DOD awards $26M firm-fixed-price contract for construction services in Colorado
Contract Overview
Contract Amount: $26,001,785 ($26.0M)
Contractor: PCL Construction Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-03-15
End Date: 2007-11-16
Contract Duration: 611 days
Daily Burn Rate: $42.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80913
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $26.0 million to PCL CONSTRUCTION SERVICES, INC. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 611 days indicates a significant project timeline. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. Awarded by the Department of the Army, this contract falls under defense sector spending. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded to PCL Construction Services, Inc.
Value Assessment
Rating: fair
The contract value of $26,001,785 for construction services needs further benchmarking against similar projects to assess value for money. Without specific details on the scope of work, it's challenging to compare per-unit costs or overall pricing against market rates. The firm-fixed-price nature implies that the contractor is responsible for cost overruns, which can be a positive indicator if the price was competitive.
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 3 bidders suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, three offers generally provide a reasonable basis for price discovery and selection.
Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best value by encouraging multiple firms to offer their most competitive pricing.
Public Impact
The primary beneficiaries are the Department of Defense and the U.S. Army, receiving construction services. The services delivered involve commercial and institutional building construction. The geographic impact is concentrated in Colorado, where the construction will take place. The contract supports the construction workforce in the Colorado region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed scope of work makes it difficult to assess if the price is competitive.
- Limited information on the specific type of construction may obscure potential risks.
- The contract duration could be subject to delays impacting overall project cost and readiness.
Positive Signals
- Awarded through full and open competition, indicating a fair process.
- Firm-fixed-price contract shifts cost risk to the contractor.
- Contractor PCL Construction Services, Inc. has a track record that can be reviewed for performance history.
Sector Analysis
This contract falls within the broader construction sector, specifically commercial and institutional building construction, as indicated by NAICS code 236220. The construction industry is a significant part of the U.S. economy, with federal contracts often supporting large-scale infrastructure and facility development. Benchmarking this $26 million contract would involve comparing its cost and scope to similar military or government building projects, considering factors like square footage, complexity, and location.
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 for small businesses arising from a specific set-aside. However, the prime contractor, PCL Construction Services, Inc., may engage small businesses as subcontractors depending on their own procurement practices and the project's needs.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed price. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight mechanisms are not explicitly stated in the provided data.
Related Government Programs
- Department of Defense Construction Contracts
- Army Facilities Modernization
- Federal Building Construction
- Commercial Construction Projects
Risk Flags
- Potential for cost overruns if fixed price does not account for inflation over 611 days.
- Risk of schedule delays impacting facility availability.
- Scope definition is critical for ensuring value for money.
Tags
construction, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, colorado, commercial-institutional-building, large-contract, defense-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.0 million to PCL CONSTRUCTION SERVICES, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is PCL CONSTRUCTION SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $26.0 million.
What is the period of performance?
Start: 2006-03-15. End: 2007-11-16.
What is the specific scope of work for this construction contract?
The provided data indicates the contract is for 'Commercial and Institutional Building Construction' under NAICS code 236220. However, the specific scope of work, such as the type of building, size, specific features, or renovation details, is not detailed in the provided data. This information is crucial for a comprehensive assessment of the contract's value, risks, and performance expectations. Further details would typically be found in the contract's statement of work (SOW) or performance work statement (PWS).
How does the awarded price of $26,001,785 compare to similar construction projects?
Without specific details on the scope of work, location specifics beyond 'Colorado', and the exact nature of the 'Commercial and Institutional Building Construction', a direct price comparison is difficult. However, for a project of this magnitude awarded under full and open competition with three bidders, the price would be considered reasonable if it aligns with industry benchmarks for similar-sized federal construction projects. A detailed analysis would require comparing square footage costs, complexity, and specific construction elements against historical data for comparable Army or DOD construction contracts.
What is PCL Construction Services, Inc.'s track record with federal contracts, particularly with the Department of Defense?
PCL Construction Services, Inc. is a large, established construction firm with a significant history of performing federal contracts. While specific performance metrics for this particular $26 million contract are not available in the provided data, their broader track record with the Department of Defense and other federal agencies can be assessed through contract databases and performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS). A review of past performance, including on-time delivery, budget adherence, and quality of work on similar projects, would be necessary to fully evaluate their reliability for this contract.
What are the potential risks associated with a 611-day construction contract?
A 611-day (approximately 20 months) construction contract carries several potential risks. These include potential cost escalations for materials and labor over the extended period, especially if the firm-fixed-price contract doesn't adequately account for inflation. Schedule delays due to unforeseen site conditions, weather, permitting issues, or contractor performance are also significant risks. Furthermore, changes in military requirements or operational needs during the construction phase could necessitate costly modifications. The firm-fixed-price nature shifts most cost risk to the contractor, but significant delays could still impact the government through extended project oversight needs and delayed facility availability.
How does the 'full and open competition' with 3 bidders impact taxpayer value?
Awarding a contract through 'full and open competition' generally benefits taxpayers by maximizing the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing. In this case, with 3 bidders, there was a reasonable level of competition. While more bidders could potentially lead to even lower prices, three offers suggest that the market was sufficiently engaged. This competitive pressure encourages bidders to submit their most cost-effective proposals to win the contract, ultimately aiming to secure the best value for taxpayer dollars.
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: PCL U.S. Holdings Inc (UEI: 245222591)
Address: 2000 S COLORADO BLVD STE 2, DENVER, CO, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-03-15
Current End Date: 2007-11-16
Potential End Date: 2007-11-16 00:00:00
Last Modified: 2008-11-24
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