Navy awards $21.6M contract for potable water distribution renovation, highlighting construction sector activity
Contract Overview
Contract Amount: $21,607,562 ($21.6M)
Contractor: ROY Anderson Corp
Awarding Agency: Department of Defense
Start Date: 2013-09-26
End Date: 2015-12-16
Contract Duration: 811 days
Daily Burn Rate: $26.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF = OTHER FUNCTIONS POTABLE WATER DISTRIBUTION RENOVATION
Place of Performance
Location: ALBANY, DOUGHERTY County, GEORGIA, 31703
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $21.6 million to ROY ANDERSON CORP for work described as: IGF::OT::IGF = OTHER FUNCTIONS POTABLE WATER DISTRIBUTION RENOVATION Key points: 1. Contract value of $21.6 million indicates significant investment in infrastructure. 2. Full and open competition suggests a healthy market with potential for competitive pricing. 3. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 4. Project duration of 811 days points to a complex and substantial renovation effort. 5. Awarded by the Department of the Navy, this contract supports military base infrastructure. 6. The project falls under commercial and institutional building construction, a key sector.
Value Assessment
Rating: good
The contract value of $21.6 million for a potable water distribution renovation appears reasonable for a project of this scope and duration. Benchmarking against similar large-scale construction projects for federal agencies, particularly within the Department of Defense, suggests that the overall award amount is within expected ranges. The firm fixed-price structure also provides cost certainty, which is a positive indicator for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The presence of 3 bidders suggests a moderate level of competition for this specific project. While not an exceptionally high number, it is sufficient to provide a basis for price discovery and ensure that the government receives a competitive offer.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a competitive bidding process, ensuring that public funds are used efficiently.
Public Impact
Benefits military personnel and their families residing at the naval facility by ensuring reliable potable water. Delivers essential infrastructure upgrades to a critical public utility system. Geographic impact is localized to the specific naval installation in Georgia. Supports the construction workforce through job creation and demand for skilled labor in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting service continuity.
- Ensuring compliance with environmental and safety regulations during renovation.
- Managing the complexity of renovating an active potable water system.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Full and open competition suggests a competitive market.
- Award to a contractor with experience in large-scale construction projects.
Sector Analysis
The commercial and institutional building construction sector is a significant part of the U.S. economy, encompassing a wide range of projects from office buildings to critical infrastructure like water systems. Federal spending in this sector often focuses on maintaining and upgrading government facilities, including military bases. This contract represents a typical investment in essential base infrastructure, contributing to the overall demand within the construction industry.
Small Business Impact
This contract does not appear to have a specific small business set-aside. The award was made to Roy Anderson Corp, a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data, which could represent a missed opportunity to engage the small business sector.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and inspection offices. The firm fixed-price nature of the contract provides a degree of accountability by placing cost control responsibility on the contractor. Transparency is generally maintained through contract award databases, though detailed project progress and specific oversight activities may not be publicly available.
Related Government Programs
- Military Base Infrastructure Modernization
- Public Utility System Upgrades
- Federal Construction Contracts
- Department of Defense Facilities Management
Risk Flags
- Potential for cost overruns if unforeseen conditions arise.
- Risk of project delays impacting operational readiness.
- Ensuring continuity of essential services during renovation.
Tags
construction, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, infrastructure, potable-water-distribution, renovation, delivery-order, georgia, large-business, commercial-and-institutional-building-construction
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.6 million to ROY ANDERSON CORP. IGF::OT::IGF = OTHER FUNCTIONS POTABLE WATER DISTRIBUTION RENOVATION
Who is the contractor on this award?
The obligated recipient is ROY ANDERSON CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $21.6 million.
What is the period of performance?
Start: 2013-09-26. End: 2015-12-16.
What is the track record of Roy Anderson Corp in performing similar federal construction contracts?
Roy Anderson Corp has a history of performing federal construction contracts, including projects for the Department of Defense and other agencies. Their experience often includes large-scale building construction, renovations, and infrastructure work. A review of their past performance ratings and contract history on federal procurement databases would provide a more detailed assessment of their reliability and success in delivering projects on time and within budget. This specific contract for potable water distribution renovation suggests they have the capability for specialized infrastructure work.
How does the awarded amount compare to similar potable water system renovation projects for federal agencies?
The $21.6 million award for this potable water distribution renovation is substantial, reflecting the complexity and scale of upgrading essential infrastructure at a naval facility. Benchmarking this against similar projects requires access to detailed cost data for comparable federal contracts, which is not always publicly available. However, considering the duration (811 days) and the nature of the work (distribution system renovation), the cost appears to be in line with significant infrastructure investments. Factors like location, specific system requirements, and prevailing labor costs would influence precise comparisons.
What are the primary risks associated with this type of infrastructure renovation contract?
Key risks for this contract include potential construction delays due to unforeseen site conditions, weather, or supply chain issues, which could impact the operational readiness of the naval base. There's also a risk related to ensuring the continuity of potable water services during the renovation period, requiring meticulous planning and execution. Environmental compliance and adherence to stringent safety standards during construction are critical. Furthermore, managing the integration of new systems with existing infrastructure presents technical challenges that could lead to cost overruns or performance issues if not properly addressed.
What is the expected impact of this contract on the local construction labor market in Georgia?
This $21.6 million contract is expected to have a positive impact on the local construction labor market in Georgia. The project's duration of over two years will likely create numerous jobs for skilled tradespeople, including plumbers, pipefitters, heavy equipment operators, and general laborers. It will also support indirect employment in related industries such as material supply, equipment rental, and transportation. The demand generated by this project can contribute to workforce development and provide economic stimulus to the region surrounding the naval installation.
How has federal spending on building construction and infrastructure renovation evolved over the past five years?
Federal spending on building construction and infrastructure renovation has generally seen fluctuations influenced by economic conditions, national priorities, and legislative funding initiatives. Post-pandemic, there has been an increased emphasis on modernizing aging infrastructure, including military facilities, which could indicate a rising trend in relevant contract awards. Specific data on the evolution of spending within the 'Commercial and Institutional Building Construction' category would require analysis of historical federal procurement data, but the general trend suggests continued investment in maintaining and upgrading government assets.
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: N6945009R1258
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tutor Perini Corporation (UEI: 006954432)
Address: 11400 REICHOLD RD, GULFPORT, MS, 39503
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $21,607,562
Exercised Options: $21,607,562
Current Obligation: $21,607,562
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6945009D1280
IDV Type: IDC
Timeline
Start Date: 2013-09-26
Current End Date: 2015-12-16
Potential End Date: 2015-12-16 00:00:00
Last Modified: 2015-11-18
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