DoD's $24.1M construction contract awarded to Valiant Government Services LLC shows fair value with 8342 bids

Contract Overview

Contract Amount: $24,098,915 ($24.1M)

Contractor: Valiant Government Services LLC

Awarding Agency: Department of Defense

Start Date: 2003-08-02

End Date: 2011-06-30

Contract Duration: 2,889 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: FORT STEWART, LIBERTY County, GEORGIA, 31315

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to VALIANT GOVERNMENT SERVICES LLC for work described as: Key points: 1. Contract value of $24.1 million over 8 years suggests a moderate annual spend. 2. The firm fixed-price contract type shifts risk to the contractor. 3. Awarded under full and open competition, indicating a competitive marketplace. 4. The contract's duration of nearly 8 years suggests a long-term need for services. 5. The large number of bids (8342) points to significant contractor interest and potential for competitive pricing. 6. The contract is categorized under Commercial and Institutional Building Construction, a common sector for federal spending.

Value Assessment

Rating: good

The contract's value of approximately $3 million per year for construction services appears reasonable given the 8-year duration and the competitive bidding process. Benchmarking against similar large-scale construction projects for the Department of Defense would provide a more precise value-for-money assessment. However, the high number of bids suggests that the pricing was likely competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The exceptionally high number of bids received (8342) indicates a robust and highly competitive market for these construction services. This level of competition is generally favorable for price discovery and achieving cost efficiencies.

Taxpayer Impact: The extensive competition for this contract suggests that taxpayer dollars were likely used efficiently, as multiple companies vied to offer the best price and terms.

Public Impact

The Department of Defense benefits from the construction services provided under this contract, likely for infrastructure improvements or new facilities. The services delivered are related to commercial and institutional building construction, impacting military base infrastructure. The geographic impact is centered in Georgia, where the contract was performed. The contract supports jobs within the construction industry, both directly with Valiant Government Services LLC and indirectly through its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep or cost overruns if not managed effectively.
Reliance on a single awardee for a significant construction project carries inherent performance risks.
Potential for contractor performance issues over an extended period.
The sheer volume of bids could indicate a highly fragmented market, potentially leading to challenges in oversight.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Firm fixed-price contract structure incentivizes contractor efficiency and cost control.
High number of bids suggests strong market interest and a healthy competitive environment.
The contract is for a specific construction need, indicating clear service delivery objectives.

Sector Analysis

The Commercial and Institutional Building Construction sector is a significant area of federal spending, particularly for agencies like the Department of Defense that require extensive infrastructure. This contract fits within the broader category of facilities maintenance and development. Comparable spending benchmarks would involve analyzing the average cost per square foot for similar government construction projects or the average contract value for large-scale building projects within the DoD.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the large contract value and the nature of the work, it is possible that Valiant Government Services LLC may engage small businesses as subcontractors, but this is not explicitly detailed in the provided data. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases, though specific performance details may be less public.

Related Government Programs

Department of Defense Construction Contracts
Army Corps of Engineers Projects
Federal Building and Infrastructure Projects
Large Scale Construction Services

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep.
High number of bids could indicate a fragmented market, potentially complicating oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to VALIANT GOVERNMENT SERVICES LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is VALIANT GOVERNMENT SERVICES 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 $24.1 million.

What is the period of performance?

Start: 2003-08-02. End: 2011-06-30.

What is the historical spending pattern for Valiant Government Services LLC with the Department of Defense?

Analyzing Valiant Government Services LLC's historical spending with the Department of Defense requires access to a broader dataset of federal contracts. However, this specific contract, awarded in 2003 and ending in 2011, represents a significant engagement valued at $24.1 million. Without more data points, it's difficult to establish a consistent spending pattern. It suggests the company has the capacity and experience to handle large federal construction projects. Further investigation into other contracts awarded to this vendor by the DoD would be necessary to identify trends in contract types, values, and durations, and to assess their overall track record and reliability as a federal contractor.

How does the per-square-foot cost of this construction project compare to industry benchmarks?

Determining the per-square-foot cost requires specific details about the project scope, such as the total square footage of the constructed or renovated space, and the type of facility. This information is not provided in the summary data. To perform this comparison, one would need to obtain the detailed contract specifications and compare the total contract value divided by the total square footage against industry benchmarks for similar types of commercial or institutional buildings (e.g., barracks, administrative buildings, training facilities) in the Georgia region. Such a comparison would reveal whether the project was cost-effective on a per-unit basis.

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

A firm fixed-price (FFP) contract, while beneficial for cost certainty, carries specific risks, especially over a long duration like this 8-year contract. For the government, the primary risk is that the contractor may cut corners on quality to maximize profit if the initial price was set too high or if unforeseen cost increases occur. For the contractor, the risk is absorbing cost overruns due to unexpected material price hikes, labor shortages, or scope creep that isn't properly managed through change orders. Over an 8-year period, the likelihood of such events increases. Effective contract management, clear performance standards, and diligent oversight are crucial to mitigate these risks and ensure the government receives the intended value.

What was the estimated value of the contract before it was awarded?

The provided data indicates the awarded amount of the contract was $24,098,915.34. Information regarding the pre-award estimated value or independent government cost estimate (IGCE) is not available in this summary. Typically, agencies develop an IGCE as a benchmark during the acquisition planning phase to assess the reasonableness of contractor proposals. The fact that the contract was awarded under full and open competition with a large number of bidders (8342) suggests that the final awarded price was likely competitive and potentially aligned with or below the government's estimate, though this cannot be confirmed without the IGCE.

How many bids were considered 'responsive' or technically acceptable?

The data indicates that 8342 bids were received for this contract. However, it does not specify how many of these bids were deemed 'responsive' or technically acceptable. In a full and open competition, agencies evaluate bids based on pre-defined criteria outlined in the solicitation. While a high number of bids suggests strong market interest, only a subset typically meets all technical and administrative requirements to be considered for award. The evaluation process would have filtered these bids down to a final competitive range before selecting the winning offer, likely Valiant Government Services LLC.

What specific types of construction services were included in this contract?

The contract is categorized under NAICS code 236220, which corresponds to 'Commercial and Institutional Building Construction.' This broad category typically includes the construction of new buildings and the alteration, repair, and renovation of existing commercial and institutional structures. Examples could range from office buildings, warehouses, and educational facilities to healthcare centers and recreational complexes. Without the specific contract statement of work (SOW), the precise nature of the construction services (e.g., new builds, renovations, specific types of facilities) remains general, but it clearly falls within the domain of constructing or improving non-residential buildings.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: ABM Industries Inc (UEI: 006911622)

Address: 3999 FT CAMPBELL BLVD, HOPKINSVILLE, KY, 01

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA8703D0009

IDV Type: IDC

Timeline