DoD's $23.8M Fuel Facility Construction Awarded to Garco Construction Under Full and Open Competition
Contract Overview
Contract Amount: $23,865,219 ($23.9M)
Contractor: Garco Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-06-28
End Date: 2010-02-28
Contract Duration: 976 days
Daily Burn Rate: $24.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT CONSOLIDATED FUEL FACILITY AT NASWI PER SPECIFICATIONS
Place of Performance
Location: OAK HARBOR, ISLAND County, WASHINGTON, 98278
Plain-Language Summary
Department of Defense obligated $23.9 million to GARCO CONSTRUCTION, INC. for work described as: CONSTRUCT CONSOLIDATED FUEL FACILITY AT NASWI PER SPECIFICATIONS Key points: 1. The contract was awarded using a firm-fixed-price structure, indicating a clear understanding of project scope and cost. 2. The duration of the contract (976 days) suggests a significant construction undertaking. 3. The award was made under full and open competition, implying a competitive bidding process. 4. The project falls under the Oil and Gas Pipeline and Related Structures Construction NAICS code. 5. The contract was awarded by the Department of the Navy, a component of the Department of Defense. 6. The project is located in Washington state, with the specific city being implied by the 'ST' and 'SN' fields. 7. The contract value of $23.8 million represents a substantial investment in infrastructure.
Value Assessment
Rating: fair
Benchmarking the value of this specific construction project is challenging without comparable recent bids for similar facilities. The firm-fixed-price contract suggests the government aimed to lock in costs, but the final cost relative to initial estimates or market rates for similar projects is not detailed here. The duration of nearly three years for a construction project of this value warrants scrutiny to ensure efficient project execution and avoid cost overruns due to extended timelines.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of four bidders, as suggested by the 'no' field, points to a healthy level of competition for this project. This competitive environment is generally expected to drive down prices and ensure the government receives a fair market value for the services rendered.
Taxpayer Impact: The full and open competition for this significant infrastructure project suggests that taxpayer dollars were likely used efficiently, as multiple companies vied to offer the best price and value.
Public Impact
The primary beneficiaries are the Department of Defense and the Department of the Navy, gaining enhanced fuel facility infrastructure at NASWI. The services delivered include the construction of a consolidated fuel facility, crucial for operational readiness and logistics. The geographic impact is localized to NASWI (Naval Air Station, presumably Whidbey Island, Washington), supporting base operations. Workforce implications include employment opportunities for construction workers and related trades in the Washington state area during the contract period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the 976-day duration was not optimally managed.
- Risk of construction delays impacting base operations if unforeseen issues arose.
- Ensuring the quality of construction meets stringent military specifications for fuel facilities.
Positive Signals
- Firm-fixed-price contract helps mitigate cost uncertainty for the government.
- Full and open competition suggests a competitive pricing environment.
- Award to a single contractor (Garco Construction, Inc.) can streamline project management.
Sector Analysis
This contract falls within the construction sector, specifically related to industrial facilities for energy infrastructure. The Oil and Gas Pipeline and Related Structures Construction (NAICS 237120) code indicates a specialized area of construction. The market for such specialized military infrastructure projects is often characterized by a limited number of large, experienced contractors capable of meeting stringent security and operational requirements. Benchmarking against similar military fuel depot constructions would provide further context on the value.
Small Business Impact
The provided data does not indicate any specific small business set-aside or subcontracting goals for this contract. As a large infrastructure project awarded under full and open competition, it is possible that larger firms dominated the bidding. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this Department of Defense contract would typically be managed by the contracting officer and program managers within the Department of the Navy. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified facility within the agreed-upon cost. Transparency would be facilitated through contract award databases and potentially through Inspector General reviews if any issues arose.
Related Government Programs
- Naval Air Station Infrastructure Projects
- Defense Fuel Supply Center Contracts
- Military Construction Projects
- Department of Defense Facilities Management
Risk Flags
- Potential for extended project duration impacting cost and operational readiness.
- Need for robust quality assurance to meet stringent military specifications.
- Lack of transparency on specific performance metrics and O&M costs.
Tags
construction, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, industrial-facility, oil-and-gas-pipeline-construction, washington, defense-infrastructure, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.9 million to GARCO CONSTRUCTION, INC.. CONSTRUCT CONSOLIDATED FUEL FACILITY AT NASWI PER SPECIFICATIONS
Who is the contractor on this award?
The obligated recipient is GARCO CONSTRUCTION, 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 $23.9 million.
What is the period of performance?
Start: 2007-06-28. End: 2010-02-28.
What was the original estimated cost for this fuel facility construction, and how did the final award amount compare?
The provided data indicates the final award amount was $23,865,219. However, information regarding the original estimated cost or any pre-solicitation estimates is not available in the provided data. Without this baseline, it is difficult to assess whether the final award represented a significant deviation from initial expectations or if it was awarded at a competitive price relative to the government's own valuation.
What specific performance metrics or quality standards were stipulated in the contract for the fuel facility?
The contract specifies construction 'PER SPECIFICATIONS,' implying detailed technical requirements were included. However, the exact nature of these specifications is not detailed in the provided data. Typically, for military fuel facilities, these would encompass stringent safety standards, material quality, containment measures, operational efficiency, and compliance with environmental regulations. Performance would likely be assessed through milestones, inspections, and final acceptance testing.
How did Garco Construction, Inc.'s past performance and experience influence their selection for this project?
The provided data does not include details on Garco Construction, Inc.'s past performance or specific experience relevant to this project. In a full and open competition, the selection process would have likely involved evaluating bidders' technical capabilities, past performance on similar projects, financial stability, and proposed pricing. Garco's win suggests they met or exceeded the evaluation criteria set forth by the Department of the Navy.
What are the potential long-term operational and maintenance costs associated with this new fuel facility?
The provided data focuses solely on the construction award and does not offer insights into the projected long-term operational and maintenance (O&M) costs of the fuel facility. These costs would depend on factors such as the facility's design, the type of fuel stored, the volume of throughput, energy consumption, and the required maintenance schedule. Such information is typically managed under separate operating budgets and contracts.
Were there any significant challenges or disputes encountered during the execution of this contract?
The provided data does not contain information regarding challenges, disputes, or modifications during the execution of this contract. The contract duration was from June 28, 2007, to February 28, 2010. Without access to contract modification logs, performance reports, or dispute resolution records, it's impossible to determine if any significant issues arose during its lifecycle.
How does the $23.8 million expenditure compare to other similar fuel facility construction projects undertaken by the Navy or DoD around the same period?
Comparing this $23.8 million expenditure requires access to a database of similar projects. However, generally, military fuel facility construction can range widely based on size, capacity, location, and specific technological requirements. A project of this magnitude for a consolidated facility suggests a significant investment, likely reflecting the strategic importance and operational demands of the air station it serves. Without specific comparable data, it's difficult to definitively state if this was high or low.
Industry Classification
NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N4425507R0003
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4114 E BROADWAY AVE, SPOKANE, WA, 05
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,865,219
Exercised Options: $23,865,219
Current Obligation: $23,865,219
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-06-28
Current End Date: 2010-02-28
Potential End Date: 2010-02-28 00:00:00
Last Modified: 2010-09-23
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