DoD awards $18.9M construction contract to SHIEL SEXTON CO INC for 1185 days

Contract Overview

Contract Amount: $18,934,369 ($18.9M)

Contractor: Shiel Sexton CO Inc

Awarding Agency: Department of Defense

Start Date: 2009-09-11

End Date: 2012-12-09

Contract Duration: 1,185 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 41

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD OF BASE BID AND OPTION 1

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to SHIEL SEXTON CO INC for work described as: AWARD OF BASE BID AND OPTION 1 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm-fixed-price definitive contract, providing cost certainty. 3. Performance period spans over three years, indicating a significant project duration. 4. The contractor, SHIEL SEXTON CO INC, has been awarded this contract by the Department of the Navy. 5. The North American Industry Classification System (NAICS) code is 236220, related to Commercial and Institutional Building Construction. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

Benchmarking the value of this $18.9 million contract is challenging without specific project details or comparable construction projects in the same geographic region. The firm-fixed-price structure suggests the government aimed for cost predictability. However, the duration of over three years means that the final cost could be impacted by inflation and material cost fluctuations over time, which may not be fully captured in the initial bid.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 41 bids were received, suggesting a robust level of competition. A high number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers as it likely drove down the price and ensured a wider pool of qualified contractors were considered, leading to a more efficient use of public funds.

Public Impact

The Department of the Navy benefits from the construction or renovation services provided under this contract. The contract supports commercial and institutional building construction, likely impacting military infrastructure. The geographic impact is centered in North Carolina, where the contractor is based and likely where the work will be performed. The project will likely involve a workforce of construction professionals and laborers, contributing to employment in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if material prices escalate significantly during the 3+ year performance period.
The firm-fixed-price contract may not fully account for unforeseen site conditions or design changes, potentially leading to change orders.
Limited insight into the specific performance metrics and quality control measures for the construction work.

Positive Signals

Awarded through full and open competition with 41 bids, indicating a competitive market and likely fair pricing.
Firm-fixed-price contract provides cost certainty for the government.
Long-term contract duration allows for sustained project execution and potential for contractor expertise development.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. Federal spending in construction is often driven by the need to maintain and upgrade existing infrastructure, as well as build new facilities for various government agencies. Comparable spending benchmarks would typically involve analyzing other large-scale construction projects awarded by the Department of Defense or other federal agencies for similar types of facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means the procurement was open to all eligible contractors, including large businesses. There is no specific information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that the primary focus was on securing the best overall offer from the competitive marketplace, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and project managers. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules tied to milestones. 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 Defense Construction Contracts
Navy Facilities Engineering Command Projects
General Building Construction Services
Firm Fixed Price Contracts
Large Scale Construction Projects

Risk Flags

Potential for cost escalation over the contract duration.
Lack of specific performance metrics in the provided data.
No small business subcontracting requirements explicitly stated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to SHIEL SEXTON CO INC. AWARD OF BASE BID AND OPTION 1

Who is the contractor on this award?

The obligated recipient is SHIEL SEXTON CO 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 $18.9 million.

What is the period of performance?

Start: 2009-09-11. End: 2012-12-09.

What specific type of building or facility is being constructed or renovated under this contract?

The provided data indicates the contract falls under NAICS code 236220, which covers Commercial and Institutional Building Construction. This broad category can include a wide range of structures such as office buildings, educational facilities, hospitals, warehouses, and other non-residential buildings. Without more specific contract details or project descriptions, it is not possible to determine the exact nature of the facility. However, given it is a Department of the Navy award, it is likely related to military infrastructure, potentially administrative buildings, barracks, training facilities, or support structures.

How does the awarded amount of $18.9 million compare to similar construction projects for the Navy in North Carolina?

Comparing the $18.9 million award to similar projects requires access to a database of recent Navy construction contracts in North Carolina, including their scope, size, and final awarded values. The firm-fixed-price nature of this contract suggests a defined scope at the time of award. However, without specific project details (e.g., square footage, type of construction, specific upgrades), a direct comparison is difficult. Generally, construction costs can vary significantly based on location, material availability, labor costs, and project complexity. A thorough benchmark would involve analyzing projects with similar NAICS codes and contract values awarded within the same timeframe and geographic region.

What are the key performance indicators (KPIs) and quality assurance measures for this construction contract?

The provided data does not specify the key performance indicators (KPIs) or quality assurance measures for this contract. Typically, firm-fixed-price construction contracts include detailed specifications, drawings, and performance standards that the contractor must meet. Quality assurance would likely involve regular inspections by government representatives, adherence to building codes, and potentially third-party testing of materials and workmanship. Performance would be evaluated against the project schedule, budget (as fixed), and the quality of the completed construction, with penalties or incentives potentially tied to these factors.

What is the historical spending pattern of the Department of the Navy on commercial and institutional building construction?

The Department of the Navy, as a major component of the Department of Defense, consistently spends significant amounts on construction to maintain and modernize its vast infrastructure. Historical spending patterns for commercial and institutional building construction by the Navy would likely show a steady investment in facilities such as administrative offices, housing, training centers, maintenance depots, and port facilities. This spending is influenced by military readiness requirements, aging infrastructure, and new strategic needs. Analyzing past fiscal years would reveal trends in contract values, types of projects, and geographic distribution of awards, often totaling billions of dollars annually across various construction categories.

What is the track record of SHIEL SEXTON CO INC with the Department of the Navy and other federal agencies?

To assess the track record of SHIEL SEXTON CO INC, one would need to consult federal procurement databases (like FPDS or SAM.gov) for their past contract awards, performance history, and any reported issues. Federal agencies, including the Department of the Navy, maintain contractor performance records. A review would look for the number and value of previous contracts, the types of services provided, and any past performance evaluations, including ratings and any disputes or terminations. A strong history of successful contract completion and positive performance reviews would indicate reliability and capability.

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: N4008509R3222

Offers Received: 41

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 902 N CAPITOL AVE, INDIANAPOLIS, IN, 46204

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

Financial Breakdown

Contract Ceiling: $18,934,369

Exercised Options: $18,934,369

Current Obligation: $18,934,369

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline