Fort Polk Barracks Renovation Awarded to Ross Group Construction for $26.9M Under Full and Open Competition

Contract Overview

Contract Amount: $26,934,222 ($26.9M)

Contractor: Ross Group Construction Corporation, LLC

Awarding Agency: Department of Defense

Start Date: 2020-03-03

End Date: 2024-06-07

Contract Duration: 1,557 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: VOLAR BARRACKS B1634 (PKG D), FORT POLK, LA. THIS PROJECT SHALL INCLUDE THE DESIGN AND CONSTRUCTION RENOVATIONS FOR BARRACKS BUILDING 1634, INCLUDING SITE AND DRAINAGE IMPROVEMENTS.

Place of Performance

Location: FORT POLK, VERNON County, LOUISIANA, 71459

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $26.9 million to ROSS GROUP CONSTRUCTION CORPORATION, LLC for work described as: VOLAR BARRACKS B1634 (PKG D), FORT POLK, LA. THIS PROJECT SHALL INCLUDE THE DESIGN AND CONSTRUCTION RENOVATIONS FOR BARRACKS BUILDING 1634, INCLUDING SITE AND DRAINAGE IMPROVEMENTS. Key points: 1. The contract value of $26.9 million represents a significant investment in military housing infrastructure. 2. Full and open competition suggests a potentially competitive bidding process, which can lead to better pricing. 3. The project duration of 1557 days (over 4 years) indicates a complex renovation requiring substantial planning and execution. 4. The definitive contract type implies a single award for a defined scope of work. 5. The fixed-price nature of the contract shifts performance risk to the contractor. 6. The project is located in Louisiana, potentially impacting the local construction labor market and economy.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific cost breakdowns or comparable project data. However, the $26.9 million price tag for renovating a barracks building, including site improvements, appears substantial. The fixed-price contract structure aims to control costs, but the long duration could introduce unforeseen expenses. Further analysis would require comparing the per-square-foot renovation cost to similar military or commercial projects in the region.

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. The presence of 6 bidders suggests a reasonable level of competition for this project. A higher number of bidders generally correlates with more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple firms to vie for the contract, potentially driving down costs through competitive bidding.

Public Impact

Service members at Fort Polk will benefit from improved living and working conditions through the renovation of Barracks Building 1634. The project delivers essential infrastructure upgrades, including site and drainage improvements, enhancing the overall functionality of the barracks. The geographic impact is concentrated at Fort Polk, Louisiana, supporting the local military installation. The construction and renovation activities will likely create temporary employment opportunities for skilled trades and laborers in the Louisiana region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extended project duration of over four years raises concerns about potential cost overruns due to inflation, material price fluctuations, or extended labor requirements.
The lack of specific details on the scope of 'site and drainage improvements' could mask potential cost escalations if unforeseen issues arise during execution.
As a definitive contract, the scope is fixed, but the long timeline increases the risk of scope creep if not managed meticulously.

Positive Signals

The award under full and open competition suggests a robust vetting process for contractors, potentially leading to higher quality execution.
The firm fixed-price contract structure provides cost certainty for the government, assuming the contractor manages their risks effectively.
The involvement of the Department of the Army indicates a clear need and strategic importance for this infrastructure upgrade.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on military barracks renovation. The construction industry is a significant component of the US economy, with government contracts forming a substantial portion of its activity. Comparable spending benchmarks would involve analyzing other military construction projects or large-scale institutional building renovations, considering factors like building size, age, and complexity of required upgrades.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While Ross Group Construction, LLC is listed as the contractor, further investigation would be needed to determine if they are a small business themselves or if they intend to subcontract portions of the work to small businesses. Without specific subcontracting plans, the direct impact on the small business ecosystem is unclear, though large prime contracts can sometimes create opportunities for smaller firms.

Oversight & Accountability

Oversight for this Department of the Army contract would typically be managed by the contracting officer and project management personnel within the Army Corps of Engineers or relevant installation command. Accountability measures are inherent in the firm fixed-price contract, where the contractor is responsible for delivering the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS, though detailed project progress reports may not always be publicly available.

Related Government Programs

Military Barracks Construction and Renovation
Department of Defense Facilities Management
Army Corps of Engineers Construction Projects
Fort Polk Infrastructure Improvements

Risk Flags

Extended project duration increases risk of cost escalation and delays.
Potential for unforeseen site conditions impacting budget and schedule.
Lack of detailed public information on specific renovation scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to ROSS GROUP CONSTRUCTION CORPORATION, LLC. VOLAR BARRACKS B1634 (PKG D), FORT POLK, LA. THIS PROJECT SHALL INCLUDE THE DESIGN AND CONSTRUCTION RENOVATIONS FOR BARRACKS BUILDING 1634, INCLUDING SITE AND DRAINAGE IMPROVEMENTS.

