DoD's $22.3M Tobyhanna Army Depot building renovation awarded to Senate Builders & Construction Managers, Inc

Contract Overview

Contract Amount: $22,277,216 ($22.3M)

Contractor: Senate Builders & Construction Managers, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-25

End Date: 2027-02-23

Contract Duration: 881 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF BUILDING 72 AT TOBYHANNA ARMY DEPOT. DEMOLITION & REMOVAL OF INTERIOR PARTITIONS AND RECONFIGURATIONS OF THE INTERIOR SPACES. WORK INCLUDES SITE/CIVIL, STRUCTURAL, ARCHITECTURAL, MECHANICAL, ELECTRICAL, FIRE PROTECTION, AND PLUMBING.

Place of Performance

Location: TOBYHANNA, MONROE County, PENNSYLVANIA, 18466

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC. for work described as: CONSTRUCTION OF BUILDING 72 AT TOBYHANNA ARMY DEPOT. DEMOLITION & REMOVAL OF INTERIOR PARTITIONS AND RECONFIGURATIONS OF THE INTERIOR SPACES. WORK INCLUDES SITE/CIVIL, STRUCTURAL, ARCHITECTURAL, MECHANICAL, ELECTRICAL, FIRE PROTECTION, AND PLUMBING. Key points: 1. The contract focuses on interior renovations, including demolition and reconfiguration of spaces within Building 72. 2. Work encompasses a broad range of construction disciplines: site/civil, structural, architectural, mechanical, electrical, fire protection, and plumbing. 3. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. 4. The duration of the contract is 881 days, suggesting a significant scope of work. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The awarded amount represents a substantial investment in facility modernization at the Tobyhanna Army Depot.

Value Assessment

Rating: good

The awarded amount of approximately $22.3 million for the renovation of Building 72 at Tobyhanna Army Depot appears reasonable given the extensive scope of work. This includes demolition, reconfiguration, and integration of multiple building systems (mechanical, electrical, plumbing, fire protection). Benchmarking against similar large-scale institutional building renovations would provide a more precise value assessment, but the comprehensive nature of the project suggests a fair price for the services rendered. The firm-fixed-price contract structure also indicates a commitment to cost control by the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method suggests that while the competition was intended to be open, certain sources may have been excluded prior to the solicitation, potentially limiting the pool of bidders. The solicitation resulted in 6 bids, indicating a moderate level of competition. The exclusion of sources warrants further investigation to understand the rationale and its potential impact on price discovery.

Taxpayer Impact: While the competition was not entirely unrestricted, the presence of 6 bidders suggests that taxpayers likely benefited from competitive pricing. However, understanding the criteria for source exclusion is crucial to ensure maximum value was achieved.

Public Impact

The primary beneficiaries are the Department of the Army and the personnel who will utilize the modernized Building 72 at Tobyhanna Army Depot. The project will deliver updated and reconfigured interior spaces, improving functionality and potentially enhancing operational efficiency. The geographic impact is localized to Tobyhanna Army Depot in Pennsylvania, a key logistics and maintenance facility. The contract will likely support a workforce of construction professionals, tradespeople, and project managers, contributing to employment in the region. The renovation aims to modernize critical infrastructure, ensuring the facility remains capable of supporting its mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition method raises questions about whether the full potential of the market was tapped.
The significant dollar value of the contract necessitates robust oversight to ensure adherence to scope and budget.
The long contract duration (881 days) increases the risk of unforeseen issues or cost escalations if not managed diligently.

Positive Signals

The award to Senate Builders & Construction Managers, Inc. indicates they met the technical and financial requirements of the solicitation.
The firm-fixed-price contract type provides cost certainty for the government.
The multiple disciplines covered (site/civil, structural, architectural, MEP, fire protection) suggest a comprehensive approach to facility modernization.
The contract is for a critical facility at a major Army depot, indicating strategic importance.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for government facility construction is substantial, driven by the need to maintain and modernize aging infrastructure across various federal agencies. Comparable spending benchmarks for large-scale renovations of military or institutional buildings can vary widely based on location, complexity, and specific system upgrades required. The $22.3 million figure places this project in the category of a major renovation or minor new construction for a government facility.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale construction project, it is likely that the prime contractor, Senate Builders & Construction Managers, Inc., will engage subcontractors. The extent to which small businesses will participate as subcontractors is not detailed in the provided information but is a common practice in such projects to fulfill subcontracting goals. The absence of a small business set-aside suggests the competition was geared towards larger, more capable firms.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers or a designated contracting officer's representative (COR) from the Tobyhanna Army Depot. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified work within the agreed-upon price. Transparency is typically facilitated through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Tobyhanna Army Depot Infrastructure Modernization Projects
Department of Defense Facility Renovation Contracts
Army Sustainment Command Construction Programs
General Services Administration (GSA) Public Buildings Service Projects
Military Construction (MILCON) Program

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting project completion.
Questions surrounding the justification for 'exclusion of sources' in competition.
Need for robust government oversight due to contract value and duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC.. CONSTRUCTION OF BUILDING 72 AT TOBYHANNA ARMY DEPOT. DEMOLITION & REMOVAL OF INTERIOR PARTITIONS AND RECONFIGURATIONS OF THE INTERIOR SPACES. WORK INCLUDES SITE/CIVIL, STRUCTURAL, ARCHITECTURAL, MECHANICAL, ELECTRICAL, FIRE PROTECTION, AND PLUMBING.

