Croatan Ranger Station Construction Contract Awarded for $7.78M to Group III Management Inc

Contract Overview

Contract Amount: $7,784,966 ($7.8M)

Contractor: Group III Management Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-09-05

End Date: 2026-08-15

Contract Duration: 709 days

Daily Burn Rate: $11.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CROATAN RANGER STATION CONSTRUCTION

Place of Performance

Location: NEW BERN, CRAVEN County, NORTH CAROLINA, 28560

State: North Carolina Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.8 million to GROUP III MANAGEMENT INC for work described as: CROATAN RANGER STATION CONSTRUCTION Key points: 1. Contract value of $7.78M for commercial building construction. 2. Awarded to Group III Management Inc. by the Forest Service. 3. Definitive contract with a firm-fixed-price structure. 4. Project duration is 709 days, ending August 2026. 5. Located in North Carolina.

Value Assessment

Rating: good

The contract value of $7.78M appears reasonable for a commercial building construction project of this scope and duration. Benchmarking against similar federal construction contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition approach. This method may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for this construction project. The use of SAP implies a balance between efficiency and cost-effectiveness, but the ultimate taxpayer impact depends on the pricing achieved through the limited competition.

Public Impact

Construction of a new ranger station will support Forest Service operations. The project will create jobs in the North Carolina region. The new facility will enhance infrastructure for public land management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not have secured the best price.
Contract duration is substantial, increasing potential for cost overruns.
No small business participation noted.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Project addresses a clear need for facility improvement.
Clear end date for project completion.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Federal spending in this sector is significant, supporting infrastructure development across various agencies. Benchmarks for similar projects vary widely based on size, complexity, and location.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). There is no indication of small business subcontracting goals or participation in this specific award.

Oversight & Accountability

The Forest Service is responsible for overseeing this contract. Standard oversight procedures for construction projects, including site inspections and progress reviews, should be in place to ensure quality and adherence to schedule and budget.

Related Government Programs

Commercial and Institutional Building Construction
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Potential for higher costs due to limited competition.
Long contract duration increases risk of delays and cost escalation.
No small business participation identified.
Unclear justification for using SAP on a large contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.8 million to GROUP III MANAGEMENT INC. CROATAN RANGER STATION CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is GROUP III MANAGEMENT INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $7.8 million.

What is the period of performance?

Start: 2024-09-05. End: 2026-08-15.

What is the estimated cost per square foot for this ranger station construction, and how does it compare to industry benchmarks?

Without the square footage of the ranger station, a precise cost per square foot cannot be calculated. However, the total contract value of $7.78M over 709 days suggests a significant investment. Further details on the facility's size and specifications are needed to compare it against commercial construction benchmarks and assess value for money.

What specific factors led to the use of Simplified Acquisition Procedures (SAP) for a contract of this magnitude?

The use of SAP for a contract valued at nearly $8 million is unusual, as SAP typically applies to acquisitions below the simplified acquisition threshold (currently $250,000). There might be specific justifications or exceptions applied, such as urgency, unique circumstances, or a re-evaluation of the project's scope. Understanding these reasons is crucial for assessing the procurement process's integrity and potential impact on competition.

How will the Forest Service ensure the long-term effectiveness and maintainability of the Croatan Ranger Station given the firm-fixed-price contract structure?

The firm-fixed-price structure locks in costs but places the burden of performance risk on the contractor. The Forest Service's effectiveness oversight will focus on ensuring the contractor meets quality standards and specifications outlined in the contract. Post-construction, the agency will be responsible for maintenance, and the initial construction quality will directly impact long-term operational costs and effectiveness.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12445224R0029

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2715 W VERNON AVE, KINSTON, NC, 28504

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $7,784,966

Exercised Options: $7,784,966

Current Obligation: $7,784,966

Actual Outlays: $4,839,704

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline