Army awards $180.67M for construction, with Stronghold Engineering Inc. securing a significant portion

Contract Overview

Contract Amount: $13,045,180 ($13.0M)

Contractor: Stronghold Engineering Inc

Awarding Agency: Department of Defense

Start Date: 2003-06-12

End Date: 2011-02-22

Contract Duration: 2,812 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200312!000752!96CE!CW09 !USA ENGINEER DIST LOS ANGELES !DACW0903C0008 !A!N! !N! !20030612!20030902!180672420!180672420!180672420!N!STRONGHOLD ENGINEERING INCORPO!3421 GATO COURT !RIVERSIDE !CA!92507!55000!013!04!PHOENIX !MARICOPA !ARIZONA !+000001650000!N!N!000001650000!Y219!OTHER CONSERVATION & DEVELOPMENT FACILITIES !C2 !CONSTRUCTION !5000!NOT DISCERNABLE OR CLASSIFIED !237990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!002!A! !D!N!C! ! !N!A!Y!Y!B! ! ! !A!A!000!A!B!Y!T!N! ! ! ! !0001! !

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85074

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to STRONGHOLD ENGINEERING INC for work described as: 200312!000752!96CE!CW09 !USA ENGINEER DIST LOS ANGELES !DACW0903C0008 !A!N! !N! !20030612!20030902!180672420!180672420!180672420!N!STRONGHOLD ENGINEERING INCORPO!3421 GATO COURT !RIVERSIDE !CA!92507!55000!013!04!PHOENIX !MARIC… Key points: 1. Contract awarded for construction services, indicating a need for infrastructure development. 2. The contract value suggests a large-scale project with substantial resource allocation. 3. The duration of the contract implies a long-term commitment to the project. 4. The fixed-price nature of the contract aims to control costs for the government. 5. The award to a single entity, Stronghold Engineering Inc., warrants scrutiny of its capacity and past performance. 6. The North American Industry Classification System (NAICS) code points to a specific segment of the construction industry.

Value Assessment

Rating: fair

The awarded amount of $180.67 million for construction services is substantial. Without comparable contract data for similar projects, it is difficult to definitively benchmark the value. However, the firm fixed-price contract type suggests an attempt to establish a clear cost ceiling. The contract's duration of 2812 days (approximately 7.7 years) also indicates a significant undertaking, and the total value should be assessed against the scope of work and deliverables over this extended period. Further analysis would require understanding the specific services rendered and their market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bids suggests a competitive process, but the limited number of bidders could potentially impact price discovery. A more robust competition with a higher number of bids would typically lead to more competitive pricing for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially driving down prices and ensuring the government receives the best value.

Public Impact

The primary beneficiaries are likely the Department of the Army and its personnel, who will utilize the constructed facilities. The contract delivers essential construction services, contributing to the modernization or maintenance of military infrastructure. The geographic impact is centered in Arizona, where Stronghold Engineering Inc. is based and likely where the construction will take place. The contract has implications for the construction workforce, potentially creating jobs and economic activity in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long contract duration could lead to scope creep or cost overruns if not managed effectively.
Reliance on a single contractor for such a long period may present risks if the contractor's performance declines or if they face financial difficulties.
The limited number of bidders (2) in a full and open competition might suggest potential barriers to entry or a concentrated market for these specific services.

Positive Signals

The award under full and open competition suggests a fair and transparent procurement process.
The firm fixed-price contract type provides cost certainty for the government.
The contract's substantial value indicates the government's commitment to a significant infrastructure project.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically NAICS code 237990 (Other Heavy and Civil Engineering Construction). This sector is characterized by large-scale infrastructure projects such as highways, bridges, dams, and other public works. The market size for federal construction contracts can be substantial, driven by military base improvements, infrastructure upgrades, and other government facility needs. This particular award represents a significant investment within this sector.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information about subcontracting plans. The large contract value suggests it is likely beyond the scope typically awarded to small businesses without specific set-aside provisions. Further investigation would be needed to determine if small business participation is mandated through subcontracting requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be established through the contract terms and conditions, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases, though detailed project-specific information may be limited. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Army Corps of Engineers Contracts
Federal Infrastructure Spending
Heavy Civil Engineering Services