Who is the contractor on this award?

The obligated recipient is SENATE BUILDERS & CONSTRUCTION MANAGERS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.3 million.

What is the period of performance?

Start: 2024-09-25. End: 2027-02-23.

What is the track record of Senate Builders & Construction Managers, Inc. with federal contracts, particularly with the Department of Defense?

Senate Builders & Construction Managers, Inc. has a history of performing federal construction contracts. While specific details on their track record with the Department of Defense require deeper database analysis, their ability to win a contract of this magnitude suggests they have demonstrated capability and experience. A review of their past performance ratings, contract values, and types of projects completed for federal agencies would provide a clearer picture of their reliability and expertise in executing similar scope and scale of work. Examining any past disputes, claims, or performance issues would also be crucial for a comprehensive assessment.

How does the awarded price of $22.3 million compare to similar building renovation projects at other Army depots or military installations?

Benchmarking this $22.3 million contract against similar renovation projects at other Army depots or military installations is complex due to variations in project scope, location, age of facilities, and specific system upgrades. However, for a comprehensive renovation involving demolition, reconfiguration, and upgrades to mechanical, electrical, plumbing, and fire protection systems in a building of significant size, this figure appears within a reasonable range for major facility modernization efforts. Projects involving extensive structural work or specialized military requirements could command higher prices. A detailed comparison would necessitate analyzing contracts with similar square footage, building type (e.g., warehouse, administrative, maintenance), and the extent of system modernizations.

What are the primary risks associated with this firm-fixed-price construction contract, and how are they being mitigated?

The primary risks with this firm-fixed-price contract include potential cost overruns if the contractor encounters unforeseen site conditions (e.g., hazardous materials, unexpected structural issues) or if material/labor costs escalate significantly beyond initial estimates. Schedule delays are another risk, which can arise from weather, supply chain disruptions, or contractor performance issues. Mitigation strategies typically involve thorough pre-bid site investigations, detailed contract specifications, robust project management and oversight by the government, clear communication channels, and performance bonds. The government's mitigation also includes the contractor's incentive to manage costs effectively to maintain profitability under the fixed-price structure.

What is the expected impact of these renovations on the operational efficiency and mission readiness at Tobyhanna Army Depot?

The renovations are expected to significantly enhance operational efficiency and mission readiness at Tobyhanna Army Depot by modernizing Building 72's infrastructure. Reconfiguring interior spaces can optimize workflows, improve space utilization, and create more functional environments for personnel and equipment. Upgraded mechanical, electrical, and plumbing systems will likely lead to increased reliability, reduced maintenance downtime, and potentially lower utility costs. Improved fire protection systems enhance safety. Ultimately, a modernized facility supports the depot's core functions more effectively, contributing to overall Army logistics and maintenance capabilities.

How has federal spending on construction and renovation at Army depots trended over the last five fiscal years?

Federal spending on construction and renovation at Army depots has generally remained robust, driven by the need to maintain and modernize aging infrastructure critical for logistics, maintenance, and readiness. While specific figures fluctuate annually based on budget allocations, modernization priorities, and emerging requirements, there has been a consistent emphasis on facility upgrades. Factors influencing spending include military readiness directives, infrastructure condition assessments, and investments in energy efficiency and sustainability. Analyzing historical spending data from sources like the Army Corps of Engineers and the Federal Procurement Data System (FPDS) would reveal trends, major project categories, and significant investment areas within depot infrastructure.

What does the 'exclusion of sources' in the contract's competition method imply for the fairness and competitiveness of the bidding process?

The 'exclusion of sources' in a 'Full and Open Competition After Exclusion of Sources' award means that while the competition was open to all responsible sources *after* certain potential bidders were excluded, the initial pool of potential bidders was intentionally narrowed. The rationale for such exclusion must be justified and documented, often relating to specific technical capabilities, past performance issues, or national security concerns. This method can limit the number of bids received and potentially impact price competition compared to truly unrestricted full and open competition. It raises questions about whether the exclusion was necessary and if it resulted in the best possible value for the government.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W51AA124R0020

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2232 DEKALB PKE, EAST NORRITON, PA, 19401

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

Financial Breakdown

Contract Ceiling: $22,277,216

Exercised Options: $22,277,216

Current Obligation: $22,277,216

Actual Outlays: $1,896,662

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W25G1V22D0002

IDV Type: IDC

Timeline