DoD Awards $16.9M for Food Service Center Construction in Arkansas
Contract Overview
Contract Amount: $16,960,835 ($17.0M)
Contractor: RED Eagle JV
Awarding Agency: Department of Defense
Start Date: 2022-03-31
End Date: 2024-08-28
Contract Duration: 881 days
Daily Burn Rate: $19.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCT NEW FOOD SERVICE CENTER FOR VA
Place of Performance
Location: NORTH LITTLE ROCK, PULASKI County, ARKANSAS, 72114
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $17.0 million to RED EAGLE JV for work described as: DESIGN AND CONSTRUCT NEW FOOD SERVICE CENTER FOR VA Key points: 1. Contract awarded to RED EAGLE JV for building construction. 2. Project aims to construct a new food service center for the VA. 3. The contract utilizes a firm-fixed-price structure. 4. Competition was full and open after exclusion of sources.
Value Assessment
Rating: good
The contract value of $16.9 million for a food service center appears reasonable given the scope of design and construction. Benchmarking against similar large-scale institutional building projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: The firm-fixed-price contract type helps control costs for taxpayers by establishing a set price for the work.
Public Impact
Veterans will benefit from improved food service facilities. Local economy in Arkansas may see job creation during construction. The project contributes to the modernization of VA infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting the operational start date.
- Scope creep could increase costs beyond the initial fixed price.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Competitive bidding process likely secured a fair price.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on economic conditions and government infrastructure needs.
Small Business Impact
The contract was not awarded to small businesses, as indicated by 'sb': false. Further analysis would be needed to determine if small business subcontracting opportunities exist within this award.
Oversight & Accountability
The Department of the Army is the contracting agency, with the Department of Defense overseeing the overall project. Standard oversight procedures for construction contracts should be in place.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for construction delays.
- Risk of scope creep impacting budget.
- No small business participation indicated.
Tags
commercial-and-institutional-building-co, department-of-defense, ar, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.0 million to RED EAGLE JV. DESIGN AND CONSTRUCT NEW FOOD SERVICE CENTER FOR VA
Who is the contractor on this award?
The obligated recipient is RED EAGLE JV.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $17.0 million.
What is the period of performance?
Start: 2022-03-31. End: 2024-08-28.
What is the expected impact of the construction timeline on the VA's operational readiness?
The project has a duration of 881 days, with an estimated completion date of August 28, 2024. Delays could impact the VA's ability to provide services at the new facility, potentially requiring continued use of older or less efficient facilities in the interim. Effective project management and contingency planning are crucial to mitigate these risks.
Are there any identified risks associated with the chosen contractor, RED EAGLE JV?
No specific risks related to the contractor were explicitly detailed in the provided data. However, standard due diligence would involve reviewing past performance, financial stability, and any history of disputes or failures on similar projects. The 'rf' field would typically contain such flags if identified.
How does the firm-fixed-price contract type ensure value for money in this construction project?
The firm-fixed-price (FFP) contract establishes a ceiling price, transferring most of the risk to the contractor. This incentivizes the contractor to control costs and manage the project efficiently to maximize profit. For the government, it provides budget certainty and protects against cost overruns, assuming the initial price was set competitively and fairly.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9127S21R6002
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 30091 E STATE HIGHWAY 51 STE B, COWETA, OK, 74429
Business Categories: American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $17,511,555
Exercised Options: $16,960,835
Current Obligation: $16,960,835
Actual Outlays: $4,802,466
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $8,678,573
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-03-31
Current End Date: 2024-08-28
Potential End Date: 2024-08-28 00:00:00
Last Modified: 2025-07-14
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