Risk Flags

Long contract duration may increase risk of cost escalation or performance issues.
Limited number of bidders in a full and open competition could indicate market concentration.
Contractor's past performance and financial stability require thorough vetting for long-term projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to STRONGHOLD ENGINEERING INC. 200312!000752!96CE!CW09 !USA ENGINEER DIST LOS ANGELES !DACW0903C0008 !A!N! !N! !20030612!20030902!180672420!180672420!180672420!N!STRONGHOLD ENGINEERING INCORPO!3421 GATO COURT !RIVERSIDE !CA!92507!55000!013!04!PHOENIX !MARICOPA !ARIZONA !+000001650000!N!N!000001650000!Y219!OTHER CONSERVATION & DEVELOPMENT FACILITIES !C2 !CONSTRUCTION !5000!NOT DISCERNABLE OR CLASSIFIED !237990!E! !3! ! ! ! ! !99990909!B

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 Army).

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2003-06-12. End: 2011-02-22.

What specific types of construction services were procured under this contract?

The provided data indicates the contract falls under NAICS code 237990, 'Other Heavy and Civil Engineering Construction.' This broad category typically includes the construction of projects such as highways, streets, bridges, tunnels, parking structures, pipelines, and power lines. Without more specific line-item details or a Statement of Work (SOW), it's difficult to pinpoint the exact services. However, given the awarding agency (Department of the Army) and the substantial value, it likely pertains to significant infrastructure development or upgrades at a military installation or related federal facility.

How does the awarded amount compare to similar construction contracts awarded by the Department of the Army?

Comparing this $180.67 million award requires access to a broader dataset of similar Army construction contracts. However, for a single definitive contract with a duration of over seven years, this amount is substantial. Large-scale military construction projects, such as barracks, training facilities, or major infrastructure upgrades, can easily reach these figures. The firm fixed-price nature suggests a well-defined scope, and the competition level (2 bids) might indicate a specialized market or a limited number of qualified large contractors capable of undertaking such a project within the specified timeframe and requirements.

What are the potential risks associated with a contract of this duration and value?

A contract spanning over seven years and valued at $180.67 million carries several inherent risks. Firstly, the extended timeline increases the possibility of unforeseen economic changes (inflation, material cost fluctuations) impacting the fixed price, although the contract type aims to mitigate this. Secondly, contractor performance degradation over such a long period is a concern; maintaining quality and adherence to schedule requires robust oversight. Thirdly, the contractor's financial stability and operational capacity must remain sound throughout the contract's life. Finally, changes in military requirements or strategic priorities could necessitate contract modifications, potentially leading to disputes or scope adjustments.

What is the track record of Stronghold Engineering Inc. for federal contracts?

The provided data identifies Stronghold Engineering Inc. as the contractor. To assess their track record, one would need to examine their past performance on federal contracts, including contract values, types, agencies served, and any history of disputes, awards, or terminations. A review of their performance history would reveal their experience in managing large-scale construction projects, their adherence to schedules and budgets, and their overall reliability as a government contractor. This information is crucial for understanding the risk associated with this specific award.

How has federal spending in the 'Other Heavy and Civil Engineering Construction' sector evolved over time?

Federal spending in the 'Other Heavy and Civil Engineering Construction' sector (NAICS 237990) can fluctuate significantly based on government priorities, infrastructure initiatives, and economic conditions. Historically, periods of increased federal investment in infrastructure, such as the early 2000s or recent infrastructure bills, tend to drive up spending in this sector. The Department of Defense, as a major federal entity, often contributes substantially to this spending through base construction and upgrades. Analyzing historical spending patterns within this NAICS code would provide context for the significance of this $180.67 million award relative to broader trends.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3421 GATO COURT, RIVERSIDE, CA, 92507

Business Categories: Asian Pacific American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline