Army awards $41M contract for elementary school replacement, highlighting construction sector activity

Contract Overview

Contract Amount: $40,980,648 ($41.0M)

Contractor: Archer Western Contractors, LLC

Awarding Agency: Department of Defense

Start Date: 2014-09-10

End Date: 2017-07-21

Contract Duration: 1,045 days

Daily Burn Rate: $39.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACEMENT OF NEW DIAMOND ELEMENTARY

Place of Performance

Location: FORT STEWART, LIBERTY County, GEORGIA, 31314

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $41.0 million to ARCHER WESTERN CONTRACTORS, LLC for work described as: REPLACEMENT OF NEW DIAMOND ELEMENTARY Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Firm fixed-price contract type indicates predictable costs for the government. 3. Project duration of 1045 days points to a significant construction undertaking. 4. Awarded to Archer Western Contractors, LLC, a known entity in the construction space. 5. Geographic location in Georgia may indicate regional construction market focus. 6. The contract value falls within a moderate range for large-scale institutional construction.

Value Assessment

Rating: good

The contract value of approximately $41 million for the replacement of an elementary school appears reasonable given the scope of a large construction project. Benchmarking against similar institutional building projects would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government, contributing to a positive value assessment.

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 bids. With 6 bidders participating, the competition level suggests a healthy market interest and provides a basis for price discovery. This broad competition likely contributed to achieving a fair market price for the construction services.

Taxpayer Impact: A competitive bidding process ensures that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

Benefits military families and children by providing a modern, safe educational facility. Delivers essential construction services for a new elementary school building. Geographic impact is concentrated in Georgia, supporting local economic activity. Workforce implications include employment opportunities for construction labor and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting the school's operational timeline.
Ensuring adherence to quality standards throughout the construction process is critical.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive pricing environment.
Award to an established contractor may indicate a lower risk of performance issues.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for educational facilities construction is driven by factors such as enrollment growth, aging infrastructure, and federal funding initiatives. Comparable spending benchmarks for similar school construction projects would place this award in a moderate to large-sized project category.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. Therefore, the direct impact on small business set-asides is likely minimal. However, the prime contractor, Archer Western Contractors, LLC, may engage small businesses as subcontractors to fulfill portions of the work, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering the project within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Military Construction
Educational Facility Construction
Department of Defense Construction Contracts

Risk Flags

Potential for construction delays
Ensuring quality of construction
Contractor cost overrun risk (mitigated by FFP)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.0 million to ARCHER WESTERN CONTRACTORS, LLC. REPLACEMENT OF NEW DIAMOND ELEMENTARY

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN CONTRACTORS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $41.0 million.

What is the period of performance?

Start: 2014-09-10. End: 2017-07-21.

What is the track record of Archer Western Contractors, LLC on similar government construction projects?

Archer Western Contractors, LLC has a history of performing large-scale construction projects for government entities. A review of federal contract databases would reveal their past performance, including project types, values, and any reported issues or successes. Their experience in institutional building construction, particularly schools, would be a key indicator of their capability to successfully execute this project. Analyzing past performance metrics, such as on-time completion rates and adherence to budget, provides valuable insight into their reliability as a contractor for the Department of the Army.

How does the awarded price compare to the estimated cost or independent government cost estimate?

The provided data does not include the estimated cost or the independent government cost estimate for this project. To assess value for money, a comparison between the awarded price of $40,980,648.05 and the government's internal estimate is crucial. If the awarded price is significantly below the estimate, it suggests strong competition and potentially good value. Conversely, if it's close to or above the estimate, further scrutiny of the estimate's accuracy and the bidding process might be warranted. Without this comparative data, a definitive value assessment is limited.

What are the primary risks associated with this construction contract?

Key risks for this construction contract include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions, which could impact the operational timeline for the elementary school. There's also a risk related to the quality of construction, ensuring it meets all safety and building code standards. Given the firm fixed-price nature, the contractor bears the risk of cost overruns if their initial estimates were inaccurate or if material prices escalate unexpectedly. Ensuring adequate oversight and proactive risk management by the Army are critical to mitigate these potential issues.

What is the historical spending pattern for elementary school construction by the Department of the Army?

Historical spending data for elementary school construction by the Department of the Army would provide context for the $41 million award. Analyzing past contracts for similar projects, including their values, durations, and locations, can reveal trends in Army's investment in educational infrastructure. This analysis helps determine if this contract represents a typical expenditure, an increase, or a decrease in spending for such facilities. Understanding these patterns can inform future budget allocations and procurement strategies for military family housing and support facilities.

Were there any performance issues or disputes on previous contracts awarded to Archer Western Contractors, LLC?

Information regarding specific performance issues or disputes on previous contracts awarded to Archer Western Contractors, LLC is not detailed in the provided data. A comprehensive assessment would require reviewing contract performance reports, past performance questionnaires, and any available litigation or dispute records associated with their prior government contracts. Such a review is essential to gauge the contractor's reliability and identify any potential red flags that might impact the successful execution of this current project.

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

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the (UEI: 121476675)

Address: 2410 PACES FERRY ROAD, ATLANTA, GA, 30339

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,684,748

Exercised Options: $40,980,648

Current Obligation: $40,980,648

Subaward Activity

Number of Subawards: 428

Total Subaward Amount: $571,191,113

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127811D0073

IDV Type: IDC

Timeline