Who is the contractor on this award?

The obligated recipient is ROSS GROUP CONSTRUCTION CORPORATION, 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 $26.9 million.

What is the period of performance?

Start: 2020-03-03. End: 2024-06-07.

What is the historical spending pattern for barracks renovations at Fort Polk or similar Army installations?

Analyzing historical spending for barracks renovations at Fort Polk and comparable Army installations would provide crucial context for the $26.9 million award. This involves examining past contracts for similar projects, noting their scope, duration, and final costs. Trends in renovation costs, inflation adjustments, and the typical number of bidders for such projects can reveal whether this contract represents a standard investment or an outlier. For instance, if similar renovations in the past cost significantly less, it might indicate a need to scrutinize the current project's scope or pricing. Conversely, if costs have escalated across the board due to market conditions, this award might be in line with industry trends. Understanding these historical patterns helps assess the value-for-money proposition and identify potential risks associated with cost escalation.

How does the per-square-foot renovation cost of this barracks compare to industry benchmarks for institutional building construction?

To assess the value-for-money of the $26.9 million barracks renovation, a comparison of its per-square-foot cost against industry benchmarks for institutional building construction is essential. This requires obtaining the total square footage of Barracks Building 1634 and dividing the contract award amount by this figure. This calculated cost per square foot can then be benchmarked against data from construction industry associations (e.g., RSMeans, Associated General Contractors) for similar projects, considering factors like building age, materials, and the extent of renovations (e.g., structural, MEP, finishes). If the calculated cost is significantly higher than benchmarks, it may signal potential overpricing or scope creep. Conversely, a cost within or below the benchmark range would suggest a more favorable valuation, assuming the quality of work meets expectations.

What are the specific risks associated with the 1557-day duration of this renovation project?

The extended duration of 1557 days (over four years) for the Volar Barracks renovation introduces several significant risks. Firstly, there's an increased exposure to market volatility, including potential fluctuations in material costs (e.g., steel, concrete, lumber) and labor rates over such a long period. This can strain a firm fixed-price contract if not adequately accounted for in the initial pricing. Secondly, the prolonged construction timeline heightens the risk of encountering unforeseen site conditions or structural issues that were not fully identified during the initial design phase, potentially leading to change orders and cost increases. Thirdly, extended project durations can impact the availability of skilled labor and specialized equipment, potentially causing delays and impacting the overall schedule. Finally, the extended period increases the likelihood of regulatory changes or updated building codes that might necessitate design modifications, further complicating the project and potentially increasing costs.

What is Ross Group Construction Corporation's track record with large-scale government construction contracts, particularly military facilities?

Evaluating Ross Group Construction Corporation's track record with large-scale government contracts, especially military facilities, is crucial for assessing the risk associated with the $26.9 million Fort Polk barracks renovation. This involves reviewing their past performance on similar projects, looking for evidence of successful project completion on time and within budget. Key indicators include the number and value of previous federal contracts, their performance ratings (if publicly available), and any history of contract disputes, claims, or terminations. A strong history with military construction suggests familiarity with specific requirements, security protocols, and regulatory environments. Conversely, a limited or problematic track record might indicate a higher risk of delays, cost overruns, or quality issues. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance databases can provide insights into their capabilities and reliability.

How does the 'full and open competition' for this contract compare to typical competition levels for similar military construction projects?

The fact that this barracks renovation was awarded under 'full and open competition' with 6 bidders provides a basis for comparison with typical competition levels for similar military construction projects. Generally, a higher number of bidders suggests a more competitive environment, which tends to drive down prices and improve the quality of proposals. If 6 bidders is considered average or above average for projects of this scale and type (e.g., barracks renovation, Department of the Army, specific dollar threshold), it indicates that the bidding process was likely robust and that taxpayers benefited from competitive pricing. Conversely, if 6 bidders is considered low compared to similar projects, it might suggest potential barriers to entry for other firms, perhaps due to specialized requirements, bonding capacity, or geographic limitations, which could have implications for price discovery and overall value.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W9126G19R0034

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 510 E 2ND ST, TULSA, OK, 74120

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,934,222

Exercised Options: $26,934,222

Current Obligation: $26,934,222

Actual Outlays: $965,235

Subaward Activity

Number of Subawards: 92

Total Subaward Amount: $108,787,713

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline