Department of Labor awards $12.8M contract for dormitory construction and site improvements

Contract Overview

Contract Amount: $12,779,267 ($12.8M)

Contractor: Chervenell Construction CO

Awarding Agency: Department of Labor

Start Date: 2007-09-07

End Date: 2009-10-15

Contract Duration: 769 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT THREE SINGLE-STORY DORMITORIES FOR A TOTAL OF 15,018 SQUARE FEET; CONSTRUCT 1 SINGLE STORY DORMITORY FOR 7,866 SQUARE FEET; SITE UTILITY IMPROVEMENTS AND A WASTE WATER STUDY.

Place of Performance

Location: WHITE SWAN, YAKIMA County, WASHINGTON, 98952

State: Washington Government Spending

Plain-Language Summary

Department of Labor obligated $12.8 million to CHERVENELL CONSTRUCTION CO for work described as: CONSTRUCT THREE SINGLE-STORY DORMITORIES FOR A TOTAL OF 15,018 SQUARE FEET; CONSTRUCT 1 SINGLE STORY DORMITORY FOR 7,866 SQUARE FEET; SITE UTILITY IMPROVEMENTS AND A WASTE WATER STUDY. Key points: 1. Contract focuses on constructing multiple dormitories and essential site utilities. 2. The project includes a significant wastewater study, indicating environmental considerations. 3. The contract was awarded under full and open competition after excluding specific sources. 4. The duration of the contract spans over two years, suggesting a complex scope. 5. The firm fixed-price contract type aims to control costs for the government. 6. The award was made by the Office of the Assistant Secretary for Administration and Management. 7. The project is located in Washington state.

Value Assessment

Rating: fair

The total award amount of $12.8 million for constructing approximately 22,884 square feet of dormitory space and associated site improvements appears to be within a reasonable range for federal construction projects of this nature. However, without specific details on the complexity of the site utility improvements and the scope of the wastewater study, a precise value-for-money assessment is challenging. Benchmarking against similar dormitory construction projects with comparable site work would provide a clearer picture of cost-effectiveness. The firm fixed-price contract type suggests an effort to manage cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be broad, certain sources were specifically excluded from consideration. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrowed field compared to a truly unrestricted full and open competition. This procurement approach might limit the range of potential bidders and could impact the level of price discovery achieved.

Taxpayer Impact: The exclusion of sources, even within a full and open framework, may have limited the competitive pressure, potentially leading to less aggressive pricing than if all qualified contractors had been allowed to bid without restriction.

Public Impact

The primary beneficiaries are likely personnel requiring dormitory accommodations at the specified federal facility. The project delivers new dormitory facilities and crucial site infrastructure, including wastewater management. The geographic impact is localized to the site in Washington state where the construction takes place. The construction activities will likely involve a workforce of skilled tradespeople and project managers. The wastewater study contributes to environmental compliance and sustainable facility management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
Risk of delays due to the complexity of site utility improvements and wastewater studies.
The exclusion of certain sources could limit the pool of specialized contractors, impacting quality or innovation.
Ensuring adequate oversight during the construction phase to maintain quality standards.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The project addresses essential infrastructure needs for personnel.
Inclusion of a wastewater study demonstrates attention to environmental factors.
The contract duration allows for thorough execution of the construction and study phases.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal construction spending in this area often involves specialized requirements related to security, sustainability, and specific agency needs. The market for federal construction is competitive, with many firms capable of undertaking such projects. This particular contract for dormitories and site improvements is a common type of infrastructure development undertaken by various government agencies to support their operational facilities.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. As a result, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, Chervenell Construction Co., may engage small businesses as subcontractors, which would be a secondary avenue for small business involvement. The subcontracting plan, if any, would determine the extent of this impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, which penalizes the contractor for cost overruns. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Labor may have jurisdiction to investigate any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Building Construction
Military Housing Construction
Government Facility Infrastructure
Public Works Projects
Environmental Compliance Projects

Risk Flags

Competition limited by source exclusion.
Potential for cost increases if site conditions are complex.
Requires diligent oversight to ensure quality and adherence to specifications.
Long-term maintenance costs need to be factored into budget planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $12.8 million to CHERVENELL CONSTRUCTION CO. CONSTRUCT THREE SINGLE-STORY DORMITORIES FOR A TOTAL OF 15,018 SQUARE FEET; CONSTRUCT 1 SINGLE STORY DORMITORY FOR 7,866 SQUARE FEET; SITE UTILITY IMPROVEMENTS AND A WASTE WATER STUDY.

Who is the contractor on this award?

