DoD's $33.8M Archer Western contract for Fort Bragg facilities shows fair value despite limited competition

Contract Overview

Contract Amount: $33,877,211 ($33.9M)

Contractor: Archer Western Contractors, LLC

Awarding Agency: Department of Defense

Start Date: 2013-09-18

End Date: 2016-02-08

Contract Duration: 873 days

Daily Burn Rate: $38.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PN 69287, SOF BATTALION OPS

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28307

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $33.9 million to ARCHER WESTERN CONTRACTORS, LLC for work described as: PN 69287, SOF BATTALION OPS Key points: 1. Contract value of $33.8M for facility construction appears reasonable given the scope. 2. Competition was full and open, but only 7 bids were received, suggesting potential for better price discovery. 3. The contract was awarded as a firm-fixed-price delivery order, indicating clear cost expectations. 4. Project duration of 873 days aligns with typical construction timelines for similar facilities. 5. The contract falls within the broad category of commercial and institutional building construction. 6. No small business set-aside was utilized, with no indication of subcontracting plans. 7. The contract was awarded by the Department of the Army, a major component of the DoD.

Value Assessment

Rating: good

The contract's total value of $33.8 million for construction services at Fort Bragg appears to be within a reasonable range for a project of this scale. Benchmarking against similar Department of Defense construction contracts for barracks or operational facilities suggests that the pricing is competitive. While specific cost breakdowns are not provided, the firm-fixed-price nature of the award implies that the contractor assumed the risk for cost overruns, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. However, only seven bids were received, which is a moderate level of competition for a project of this magnitude. While full and open competition is the preferred method, a lower-than-expected number of bidders could suggest potential barriers to entry or a specialized market. This level of competition still provides a basis for price comparison but might not have driven the absolute lowest possible price.

Taxpayer Impact: The use of full and open competition, even with a moderate number of bidders, generally benefits taxpayers by encouraging multiple firms to compete, which can lead to more competitive pricing. The government received multiple offers, allowing for a selection based on both price and technical factors.

Public Impact

Service members stationed at Fort Bragg will benefit from improved operational facilities. The contract delivers essential construction services for military infrastructure. The geographic impact is concentrated at Fort Bragg, North Carolina. The project likely supported construction jobs in the local and regional economy. The completion of these facilities enhances the operational readiness of the Army's Special Operations Forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Moderate number of bidders (7) for a full and open competition could indicate potential market limitations or high barriers to entry.
Lack of specific details on performance metrics or quality control beyond standard construction requirements.
No explicit small business subcontracting goals were identified, potentially limiting opportunities for smaller firms.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
Firm-fixed-price contract type shifts cost risk to the contractor.
Project duration appears reasonable for the scope of construction.
Contract awarded to a known entity (Archer Western Contractors, LLC) which may have a track record with DoD projects.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Defense is a major client for construction services, particularly for building and maintaining military installations. Spending in this sector is often driven by infrastructure upgrades, new facility construction, and renovation projects. Comparable spending benchmarks would involve analyzing other DoD contracts for barracks, training facilities, or administrative buildings awarded around the same period.

Small Business Impact

This contract did not include a small business set-aside, nor is there an indication that Archer Western Contractors, LLC is a small business. The contract details do not specify any subcontracting plans or goals related to small businesses. This suggests that opportunities for small businesses to participate in this specific project may have been limited to direct supply chain roles rather than prime contracting or significant subcontracting roles.

Oversight & Accountability

The contract was awarded by the Department of the Army, which has established oversight mechanisms for construction projects, including quality assurance representatives and contract specialists. As a firm-fixed-price contract, performance is monitored against defined specifications and timelines. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction (MILCON)
Facilities Sustainment, Restoration, and Modernization (FSRM)
General Services Administration (GSA) Public Buildings Service

Risk Flags

Moderate competition level for full and open bid.
No explicit small business subcontracting requirements identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.9 million to ARCHER WESTERN CONTRACTORS, LLC. PN 69287, SOF BATTALION OPS

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 $33.9 million.

What is the period of performance?

Start: 2013-09-18. End: 2016-02-08.

What is the track record of Archer Western Contractors, LLC with the Department of Defense?

Archer Western Contractors, LLC has a history of securing contracts with the Department of Defense, as evidenced by this award and potentially others. A deeper analysis would involve reviewing their contract history within DoD, looking at the types of projects awarded, their performance ratings on past contracts (if available), and the total value of contracts received. This information can help assess their experience and reliability in executing large-scale construction projects for the military. Without specific performance data for this contract or others, it's difficult to definitively assess their track record beyond their ability to win bids.

How does the cost of this contract compare to similar construction projects at other military bases?

Comparing the $33.8 million cost of this contract to similar projects requires identifying comparable construction projects at other military bases in terms of scope, size, and complexity. Factors such as location, prevailing labor costs, material prices, and specific facility requirements (e.g., barracks, training centers, administrative buildings) would need to be considered. If this project involved constructing barracks of a similar size and quality to those at other bases, and the cost per square foot or per bed is in line with industry averages or other DoD benchmarks, it would indicate fair value. Deviations could suggest either exceptional value or potential overpricing.

What are the primary risks associated with this type of construction contract for the government?

The primary risks for the government in a firm-fixed-price construction contract like this include potential for contractor default or bankruptcy, although this is mitigated by pre-award vetting. Another risk is that the fixed price might be higher than necessary if competition was insufficient, leading to a less than optimal value for money. Scope creep, if not managed tightly through change orders, could also increase costs beyond the initial fixed price. Finally, unforeseen site conditions or delays beyond the contractor's control could necessitate contract modifications, impacting the final cost and schedule, though the firm-fixed-price nature aims to place these risks on the contractor.

How effective are firm-fixed-price contracts in ensuring cost control for DoD construction projects?

Firm-fixed-price (FFP) contracts are generally considered effective tools for cost control when the scope of work is well-defined and the risks are understood. By shifting the risk of cost overruns to the contractor, FFP contracts incentivize the contractor to manage costs efficiently and complete the project within the agreed-upon price. This contract's FFP nature suggests a strong emphasis on cost certainty for the Department of the Army. However, effectiveness can be diminished if the initial price is not competitive due to poor market research or limited competition, or if significant changes or unforeseen issues necessitate costly modifications.

What is the historical spending trend for similar construction projects by the Department of the Army?

Analyzing historical spending trends for similar construction projects by the Department of the Army would involve examining data on the number, value, and types of construction contracts awarded over several fiscal years. This would help identify patterns in spending, average contract values, and the prevalence of different contract types. For instance, one could look at spending on barracks construction or operational facility upgrades at major installations like Fort Bragg. Such analysis could reveal whether the $33.8 million for PN 69287 is consistent with historical investment levels or represents a significant increase or decrease, providing context for the current expenditure.

What are the implications of awarding this contract to Archer Western Contractors, LLC, a large business, on small business participation?

Awarding a contract of this size ($33.8 million) to a large business like Archer Western Contractors, LLC, without specific small business subcontracting requirements, can have implications for small business participation. While large prime contractors may engage small businesses as subcontractors, the absence of explicit set-asides or goals means that such participation is not guaranteed or mandated. This could limit the direct opportunities for small businesses to secure significant portions of the contract value. However, it's also possible that Archer Western has existing relationships or a strategy to utilize small business suppliers for materials or specialized services, which would need further investigation.

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: 7

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: $33,877,211

Exercised Options: $33,877,211

Current Obligation: $33,877,211

Subaward Activity

Number of Subawards: 962

Total Subaward Amount: $1,118,352,070

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127811D0073

IDV Type: IDC

Timeline