Department of Labor's $24.5M Iowa Job Corps Center construction contract awarded to Grooms & Co. Construction, Inc

Contract Overview

Contract Amount: $24,535,870 ($24.5M)

Contractor: Grooms & CO. Construction, Inc.

Awarding Agency: Department of Labor

Start Date: 2009-06-30

End Date: 2012-05-25

Contract Duration: 1,060 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::16 0182::TAS - CONSTRUCTION OF A NEW CENTER, IOWA JOB CORPS CENTER LOCATED IN OTTUMWA, IOWA ARRA::YES::ARRA

Place of Performance

Location: OTTUMWA, WAPELLO County, IOWA, 52501

State: Iowa Government Spending

Plain-Language Summary

Department of Labor obligated $24.5 million to GROOMS & CO. CONSTRUCTION, INC. for work described as: TAS::16 0182::TAS - CONSTRUCTION OF A NEW CENTER, IOWA JOB CORPS CENTER LOCATED IN OTTUMWA, IOWA ARRA::YES::ARRA Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The project aimed to construct a new Job Corps center, indicating investment in workforce development infrastructure. 3. The duration of the contract was approximately 1060 days, suggesting a significant construction timeline. 4. The contract was funded under the American Recovery and Reinvestment Act (ARRA), highlighting its role in economic stimulus. 5. The fixed-firm price contract type suggests a defined cost structure for the construction. 6. The contract was awarded to a single contractor, Grooms & Co. Construction, Inc.

Value Assessment

Rating: fair

Benchmarking the value of this construction contract is challenging without specific cost breakdowns or comparable project data. The total award amount of $24.5 million for a Job Corps center construction project needs to be assessed against the scope of work, square footage, and specific facility requirements. The contract was awarded under a firm fixed-price structure, which typically aims to control costs, but the final value realization depends on the contractor's efficiency and any change orders. Without detailed cost per square foot or per unit of capacity, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that the solicitation was made available to all responsible prospective contractors, but certain sources were excluded from consideration. While it implies a competitive process, the exclusion of sources might limit the breadth of competition. The number of bidders is not explicitly stated, but the designation suggests that multiple bids were likely received and evaluated.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by encouraging competitive pricing and potentially leading to a more cost-effective outcome compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are individuals seeking vocational training and employment through the Iowa Job Corps program. The project delivered a new physical facility to house and support the Job Corps training programs. The geographic impact is focused on Ottumwa, Iowa, and the surrounding region, providing local economic benefits during construction and long-term training opportunities. The construction phase likely created temporary jobs for skilled trades and laborers in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expanded beyond initial estimates.
Dependence on a single contractor for the successful completion of a large-scale construction project.
The 'exclusion of sources' clause in the competition type warrants further investigation into the rationale and impact on overall competition.

Positive Signals

Awarded under ARRA, indicating alignment with economic stimulus goals.
Firm fixed-price contract type provides cost certainty for the government.
Construction of a new facility for a valuable workforce development program.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The Job Corps program represents a significant investment in human capital development, and the construction of its facilities is a key component. Comparable spending benchmarks would involve analyzing the cost per square foot for similar government or educational facility constructions, as well as the overall investment in workforce development infrastructure across federal agencies.

Small Business Impact

The provided data indicates that small business set-aside was not utilized (ss: false) and there is no specific mention of subcontracting goals for small businesses (sb: false). This suggests that the primary focus of this large construction contract was not on direct small business participation through set-asides. However, the prime contractor, Grooms & Co. Construction, Inc., may have engaged small businesses as subcontractors, which would be a common practice in the construction industry. Further investigation into subcontracting reports would be needed to assess the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration, the contracting agency. Mechanisms would include contract administration, site inspections, progress reviews, and financial audits to ensure compliance with terms and conditions. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Labor - Job Corps Program
ARRA - Economic Stimulus Projects
Federal Construction Contracts
Workforce Development Infrastructure

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed cost breakdown for value assessment.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $24.5 million to GROOMS & CO. CONSTRUCTION, INC.. TAS::16 0182::TAS - CONSTRUCTION OF A NEW CENTER, IOWA JOB CORPS CENTER LOCATED IN OTTUMWA, IOWA ARRA::YES::ARRA

Who is the contractor on this award?

The obligated recipient is GROOMS & CO. CONSTRUCTION, INC..

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $24.5 million.

What is the period of performance?

Start: 2009-06-30. End: 2012-05-25.

What was the specific rationale for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The rationale for excluding specific sources in a 'full and open competition after exclusion of sources' award is typically documented in the contract file. Common reasons include past performance issues, failure to meet pre-qualification criteria, or specific national security or programmatic requirements that necessitate limiting the pool of potential offerors. Without access to the detailed contract file and justification documentation for this specific award, the precise reasons for excluding certain sources remain unknown. This exclusion could potentially limit the competitive landscape and may warrant further inquiry to ensure fair and effective competition.

How does the final cost of $24.5 million compare to the initial estimated cost for the Iowa Job Corps Center construction?

The provided data indicates the final award amount was $24,535,870.18. However, there is no information available regarding the initial estimated cost for the project. To assess value and potential cost growth, a comparison between the initial estimate and the final award is crucial. If the final award was significantly higher than the initial estimate, it could indicate scope changes, unforeseen issues, or less competitive bidding than anticipated. Conversely, if it was close to or below the estimate, it might suggest effective cost management and competitive pricing.

What was the track record of Grooms & Co. Construction, Inc. with federal contracts prior to this award?

Information on Grooms & Co. Construction, Inc.'s prior federal contract history is not directly provided in the data snippet. A comprehensive assessment would require searching federal procurement databases (like FPDS or SAM.gov) for their past performance, contract values, agencies served, and any performance ratings or disputes. Understanding their experience with similar-sized projects, government contracting regulations, and overall performance history would provide context for their ability to successfully execute the Iowa Job Corps Center construction.

What specific training programs and capacity were planned for the new Iowa Job Corps Center?

The provided data focuses on the construction contract itself and does not detail the specific training programs or the intended capacity of the new Iowa Job Corps Center. Job Corps centers typically offer vocational training in various fields, such as healthcare, IT, skilled trades, and hospitality. The capacity would relate to the number of students the facility is designed to accommodate for training and residential services. This information would typically be found in the program's operational plans or the facility's design specifications, rather than the construction contract award details.

Were there any significant challenges or disputes encountered during the construction of the Iowa Job Corps Center?

The provided data does not contain information regarding challenges or disputes encountered during the construction of the Iowa Job Corps Center. Such details would typically be found in contract performance reports, modification histories, or litigation records if significant issues arose. A lack of readily available information on disputes does not necessarily mean none occurred, but it suggests no major, publicly documented conflicts impacted the contract's execution or outcome based on this data.

How does the funding of this contract under ARRA align with the broader goals of the American Recovery and Reinvestment Act?

Funding this construction project under the American Recovery and Reinvestment Act (ARRA) directly aligns with the act's primary goals of stimulating the economy, creating jobs, and investing in infrastructure. The construction of a new Job Corps center would have generated employment opportunities for construction workers and, upon completion, would support workforce development initiatives aimed at improving long-term economic prospects for individuals. ARRA projects were intended to provide a tangible economic boost and lay the groundwork for future growth, making this contract a fitting example of ARRA's intended impact.

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: DOL099RB20663

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 505 GATEWAY DR, OTTUMWA, IA, 03

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

Financial Breakdown

Contract Ceiling: $24,535,870

Exercised Options: $24,535,870

Current Obligation: $24,535,870

Timeline