DoD's $47M Stennis Space Center construction contract awarded to Roy Anderson Corp

Contract Overview

Contract Amount: $47,075,478 ($47.1M)

Contractor: ROY Anderson Corp

Awarding Agency: Department of Defense

Start Date: 2006-09-19

End Date: 2009-01-14

Contract Duration: 848 days

Daily Burn Rate: $55.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: OCEAN SCIENCE LAB, STENNIS SPACE CTR

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $47.1 million to ROY ANDERSON CORP for work described as: OCEAN SCIENCE LAB, STENNIS SPACE CTR Key points: 1. Contract awarded for construction services at the Ocean Science Lab. 2. The contract was competed on a full and open basis. 3. Fixed-price contract type suggests defined scope and cost control. 4. Contract duration of 848 days indicates a substantial construction project. 5. Awarded by the Department of the Navy, indicating defense-related infrastructure. 6. Project located in Mississippi, potentially impacting local construction workforce.

Value Assessment

Rating: fair

The contract value of $47,075,478 for commercial and institutional building construction appears to be within a reasonable range for a project of this scale and duration. Benchmarking against similar large-scale construction projects for federal agencies would provide a more precise value-for-money assessment. The fixed-price nature of the contract suggests that the contractor assumed a significant portion of the cost risk, which can be beneficial for the government if the scope is well-defined.

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 presence of 6 bidders suggests a healthy level of competition for this construction project. This broad competition is generally expected to drive down prices and ensure the government receives competitive offers.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can lead to more cost-effective outcomes and a wider selection of qualified contractors.

Public Impact

The primary beneficiaries are the Department of the Navy and its research initiatives at the Stennis Space Center. The contract delivers essential infrastructure for ocean science research and development. The geographic impact is concentrated in Stennis Space Center, Mississippi. The project likely created numerous jobs for construction workers and related trades in the Mississippi region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price scope is not meticulously managed.
Construction projects inherently carry risks of delays due to unforeseen site conditions or material availability.
Ensuring compliance with environmental and safety regulations during construction is critical.

Positive Signals

Full and open competition suggests a robust selection process and potential for best value.
Fixed-price contract type provides cost certainty for the government.
The project supports critical national security and scientific research infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting market. Federal construction spending is substantial, encompassing a wide range of projects from military bases to research facilities. This specific contract contributes to the infrastructure supporting scientific research and development, a key area for government investment. Comparable spending benchmarks would involve analyzing other large-scale federal building construction contracts, particularly those awarded by defense agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business. Further investigation would be needed to determine if significant subcontracting opportunities for small businesses were part of the awarded contract or if they were actively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and project management offices. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through federal contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) construction projects
Stennis Space Center infrastructure development
Department of Defense research facilities construction
Federal building construction contracts

Risk Flags

Potential for cost overruns
Risk of project delays
Ensuring quality control during construction
Compliance with environmental regulations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.1 million to ROY ANDERSON CORP. OCEAN SCIENCE LAB, STENNIS SPACE CTR

Who is the contractor on this award?

The obligated recipient is ROY ANDERSON CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $47.1 million.

What is the period of performance?

Start: 2006-09-19. End: 2009-01-14.

What is the track record of Roy Anderson Corp. in performing federal construction contracts, particularly those of similar size and scope?

Roy Anderson Corp. has a history of performing federal construction contracts. To assess their track record specifically for contracts similar to the OCEAN SCIENCE LAB project, a detailed review of their past performance on large-scale federal building construction would be necessary. This would involve examining contract values, project types (e.g., research facilities, institutional buildings), completion timeliness, and any reported performance issues or awards. Analyzing their past performance data within federal procurement databases can provide insights into their reliability, quality of work, and ability to manage complex projects within budget and schedule constraints.

How does the awarded amount of $47,075,478 compare to the average cost of similar federal construction projects of this scale?

Benchmarking the $47,075,478 contract value against similar federal construction projects requires access to a comprehensive dataset of comparable projects. Factors such as project complexity, geographic location, specific building type (e.g., laboratory vs. administrative), and the year of award significantly influence costs. Without specific comparable data points for laboratory construction at federal research facilities of similar size and duration (848 days), a precise comparison is difficult. However, the fixed-price nature of the contract suggests that the government sought to establish a firm cost ceiling, which is a common strategy for managing large construction expenditures.

What are the primary risks associated with this fixed-price construction contract, and what mitigation strategies were likely employed?

The primary risk with a fixed-price contract is the potential for the contractor to incur losses if costs exceed the agreed-upon price, which could lead to pressure to cut corners on quality or safety. Conversely, the government risks paying a premium if the contractor's initial cost estimates were overly conservative. Mitigation strategies likely employed by the Department of the Navy would include a thorough pre-award review of the contractor's technical proposal and cost estimates, clear and detailed scope of work, robust oversight during construction to ensure adherence to specifications, and potentially performance bonds to guarantee completion. Effective change order management is also crucial to control scope creep.

How effective is the full and open competition process in ensuring the best value for taxpayers on large federal construction projects like this one?

The full and open competition process is generally considered the most effective method for ensuring the best value for taxpayers on large federal construction projects. By allowing all responsible sources to compete, it maximizes the pool of potential bidders, fostering robust price competition and encouraging innovation. The presence of six bidders in this case suggests that the market was sufficiently competitive. However, the 'best value' is not solely determined by the lowest price; it also encompasses technical qualifications, past performance, and risk. A well-structured solicitation and evaluation process are critical to ensure that the winning bid truly represents the best overall value, balancing cost with quality and reliability.

What is the historical spending pattern for construction at Stennis Space Center or similar naval research facilities?

Analyzing historical spending patterns for construction at Stennis Space Center or similar naval research facilities would require examining contract awards over several fiscal years. This would involve identifying trends in contract types (fixed-price vs. cost-reimbursement), competition levels, average contract values, and the types of construction services procured. Understanding these patterns can help determine if spending on infrastructure at such facilities is consistent, increasing, or decreasing, and whether the current contract aligns with historical investment levels. It can also reveal if there are recurring needs for specific types of construction or if major upgrades are cyclical.

What are the potential long-term implications of this infrastructure investment for the Navy's oceanographic research capabilities?

This infrastructure investment is likely intended to enhance or modernize the Navy's capabilities in oceanographic research. New or upgraded facilities can support advanced scientific equipment, improve laboratory conditions, increase research capacity, and potentially attract top scientific talent. The long-term implications could include advancements in areas such as underwater acoustics, marine biology, oceanography, and naval applications of these sciences. By providing state-of-the-art facilities, the Navy aims to maintain its technological edge and leadership in critical maritime research and development areas.

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: N6246706R0092

Offers Received: 6

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Anderson Companies Inc. (UEI: 136210726)

Address: 11400 REICHOLD RD, GULFPORT, MS, 39503

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $47,075,478

Exercised Options: $47,075,478

Current Obligation: $47,075,478

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline