Department of the Army awards $17.4M industrial building construction contract to PCL Construction Services, Inc

Contract Overview

Contract Amount: $17,422,639 ($17.4M)

Contractor: PCL Construction Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-12-31

End Date: 2009-05-31

Contract Duration: 517 days

Daily Burn Rate: $33.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: MIL - UOF/EOD 71ST OPS GROUP, BTN HQ/COF

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80913

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to PCL CONSTRUCTION SERVICES, INC. for work described as: MIL - UOF/EOD 71ST OPS GROUP, BTN HQ/COF Key points: 1. Contract value of $17.4 million for industrial building construction. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type indicates price certainty for the government. 4. Delivery order awarded for a duration of 517 days. 5. Contractor is PCL Construction Services, Inc., with a significant presence in the construction sector. 6. The contract falls under the Industrial Building Construction category. 7. The contract was awarded by the Department of the Army. 8. The contract was awarded in Colorado.

Value Assessment

Rating: fair

The contract value of $17.4 million for industrial building construction appears to be within a reasonable range for a project of this nature, though specific benchmarks are unavailable without more detailed project scope. The fixed-price nature of the contract provides cost predictability. However, without comparable project data or detailed cost breakdowns, a precise value-for-money assessment is challenging. The duration of 517 days suggests a substantial construction effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically leads to a more robust selection of contractors and potentially better pricing due to market forces. The presence of multiple bidders, implied by 'full and open competition,' generally fosters price discovery and ensures the government receives competitive offers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a wider pool of bidders vying for the contract, leading to more competitive pricing.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel who will utilize the constructed industrial facilities. The contract delivers essential industrial building construction services, likely supporting military operations or infrastructure. The geographic impact is localized to Colorado, where the construction will take place. The contract implies a workforce impact, creating jobs in the construction sector within Colorado.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise in fixed-price contracts.
Dependence on contractor's ability to meet schedule and quality requirements.
Limited flexibility for scope changes once the contract is awarded.

Positive Signals

Fixed-price contract provides cost certainty.
Full and open competition suggests a competitive bidding process.
Contractor has experience in construction services.
Awarded by a major federal agency (Department of the Army).

Sector Analysis

This contract falls within the Industrial Building Construction sector, a significant segment of the broader construction industry. This sector involves the building of facilities used for manufacturing, processing, storage, and other industrial activities. The market size for industrial construction is substantial, driven by economic activity and infrastructure needs. This specific contract likely supports the Department of Defense's operational infrastructure requirements.

Small Business Impact

The data indicates this contract was awarded under 'full and open competition' and does not specify any small business set-aside. Therefore, it is unlikely that small businesses were specifically targeted for this award. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are inherent in the fixed-price contract terms, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed project oversight specifics are not publicly disclosed.

Related Government Programs

Military Construction
Facility Support Contracts
Industrial Infrastructure Projects
Department of Defense Construction Contracts

Risk Flags

Potential for cost overruns in fixed-price contracts.
Schedule adherence risks in construction projects.
Quality control during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to PCL CONSTRUCTION SERVICES, INC.. MIL - UOF/EOD 71ST OPS GROUP, BTN HQ/COF

Who is the contractor on this award?

The obligated recipient is PCL CONSTRUCTION SERVICES, 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 $17.4 million.

What is the period of performance?

Start: 2007-12-31. End: 2009-05-31.

What is the track record of PCL Construction Services, Inc. with federal contracts, particularly within the Department of Defense?

PCL Construction Services, Inc. has a significant history of performing federal contracts, including numerous projects for the Department of Defense and other government agencies. Their experience spans a wide range of construction types, from military facilities and infrastructure to research laboratories and administrative buildings. While specific performance metrics for individual contracts are not always publicly detailed, their consistent engagement with federal entities suggests a capacity to meet government requirements. A deeper dive into their contract history, including past performance reviews and any reported disputes or terminations, would provide a more comprehensive understanding of their track record. However, their sustained presence in the federal contracting space indicates a level of reliability and capability.

How does the awarded amount of $17.4 million compare to similar industrial building construction contracts awarded by the Department of Defense?

Comparing the $17.4 million award to similar industrial building construction contracts requires access to a database of comparable projects, including their scope, size, location, and specific construction elements. Without such a benchmark, it is difficult to definitively state whether this amount is high, low, or average. However, for a substantial industrial facility, $17.4 million is a significant but not necessarily exorbitant figure, especially considering factors like material costs, labor rates in Colorado, and the complexity of industrial construction. The fixed-price nature of this contract suggests that the government sought cost certainty, and the competitive bidding process should have helped align the price with market rates for projects of this scale and type.

What are the primary risks associated with this fixed-price construction contract, and how are they mitigated?

The primary risks associated with this fixed-price construction contract include potential cost overruns if unforeseen site conditions or material price escalations occur, and schedule delays due to weather, labor issues, or supply chain disruptions. Scope creep, where the government requests additional work beyond the original agreement, also poses a risk. Mitigation strategies typically involve thorough pre-construction site investigations, robust contract language that clearly defines scope and responsibilities, contingency planning within the contractor's bid, and active project management by the government to monitor progress and address issues promptly. The fixed-price nature itself is a risk mitigation tool for the government, capping the total expenditure, but it places more cost risk on the contractor.

What is the expected effectiveness of the completed industrial building in supporting the Department of the Army's mission?

The effectiveness of the completed industrial building in supporting the Department of the Army's mission is directly tied to its design, construction quality, and intended use. Assuming the building is constructed according to specifications and serves its intended purpose (e.g., housing equipment, supporting maintenance operations, facilitating logistics), it should enhance operational efficiency and readiness. The 'MIL - UOF/EOD 71ST OPS GROUP, BTN HQ/COF' designation suggests it's for specific operational units, implying a critical role in their functions. The success will be measured by how well the facility enables these operations, reduces downtime, and provides a secure and functional environment for personnel and assets.

How has federal spending on industrial building construction, particularly by the Department of Defense, trended in recent years?

Federal spending on industrial building construction, especially by the Department of Defense, has historically been substantial and fluctuates based on geopolitical conditions, modernization needs, and budget allocations. The DoD is a major consumer of construction services, investing in everything from barracks and training facilities to highly specialized operational and research infrastructure. Trends can be influenced by global security postures, the need to upgrade aging facilities, and specific military readiness initiatives. Analyzing historical spending data from sources like the Federal Procurement Data System (FPDS) would reveal patterns, peak spending periods, and the relative proportion of industrial construction within the DoD's overall capital investment portfolio.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial 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: W9128F06R0015

Offers Received: 4

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PCL U.S. Holdings Inc (UEI: 245222591)

Address: 2000 S COLORADO BLVD STE 2-500, DENVER, CO, 80222

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,422,639

Exercised Options: $17,422,639

Current Obligation: $17,422,639

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F06D0017

IDV Type: IDC

Timeline