DoD's $22.7M Cherry Point Facility Contract Awarded to PCL Construction Services Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $22,688,315 ($22.7M)

Contractor: PCL Construction Services Inc

Awarding Agency: Department of Defense

Start Date: 2009-06-15

End Date: 2011-07-18

Contract Duration: 763 days

Daily Burn Rate: $29.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P191 2ND MAW COMMAND OPERATIONS FACILITY, MCAS, CHERRY POINT, NC

Place of Performance

Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $22.7 million to PCL CONSTRUCTION SERVICES INC for work described as: P191 2ND MAW COMMAND OPERATIONS FACILITY, MCAS, CHERRY POINT, NC Key points: 1. Contract awarded for construction of a command operations facility at MCAS Cherry Point, NC. 2. PCL Construction Services Inc. secured the contract valued at approximately $22.7 million. 3. The contract was awarded using full and open competition, suggesting a competitive bidding process. 4. The project duration was 763 days, indicating a significant construction timeline. 5. The contract type is Firm Fixed Price, which generally transfers risk to the contractor. 6. This project falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable project data for similar command operations facilities in the same geographic region and timeframe. The firm fixed price structure suggests a defined cost, but the overall value for money depends on the quality of construction and adherence to specifications. Further analysis would require detailed cost breakdowns and comparisons to industry standards for similar construction projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 16 bids suggests a healthy level of competition for this construction project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of selecting the best value proposal.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it promotes a competitive environment, driving down costs and ensuring that the government receives the best possible price for the construction services.

Public Impact

The primary beneficiaries are the U.S. Marine Corps personnel and operations at Marine Corps Air Station Cherry Point, North Carolina. The contract delivers a new command operations facility, essential for supporting military command and control functions. The geographic impact is localized to Cherry Point, North Carolina, contributing to the local economy through construction jobs and related services. The project likely involved a significant construction workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price fluctuations occur, despite the firm fixed price structure.
Ensuring timely completion within the 763-day duration is critical to avoid operational disruptions.
Quality control and adherence to construction standards need rigorous oversight to ensure the facility's long-term functionality.

Positive Signals

Firm fixed price contract type mitigates cost risk for the government.
Full and open competition with 16 bidders suggests a competitive award process.
The project addresses a specific operational need for the Marine Corps at Cherry Point.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical infrastructure for government agencies. Comparable spending benchmarks would typically involve analyzing other large-scale construction projects for military installations or government facilities, considering factors like square footage, complexity, and location.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While PCL Construction Services Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors on this project. Further investigation into subcontracting plans would be necessary to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments. Accountability measures would include adherence to contract terms, performance milestones, and quality standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Facilities
Department of Defense Facilities Construction
Naval Facilities Engineering Command Projects

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of schedule delays impacting operational readiness.
Need for rigorous quality assurance to ensure long-term facility integrity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.7 million to PCL CONSTRUCTION SERVICES INC. P191 2ND MAW COMMAND OPERATIONS FACILITY, MCAS, CHERRY POINT, NC

Who is the contractor on this award?

The obligated recipient is PCL CONSTRUCTION SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $22.7 million.

What is the period of performance?

Start: 2009-06-15. End: 2011-07-18.

What is the track record of PCL Construction Services Inc. on similar government construction projects?

PCL Construction Services Inc. has a substantial track record in large-scale construction projects, including significant work for government and military clients. While specific details on past performance for similar command operations facilities are not provided in this data, their extensive portfolio suggests experience with complex projects. A deeper dive into their contract history with the Department of Defense and other federal agencies would reveal their performance metrics, including on-time delivery, budget adherence, and quality of work on comparable projects. Reviewing past performance evaluations and any reported disputes or claims would offer further insight into their reliability as a contractor for this type of work.

How does the awarded price of $22.7 million compare to similar construction projects for military command facilities?

Directly comparing the $22.7 million award to similar projects is challenging without specific data on the size, scope, and complexity of other command operations facilities. Factors such as square footage, specialized technical requirements (e.g., IT infrastructure, security features), and regional construction cost variations significantly influence project pricing. However, given that 16 bids were received under full and open competition, it suggests that the price was likely competitive within the market for such a facility. A more robust comparison would involve analyzing cost-per-square-foot metrics for recently completed military construction projects of comparable function and scale, adjusted for geographic location and inflation.

What are the primary risks associated with this firm fixed price construction contract?

The primary risks associated with this firm fixed price (FFP) contract, while generally favorable to the government by capping costs, still involve potential issues. For the contractor (PCL Construction Services Inc.), risks include underestimating costs, encountering unforeseen site conditions (e.g., soil issues, hazardous materials), or experiencing significant material price escalations beyond what was anticipated. If these risks materialize and are not adequately managed by the contractor, it could lead to delays, quality compromises, or financial distress for the contractor. For the government, the risk is primarily that the contractor may cut corners on quality or scope to maintain profitability if cost pressures become too high, necessitating close oversight.

How effective is the full and open competition process in ensuring value for money for this type of construction project?

The full and open competition process is generally considered highly effective in ensuring value for money for construction projects like this one. By allowing all responsible sources to bid, it fosters a competitive environment that drives down prices and encourages contractors to offer their best value proposals. The fact that 16 bids were received indicates a robust competition, which increases the likelihood that the government secured a fair price and a qualified contractor. This process allows the government to compare multiple technical approaches and pricing structures, ultimately leading to a more informed selection that balances cost and performance.

What is the historical spending trend for similar construction projects at MCAS Cherry Point or within the Department of the Navy?

Analyzing historical spending trends for similar construction projects at MCAS Cherry Point or within the Department of the Navy would require access to extensive contract databases and budget reports. Generally, military construction projects are subject to significant capital investment and are often planned years in advance. Spending in this category can fluctuate based on military readiness requirements, infrastructure modernization initiatives, and congressional appropriations. Projects like this command operations facility are typical components of maintaining and upgrading military installations. Understanding the historical average cost per square foot for similar facilities, the frequency of such awards, and the overall budget allocated to military construction by the Navy would provide context for this $22.7 million 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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008509R3218

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PCL U.S. Holdings Inc (UEI: 245222591)

Address: 6675 WESTWOOD BLVD STE 200, ORLANDO, FL, 32821

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

Financial Breakdown

Contract Ceiling: $24,881,227

Exercised Options: $24,499,660

Current Obligation: $22,688,315

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline