Department of the Army awarded $16.6M contract for building renovation, completed in 2011

Contract Overview

Contract Amount: $16,625,349 ($16.6M)

Contractor: Ttec-Tesoro Joint Venture

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2011-01-05

Contract Duration: 827 days

Daily Burn Rate: $20.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE - RENOVATE TBUP BLDG 29716,COMPLETE

Place of Performance

Location: FORT GORDON, RICHMOND County, GEORGIA, 30905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to TTEC-TESORO JOINT VENTURE for work described as: BASE - RENOVATE TBUP BLDG 29716,COMPLETE Key points: 1. Contract value appears reasonable for a large-scale building renovation project. 2. Full and open competition suggests a competitive bidding process. 3. Project duration of 827 days indicates a significant undertaking. 4. Fixed-price contract type shifts risk to the contractor. 5. Completion in 2011 means performance data is historical. 6. The contract was awarded to a joint venture, TTEC-TESORO.

Value Assessment

Rating: good

The contract value of $16.6 million for renovating a building is within a typical range for such projects, especially considering the 827-day duration. Without specific details on the scope of renovation (e.g., square footage, type of work), a precise benchmark is difficult. However, the fixed-price nature of the contract suggests that the initial pricing was intended to be comprehensive and cover all anticipated costs. Comparing this to similar large-scale institutional building renovations would provide further context on value for money.

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. The presence of 4 bidders (no=4) suggests a healthy level of competition for this project. This competitive environment is generally favorable for price discovery and can lead to more cost-effective outcomes for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel who will utilize the renovated Building 29716. The service delivered was the complete renovation of a significant facility. The geographic impact is localized to the facility's location in Georgia (st=GA). The project likely supported construction and renovation jobs within the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for all renovation complexities.
Risk of delays impacting facility readiness if unforeseen issues arose during the extensive renovation period.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Fixed-price contract type generally provides cost certainty for the government.
Joint venture structure may bring combined expertise to the project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (nd=Commercial and Institutional Building Construction). This sector is characterized by a wide range of projects from minor repairs to major new constructions. The market size for federal construction contracts is substantial, with significant annual spending across various agencies. This specific contract represents a mid-sized project within the broader federal construction landscape, contributing to the maintenance and modernization of government infrastructure.

Small Business Impact

The contract was not set aside for small businesses (ss=false, sb=false). As it was competed fully and openly, there was an opportunity for small businesses to participate, either as prime contractors or subcontractors. However, without specific subcontracting data, it's difficult to assess the extent of small business involvement. Larger construction projects often involve significant subcontracting, which can provide opportunities for specialized small businesses.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Army's contracting and project management offices. The fixed-price nature of the contract implies that the government's primary oversight would focus on ensuring the contractor met the defined scope, quality standards, and completion timeline. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract lifecycle.

Related Government Programs

Military Base Construction
Federal Building Renovations
Department of Defense Facilities Management
Construction Services Contracts

Risk Flags

Historical Data - Contract completed in 2011.
Scope of Work Undefined - Specific renovation details are missing.
Performance Metrics Missing - No explicit KPIs provided.
Change Order Data Unavailable - Modifications are not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to TTEC-TESORO JOINT VENTURE. BASE - RENOVATE TBUP BLDG 29716,COMPLETE

Who is the contractor on this award?

The obligated recipient is TTEC-TESORO JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2008-09-30. End: 2011-01-05.

What was the specific scope of work for the renovation of Building 29716?

The provided data does not detail the specific scope of work for the renovation of Building 29716. It only indicates 'BASE - RENOVATE TBUP BLDG 29716,COMPLETE'. A comprehensive renovation could include structural repairs, HVAC upgrades, electrical system modernization, plumbing improvements, interior finishing, and potentially hazardous material abatement. Understanding the exact scope is crucial for a precise valuation and comparison to industry standards. Without this detail, the $16.6 million award is assessed based on general assumptions for large-scale building renovations over an 827-day period.

How did the final cost compare to the initial bid or estimated cost?

The available data indicates the awarded amount was $16,625,349. It does not provide information on the initial bid amounts from other competitors or a government estimate. Since this was a firm fixed-price contract, the awarded amount represents the ceiling cost. Any deviations from this would typically be due to change orders, which are not detailed here. To assess cost performance, one would need to compare the awarded price against the initial bids received during the full and open competition.

What were the key performance metrics and were they met?

The data does not specify the key performance metrics (KPIs) established for this renovation contract. For a construction project of this nature, KPIs would typically include adherence to schedule, quality of workmanship, safety compliance, and completion within budget. Given the contract was completed (indicated by 'COMPLETE' in the description and an end date of 2011-01-05), it suggests the primary objective of finishing the renovation was met. However, without explicit performance data or a post-completion report, a detailed assessment of KPI achievement is not possible.

Were there any significant change orders or contract modifications issued during the contract period?

The provided data does not include information on change orders or contract modifications. For a contract spanning 827 days (over two years), it is common for some modifications to occur due to unforeseen site conditions, design adjustments, or scope clarifications. A firm fixed-price contract aims to minimize changes, but they can happen. To fully understand the contract's financial trajectory and any potential impacts on the final cost or schedule, a review of modification history would be necessary.

What is the track record of the joint venture partners, TTEC and TESORO, on similar federal contracts?

The provided data identifies the contractor as 'TTEC-TESORO JOINT VENTURE' but does not offer details on the individual track records of TTEC or TESORO, nor the joint venture's history. Assessing the past performance of these entities on similar federal construction contracts would be crucial for evaluating their capability and reliability. Information regarding their previous project completions, client satisfaction, and adherence to contract terms on comparable projects would inform risk assessment and future contracting decisions.

How does the cost per square foot of this renovation compare to industry benchmarks?

The data does not provide the square footage of Building 29716, making it impossible to calculate a cost per square foot for this renovation. To benchmark effectively, one would need the total renovated area. Assuming a typical large institutional building, the $16.6 million cost could be high or low depending on the size and the complexity of the renovation. Without the square footage, a meaningful comparison to industry benchmarks for construction costs cannot be made.

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: W912HN07R0062

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 302 RESEARCH DR #200, NORCROSS, GA, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,625,349

Exercised Options: $16,625,349

Current Obligation: $16,625,349

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HN07D0058

IDV Type: IDC

Timeline