DoD awards $76.4M construction contract for wash rack facility to Federal Contracting Inc

Contract Overview

Contract Amount: $76,367,519 ($76.4M)

Contractor: Federal Contracting Inc

Awarding Agency: Department of Defense

Start Date: 2022-12-01

End Date: 2025-11-09

Contract Duration: 1,074 days

Daily Burn Rate: $71.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ENTIRE WORK COMPLETE FOR CONSTRUCTION - B 21 WASHRACK

Place of Performance

Location: ELLSWORTH AFB, MEADE County, SOUTH DAKOTA, 57706

State: South Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $76.4 million to FEDERAL CONTRACTING INC for work described as: ENTIRE WORK COMPLETE FOR CONSTRUCTION - B 21 WASHRACK Key points: 1. Contract value represents a significant investment in infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty but limits flexibility. 4. Contract duration of nearly three years indicates a complex project. 5. Project location in South Dakota may have specific regional economic impacts. 6. The award falls within the broad category of commercial and institutional building construction.

Value Assessment

Rating: fair

The contract value of $76.4 million for a wash rack facility appears substantial. Benchmarking this against similar large-scale construction projects for military installations is difficult without more specific project scope details. However, the firm fixed-price nature suggests an attempt to control costs, but the overall value-for-money will depend on the final quality and timely completion of the facility. The raw dollar amount alone does not indicate whether this is an efficient use of funds without further context on the facility's size, complexity, and intended use.

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 bids. With four bidders participating, the competition level appears moderate. This suggests that while multiple companies vied for the contract, the number of bidders might not have been extensive enough to drive prices down to the absolute lowest possible point. However, it does provide a basis for price comparison and negotiation.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers and can lead to more competitive pricing, potentially saving taxpayer dollars compared to less competitive procurement methods.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will gain a new wash rack facility. The services delivered include the construction of a commercial and institutional building. The geographic impact is concentrated in South Dakota, potentially creating local jobs and economic activity. Workforce implications include employment opportunities for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Risk of delays impacting the operational readiness or efficiency of the facility.
Ensuring the quality of construction meets the long-term durability and functional requirements of a military facility.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
Awarding under full and open competition suggests a robust process for selecting the contractor.
The contractor, Federal Contracting Inc., has a track record that can be reviewed for performance history.
The project duration allows for thorough planning and execution of complex construction tasks.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for federal construction projects is substantial, with agencies like the Department of Defense frequently awarding contracts for infrastructure development and facility maintenance. Benchmarking this $76.4 million award requires comparison to other large-scale military base construction or renovation projects, which often involve significant capital outlays for specialized facilities.

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 related to small business set-asides for this specific award. The primary contractor, Federal Contracting Inc., will likely manage the project, and their subcontracting decisions will be based on their operational needs and potentially other contractual clauses not detailed here, rather than a small business set-aside requirement.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Army, a component of the Department of Defense. Accountability measures are embedded in the firm fixed-price contract terms, which stipulate deliverables and quality standards. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's lifecycle.

Related Government Programs

Department of Defense Construction Projects
Military Base Infrastructure
Federal Building Construction
Commercial and Institutional Building Construction Contracts

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting operational readiness.
Ensuring long-term durability and quality of construction.
Contractor financial stability over the project's multi-year duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.4 million to FEDERAL CONTRACTING INC. ENTIRE WORK COMPLETE FOR CONSTRUCTION - B 21 WASHRACK

Who is the contractor on this award?

The obligated recipient is FEDERAL CONTRACTING 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 $76.4 million.

What is the period of performance?

Start: 2022-12-01. End: 2025-11-09.

What is the track record of Federal Contracting Inc. on similar large-scale construction projects for the Department of Defense?

