Army family housing renovation contract awarded to Atherton Construction LLC for over $11.5M

Contract Overview

Contract Amount: $11,582,204 ($11.6M)

Contractor: Atherton Construction LLC

Awarding Agency: Department of Defense

Start Date: 2006-08-25

End Date: 2009-06-19

Contract Duration: 1,029 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: MILCON ARMY FAMILY HOUSING RENOVATION

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to ATHERTON CONSTRUCTION LLC for work described as: MILCON ARMY FAMILY HOUSING RENOVATION Key points: 1. Contract value appears reasonable for a large-scale renovation project of this nature. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type may limit cost overruns for the government. 4. Project duration of over 1000 days indicates a substantial scope of work. 5. The contract falls within the residential remodelers sector, a common area for military infrastructure needs. 6. No small business set-aside was noted, potentially limiting direct participation for smaller firms.

Value Assessment

Rating: good

The contract value of approximately $11.58 million for renovating Army family housing is within a typical range for such large-scale projects. Without specific details on the scope of work (e.g., number of units, type of renovations), a direct comparison is challenging. However, the fixed-price nature of the award suggests a defined cost structure, which is generally favorable for the government. Benchmarking against similar military housing renovation contracts would provide a more precise value-for-money assessment.

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 a bid. With three bids received, the competition level suggests a moderate degree of market interest. While three bidders are better than one or two, a higher number of bids could potentially drive prices down further and offer a wider range of solutions. The process appears to have followed standard procurement procedures for competitive solicitations.

Taxpayer Impact: A competitive bidding process, even with three bidders, generally leads to better price discovery and potentially more cost-effective outcomes for taxpayers compared to sole-source or limited competition awards.

Public Impact

Military families residing in the affected housing units will benefit from improved living conditions and updated facilities. The services delivered include extensive renovations to residential properties, enhancing habitability and safety. The geographic impact is localized to the area where the housing units are located, likely within Utah given the 'UT' state code. The contract supports the construction and renovation workforce, including skilled tradespeople and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if renovation requirements were not fully defined upfront.
Risk of delays impacting the availability of housing for military personnel.
Ensuring quality of work meets military standards for durability and safety.

Positive Signals

Fixed-price contract helps control costs for the government.
Full and open competition suggests a robust procurement process.
Award to an established contractor like Atherton Construction LLC may indicate a track record of successful project completion.

Sector Analysis

This contract falls within the construction and residential remodeling sector, specifically catering to government infrastructure needs. The market for military housing renovation is significant, driven by the need to maintain and upgrade aging facilities. Comparable spending benchmarks would involve looking at other large-scale renovation projects for federal housing or similar institutional buildings. The size of this contract, over $11.5 million, places it in the mid-to-large tier for individual renovation projects.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements specifically for small businesses in the provided data. This means that while Atherton Construction LLC may engage small businesses as subcontractors, there was no government mandate for it. The absence of a set-aside means that opportunities for direct prime contracting were open to all responsible sources, potentially favoring larger, established firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) from the Department of the Army, ensuring compliance with contract terms and quality standards. Accountability measures are inherent in the fixed-price contract type, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is facilitated through the federal procurement data system, where contract awards are publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction (MILCON)
Family Housing Construction and Renovation
Department of Defense Facilities Management
Residential Construction Contracts

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Risk of project delays impacting housing availability.
Ensuring adherence to military construction quality standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to ATHERTON CONSTRUCTION LLC. MILCON ARMY FAMILY HOUSING RENOVATION

Who is the contractor on this award?

The obligated recipient is ATHERTON CONSTRUCTION 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 $11.6 million.

What is the period of performance?

Start: 2006-08-25. End: 2009-06-19.

What is Atherton Construction LLC's track record with the Department of Defense?

Atherton Construction LLC has a history of securing contracts with the Department of Defense, as indicated by this award. To fully assess their track record, a deeper dive into their contract history would be necessary. This would involve examining the number of previous awards, their values, performance ratings (if available), and any past performance issues or disputes. Understanding their experience with similar renovation projects, particularly for military housing, would be crucial in evaluating their capability to successfully execute this contract. Without access to detailed performance data, it's difficult to definitively gauge their reliability beyond the fact that they were awarded this significant contract.

How does the value of this contract compare to similar Army family housing renovation projects?

The contract value of approximately $11.58 million for renovating Army family housing is substantial. To benchmark its value effectively, it would be necessary to compare it against similar projects undertaken by the Army or other branches of the Department of Defense. Key comparison points would include the number of housing units renovated, the scope of work (e.g., basic upgrades vs. complete gutting and modernization), the geographic location (which can affect labor and material costs), and the time period of the contract. If similar projects of comparable scope and complexity were awarded at significantly lower or higher price points, it would indicate whether this contract represents a particularly good or poor value. The fixed-price nature also influences value assessment, as it caps the government's financial exposure.

What are the primary risks associated with this type of renovation contract?

Primary risks associated with this type of renovation contract include potential cost overruns if the scope of work is not precisely defined, leading to change orders. There's also a risk of project delays, which can impact the availability of housing for military personnel and their families, potentially incurring additional temporary housing costs for the government. Quality control is another significant risk; ensuring that the renovations meet military standards for durability, safety, and habitability requires diligent oversight. Furthermore, unforeseen site conditions (e.g., structural issues, hazardous materials) could arise during the renovation process, necessitating additional work and potentially impacting the schedule and budget. Contractor performance and financial stability are also inherent risks.

How effective is full and open competition in ensuring value for money in military construction?

Full and open competition is generally considered the most effective method for ensuring value for money in military construction contracts. By allowing all responsible sources to compete, it fosters a competitive environment that encourages contractors to offer their best prices and most innovative solutions. This broad competition increases the likelihood that the government will receive proposals that meet or exceed requirements at a reasonable cost. While it requires more administrative effort to manage a broad solicitation, the potential savings and improved outcomes typically outweigh these costs. The presence of multiple bidders, as seen with three bids in this case, further enhances price discovery and reduces the risk of paying inflated prices.

What is the historical spending pattern for Army family housing renovations?

Historical spending patterns for Army family housing renovations show a consistent need for investment in maintaining and upgrading its housing stock. The Army, like other military branches, faces the challenge of an aging infrastructure, necessitating regular capital expenditures for repairs, modernization, and new construction. Spending in this category can fluctuate based on budget allocations, the condition of existing housing, and strategic priorities. Large-scale renovation projects, such as the one awarded to Atherton Construction LLC, represent significant portions of this spending. Analyzing past spending trends would reveal the average cost per unit, the frequency of major renovation cycles, and the overall investment commitment to ensuring adequate family housing.

What are the implications of this contract being a fixed-price definitive contract?

The implications of this contract being a fixed-price definitive contract are significant for both the government and the contractor. For the government, a fixed-price contract provides cost certainty, as the total price is established upfront, and the contractor bears the primary responsibility for cost overruns. This is generally advantageous for predictable projects where the scope of work is well-defined. A definitive contract implies a single, complete agreement rather than a series of orders under a larger contract. This structure means the entire scope of work and its associated cost are finalized at the time of award. The contractor, in turn, has the incentive to manage costs efficiently to maximize profit but also assumes the risk if costs exceed the agreed-upon price.

Industry Classification

NAICS: Construction › Residential Building Construction › Residential Remodelers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9123806R0021

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Woodside Group Inc. (UEI: 024288230)

Address: 5888 W SUNSET RD, #202, LAS VEGAS, NV, 89118

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,682,104

Exercised Options: $11,582,204

Current Obligation: $11,582,204

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline