DoD's $22.7M Training Range Construction Contract Awarded to Ross Group Construction Corporation

Contract Overview

Contract Amount: $22,696,409 ($22.7M)

Contractor: Ross Group Construction Corporation, LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-27

End Date: 2010-10-18

Contract Duration: 751 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION-CACTF TRAINING RANGE

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79906

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $22.7 million to ROSS GROUP CONSTRUCTION CORPORATION, LLC for work described as: CONSTRUCTION-CACTF TRAINING RANGE Key points: 1. Contract awarded for construction of a training range, indicating investment in military readiness. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 4. The project is located in Texas, implying regional economic impact and workforce development. 5. The contractor, Ross Group Construction Corporation, LLC, has experience in commercial and institutional building construction. 6. The duration of the contract was 751 days, suggesting a significant construction timeline.

Value Assessment

Rating: fair

The contract value of $22.7 million for a training range construction project appears within a reasonable range for large-scale military infrastructure. Benchmarking against similar training range construction projects would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract suggests that the initial bid was considered competitive and that cost overruns are primarily the contractor's responsibility, which is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of only one bid is unusual for a full and open competition and raises questions about the level of market interest or potential barriers to entry for other firms. While competition is generally beneficial for price discovery, a single bid may suggest limited market availability or that other potential bidders did not find the opportunity sufficiently attractive.

Taxpayer Impact: A single bid in a full and open competition scenario means taxpayers may not have benefited from the full spectrum of competitive pricing that could have been achieved with multiple offers. This could potentially lead to a higher price than if more contractors had vied for the work.

Public Impact

The primary beneficiaries are the Department of Defense and military personnel who will utilize the new training range for enhanced operational readiness. The contract delivers essential infrastructure for military training, supporting national defense objectives. The project's geographic impact is concentrated in Texas, potentially creating local jobs and stimulating the regional economy through construction activities. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the Texas area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition indicated by a single bid in a full and open solicitation.
Lack of detailed performance metrics or quality assurance information in the provided data.
The specific nature of 'training range' construction can involve specialized requirements not easily met by all construction firms.

Positive Signals

Firm-fixed-price contract type helps control costs and manage budget predictability.
Awarded by the Department of the Army, suggesting alignment with significant defense infrastructure needs.
Contractor has experience in commercial and institutional building construction, providing a relevant skill set.

Sector Analysis

The construction sector, particularly for specialized government facilities like military training ranges, represents a significant segment of the broader construction market. This contract falls under the Commercial and Institutional Building Construction NAICS code. Government contracts for infrastructure projects often involve substantial dollar values and require contractors with specific expertise and security clearances. Benchmarking against similar military construction projects would be necessary for a comprehensive sector analysis.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Without specific subcontracting goals or reporting, it is difficult to assess the extent to which small businesses may have benefited indirectly from this large prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are inherent in the firm-fixed-price contract type, which places financial responsibility on the contractor. Transparency is generally facilitated through contract award databases like FPDS, though detailed project-specific oversight reports are not always publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Base Construction
Defense Infrastructure Projects
Training Facility Development
Government Construction Contracts
Army Corps of Engineers Projects

Risk Flags

Single bid received under full and open competition.
Potential for cost overruns if contractor underestimated project scope or risks.
Lack of detailed performance data for contractor evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.7 million to ROSS GROUP CONSTRUCTION CORPORATION, LLC. CONSTRUCTION-CACTF TRAINING RANGE

Who is the contractor on this award?

The obligated recipient is ROSS GROUP CONSTRUCTION CORPORATION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.7 million.

What is the period of performance?

Start: 2008-09-27. End: 2010-10-18.

What is the track record of Ross Group Construction Corporation, LLC with federal contracts, particularly within the Department of Defense?

Ross Group Construction Corporation, LLC has a history of federal contracting, primarily with the Department of Defense. While the provided data highlights this specific $22.7 million contract for a training range, a deeper dive into their contract history would reveal the number and value of previous awards, their performance ratings on past projects, and any instances of contract disputes or terminations. Understanding their past performance, especially on similar large-scale construction projects for the military, is crucial for assessing their capability and reliability in executing this current contract effectively and within budget.

How does the $22.7 million cost compare to similar training range construction projects awarded by the Department of Defense?

Directly comparing the $22.7 million cost requires access to a database of similar training range construction projects, including their scope, size, location, and completion dates. Factors such as the specific features of the training range (e.g., types of ranges, support facilities), prevailing construction costs in Texas during the 2008-2010 period, and the complexity of the site preparation would influence the overall price. Without comparable project data, it's challenging to definitively state whether this contract represented excellent, good, or fair value. However, the firm-fixed-price nature suggests an effort to lock in costs.

What are the primary risks associated with this firm-fixed-price construction contract for a training range?

The primary risks associated with this firm-fixed-price contract, while generally favorable for cost control, lie in potential contractor underestimation of costs or unforeseen site conditions. If Ross Group Construction Corporation, LLC underestimated the complexity, material costs, or labor requirements, they could face financial losses, potentially impacting project quality or leading to disputes. Unforeseen environmental conditions, geological issues, or changes in regulatory requirements during the construction phase could also lead to claims for additional compensation or delays, even under a fixed-price contract. The government's risk is primarily that the contractor may cut corners to maintain profitability if issues arise.

How effective is the 'full and open competition' strategy when only one bid is received?

The effectiveness of 'full and open competition' is significantly diminished when only one bid is received. The core principle of this strategy is to maximize the number of potential bidders to foster robust price competition and ensure the government receives the best possible value. A single bid suggests that either the market for this specific type of construction is very limited, the solicitation requirements were overly restrictive, or potential bidders were deterred by perceived risks or the administrative burden of bidding. In such cases, the government may not achieve the cost savings typically associated with competitive bidding, and the fairness of the price becomes a greater concern.

What are the historical spending patterns for military training range construction by the Department of the Army?

Historical spending patterns for military training range construction by the Department of the Army show a consistent need for such facilities to maintain combat readiness. Spending fluctuates based on geopolitical conditions, modernization requirements, and budget allocations. Major construction projects like this often occur in multi-year cycles, with significant investments made during periods of military expansion or strategic realignment. Analyzing past spending data would reveal average project costs, typical contract durations, and the prevalence of different contract types and competition levels for similar infrastructure.

What are the implications of the 751-day contract duration on project management and oversight?

A contract duration of 751 days (approximately two years) for a training range construction project implies a substantial undertaking requiring rigorous project management and sustained oversight. This extended timeline increases the potential for encountering unforeseen challenges, such as material price fluctuations, labor availability issues, or changes in military requirements. Effective oversight by the Department of the Army would involve regular progress reviews, quality assurance inspections, schedule adherence monitoring, and proactive risk management to ensure the project stays on track, within budget, and meets all specified requirements. The long duration also necessitates robust communication channels between the government and the contractor.

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 ID: W9126G07R0014

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1140 N 129TH E AVE, TULSA, OK, 01

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $22,696,409

Exercised Options: $22,696,409

Current Obligation: $22,696,409

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G08D0008

IDV Type: IDC

Timeline