DoD's $18.2M Digital Multipurpose Training Range contract awarded to Ross Group Construction Corporation for building construction

Contract Overview

Contract Amount: $18,203,965 ($18.2M)

Contractor: Ross Group Construction Corporation, LLC

Awarding Agency: Department of Defense

Start Date: 2009-02-06

End Date: 2010-09-18

Contract Duration: 589 days

Daily Burn Rate: $30.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DIGITAL MULTIPURPOSE TRAINING RANGE

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74128

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to ROSS GROUP CONSTRUCTION CORPORATION, LLC for work described as: DIGITAL MULTIPURPOSE TRAINING RANGE Key points: 1. The contract value of $18.2 million for a training range suggests a significant investment in military infrastructure. 2. Awarded under full and open competition, this indicates a broad market solicitation for the construction services. 3. The firm fixed-price contract type aims to transfer cost risk to the contractor, potentially stabilizing final costs. 4. The duration of 589 days points to a substantial construction project requiring a considerable timeline. 5. The contract was awarded by the Department of the Army, highlighting its role in equipping military personnel. 6. The North American Industry Classification System (NAICS) code 236220 categorizes this as Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable Digital Multipurpose Training Range construction projects. However, the $18.2 million price tag for a 589-day construction period suggests a significant investment. The firm fixed-price nature of the contract implies that the contractor assumed the risk for cost overruns, which can be a positive indicator for the government if managed effectively. Further analysis would require comparing the scope of work and specific features of this training range against similar military construction projects to assess if the pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit bids. The presence of 3 bids indicates a moderate level of competition for this construction project. While three bidders suggest some market interest, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria used would further inform the assessment of competition effectiveness.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages a wider range of contractors to bid, potentially driving down costs through competitive pricing. The fact that three bids were received suggests that the market was responsive, but more bidders could have potentially yielded even greater savings.

Public Impact

The primary beneficiaries are the military personnel who will utilize the Digital Multipurpose Training Range for enhanced training capabilities. The services delivered include the construction of a specialized facility designed for advanced military simulations and training. The geographic impact is localized to the area where the training range is constructed, likely within Oklahoma given the contract details. The contract supports the construction workforce, providing employment opportunities for skilled laborers and construction professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract did not adequately account for all construction contingencies.
The moderate number of bidders (3) might indicate less competitive pressure than ideal, potentially impacting the final price.
Construction projects of this scale can face delays, impacting the readiness and training schedules of military units.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential contractors.
Firm fixed-price contract type shifts cost risk to the contractor.
The contract was awarded to Ross Group Construction Corporation, LLC, a known entity in the construction sector.

Sector Analysis

The construction sector, particularly for specialized government facilities, is a significant market. This contract falls under the Commercial and Institutional Building Construction NAICS code (236220). The market for military construction is substantial, driven by the need for modern training facilities, barracks, and operational infrastructure. Spending in this area is influenced by defense budgets, geopolitical needs, and technological advancements in military training. Comparable benchmarks would include other large-scale construction projects for government entities or specialized training facilities.

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 related to small business set-asides for this particular award. The primary focus was on securing the best value through full and open competition. The impact on the small business ecosystem would be indirect, through potential competition from larger firms that may engage small businesses as subcontractors, depending on their own business strategies.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of the specified construction within the agreed-upon budget and timeline. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Military Construction Projects
Training Facility Development
Department of Defense Procurement
Construction Services Contracts

Risk Flags

Potential for cost overruns due to fixed-price nature on a large project.
Moderate competition level may have limited price discovery.
Construction project timelines can be subject to delays.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to ROSS GROUP CONSTRUCTION CORPORATION, LLC. DIGITAL MULTIPURPOSE 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 $18.2 million.

What is the period of performance?

Start: 2009-02-06. End: 2010-09-18.

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

Ross Group Construction Corporation, LLC has a history of federal contracting, including work with the Department of Defense. While specific details on the number and value of past contracts require deeper database analysis, their selection for this $18.2 million project suggests they met the qualifications and performance expectations set forth by the Army. Federal procurement databases would provide a comprehensive list of their prior awards, including contract types, agencies involved, and performance ratings. Examining these past performance records is crucial for assessing their reliability and capability in executing large-scale construction projects like the Digital Multipurpose Training Range.

How does the $18.2 million cost compare to similar Digital Multipurpose Training Range construction projects?

Direct comparison of the $18.2 million cost for this specific Digital Multipurpose Training Range is difficult without access to a database of comparable projects. The uniqueness of 'digital multipurpose training ranges' means that specifications, technology integration, and scale can vary significantly. However, for large-scale institutional or commercial building construction projects with a duration of approximately 589 days (around 1.6 years), $18.2 million represents a substantial investment. Factors influencing cost include the complexity of the digital systems, the size of the facility, site preparation requirements, and the specific geographic location impacting labor and material costs. A thorough value assessment would involve benchmarking against other military training facility constructions or large government building projects of similar scope and complexity.

What are the primary risks associated with a firm fixed-price contract for a construction project of this magnitude?

The primary risk with a firm fixed-price (FFP) contract for a large construction project like the Digital Multipurpose Training Range is that the contractor may face unforeseen cost increases that erode their profit margin, potentially leading to quality compromises or even project abandonment if the contract is inadequately priced. For the government, the risk is that the initial price might be inflated to cover the contractor's perceived risk, or that the contractor, in an effort to protect their profit, may cut corners on quality or scope. However, FFP contracts are generally favored for their cost certainty. Effective risk mitigation involves thorough pre-bid planning, detailed scope definition, and robust contractor pre-qualification to ensure the chosen contractor has accurately assessed all potential costs and contingencies.

What is the expected effectiveness of the Digital Multipurpose Training Range once completed?

The expected effectiveness of the Digital Multipurpose Training Range hinges on its design, the technology integrated within it, and the training programs developed for its use. As a 'digital multipurpose' facility, it is likely intended to provide advanced, flexible, and realistic training scenarios that can be adapted to various military occupational specialties and mission requirements. Such ranges aim to enhance soldier proficiency, reduce training costs associated with live-fire exercises, and improve safety. The effectiveness will be measured by its ability to meet the specific training objectives outlined by the Department of the Army, including improvements in combat readiness, decision-making skills, and tactical execution, as assessed through post-training evaluations and operational performance metrics.

How has federal spending on military construction and training facilities evolved over the past decade?

Federal spending on military construction and training facilities has generally fluctuated based on defense budgets, strategic priorities, and global security environments. Following periods of extensive engagement, there has often been a focus on modernizing aging infrastructure and investing in advanced training capabilities, such as digital ranges. Spending levels are influenced by congressional appropriations, with specific allocations for Military Construction, Defense (MILCON) accounts. Trends may show shifts towards technology-intensive training solutions, energy efficiency in construction, and adapting facilities to new military platforms and doctrines. Analyzing historical spending patterns within the Department of Defense and specific service branches like the Army would reveal trends in investment priorities for facilities and training infrastructure.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9126G07R0014

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1140 N 129TH E AVE, TULSA, OK, 74116

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: $18,203,965

Exercised Options: $18,203,965

Current Obligation: $18,203,965

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G08D0008

IDV Type: IDC

Timeline