Department of Defense awards $34M contract for Parris Island construction, with R. C. Construction Co., Inc. winning

Contract Overview

Contract Amount: $33,965,224 ($34.0M)

Contractor: R. C. Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2019-07-10

End Date: 2022-04-27

Contract Duration: 1,022 days

Daily Burn Rate: $33.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CON - DBB P404 RANGE IMPROVEMENTS&MODERNIZATION, PHASE 2 MCRD PARRIS ISLAND

Place of Performance

Location: PARRIS ISLAND, BEAUFORT County, SOUTH CAROLINA, 29905

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $34.0 million to R. C. CONSTRUCTION CO., INC. for work described as: CON - DBB P404 RANGE IMPROVEMENTS&MODERNIZATION, PHASE 2 MCRD PARRIS ISLAND Key points: 1. Contract value of $33.97 million for construction services. 2. Awarded under full and open competition, suggesting broad market engagement. 3. Definitive contract type indicates a long-term agreement for services. 4. Project duration of 1022 days points to a significant construction undertaking. 5. Fixed-price contract type aims to control costs for the government. 6. The contract is categorized under Commercial and Institutional Building Construction.

Value Assessment

Rating: good

The contract value of approximately $34 million for building construction appears within a reasonable range for a project of this scope and duration. Benchmarking against similar Department of Defense construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage cost overruns, which is a positive indicator for government spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The presence of 3 bidders suggests a moderate level of competition for this project. A higher number of bidders typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a wider pool of potential contractors, leading to more cost-effective use of public funds.

Public Impact

The primary beneficiaries are the Department of the Navy and personnel stationed at Parris Island, who will receive modernized facilities. Services delivered include construction, modernization, and improvements to buildings. The geographic impact is localized to Parris Island, South Carolina. The project will likely involve a significant construction workforce, providing employment opportunities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extended construction period.
Dependence on a single contractor for a large-scale, multi-year project carries inherent performance risks.
The fixed-price nature might disincentivize the contractor from proactively identifying cost-saving measures beyond the initial scope.

Positive Signals

Awarded through full and open competition, ensuring a broad selection of qualified bidders.
Firm fixed-price contract type provides cost certainty for the government.
The contractor, R. C. Construction Co., Inc., has a track record that can be reviewed for performance history.
The project addresses necessary infrastructure improvements, contributing to operational readiness.

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 military installations, government facilities, and public infrastructure. Comparable spending benchmarks would involve analyzing the average cost per square foot or per project for similar military construction projects across different branches of the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. The prime contractor, R. C. Construction Co., Inc., may still engage small businesses as subcontractors, but this is not a requirement of the contract itself.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) from the Department of the Navy. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for cost escalation on long-term fixed-price contracts.
Performance risk associated with a single contractor over an extended period.
Dependence on local labor and material markets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.0 million to R. C. CONSTRUCTION CO., INC.. CON - DBB P404 RANGE IMPROVEMENTS&MODERNIZATION, PHASE 2 MCRD PARRIS ISLAND

Who is the contractor on this award?

The obligated recipient is R. C. CONSTRUCTION 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 $34.0 million.

What is the period of performance?

Start: 2019-07-10. End: 2022-04-27.

What is the track record of R. C. Construction Co., Inc. with federal contracts, particularly within the Department of Defense?

To assess the track record of R. C. Construction Co., Inc., a review of their past federal contract awards and performance history would be necessary. This would involve examining data from sources like the Federal Procurement Data System (FPDS) to identify previous contracts, their values, agencies involved, and any reported performance issues or awards. For this specific contract, the duration of 1022 days and the firm fixed-price nature suggest a need for reliable execution. A history of successful completion of similar-sized construction projects, adherence to schedules, and quality of work on prior DoD contracts would be positive indicators. Conversely, a pattern of delays, cost overruns, or contract disputes would raise concerns about their capacity to deliver this project successfully.

How does the awarded amount of $33.97 million compare to similar construction projects at military installations?

Benchmarking this $33.97 million contract against similar construction projects at military installations requires access to a broader dataset of comparable projects. Factors such as project scope (e.g., new construction vs. renovation), building type, size (square footage), location, and specific modernization requirements significantly influence costs. Generally, large-scale construction at military bases can range from tens to hundreds of millions of dollars. Without specific details on the scope of 'P404 RANGE IMPROVEMENTS & MODERNIZATION, PHASE 2,' a precise comparison is difficult. However, the firm fixed-price nature and the 1022-day duration suggest a substantial undertaking. A preliminary assessment indicates the value is plausible for a multi-year, comprehensive modernization project on a military installation, but detailed cost-per-square-foot analysis against similar DoD projects would be needed for a definitive value-for-money conclusion.

What are the primary risks associated with a firm fixed-price contract for a project of this duration?

The primary risk associated with a firm fixed-price (FFP) contract for a project spanning 1022 days (nearly three years) is the potential for the contractor to incur significant losses if costs escalate unexpectedly due to factors beyond their control, or if their initial cost estimates were inaccurate. While FFP contracts are designed to provide cost certainty for the government, they place the cost risk on the contractor. For long-duration projects, unforeseen market fluctuations in material prices, labor shortages driving up wages, or unexpected site conditions can severely impact the contractor's profitability. Conversely, the government's risk is that the contractor might cut corners on quality or scope to protect their profit margin, or that the contractor may become financially distressed, leading to project delays or termination. Robust contract administration and oversight are crucial to mitigate these risks.

How effective is 'full and open competition' in ensuring competitive pricing for construction contracts of this magnitude?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for construction contracts of any magnitude, including this $33.97 million project. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving multiple competitive proposals. This competitive pressure incentivizes bidders to offer their best pricing and technical solutions to win the contract. In this case, with 3 bidders, the competition level was moderate. While this is better than a sole-source or limited competition scenario, a higher number of bidders could potentially have driven prices even lower. The effectiveness is also contingent on the clarity of the solicitation requirements and the evaluation criteria used.

What are the implications of the 'definitive contract' award type for project management and oversight?

A 'definitive contract' is a type of contract that is considered fixed-price with an economic price adjustment clause or a fixed-price incentive clause, or a cost-plus-fixed-fee contract. In this context, it implies a formal, legally binding agreement with specific terms and conditions governing the performance of work and payment. For project management and oversight, this means there is a clear contractual framework. The 'definitive contract' designation, coupled with the 'firm fixed price' type, suggests a structured approach where the scope, schedule, and price are largely predetermined. Oversight will focus on ensuring adherence to the defined scope, quality standards, and completion timeline, while managing any potential change orders or economic adjustments as stipulated in the contract.

How does the geographic location (Parris Island, SC) potentially influence the cost and availability of labor and materials for this project?

The geographic location of Parris Island, South Carolina, can influence the cost and availability of labor and materials. As a coastal military installation, it may face logistical challenges for material delivery, potentially increasing transportation costs. The availability of skilled construction labor can also be a factor; depending on the local market conditions and the demand for specific trades, labor costs might be higher or lower compared to other regions. Proximity to major supply chains and the presence of a robust local construction workforce are key determinants. Furthermore, environmental regulations specific to coastal South Carolina could add complexity and cost to the construction process. The moderate competition level (3 bidders) might suggest that the contractor pool considered the local market conditions when formulating their bids.

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: N4008519R9017

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 310 WEST PARK AVENUE GREENWOOD, GREENWOOD, MS, 38930

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

Financial Breakdown

Contract Ceiling: $33,965,224

Exercised Options: $33,965,224

Current Obligation: $33,965,224

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline