Forrester Construction awarded $13.6M for critical language facility in Annapolis, MD

Contract Overview

Contract Amount: $13,627,621 ($13.6M)

Contractor: Forrester Construction Company

Awarding Agency: Department of Defense

Start Date: 2007-05-30

End Date: 2008-11-24

Contract Duration: 544 days

Daily Burn Rate: $25.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: OPTION 2: CRITICAL LANGUAGES, ANNAPOLIS, MD

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21402

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to FORRESTER CONSTRUCTION COMPANY for work described as: OPTION 2: CRITICAL LANGUAGES, ANNAPOLIS, MD Key points: 1. Contract value represents a significant investment in specialized facilities. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of construction. 3. Contract duration of 544 days indicates a moderately complex project. 4. Fixed-price contract type shifts cost risk to the contractor. 5. Geographic focus on Maryland aligns with the facility's operational needs. 6. The project falls under commercial and institutional building construction, a broad sector.

Value Assessment

Rating: good

The contract value of $13.6 million for a critical languages facility appears reasonable given the specialized nature of the project and its location. Benchmarking against similar government construction projects for educational or training facilities of comparable size and complexity would provide a more precise value assessment. The fixed-price nature of the contract suggests that the initial bid was deemed competitive and offered good value by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 4 bidders participating, the competition level suggests a healthy market response for this type of specialized construction service. This level of competition is generally favorable for price discovery and achieving a competitive market price.

Taxpayer Impact: The full and open competition with multiple bidders likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel requiring critical language training. The facility will support advanced language instruction and related activities. The project's geographic impact is concentrated in Annapolis, Maryland. The construction project itself will likely create temporary jobs in the local Maryland workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting facility readiness.
Risk of cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Ensuring the facility meets highly specialized technological and acoustic requirements for language training.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Fixed-price contract type provides cost certainty for the government.
Experienced contractor with a history of government contracts.
Project located in a region with established construction infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector encompasses a wide range of non-residential construction, including government facilities, educational institutions, and specialized training centers. The market for government construction is substantial, with significant annual spending allocated to building and renovating federal infrastructure. This specific project, a critical languages facility, represents a niche within the broader construction market, requiring specialized design and construction expertise.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further analysis would be needed to determine if small businesses were involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and project management offices. Accountability measures are inherent in the fixed-price contract terms, requiring the contractor to deliver the specified facility within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not provided.

Related Government Programs

Department of Defense Construction Projects
Federal Language Training Facilities
Naval Support Activity Annapolis
Commercial Building Construction Contracts

Risk Flags

Potential for schedule slippage
Risk of scope creep impacting budget
Ensuring specialized technical requirements are met

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to FORRESTER CONSTRUCTION COMPANY. OPTION 2: CRITICAL LANGUAGES, ANNAPOLIS, MD

Who is the contractor on this award?

The obligated recipient is FORRESTER CONSTRUCTION COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2007-05-30. End: 2008-11-24.

What is the track record of Forrester Construction Company with federal contracts, particularly in specialized facility construction?

Forrester Construction Company has a history of performing federal contracts, as indicated by this award. While this specific data point doesn't detail their entire track record, their ability to win a full and open competition award from the Department of the Navy suggests they possess the necessary qualifications and experience. To fully assess their track record, a review of their past performance evaluations, contract completion history, and any past performance issues on similar government projects would be beneficial. Their experience in commercial and institutional building construction, as noted, provides a foundation for undertaking projects like this critical languages facility.

How does the $13.6 million contract value compare to similar critical language facility construction projects?

Benchmarking the $13.6 million contract value requires comparing it to similar projects in terms of size, scope, and specialized requirements. Critical language facilities often involve unique acoustic, technological, and security features that can increase costs compared to standard office or educational buildings. Without specific data on comparable projects, it's difficult to definitively state if this value is high or low. However, the presence of 4 bidders in a full and open competition suggests that the price was perceived as achievable and competitive within the market for such specialized construction.

What are the primary risks associated with this fixed-price construction contract for the Department of the Navy?

The primary risk for the Department of the Navy in a fixed-price contract like this is ensuring the contractor delivers the facility according to the specified quality and requirements. While the fixed price shifts cost overrun risk to the contractor, the government still bears the risk of potential contractor default, subpar quality, or delays if the contractor mismanages the project. Ensuring robust oversight, clear specifications, and timely inspections are crucial to mitigate these risks and ensure the facility meets its intended purpose for critical language training.

How effective is full and open competition in ensuring value for money for specialized government construction projects?

Full and open competition is generally considered the most effective method for ensuring value for money in government procurement, including specialized construction. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. For specialized projects like a critical languages facility, a wider pool of bidders can bring diverse expertise and potentially more cost-effective solutions. The presence of 4 bidders in this case suggests that the market was sufficiently robust to support meaningful competition, likely leading to a better outcome for taxpayers than a sole-source or limited competition.

What are the historical spending patterns for critical language facilities or similar training infrastructure by the Department of Defense?

Historical spending patterns for critical language facilities by the Department of Defense (DoD) are often embedded within broader military construction (MILCON) budgets or specific training and readiness accounts. The DoD consistently invests in facilities that support its global mission, including language and intelligence training. Spending can fluctuate based on geopolitical needs, technological advancements in training, and the lifecycle of existing facilities. While this specific $13.6 million award is a single data point, it reflects an ongoing commitment to maintaining and upgrading capabilities in areas deemed critical for national security, such as foreign language proficiency.

What are the implications of the 544-day duration for project management and potential delays?

A duration of 544 days (approximately 18 months) for a $13.6 million construction project indicates a moderately complex undertaking. This timeframe allows for detailed planning, procurement of specialized materials, construction phases, and quality assurance. However, longer durations inherently increase the risk of delays due to factors like weather, unforeseen site conditions, supply chain disruptions, or contractor performance issues. Effective project management, clear communication channels, and proactive risk mitigation strategies by both the government and the contractor are essential to adhere to this schedule and avoid costly extensions.

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: N6247704R0012

Offers Received: 4

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12231 PARKLAWN DR, ROCKVILLE, MD, 20852

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,627,621

Exercised Options: $13,627,621

Current Obligation: $13,627,621

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247704D0035

IDV Type: IDC

Timeline