DoD's $12.6M Fort Carson facility contract awarded to PCL Construction Services, Inc. shows fair value

Contract Overview

Contract Amount: $12,580,396 ($12.6M)

Contractor: PCL Construction Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-05-09

End Date: 2010-01-01

Contract Duration: 602 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MIL - MATOC D/B FRONT RANGE PCL, ASOS FACILITY, FORT CARSON, CO.

Place of Performance

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

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to PCL CONSTRUCTION SERVICES, INC. for work described as: MIL - MATOC D/B FRONT RANGE PCL, ASOS FACILITY, FORT CARSON, CO. Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The contractor, PCL Construction Services, Inc., has a history of large federal contracts, indicating experience. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The project's duration of 602 days aligns with typical construction timelines for similar facilities. 5. The contract was awarded to a single bidder, which warrants further examination of the competition dynamics. 6. The contract's value is within a reasonable range for industrial building construction projects of this scale.

Value Assessment

Rating: good

The contract's total value of approximately $12.6 million for industrial building construction at Fort Carson appears reasonable when benchmarked against similar projects. The firm fixed-price structure provides cost certainty. While the award went to a single bidder, the initial bidding process was open, suggesting that competitive pressures were present. The contractor's experience with large federal projects also lends confidence to the value proposition.

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. However, the award went to a single bidder out of the four who responded. This suggests that while the opportunity was broadly advertised, only one offer met the government's requirements or was deemed the most advantageous. The presence of multiple bidders initially indicates a degree of competition, but the single awardee warrants a closer look at the evaluation criteria and the specific qualifications sought.

Taxpayer Impact: The initial open competition aimed to ensure the government received competitive pricing. While only one bid was ultimately accepted, the process itself was designed to solicit multiple offers and prevent price gouging, ultimately benefiting taxpayers by seeking the best value.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Army, which gains a new facility at Fort Carson. The contract delivers industrial building construction services, likely for operational or logistical support at the military installation. The geographic impact is localized to Fort Carson, Colorado, supporting military operations and infrastructure in that region. The project likely involved a significant construction workforce, contributing to employment in the local Colorado area during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Award to a single bidder despite initial competition raises questions about the robustness of the bidding process and potential barriers to entry for other firms.
Lack of detailed cost breakdown makes it difficult to fully assess the value-for-money beyond the total contract price.
The contract was awarded in 2008, and its performance context relative to current construction costs and technologies is limited.

Positive Signals

Firm fixed-price contract type helps control costs and reduces the risk of budget overruns for the government.
The contractor, PCL Construction Services, Inc., has a demonstrated track record with large federal construction projects.
The contract was awarded under full and open competition, indicating an initial effort to maximize bidder participation.

Sector Analysis

This contract falls within the Industrial Building Construction sector, a segment of the broader Construction industry. This sector involves the building of facilities used for manufacturing, processing, storage, and other industrial activities. The market for federal construction is substantial, driven by the need to maintain and upgrade infrastructure across various government agencies, including defense installations. Benchmarks for similar industrial construction projects can vary widely based on size, complexity, and location, but a contract of this value for a facility at a major military base is not uncommon.

Small Business Impact

The contract was not set aside for small businesses, and the awarded contractor, PCL Construction Services, Inc., is a large entity. There is no explicit indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though larger prime contractors often engage small businesses for specialized services on such projects.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and engineering divisions. As a firm fixed-price contract, oversight would focus on ensuring adherence to the scope of work, quality standards, and delivery timelines. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction
Facility Sustainment, Restoration, and Modernization
Industrial Facilities Construction
Department of Defense Contracts
Army Corps of Engineers Projects

Risk Flags

Single Bidder Award
Limited Competition Outcome

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to PCL CONSTRUCTION SERVICES, INC.. MIL - MATOC D/B FRONT RANGE PCL, ASOS FACILITY, FORT CARSON, CO.

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 $12.6 million.

What is the period of performance?

Start: 2008-05-09. End: 2010-01-01.

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 securing and executing federal contracts, including numerous projects for the Department of Defense and other government agencies. Their portfolio often includes large-scale construction, infrastructure, and renovation projects at military installations and federal facilities across the United States. This extensive experience suggests a strong understanding of government contracting requirements, compliance, and project delivery within the defense sector. Their past performance indicates a capacity to handle complex projects of substantial value, aligning with the nature of the Fort Carson facility contract.

How does the awarded price of $12.6 million compare to similar industrial building construction projects for the military?

Benchmarking the $12.6 million award requires detailed comparison with projects of similar scope, size, and complexity, which is challenging with limited public data. However, for industrial facilities at major military installations, this value is within a common range. Factors influencing cost include specific building requirements (e.g., specialized equipment foundations, environmental controls), site preparation needs, and prevailing labor and material costs in the Colorado region at the time of award (2008). The firm fixed-price nature suggests the government sought cost certainty, and the initial full and open competition aimed to solicit competitive bids to ensure value.

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

The primary risk with a firm fixed-price contract is that the contractor may incur costs exceeding the agreed price, potentially leading to disputes or pressure to cut corners on quality if not managed properly. Mitigation strategies employed by the government include thorough pre-award evaluations of contractor capability and financial stability, clear and comprehensive contract specifications, and robust contract administration and oversight. For this contract, the award to an experienced contractor like PCL Construction Services, Inc., and the initial full and open competition, likely helped mitigate risks by ensuring a well-defined scope and competitive pricing. The government's oversight during construction would also be crucial.

What was the effectiveness of the 'full and open competition' given that only one bid was accepted?

The effectiveness of 'full and open competition' when only one bid is accepted can be debated. It signifies that the opportunity was advertised broadly, allowing any qualified entity to participate, which is a positive step for transparency and potential competition. However, a single awardee suggests that either the requirements were highly specialized, the market for such services was limited, or other potential bidders were deterred or did not meet the stringent evaluation criteria. While the initial intent was to foster competition, the outcome indicates that only one firm was deemed the best value or technically capable. Further analysis of the solicitation's requirements and the evaluation process would clarify the degree of competition achieved.

What are the historical spending patterns for industrial building construction at Fort Carson or similar Army installations?

Historical spending patterns for industrial building construction at Fort Carson and similar Army installations typically show consistent investment in infrastructure to support training, logistics, and operational readiness. Such spending is often driven by modernization efforts, capacity expansion, or replacement of aging facilities. Contracts can range from millions to tens of millions of dollars, depending on the project's scale and complexity. Spending levels can fluctuate based on congressional appropriations, military readiness priorities, and specific installation needs. Analyzing past contracts for similar facilities at other bases can provide a broader context for the $12.6 million award.

What is the significance of the contract being awarded in 2008 and ending in 2010, in the context of construction costs and project management?

An award in 2008 with an end date in 2010 places the project within a specific economic period, potentially influenced by the housing market downturn and fluctuating material costs. Construction project management during this era involved navigating standard procurement processes and quality control measures. The duration of 602 days (approximately 20 months) is a reasonable timeframe for a project of this nature, allowing for planning, execution, and closeout. Understanding the specific economic conditions and construction industry trends of 2008-2010 could provide further context on the pricing and execution of this contract.

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: FIRM 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, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,580,396

Exercised Options: $12,580,396

Current Obligation: $12,580,396

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F06D0017

IDV Type: IDC

Timeline