor and materials in Alaska during the relevant period are critical for a fair comparison. If comparable projects of similar scale and complexity were awarded at significantly lower or higher price points, it would indicate whether this contract represents a potentially advantageous or disadvantageous price for the government. Without specific comparable project data, a definitive value assessment is challenging.

What are the primary risks associated with a firm fixed-price contract for a construction project of this duration (1024 days)?

The primary risk with a firm fixed-price contract for a long-duration project like this (1024 days) is the potential for unforeseen cost increases that are not adequately accounted for in the initial bid. While the contractor assumes most of the cost risk, significant escalations in material prices, labor shortages, or unexpected site conditions (e.g., environmental issues, difficult terrain) could strain the contractor's profitability or lead to disputes. The government's risk is primarily related to the contractor's potential inability to complete the project satisfactorily due to financial distress or performance issues, potentially leading to delays or the need for contract termination and re-competition.

What specific types of commercial and institutional buildings are covered under this contract, and what is their intended use?

The contract specifies 'Commercial and Institutional Building Construction' broadly. To understand the program's effectiveness, it's essential to know the specific types of buildings being constructed or renovated. This could range from administrative offices, barracks, training facilities, maintenance depots, or community centers on military installations. The intended use is critical as it dictates the functional requirements, design specifications, and ultimately, the impact on military operations, personnel welfare, or support services. Without this detail, assessing the strategic importance and direct impact of the construction is limited.

How has federal spending on commercial and institutional building construction in Alaska trended over the last five fiscal years?

Analyzing historical spending trends for commercial and institutional building construction in Alaska by the federal government over the last five fiscal years would provide context for the $15.7 million award. A rising trend might indicate increased federal investment in infrastructure in the region, potentially driven by strategic priorities or aging facilities needing replacement. Conversely, a declining trend could suggest budget constraints or shifting priorities. Understanding this pattern helps determine if this contract is an anomaly, part of a sustained effort, or a response to specific needs within Alaska.

What are the key performance indicators (KPIs) used to measure the success of this construction contract?

Key performance indicators for a construction contract typically include adherence to schedule (on-time completion), quality of workmanship (meeting specifications and standards), safety performance (low incident rates), and budget management (staying within the fixed price). For this specific contract, the Department of the Army would likely have established milestones and quality assurance procedures to monitor progress and ensure deliverables meet requirements. Success would be measured by the final delivery of a functional, safe, and durable building that meets all specified criteria, within the agreed-upon fixed price and timeframe.

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: SEALED BID

Solicitation ID: W91ZRU08B0002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation (UEI: 076637073)

Address: 3900 C ST STE 303, ANCHORAGE, AK, 00

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,674,683

Exercised Options: $15,674,683

Current Obligation: $15,674,683

Contract Characteristics

Cost or Pricing Data: NO

Timeline