Missile Assembly Building Construction Contract Awarded to Garco Construction for Over $20 Million
Contract Overview
Contract Amount: $20,141,409 ($20.1M)
Contractor: Garco Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-05-09
End Date: 2010-08-09
Contract Duration: 822 days
Daily Burn Rate: $24.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF MISSILE ASSEMBLY BLDG 3, SWFPAC NBK BANGOR WA
Place of Performance
Location: SILVERDALE, KITSAP County, WASHINGTON, 98315
Plain-Language Summary
Department of Defense obligated $20.1 million to GARCO CONSTRUCTION, INC. for work described as: CONSTRUCTION OF MISSILE ASSEMBLY BLDG 3, SWFPAC NBK BANGOR WA Key points: 1. The contract value of approximately $20.4 million represents a significant investment in defense infrastructure. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract duration of 822 days indicates a substantial construction project. 4. The fixed-price contract type aims to control costs for the government. 5. The project is located in Washington state, a key area for naval operations.
Value Assessment
Rating: good
The contract value of $20.4 million for the construction of a missile assembly building appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for defense facilities would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, but detailed cost breakdowns are not available for granular comparison.
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. While the number of bidders is not explicitly stated, this method generally fosters a competitive environment, which can lead to better pricing and value for the government. The presence of multiple bidders would further strengthen the argument for competitive pricing.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and encourages a wider range of contractors to participate, potentially leading to cost savings.
Public Impact
The primary beneficiaries are the Department of Defense and the U.S. Navy, who will gain enhanced facilities for missile assembly. The project delivers critical infrastructure necessary for national defense operations. The geographic impact is concentrated in Bangor, Washington, a significant naval base. The construction project will likely create numerous jobs in the construction sector within Washington state.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price contract.
- Delays in construction could impact operational readiness for the Navy.
- Ensuring compliance with stringent military construction standards requires careful oversight.
Positive Signals
- The use of full and open competition suggests a robust bidding process.
- The firm fixed-price contract type provides cost certainty for the government.
- The project's location at a strategic naval facility highlights its importance.
Sector Analysis
This contract falls within the construction sector, specifically for institutional and commercial buildings. The market for defense construction is substantial, driven by the need for specialized facilities to support military operations. Comparable spending benchmarks would involve analyzing other large-scale construction projects for military bases and defense installations, considering factors like square footage, complexity, and location.
Small Business Impact
The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Therefore, the direct impact on small businesses is unclear. However, larger prime contractors often utilize small businesses for specialized services or materials, which could indirectly benefit the small business ecosystem.
Oversight & Accountability
Oversight for this construction contract would typically be managed by the contracting officer and project managers within the Department of the Navy. Accountability measures would include adherence to contract specifications, quality control, and timely completion. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.
Related Government Programs
- Naval Base Construction
- Defense Facility Modernization
- Missile Systems Support Infrastructure
- Military Construction Projects
Risk Flags
- Potential for construction delays
- Cost escalation risks (mitigated by FFP)
- Ensuring compliance with specialized military standards
Tags
construction, department-of-defense, navy, missile-assembly, firm-fixed-price, full-and-open-competition, defense-infrastructure, washington, large-contract, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.1 million to GARCO CONSTRUCTION, INC.. CONSTRUCTION OF MISSILE ASSEMBLY BLDG 3, SWFPAC NBK BANGOR WA
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 $20.1 million.
What is the period of performance?
Start: 2008-05-09. End: 2010-08-09.
What is the track record of Garco Construction, Inc. with federal contracts, particularly within the Department of Defense?
Garco Construction, Inc. has a history of performing federal construction contracts. A detailed review of their past performance, including any past performance evaluations, contract modifications, and any instances of disputes or litigation, would be necessary to fully assess their track record. Specifically examining their experience with similar defense projects, such as missile assembly facilities or other specialized military buildings, would provide valuable context for their capability to execute this contract successfully. Their financial stability and capacity to manage large-scale projects are also key considerations.
How does the awarded price of $20.4 million compare to similar missile assembly building construction projects?
Benchmarking this $20.4 million contract against similar missile assembly building construction projects requires access to a database of comparable federal contracts. Factors such as building size (square footage), complexity of specialized systems (e.g., environmental controls, security features), and geographic location (which influences labor and material costs) are crucial for a fair comparison. Without specific data on comparable projects, it is difficult to definitively state whether this price represents excellent, good, or fair value. However, the use of full and open competition suggests an effort to achieve competitive pricing.
What are the primary risks associated with the construction of a missile assembly building, and how are they mitigated in this contract?
Key risks in constructing a missile assembly building include potential cost overruns due to unforeseen site conditions or material price fluctuations, construction delays impacting operational readiness, and ensuring adherence to stringent security and safety protocols. This contract utilizes a firm fixed-price (FFP) structure, which shifts much of the cost risk to the contractor, Garco Construction, Inc. The 822-day duration allows for a structured construction timeline. Mitigation strategies would also involve robust government oversight, quality assurance inspections, and potentially performance bonds from the contractor to ensure project completion and adherence to specifications.
What is the historical spending pattern for the construction of missile assembly facilities by the Department of Defense?
Historical spending on missile assembly facilities by the Department of Defense can vary significantly year-to-year based on modernization needs, new program development, and infrastructure upgrades. Analyzing past spending would involve examining contract awards for similar facilities over several fiscal years. Trends might indicate periods of increased investment driven by geopolitical factors or technological advancements in missile systems. Understanding these patterns helps contextualize the current $20.4 million award and assess if it aligns with historical investment levels or represents a significant deviation.
How does the competition level (full and open) for this contract typically influence project outcomes and taxpayer value?
A 'full and open' competition generally leads to a more competitive bidding environment, encouraging multiple contractors to submit proposals. This increased competition typically drives down prices as contractors vie for the award. It also allows the government to select from a wider pool of qualified offerors, potentially leading to better technical solutions and higher quality outcomes. For taxpayers, this translates to a greater likelihood of receiving optimal value for their investment, as the government is positioned to negotiate favorable terms and pricing due to the competitive pressure on bidders.
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: N4425508R6001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4114 E BROADWAY AVE, SPOKANE, WA, 05
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,141,409
Exercised Options: $20,141,409
Current Obligation: $20,141,409
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-05-09
Current End Date: 2010-08-09
Potential End Date: 2010-08-09 00:00:00
Last Modified: 2010-09-20
More Contracts from Garco Construction, Inc.
- Cefp Intake, Gate&helix Project, Yakima River Basin Enhancement Project, Integrated Yakima Project, Washington — $88.4M (Department of the Interior)
- Lower Granite Juvenile Fish Facility Phase 1A — $69.2M (Department of Defense)
- 29 6-Plex Bldgs and 6 4-Plex Bldgs — $59.0M (Department of Defense)
- Construction of P856 Manchester Tank Farm Improvements, Manchester, WA — $56.7M (Department of Defense)
- CLE Elum DAM Fish Passage Facility Adult Facility, Yakima River Basin Water Enhancement Project, Washington — $55.8M (Department of the Interior)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)