DoD's $18.2M construction contract awarded to W. G. Yates & Sons Construction Company for 858 days

Contract Overview

Contract Amount: $18,208,838 ($18.2M)

Contractor: W. G. Yates & Sons Construction Company

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2011-02-05

Contract Duration: 858 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIRD OPTION YEAR

Place of Performance

Location: GULFPORT, HARRISON County, MISSISSIPPI, 39501

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to W. G. YATES & SONS CONSTRUCTION COMPANY for work described as: THIRD OPTION YEAR Key points: 1. The contract value of $18.2 million over 858 days suggests a moderate investment in construction services. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The firm fixed-price contract type generally transfers risk to the contractor, potentially stabilizing costs. 4. The contract duration of 858 days (approximately 2.35 years) is substantial, implying a complex or lengthy project. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The contract value of $18.2 million for 858 days of construction services appears within a reasonable range for large-scale commercial and institutional building projects. Without specific details on the scope of work, it's difficult to benchmark precisely against similar contracts. However, the firm fixed-price nature suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the project is completed within budget. Further analysis would require comparing the cost per day or per square foot to industry standards for comparable projects in Mississippi.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves soliciting bids from all responsible prospective contractors. This method is designed to foster a competitive environment, potentially leading to better pricing and quality. The presence of 3 bids suggests a moderate level of competition for this particular award. A higher number of bidders might have been expected for a project of this scale, but the fact that it was competed openly is a positive sign for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple contractors to offer their best prices and terms, leading to a more cost-effective outcome for government projects.

Public Impact

The primary beneficiaries are likely the Department of the Navy and its personnel, who will utilize the constructed facilities. The services delivered involve the construction of commercial and institutional buildings, contributing to infrastructure development. The geographic impact is localized to Mississippi, where the construction work will take place. The contract will likely have implications for the local construction workforce in Mississippi, creating employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract does not adequately account for unforeseen construction challenges.
The duration of the contract (858 days) could lead to extended periods of disruption or impact on surrounding areas.
Dependence on a single contractor for a significant construction project carries inherent risks if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The firm fixed-price contract type shifts cost risk to the contractor, potentially ensuring budget adherence.
The contractor, W. G. Yates & Sons Construction Company, has a track record that can be reviewed for performance history.

Sector Analysis

The construction sector is a significant part of the U.S. economy, encompassing a wide range of building activities. This contract falls under commercial and institutional building construction, which includes projects like offices, schools, hospitals, and government facilities. The market for federal construction contracts is substantial, with agencies like the Department of Defense consistently investing in infrastructure. Benchmarking this contract's value would involve comparing its cost per square foot or per day against similar government or private sector construction projects in the region.

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, W. G. Yates & Sons Construction Company, may still engage small businesses as subcontractors based on their own procurement strategies and the availability of specialized services. The absence of a small business set-aside means that opportunities for small businesses are not guaranteed by this contract's terms.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and project management offices. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Management
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for cost overruns due to fixed-price nature on long-duration project.
Scope definition clarity is needed for precise value assessment.
Contractor performance history requires review for risk mitigation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to W. G. YATES & SONS CONSTRUCTION COMPANY. THIRD OPTION YEAR

Who is the contractor on this award?

The obligated recipient is W. G. YATES & SONS CONSTRUCTION COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.2 million.

What is the period of performance?

Start: 2008-09-30. End: 2011-02-05.

What is the specific scope of work for this construction contract?

The provided data indicates the contract falls under NAICS code 236220, which is Commercial and Institutional Building Construction. However, the specific details of the project, such as the type of building (e.g., barracks, office building, training facility), its size, location on a specific base or installation, and the exact construction tasks (e.g., new build, renovation, repair), are not detailed in the provided summary. Understanding the scope is crucial for a comprehensive value assessment and for comparing it to similar projects. Without this information, it's challenging to determine if the $18.2 million award represents good value for the services rendered.

How does the cost per day of this contract compare to industry benchmarks for similar construction projects?

The contract spans 858 days and has a value of $18,208,838. This equates to approximately $21,222 per day. To benchmark this effectively, we would need to compare it to the average daily cost of similar commercial and institutional building construction projects, particularly those undertaken by the government or in the state of Mississippi. Factors such as project complexity, labor costs, material prices, and prevailing economic conditions significantly influence daily construction costs. A higher daily cost might be justified for highly specialized or complex projects, while a lower cost could indicate efficiency or a simpler scope. Without specific project details and regional cost data, a definitive comparison is not possible.

What is the track record of W. G. Yates & Sons Construction Company on similar federal contracts?

W. G. Yates & Sons Construction Company has been awarded this contract by the Department of the Navy. To assess their track record, one would typically examine their past performance on previous federal contracts, particularly those involving similar types of construction and contract values. Key indicators include on-time and on-budget completion rates, quality of work, safety records, and any history of disputes or contract terminations. A review of their contract history within the Federal Procurement Data System (FPDS) or other government databases would provide insights into their reliability and expertise as a federal contractor. Positive past performance would increase confidence in the successful execution of this current contract.

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

A firm fixed-price (FFP) contract, while generally beneficial for cost control, carries inherent risks for both the government and the contractor, especially for long-duration projects like this 858-day contract. For the government, the primary risk is that the contractor may cut corners on quality or safety to maintain profitability if unforeseen issues arise that increase costs beyond their initial estimates. For the contractor, the risk is absorbing cost increases due to factors like material price volatility, labor shortages, or unexpected site conditions, which could lead to financial losses if not adequately planned for. Effective project oversight and clear contract specifications are crucial to mitigate these risks.

How does the competition level (3 bidders) impact the potential value for taxpayers on this contract?

Having three bidders for this contract suggests a moderate level of competition. While more bidders could potentially drive prices down further, three offers indicate that the opportunity was known and attractive enough for multiple firms to invest resources in preparing proposals. This level of competition generally provides a reasonable basis for price discovery and helps ensure that the government is not paying an excessively high price. However, it's less competitive than a scenario with numerous bidders, which might have yielded even greater cost savings. The specific nature of the project and the qualifications required could influence the number of interested and capable bidders.

What is the historical spending pattern for commercial and institutional building construction by the Department of the Navy?

The Department of the Navy, as a major component of the Department of Defense, consistently invests in the construction and maintenance of its facilities worldwide. Historical spending patterns reveal a significant and ongoing requirement for building construction services to support naval operations, personnel housing, training, and administrative functions. This includes a wide array of projects, from barracks and hangars to research facilities and piers. The annual budget allocated for military construction and facilities sustainment reflects the Navy's commitment to maintaining and modernizing its infrastructure. Analyzing past spending trends can help contextualize the $18.2 million award within the Navy's broader capital investment strategy.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6246705R0095

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Yates Companies Inc (UEI: 017041232)

Address: ONE GULLY AVE, PHILADELPHIA, MS, 39350

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,208,838

Exercised Options: $18,208,838

Current Obligation: $18,208,838

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6246705D0183

IDV Type: IDC

Timeline