Department of Defense awards $57.8M construction contract to Archer Western Contractors, LLC for institutional building

Contract Overview

Contract Amount: $57,858,581 ($57.9M)

Contractor: Archer Western Contractors, LLC

Awarding Agency: Department of Defense

Start Date: 2008-04-01

End Date: 2010-12-31

Contract Duration: 1,004 days

Daily Burn Rate: $57.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE BID ITEMS - JUAIF AWARD

Place of Performance

Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22901

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $57.9 million to ARCHER WESTERN CONTRACTORS, LLC for work described as: BASE BID ITEMS - JUAIF AWARD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a definitive contract with a firm fixed price, indicating cost certainty. 3. The contract duration is over 1000 days, suggesting a significant project scope. 4. The base bid amount is substantial, requiring careful monitoring of performance and costs. 5. The awardee, Archer Western Contractors, LLC, is a significant player in the construction industry. 6. The project falls under commercial and institutional building construction, a common federal spending category.

Value Assessment

Rating: good

The contract value of $57.8 million for institutional building construction appears to be within a reasonable range for a project of this scope and duration. Benchmarking against similar large-scale construction projects awarded by the Department of the Army would provide a more precise assessment of value for money. The firm fixed-price nature of the contract offers cost predictability, which is a positive indicator for value.

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 two bids suggests a moderate level of competition for this significant construction project. A higher number of bidders typically leads to more competitive pricing, but two bids can still result in a fair market price if the bidders are well-qualified and the requirements are clearly defined.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. The fact that two bids were received suggests that taxpayers likely received a competitive price, although more bidders could have potentially yielded even greater savings.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will utilize the completed institutional building. The contract delivers essential infrastructure development services, contributing to the operational capabilities of the military. The geographic impact is localized to the area where the construction project is situated, likely within Virginia given the 'VA' code. The project will likely create numerous jobs in the construction sector, benefiting skilled trades and related support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extended construction period.
Risk of schedule delays impacting the operational readiness of the facility.
Dependence on a single contractor for a large-scale, multi-year project.

Positive Signals

Firm fixed-price contract provides cost certainty and limits the government's exposure to price increases.
Award to a known contractor (Archer Western) suggests a level of confidence in their capabilities.
Full and open competition indicates a robust procurement process aimed at achieving best value.

Sector Analysis

The construction sector is a significant area of federal spending, encompassing a wide range of projects from infrastructure to facility development. This contract for commercial and institutional building construction fits within the broader category of facilities and infrastructure support for government agencies. Comparable spending benchmarks for similar institutional construction projects by the Department of Defense can range from tens to hundreds of millions of dollars, depending on scale and complexity.

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 specifically tied to small business set-asides for this particular award. However, the prime contractor, Archer Western Contractors, LLC, may engage small businesses as subcontractors to fulfill parts of the contract, which would contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details might be sensitive.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Management
General Services Administration (GSA) Construction Contracts

Risk Flags

Potential for schedule delays due to project complexity and duration.
Risk of cost escalation if unforeseen issues arise, despite fixed-price contract.
Contractor performance risk on a large-scale, multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.9 million to ARCHER WESTERN CONTRACTORS, LLC. BASE BID ITEMS - JUAIF AWARD

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN CONTRACTORS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $57.9 million.

What is the period of performance?

Start: 2008-04-01. End: 2010-12-31.

What is the track record of Archer Western Contractors, LLC with the Department of Defense?

Archer Western Contractors, LLC has a history of performing construction work for various government agencies, including the Department of Defense. Their experience typically spans a range of project types, from institutional buildings to infrastructure. A detailed review of their past performance on similar-sized and scoped contracts with the DoD would reveal their reliability, quality of work, and adherence to schedules and budgets. Analyzing past contract awards and performance evaluations would provide a clearer picture of their capabilities and any potential risks associated with awarding them this significant contract.

How does the awarded price compare to similar institutional building construction projects?

The awarded price of $57.8 million for this institutional building construction contract needs to be benchmarked against similar projects to assess its value. Factors such as square footage, complexity of design, materials used, and geographic location significantly influence construction costs. Comparing this contract's cost per square foot or per unit of functionality to other DoD or federal institutional building projects of comparable scale and type would indicate whether the price is competitive. Without specific details on the project's scope and the market rates in its specific location, a definitive value assessment is challenging, but the firm fixed-price nature provides a degree of cost control.

What are the primary risks associated with a firm fixed-price contract for a multi-year construction project?

While firm fixed-price (FFP) contracts offer cost certainty to the government, they can introduce risks for the contractor, which may indirectly affect the project. For a multi-year construction project like this, the primary risks include unforeseen site conditions, material price escalations beyond what the contractor anticipated, labor shortages, and design changes. If the contractor underestimates these risks or encounters significant unexpected issues, they may incur losses, potentially leading to quality compromises, schedule delays, or even contractor default. The government's risk is generally lower in terms of cost, but delays or contractor failure can still impact project completion and operational readiness.

What is the expected impact of this contract on the local construction workforce?

A contract of this magnitude, valued at $57.8 million and spanning over 1000 days, is expected to have a substantial positive impact on the local construction workforce. It will likely generate numerous direct employment opportunities for skilled trades such as carpenters, electricians, plumbers, masons, and heavy equipment operators. Additionally, indirect employment will be created in supporting industries, including material suppliers, equipment rental companies, transportation services, and administrative support. The duration of the project suggests sustained employment for a significant period, contributing to economic stability in the region.

How does the competition level (2 bidders) influence the price discovery for this contract?

A competition level of two bidders for a contract of this size suggests a moderate level of price discovery. While more bidders generally lead to more robust competition and potentially lower prices, two qualified bidders can still result in a competitive outcome, especially if both are strong contenders. The government's ability to negotiate and the clarity of the bid requirements play a crucial role. If the two bidders were significantly different in their proposals or pricing, it might indicate less intense competition. Conversely, if their bids were close, it suggests they were actively competing for the contract, likely driving the price towards a market-driven level.

What are the potential implications of the 'VA' code and 'VIRGINIA' state designation for this contract?

The 'VA' code and 'VIRGINIA' designation strongly suggest that this construction project is located in Virginia. This has several implications. Firstly, it means the contract will contribute to the local economy in Virginia through job creation and spending with local suppliers. Secondly, it implies that the construction will adhere to Virginia's building codes and regulations, in addition to federal requirements. The proximity to existing military installations or federal facilities in Virginia would also be a logical consideration for the Department of the Army in awarding such a contract.

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: W9123607R0054

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the (UEI: 121476675)

Address: 3715 NORTHSIDE PKWY BG 100 STE 550, ATLANTA, GA, 30327

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

Financial Breakdown

Contract Ceiling: $66,698,464

Exercised Options: $64,308,581

Current Obligation: $57,858,581

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline