Navy awards $25.2M construction contract to Suffolk Construction, highlighting firm fixed-price structure

Contract Overview

Contract Amount: $25,242,555 ($25.2M)

Contractor: Suffolk Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-08-09

End Date: 2014-09-26

Contract Duration: 1,144 days

Daily Burn Rate: $22.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE ITEM AND OPTIONS 0001 - 0005

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to SUFFOLK CONSTRUCTION COMPANY, INC. for work described as: BASE ITEM AND OPTIONS 0001 - 0005 Key points: 1. Contract awarded using firm-fixed-price terms, indicating predictable costs for the government. 2. The definitive contract structure suggests a clear scope of work was established. 3. Competition was full and open, implying a robust bidding process. 4. The contract duration of 1144 days points to a significant, long-term project. 5. The award falls under commercial and institutional building construction, a common sector for defense infrastructure. 6. The base item and options structure allows for flexibility within a defined project.

Value Assessment

Rating: good

The contract's firm fixed-price nature is generally favorable for cost control. Benchmarking against similar construction projects for the Department of the Navy would provide a clearer picture of value. The total award amount of $25.2 million for a project spanning over three years suggests a substantial undertaking, and its value is contingent on the specific scope and quality of the construction delivered. Without detailed project specifications, a precise value-for-money assessment is challenging, but the fixed-price mechanism mitigates cost overrun risks.

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 a bid. The presence of 7 bidders suggests a healthy level of interest and competition for this construction project. A competitive bidding process typically leads to more favorable pricing for the government as contractors vie for the award. The number of bidders provides a good indication that the government likely received competitive offers.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by driving down costs through market forces. This approach maximizes the opportunity for the government to secure the best possible price and quality for the construction services.

Public Impact

The Department of the Navy benefits from the construction or renovation of essential facilities. The project supports the operational readiness and infrastructure needs of naval forces. The contract likely impacts the local economy in Rhode Island through job creation and material sourcing. Skilled construction labor and tradespeople will be employed for the duration of the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not tightly managed.
Dependence on contractor's ability to meet quality and timeline expectations.
Risk of unforeseen site conditions impacting schedule and budget, despite fixed price.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive pricing environment.
Definitive contract indicates a well-defined scope of work.
Award to an established contractor implies experience in similar projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. This sector encompasses the building of non-residential structures such as offices, educational facilities, and government buildings. The Department of Defense is a major client within this sector, frequently awarding contracts for military base construction, upgrades, and maintenance. Spending in this area is crucial for maintaining and expanding military infrastructure. Comparable spending benchmarks would involve analyzing other large-scale construction projects awarded by federal agencies for similar types of facilities.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' (small business set-aside) field is false. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary award went to a large business, and the impact on the small business ecosystem would depend on whether Suffolk Construction Company, Inc. voluntarily engages small businesses as subcontractors for specialized services or material supply.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Navy contracting command. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract performance.

Related Government Programs

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

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of schedule delays due to unforeseen circumstances.
Quality control issues could arise without rigorous oversight.
Dependence on contractor's financial stability and performance history.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to SUFFOLK CONSTRUCTION COMPANY, INC.. BASE ITEM AND OPTIONS 0001 - 0005

Who is the contractor on this award?

The obligated recipient is SUFFOLK CONSTRUCTION COMPANY, 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 $25.2 million.

What is the period of performance?

Start: 2011-08-09. End: 2014-09-26.

What is the historical spending pattern of the Department of the Navy with Suffolk Construction Company, Inc. for similar construction projects?

Analyzing the historical spending between the Department of the Navy and Suffolk Construction Company, Inc. requires accessing comprehensive contract databases. Based on the provided data, this is a single definitive contract awarded in 2011. To understand historical patterns, one would need to query databases for all contracts awarded to Suffolk Construction Company, Inc. by the Navy, filter for construction services, and examine the total value, duration, and types of projects over several fiscal years. This would reveal if this $25.2 million contract is representative of their typical engagement with the Navy or an outlier in terms of scale or scope. Without this broader historical context, it's difficult to assess trends or predict future spending.

How does the per-square-foot cost of this project compare to similar Navy construction projects in Rhode Island?

To compare the per-square-foot cost, detailed project specifications including the total square footage of the constructed or renovated space are necessary. The provided data does not include square footage. Assuming this information were available, the comparison would involve dividing the total contract value ($25.2 million) by the total square footage to derive a per-square-foot cost. This figure would then be benchmarked against similar Navy construction projects in Rhode Island, ideally those awarded around the same time period and for comparable facility types (e.g., barracks, administrative buildings, maintenance facilities). Factors such as material costs, labor rates specific to the region, and the complexity of the construction would influence the comparison. A higher per-square-foot cost might be justified by specialized requirements or challenging site conditions.

What are the key performance indicators (KPIs) used to evaluate Suffolk Construction Company, Inc.'s performance on this contract?

Key Performance Indicators (KPIs) for a construction contract like this typically revolve around schedule adherence, cost control (though mitigated by fixed-price), quality of workmanship, safety compliance, and adherence to contract specifications. For a firm fixed-price contract, meeting the defined scope and delivering the project by the completion date (September 26, 2014) are paramount. Quality would be assessed through inspections and adherence to building codes and project blueprints. Safety records and incident reports are also critical KPIs. The Department of the Navy would likely have established specific metrics within the contract's performance clauses or through a Quality Assurance Surveillance Plan (QASP) to monitor these aspects throughout the project's lifecycle.

What is the potential impact of this contract on small business subcontracting opportunities in Rhode Island?

The provided data indicates that this contract was not set aside for small businesses ('sb': false) and does not explicitly detail subcontracting requirements. Therefore, the direct impact on small business subcontracting opportunities is not guaranteed. However, large prime contractors like Suffolk Construction Company, Inc. often engage small businesses for specialized trades (e.g., electrical, plumbing, HVAC), material supply, or specific construction services. The extent of small business involvement would depend on Suffolk Construction's subcontracting plan and their efforts to identify and utilize qualified small business vendors in Rhode Island. Without specific subcontracting goals or reported achievements, it's difficult to quantify the precise impact.

How does the number of bidders (7) on this contract reflect the competitiveness of the construction market for the Department of the Navy in this region?

A total of 7 bidders for this definitive construction contract suggests a moderately competitive environment for the Department of the Navy in the Rhode Island region at the time of award (2011). While not an exceptionally high number, it indicates that multiple firms were interested and capable of undertaking this project. This level of competition generally provides the government with a reasonable basis for price discovery and increases the likelihood of receiving competitive bids. A lower number of bidders might suggest market concentration or barriers to entry, while a significantly higher number could indicate intense competition, potentially driving prices lower but also increasing administrative burden for bid evaluation.

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: TWO STEP

Solicitation ID: N4008511R7231

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 65 ALLERTON ST, BOSTON, MA, 02119

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

Financial Breakdown

Contract Ceiling: $25,242,555

Exercised Options: $25,242,555

Current Obligation: $25,242,555

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $18,374,657

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline