DoD's $61.5M contract for SOF Language & Cultural Center awarded to Archer Western Contractors, LLC

Contract Overview

Contract Amount: $61,511,557 ($61.5M)

Contractor: Archer Western Contractors, LLC

Awarding Agency: Department of Defense

Start Date: 2014-12-02

End Date: 2017-11-09

Contract Duration: 1,073 days

Daily Burn Rate: $57.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PN 76376, SOF LANGUAGE&CULTURAL CENTER

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $61.5 million to ARCHER WESTERN CONTRACTORS, LLC for work described as: PN 76376, SOF LANGUAGE&CULTURAL CENTER Key points: 1. Contract value of $61.5M for construction services. 2. Awarded under full and open competition. 3. Firm Fixed Price contract type suggests predictable costs. 4. Contract duration of 1073 days. 5. Performance location in North Carolina. 6. No small business set-aside or subcontracting noted.

Value Assessment

Rating: fair

The contract value of $61.5 million for a language and cultural center appears to be within a reasonable range for a large-scale construction project of this nature. Benchmarking against similar government construction projects for specialized facilities would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government, but the initial bid price is critical for determining true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of 7 bidders suggests a healthy level of competition for this project. This competitive environment generally leads to more favorable pricing and better quality offerings for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive bid, potentially saving taxpayer dollars compared to a sole-source or limited competition award.

Public Impact

The Special Operations Forces (SOF) Language and Cultural Center will benefit from enhanced training and operational capabilities. Construction services will deliver a specialized facility to support critical language and cultural training. The project's geographic impact is concentrated in North Carolina. The construction project will likely create jobs in the local North Carolina workforce during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial fixed price did not account for all contingencies.
Risk of schedule delays impacting the operational readiness of the SOF Language and Cultural Center.
Dependence on a single contractor for the entire construction project.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract type provides cost certainty.
Contract duration of over 1000 days allows for thorough project execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for a government-owned facility. The market for government construction is substantial, with significant annual spending across various agencies. This project represents a specific investment in specialized infrastructure for defense and intelligence support, aligning with broader trends in defense spending on facilities that enhance operational capabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses noted (SB: false, SS: false). This suggests that the primary contractor, Archer Western Contractors, LLC, is likely a large business, and the focus was on obtaining the best overall proposal rather than specifically promoting small business participation through this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the project within the agreed-upon cost. Transparency would be facilitated through contract award databases and potentially through agency reporting on construction project progress.

Related Government Programs

Military Construction
Special Operations Forces Support
Defense Facilities Construction
Language Training Facilities

Risk Flags

Potential for cost overruns if initial bid was not comprehensive.
Risk of schedule delays impacting operational readiness.
Quality control during construction needs diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.5 million to ARCHER WESTERN CONTRACTORS, LLC. PN 76376, SOF LANGUAGE&CULTURAL CENTER

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 $61.5 million.

What is the period of performance?

Start: 2014-12-02. End: 2017-11-09.

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

Archer Western Contractors, LLC has a history of performing construction work for the Department of Defense and other federal agencies. Their experience typically includes a range of building types, from barracks and administrative facilities to more specialized structures. A detailed review of their past performance on similar-sized or complexity projects for the DoD would be necessary to fully assess their suitability and reliability for this specific contract. This would involve examining past project completion times, adherence to budget, quality of work, and any documented disputes or performance issues.

How does the awarded amount compare to similar construction projects for specialized government facilities?

Without specific details on the square footage, complexity, and exact scope of the SOF Language & Cultural Center, a direct comparison of the $61.5 million award is challenging. However, large-scale institutional and specialized facility construction for government entities often runs into tens of millions of dollars. Projects involving unique acoustic, technological, or security requirements, as might be expected for a language and cultural center supporting SOF, can command higher prices. Benchmarking against recently awarded contracts for similar-purpose facilities (e.g., intelligence training centers, advanced research labs) would provide a more accurate assessment of value for money.

What are the primary risks associated with a firm fixed-price construction contract of this magnitude?

The primary risk with a firm fixed-price (FFP) contract, especially for a large project like this ($61.5M over 1073 days), is that the contractor may underestimate costs or encounter unforeseen issues, leading to potential quality compromises or disputes if they attempt to cut corners to maintain profitability. While FFP shifts cost overrun risk to the contractor, the government bears the risk of paying a potentially inflated price if the initial bid was too high due to lack of competition or overly conservative estimates by the winning bidder. Schedule delays are also a risk, as the contractor may prioritize cost savings over timely completion if not managed effectively.

How effective is full and open competition in ensuring competitive pricing for large construction contracts?

Full and open competition is generally considered the most effective method for ensuring competitive pricing in large construction contracts. By allowing all responsible sources to submit bids, it maximizes the pool of potential contractors, thereby increasing the likelihood of receiving multiple competitive offers. This process drives down prices as contractors vie for the award. The fact that 7 bidders participated in this specific contract suggests a robust competitive environment, which should have translated into a more favorable price for the government compared to sole-source or limited competition scenarios.

What is the historical spending pattern for similar SOF support facilities?

Historical spending on Special Operations Forces (SOF) support facilities, including language and cultural centers, has generally trended upwards, reflecting increased investment in SOF capabilities and global engagement. Specific figures vary widely based on project scope, location, and geopolitical needs. Analyzing past appropriations and contract awards for SOF-specific infrastructure over the last decade would reveal trends in investment priorities and the typical cost ranges for such specialized facilities. This contract's value should be viewed within that broader context of sustained investment in SOF readiness and effectiveness.

Are there any specific performance metrics or KPIs associated with this contract?

The provided data does not detail specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, for a construction contract of this nature, typical performance expectations would revolve around adherence to the project schedule, meeting quality standards as defined by architectural and engineering specifications, compliance with safety regulations, and final delivery of the facility within the agreed-upon firm fixed price. The contracting officer's representative (COR) would be responsible for monitoring these aspects throughout the project lifecycle.

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: $61,653,626

Exercised Options: $61,528,626

Current Obligation: $61,511,557

Subaward Activity

Number of Subawards: 461

Total Subaward Amount: $618,733,441

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127811D0073

IDV Type: IDC

Timeline