Assessing the track record of Federal Contracting Inc. requires a detailed review of their past performance on Department of Defense (DoD) contracts, particularly those involving similar scope and value. This would involve examining contract completion history, any instances of disputes or litigation, performance ratings (if available), and their experience with firm fixed-price agreements. A positive track record with timely delivery, adherence to budget, and high-quality outcomes on comparable projects would increase confidence in their ability to execute this $76.4 million wash rack facility contract successfully. Conversely, a history of delays, cost overruns, or quality issues would raise concerns about potential risks.

How does the awarded amount of $76.4 million compare to the estimated cost or market value for a wash rack facility of this scale?

Determining if $76.4 million is a competitive price for this wash rack facility requires detailed project specifications, including size, materials, specialized equipment, and environmental considerations. Without these specifics, a direct comparison to market rates is challenging. However, the presence of four bidders under full and open competition suggests a degree of market validation. If the bids were clustered closely, it might indicate a well-understood market price. If there was a wide variance, it could suggest differing interpretations of the scope or varying cost structures among bidders. Further analysis would involve comparing the cost per square foot or per unit of capacity against similar government or commercial projects, adjusted for regional construction cost indices.

What are the primary risk indicators associated with this firm fixed-price construction contract?

The primary risk indicator for a firm fixed-price (FFP) construction contract of this magnitude ($76.4 million) is the potential for the contractor to face financial strain if unforeseen issues significantly increase costs beyond their initial estimates. While FFP aims to cap government spending, it shifts cost overrun risk to the contractor. Specific risks include encountering unexpected site conditions (e.g., soil issues, hazardous materials), design deficiencies requiring costly rework, material price escalations beyond contingency planning, or labor shortages impacting schedule and cost. The long duration (nearly three years) also increases the exposure to these risks. Robust oversight and clear contract terms are crucial to mitigate these.

How effective are the oversight mechanisms for ensuring the successful completion and quality of this DoD construction project?

The effectiveness of oversight for this Department of Defense (DoD) construction project hinges on the diligence of the contracting officer's representatives (CORs) and the quality assurance personnel assigned by the Department of the Army. Their role includes monitoring progress, verifying compliance with specifications and drawings, approving payments, and ensuring adherence to safety and environmental regulations. The firm fixed-price nature of the contract means oversight must focus heavily on ensuring the contractor meets all contractual requirements to avoid disputes or claims later. Regular site inspections, progress meetings, and thorough documentation are key oversight tools. The Inspector General's office provides an additional layer of oversight for potential fraud, waste, or abuse.

What are the historical spending patterns for wash rack facilities or similar infrastructure projects within the Department of the Army?

Analyzing historical spending patterns for wash rack facilities or similar infrastructure projects within the Department of the Army is essential for contextualizing the $76.4 million award. This involves examining past contract awards for comparable facilities, noting their size, scope, location, and final costs. Trends in construction costs, the prevalence of firm fixed-price versus other contract types, and the typical number of bidders can provide valuable benchmarks. Understanding whether this award represents an increase or decrease in spending for such facilities, and whether costs have escalated significantly over time, can inform future budget planning and procurement strategies. Data from sources like the Federal Procurement Data System (FPDS) would be necessary for this analysis.

What are the implications of the 1074-day duration for project management and potential cost impacts?

A duration of 1074 days (approximately 3 years) for a $76.4 million construction project indicates a significant undertaking, likely involving complex design, extensive site work, and potentially multiple phases. For project management, this extended timeline requires robust scheduling, resource allocation, and risk management strategies to maintain momentum and control. Potential cost impacts include increased exposure to inflation for labor and materials, higher overhead costs for the contractor over the project's life, and the possibility of scope creep or design changes that could lead to contract modifications and additional costs if not managed tightly. Conversely, a longer duration might allow for more thorough quality control and potentially mitigate risks associated with rushing complex construction tasks.

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

Solicitation ID: W9128F21R0051

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5475 TECH CENTER DR, COLORADO SPRINGS, CO, 80919

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,732,406

Exercised Options: $76,367,519

Current Obligation: $76,367,519

Actual Outlays: $8,828,551

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline