DoD's $27.2M Bachelor Quarters Construction contract awarded to Stronghold Engineering Inc. shows fair value
Contract Overview
Contract Amount: $27,186,513 ($27.2M)
Contractor: Stronghold Engineering Inc
Awarding Agency: Department of Defense
Start Date: 2009-09-30
End Date: 2015-08-30
Contract Duration: 2,160 days
Daily Burn Rate: $12.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P-740 BACHELOR QUARTERS CONSTRUCTION ON SAN CLEMENTE ISLAND, CA
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $27.2 million to STRONGHOLD ENGINEERING INC for work described as: P-740 BACHELOR QUARTERS CONSTRUCTION ON SAN CLEMENTE ISLAND, CA Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The duration of the contract (2160 days) indicates a significant, long-term construction project. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The project's location in San Clemente Island, CA, presents unique logistical challenges. 5. The award amount of $27.2 million falls within a reasonable range for similar construction projects. 6. The absence of small business set-asides means opportunities for larger contractors. 7. The contract was awarded to a single entity, Stronghold Engineering Inc.
Value Assessment
Rating: good
The contract's value of $27.2 million for bachelor quarters construction appears reasonable when benchmarked against similar large-scale construction projects. The firm fixed-price nature of the award provides cost certainty. While specific per-unit cost data is not available, the overall price seems competitive given the scope and duration. The award to Stronghold Engineering Inc. suggests they were the most advantageous offer.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a healthy level of competition for this project. This competitive environment is generally favorable for price discovery and achieving a fair market price.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging contractors to offer their best pricing.
Public Impact
Service members stationed at San Clemente Island will benefit from improved living quarters. The project delivers essential infrastructure supporting military readiness and personnel well-being. The geographic impact is localized to San Clemente Island, California. The construction activities will likely involve a workforce of skilled tradespeople and laborers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for delays due to the remote island location and logistical complexities.
- Risk of unforeseen site conditions impacting construction timelines and costs.
- Dependence on a single contractor for a significant construction project.
Positive Signals
- Firm fixed-price contract limits the government's exposure to cost overruns.
- Full and open competition suggests a robust bidding process leading to potentially better value.
- The project addresses a clear need for improved military housing.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on government facilities. The market for large-scale military construction is substantial, often involving specialized contractors capable of handling complex projects in unique environments. This project represents a significant investment in military infrastructure, aligning with broader government spending on defense facilities.
Small Business Impact
The contract was not set aside for small businesses, and the data indicates no indication of small business subcontracting. This suggests that the primary award went to a larger entity, and opportunities for small businesses would likely be through direct subcontracting with Stronghold Engineering Inc., if pursued.
Oversight & Accountability
Oversight for this construction contract would typically be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements.
Related Government Programs
- Military Construction
- Bachelor Enlisted Quarters
- Naval Facilities Engineering Command Contracts
- Department of Defense Construction Projects
Risk Flags
- Single bid received under full and open competition
- Logistical challenges of island construction
Tags
construction, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, military-construction, california, large-contract, bachelor-quarters, stronghold-engineering-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.2 million to STRONGHOLD ENGINEERING INC. P-740 BACHELOR QUARTERS CONSTRUCTION ON SAN CLEMENTE ISLAND, CA
Who is the contractor on this award?
The obligated recipient is STRONGHOLD ENGINEERING INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $27.2 million.
What is the period of performance?
Start: 2009-09-30. End: 2015-08-30.
What is the track record of Stronghold Engineering Inc. on similar government contracts?
A review of Stronghold Engineering Inc.'s contract history reveals a pattern of engaging in significant construction projects, including those for government entities. While specific details on past performance for similar bachelor quarters construction are not provided in this data snippet, their award on this $27.2 million contract suggests they possess the necessary qualifications and experience. Further investigation into their past performance ratings, any past performance issues, and the types of projects they have successfully completed would provide a more comprehensive understanding of their reliability and capability for this specific type of work.
How does the awarded price compare to similar bachelor quarters construction projects?
Benchmarking the $27.2 million award for bachelor quarters construction requires comparing it to projects of similar scope, size, and location. Without access to a detailed cost breakdown or data on comparable projects, a precise comparison is difficult. However, given the duration of the contract (2160 days) and the nature of construction on an island, the price appears to be within a reasonable range for a project of this magnitude. Factors such as material costs, labor rates, and logistical challenges specific to San Clemente Island would influence the final price. The firm fixed-price nature also suggests that the government sought to lock in costs.
What are the primary risks associated with this contract?
The primary risks associated with this contract include logistical challenges inherent in construction on a remote island like San Clemente. This can lead to increased costs for transportation of materials and personnel, as well as potential delays. Furthermore, unforeseen site conditions could arise, impacting the construction schedule and budget, despite the firm fixed-price structure. The reliance on a single contractor, Stronghold Engineering Inc., also presents a risk if they encounter financial difficulties or performance issues. Finally, the long duration of the contract increases the potential for market fluctuations in material and labor costs, though the fixed-price nature aims to mitigate this for the government.
How effective is the firm fixed-price contract type in managing costs for this project?
The firm fixed-price (FFP) contract type is generally considered effective in managing costs for construction projects like this one, as it shifts the majority of the cost risk to the contractor. Stronghold Engineering Inc. is obligated to complete the project for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to be efficient and control their expenses. For the government, an FFP contract provides cost certainty, making budgeting more predictable. However, it can also lead to higher initial bid prices as contractors factor in potential risks. For this project, the FFP structure is beneficial in preventing cost overruns due to contractor inefficiencies or unexpected cost increases.
What is the historical spending trend for bachelor quarters construction by the Department of the Navy?
Historical spending on bachelor quarters construction by the Department of the Navy is substantial, reflecting the ongoing need to maintain and upgrade military housing across numerous installations. While specific aggregate data for this category is not provided here, the Navy consistently allocates significant portions of its budget to facilities sustainment, restoration, and modernization (FSRM). This includes barracks, dormitories, and bachelor quarters. Spending can fluctuate based on military readiness requirements, infrastructure assessments, and congressional appropriations. Contracts like the one awarded to Stronghold Engineering Inc. are part of this larger, continuous investment in military infrastructure.
What are the implications of awarding to a single bidder in a full and open competition?
While this contract was awarded under 'full and open competition,' the fact that only one bid was received from Stronghold Engineering Inc. warrants attention. In a truly competitive scenario, multiple bids are expected. A single bid could indicate several possibilities: the project may have been perceived as too complex or risky by other potential bidders, the solicitation might have had specific requirements that only one company could meet, or the timing of the solicitation may have coincided with other major projects, limiting contractor availability. While the award price is still subject to review for reasonableness, a single bid reduces the government's leverage in price negotiation and may suggest a less competitive market for this specific type of construction at this location.
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: N6871105R4076
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2000 MARKET ST, RIVERSIDE, CA, 92501
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $27,186,513
Exercised Options: $27,186,513
Current Obligation: $27,186,513
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247306D1057
IDV Type: IDC
Timeline
Start Date: 2009-09-30
Current End Date: 2015-08-30
Potential End Date: 2015-08-30 00:00:00
Last Modified: 2015-05-11
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