The obligated recipient is CHERVENELL CONSTRUCTION CO.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2007-09-07. End: 2009-10-15.

What is the track record of Chervenell Construction Co. in completing federal construction projects of similar size and scope?

Chervenell Construction Co. has a history of federal contracting, as indicated by this award. To assess their track record thoroughly, one would need to examine their past performance on similar projects, including their on-time delivery, adherence to budget, and quality of work. Federal procurement databases often contain past performance information and contractor ratings. A review of these records would reveal if Chervenell has a pattern of successful project completion or if there are recurring issues. For this specific contract, the duration of 769 days suggests a project requiring significant management and execution capabilities. Understanding their experience with dormitory construction and site utility improvements, particularly in the Washington state region, would be crucial for evaluating their suitability and the likelihood of successful project completion.

How does the cost per square foot for the dormitory construction compare to industry benchmarks for similar federal facilities?

The total award of $12.8 million for approximately 22,884 square feet of dormitory space, plus site improvements and a wastewater study, yields a preliminary cost per square foot for the building structure. Dividing the total award by the square footage gives a rough estimate. However, a precise comparison requires isolating the construction cost of the dormitories from the site work and study. Federal construction costs per square foot can vary widely based on location, materials, complexity, and specific government requirements (e.g., security features, energy efficiency standards). Benchmarking against the General Services Administration (GSA) cost data or similar agency construction projects in the same geographic region would be necessary. Without this detailed breakdown and comparative data, it is difficult to definitively state whether the cost per square foot represents excellent value, is fair, or is potentially high.

What are the specific risks associated with the 'exclusion of sources' in the competition process for this contract?

The 'full and open competition after exclusion of sources' clause introduces specific risks. While aiming for broad competition, the exclusion of certain entities means the government may not have considered all potentially capable and competitive contractors. This could lead to a less competitive environment than a truly unrestricted competition, potentially resulting in higher prices or less optimal solutions. The risk lies in whether the excluded sources possessed unique capabilities, offered more competitive pricing, or could have brought greater innovation to the project. Furthermore, the rationale for exclusion needs to be clearly documented and justifiable to ensure fairness and prevent potential challenges to the procurement process. The government must demonstrate that the exclusion was based on legitimate technical, security, or programmatic reasons.

What is the expected effectiveness of the constructed dormitories in meeting the Department of Labor's personnel housing needs?

The effectiveness of the constructed dormitories hinges on several factors beyond the construction itself. The design must align with the number of personnel requiring housing, their specific needs (e.g., single occupancy, shared facilities), and the intended duration of their stay. The project's scope includes constructing three single-story dormitories and one additional single-story dormitory, totaling 22,884 square feet. This suggests a capacity for a significant number of individuals. The effectiveness will be measured by how well these facilities provide safe, adequate, and comfortable living quarters, thereby supporting the Department of Labor's operational mission. Post-occupancy evaluations and user feedback would be key indicators of their long-term effectiveness.

How has the Department of Labor's spending on similar construction projects evolved over the past five years?

Analyzing the Department of Labor's historical spending on similar construction projects over the past five years would provide valuable context for this $12.8 million award. This would involve examining contract databases for awards related to facility construction, infrastructure upgrades, and dormitory development. Key metrics to track would include the total annual spending on construction, the average contract size, the number of contracts awarded, and the types of construction services procured. Understanding trends—whether spending is increasing, decreasing, or remaining stable—can indicate the agency's priorities and budget allocation for infrastructure. Furthermore, comparing the average cost per square foot or per project in previous years to the current award can highlight any significant cost escalations or efficiencies.

What are the potential long-term maintenance and operational costs associated with these new dormitories and site improvements?

The long-term maintenance and operational costs associated with the new dormitories and site improvements are a critical consideration for the Department of Labor. These costs will encompass routine upkeep (e.g., cleaning, landscaping, minor repairs), scheduled maintenance (e.g., HVAC servicing, roof inspections), and potential future capital expenditures for major renovations or replacements. The wastewater study may also inform ongoing operational requirements and costs for the sewage system. Factors influencing these costs include the quality of construction materials used, the energy efficiency of the buildings, the complexity of the utility systems, and the specific maintenance protocols established by the agency. A comprehensive lifecycle cost analysis, ideally conducted during the planning phase, would provide a more accurate projection of these ongoing expenses beyond the initial construction award.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: DOL079RB20390

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7511 W ARROWHEAD AVE STE B, KENNEWICK, WA, 04

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,878,475

Exercised Options: $37,878,475

Current Obligation: $12,779,267

Timeline