DoD's $222M Von Braun Complex construction contract awarded to Archer Western Contractors, LLC

Contract Overview

Contract Amount: $221,994,069 ($222.0M)

Contractor: Archer Western Contractors, LLC

Awarding Agency: Department of Defense

Start Date: 2007-12-20

End Date: 2012-03-05

Contract Duration: 1,537 days

Daily Burn Rate: $144.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD TWO PHASE CONSTRUCTION OF VON BRAUN COMPLEX, PHASE III, REDSTONE ARSENAL, AL

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $222.0 million to ARCHER WESTERN CONTRACTORS, LLC for work described as: DESIGN/BUILD TWO PHASE CONSTRUCTION OF VON BRAUN COMPLEX, PHASE III, REDSTONE ARSENAL, AL Key points: 1. Contract awarded via full and open competition, suggesting a robust bidding process. 2. The contract's fixed-price nature aims to control costs for the government. 3. A duration of 1537 days indicates a significant, long-term construction project. 4. The project is located at Redstone Arsenal, Alabama, a key military installation. 5. The contract value of over $221 million places it in the large-dollar category for construction.

Value Assessment

Rating: fair

Benchmarking the value of this specific design-build construction contract is challenging without detailed cost breakdowns and comparable project data. However, the fixed-price structure generally provides cost certainty. The contract value of $221,994,069 for a multi-year construction project at a major military installation appears within a reasonable range for large-scale federal construction, but a detailed cost analysis would be needed to confirm true value-for-money.

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 a bid. The presence of 4 bidders suggests a competitive environment, which typically leads to better pricing and value for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to more cost-effective use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Army, who will utilize the new Von Braun Complex facilities. The contract delivers design and construction services for a complex infrastructure project. The geographic impact is concentrated in Huntsville, Alabama, specifically at Redstone Arsenal. The project likely created numerous jobs in the construction sector, including skilled trades and project management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive construction period.
Risk of schedule delays impacting the operational readiness of the Von Braun Complex.
Ensuring quality control throughout a large-scale, multi-year construction project can be challenging.

Positive Signals

The fixed-price contract type helps mitigate financial risk for the government.
Awarding to a single contractor for design-build streamlines project management and accountability.
The project's location at a major military installation suggests a high level of strategic importance and oversight.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal construction spending in this area often supports critical infrastructure for defense, research, and government operations. Comparable spending benchmarks would typically involve analyzing other large-scale military construction projects awarded by the Department of Defense or other federal agencies over similar timeframes.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses would likely participate as subcontractors to the prime contractor, Archer Western Contractors, LLC. The extent of small business subcontracting would depend on the prime contractor's strategy and any specific subcontracting goals or requirements outlined in the contract.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Department of the Army, likely through contracting officers and project managers at Redstone Arsenal. Accountability measures would include contract performance reviews, milestone approvals, and adherence to the fixed-price terms. Transparency would be facilitated through federal procurement databases and potentially public reporting on project progress, though detailed internal oversight mechanisms are not specified.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Design-Build Contracts
Redstone Arsenal Infrastructure

Risk Flags

Long project duration increases risk of cost escalation and schedule delays.
Fixed-price contract shifts cost overrun risk to contractor.
Lack of small business set-aside may limit direct participation opportunities for SMBs.
Specific performance metrics and quality assurance details not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $222.0 million to ARCHER WESTERN CONTRACTORS, LLC. DESIGN/BUILD TWO PHASE CONSTRUCTION OF VON BRAUN COMPLEX, PHASE III, REDSTONE ARSENAL, AL

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 $222.0 million.

What is the period of performance?

Start: 2007-12-20. End: 2012-03-05.

What is the track record of Archer Western Contractors, LLC in executing large federal construction projects?

Archer Western Contractors, LLC has a significant history of undertaking large-scale construction projects, including many for federal agencies. Their portfolio often includes complex infrastructure, military facilities, and public buildings. While specific performance metrics for past federal contracts are not detailed here, their ability to win a contract of this magnitude from the Department of the Army suggests they possess the necessary experience, bonding capacity, and technical expertise. A deeper dive into their contract history, including any past performance evaluations or disputes, would provide a more comprehensive understanding of their reliability for projects of this scale and complexity.

How does the $221.99 million contract value compare to similar design-build construction projects for military installations?

The $221.99 million contract value for the Von Braun Complex Phase III construction is substantial and aligns with the scale of major military infrastructure development. Large federal construction projects, especially those involving design-build capabilities for complex facilities like those at Redstone Arsenal, frequently range from tens of millions to hundreds of millions of dollars. Without specific details on the scope, square footage, and complexity of comparable projects, a precise benchmark is difficult. However, this value is consistent with significant investments in military base modernization and expansion efforts seen across the Department of Defense.

What are the primary risks associated with a 1537-day (approximately 4.2 years) construction contract?

A construction contract spanning over four years carries several inherent risks. These include potential escalation of material and labor costs beyond initial projections, even with a fixed-price contract, if contingency clauses are not robust or if unforeseen market shifts occur. Schedule delays are a significant risk, often caused by weather, unforeseen site conditions, supply chain disruptions, or changes in project scope. Furthermore, maintaining consistent quality control over such an extended period requires diligent oversight. The long duration also increases the risk of design obsolescence or changes in operational requirements by the time the facility is completed, potentially necessitating costly modifications.

What does the 'DEFINITIVE CONTRACT' type imply for project execution and oversight?

A 'Definitive Contract' is the final contract awarded after all negotiations and details have been settled, as opposed to an 'Indefinite-Delivery/Indefinite-Quantity' (IDIQ) contract which allows for flexibility in ordering. In this case, it means the scope, price, and terms were fixed at the time of award for the entire project. This provides greater certainty for both the government and the contractor regarding the total cost and deliverables. Oversight focuses on ensuring adherence to the agreed-upon specifications, schedule, and quality standards, with less emphasis on negotiating individual task orders compared to an IDIQ.

How does the 'Commercial and Institutional Building Construction' classification influence the contract's nature and oversight?

The classification 'Commercial and Institutional Building Construction' indicates the project involves building facilities that are not primarily residential or industrial in the manufacturing sense. This typically means the construction will adhere to standards relevant for administrative buildings, research facilities, training centers, or similar structures. Oversight will focus on aspects like building codes, safety regulations, accessibility standards (e.g., ADA), and energy efficiency relevant to institutional use. The construction methods and materials will be geared towards durability, functionality, and potentially specialized requirements for government operations, differing from purely commercial or residential builds.

What is the significance of the contract being 'FIRM FIXED PRICE'?

A 'FIRM FIXED PRICE' (FFP) contract type is significant because it places the primary risk of cost overruns on the contractor. The contractor agrees to a set price for the work, and the government's liability is generally limited to that price, regardless of the contractor's actual costs. This provides the government with maximum cost certainty and predictability. For the contractor, it incentivizes efficiency and cost control, as any savings achieved below the fixed price contribute directly to their profit. However, it also means the contractor must accurately estimate all costs upfront, including potential risks and contingencies.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the

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: $221,994,069

Exercised Options: $221,994,069

Current Obligation: $221,994,069

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline