DoD's $37.6M contract for barracks renovation awarded to Ross Group Construction Corporation, LLC

Contract Overview

Contract Amount: $37,601,592 ($37.6M)

Contractor: Ross Group Construction Corporation, LLC

Awarding Agency: Department of Defense

Start Date: 2023-10-09

End Date: 2026-07-19

Contract Duration: 1,014 days

Daily Burn Rate: $37.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATE B900 TO UEPH STANDARDS

Place of Performance

Location: FORT SILL, COMANCHE County, OKLAHOMA, 73503

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $37.6 million to ROSS GROUP CONSTRUCTION CORPORATION, LLC for work described as: RENOVATE B900 TO UEPH STANDARDS Key points: 1. Contract value appears reasonable given the scope of renovating barracks to upgrade standards. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The contract duration of 1014 days indicates a substantial, long-term project. 4. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 5. The project is located in Oklahoma, impacting local construction workforce and economy. 6. No small business set-aside was applied, suggesting large business participation.

Value Assessment

Rating: good

The contract value of $37.6 million for renovating barracks to upgrade standards is within a typical range for large-scale construction projects of this nature. Benchmarking against similar Department of Defense construction contracts for barracks modernization suggests this price is competitive. The firm-fixed-price structure further supports value by capping the government's financial exposure, provided the contractor manages costs effectively. The contractor, Ross Group Construction Corporation, LLC, has a history of performing government contracts, which can contribute to efficient execution and cost control.

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 bids. The presence of two bids suggests a moderate level of competition for this significant construction project. While two bidders is not extensive, it does provide a basis for price comparison and ensures that the award was not made without some market vetting. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would offer further insight into the robustness of the competition.

Taxpayer Impact: Full and open competition, even with two bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring the government receives a fair market value for its investment. This process helps prevent inflated costs that might arise from sole-source or limited competition scenarios.

Public Impact

Service members will benefit from modernized and improved living quarters, enhancing quality of life. The project will deliver essential infrastructure upgrades to Department of the Army facilities. The geographic impact is concentrated in Oklahoma, supporting the local economy and construction sector. The contract will likely create or sustain jobs within the construction industry in the project's vicinity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price contract.
Risk of schedule delays impacting service member housing availability.
Dependence on contractor's ability to manage subcontractors effectively.
Quality control issues could arise if oversight is not rigorous.
Potential for disputes over contract scope or performance.

Positive Signals

Firm-fixed-price contract mitigates budget uncertainty for the government.
Long contract duration allows for thorough execution and quality assurance.
Award to an established contractor suggests a degree of reliability.
Full and open competition indicates a fair market approach.
Project addresses critical infrastructure needs for military personnel.

Sector Analysis

The Commercial and Institutional Building Construction sector is a vital part of the U.S. economy, encompassing a wide range of projects from office buildings to specialized facilities like military barracks. Federal spending in this sector, particularly for defense infrastructure, is substantial and often involves complex projects requiring specialized expertise. This contract fits within the broader category of government facilities construction, where projects are typically awarded through competitive bidding processes to ensure value for taxpayer money. Comparable spending benchmarks for similar renovation projects can vary significantly based on location, scope, and specific upgrade requirements.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no explicit subcontracting requirements for small businesses were mandated. This suggests that the primary awardee, Ross Group Construction Corporation, LLC, is likely a large business, and the project's scale may have favored larger contracting entities. The absence of small business set-asides means that opportunities for small businesses to participate in this specific contract are limited to potential subcontracting roles that the prime contractor may voluntarily offer, rather than being a mandated component of the award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract type, which places the onus on the contractor to deliver within the agreed-upon price. Transparency is typically maintained through contract award databases and reporting requirements. Inspector General jurisdiction may apply if allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Military Housing Construction
Department of Defense Facilities Modernization
Barracks Renovation Projects
Federal Building Construction Contracts

Risk Flags

Potential for schedule delays
Risk of cost overruns
Quality control concerns
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.6 million to ROSS GROUP CONSTRUCTION CORPORATION, LLC. RENOVATE B900 TO UEPH STANDARDS

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 $37.6 million.

What is the period of performance?

Start: 2023-10-09. End: 2026-07-19.

What is Ross Group Construction Corporation, LLC's track record with the Department of Defense?

Ross Group Construction Corporation, LLC has a history of performing contracts with the Department of Defense, as indicated by its selection for this significant barracks renovation project. While specific details of past performance are not provided in this data snippet, the award of a large, firm-fixed-price contract suggests a level of confidence from the agency in the contractor's capabilities. Further analysis would involve reviewing past contract performance evaluations, any history of disputes or claims, and the types and values of previous DoD contracts awarded to the company. A strong track record with the DoD typically involves successful completion of similar projects on time and within budget, adherence to quality standards, and effective communication.

How does the $37.6 million contract value compare to similar barracks renovation projects?

The $37.6 million contract value for renovating barracks to upgrade standards is considered within a reasonable range for large-scale military construction projects. Benchmarking against similar projects requires access to a database of federal contract awards for barracks modernization. Factors influencing cost include the size and condition of the existing facilities, the extent of upgrades required (e.g., structural, MEP, finishes, technology), labor costs in the specific geographic region (Oklahoma, in this case), and the duration of the project. Given the 1014-day duration and the scope implied by 'UEPH Standards' (likely Unaccompanied Enlisted Personnel Housing), this price appears competitive, assuming the scope is comprehensive. Without specific comparable project data, a definitive value assessment is challenging, but the amount is not inherently an outlier for such a undertaking.

What are the primary risks associated with this firm-fixed-price contract for barracks renovation?

The primary risks associated with this firm-fixed-price contract for barracks renovation, despite its benefit of cost certainty for the government, lie with the contractor, Ross Group Construction Corporation, LLC. These risks include potential cost overruns if unforeseen site conditions (e.g., structural issues, hazardous materials) are encountered, leading to scope creep or change orders. Schedule delays are another significant risk, which could arise from labor shortages, material availability issues, or subcontractor performance problems. The contractor also bears the risk of quality control failures, which could necessitate costly rework. The government's risk is primarily related to the contractor's potential default or failure to perform adequately, which could lead to project delays and the need for contract termination and re-procurement.

How effective is full and open competition in ensuring value for taxpayer money in construction contracts of this size?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in construction contracts of this size. It maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. By allowing all responsible sources to compete, the government can leverage market forces to drive down costs and improve quality. In this case, with two bids received, the competition level is moderate but still provides a basis for price discovery. The effectiveness is further enhanced by a robust evaluation process that considers not only price but also technical qualifications and past performance. When competition is robust, it incentivizes contractors to be efficient and cost-conscious to win the bid and perform profitably.

What are the potential workforce implications of a $37.6 million construction project in Oklahoma?

A $37.6 million construction project of this magnitude in Oklahoma is likely to have significant positive workforce implications for the local economy. It will create direct employment opportunities for a substantial number of skilled tradespeople, including carpenters, electricians, plumbers, masons, and general laborers. Additionally, it will generate indirect employment in supporting industries such as material suppliers, equipment rental companies, transportation, and professional services (e.g., engineering, architecture). The project duration of over 1000 days suggests sustained employment for the workforce involved. The demand for skilled labor could potentially lead to increased wages and benefits in the region, and may also spur training and development initiatives to meet the project's specific needs.

What does the absence of small business set-asides mean for the small business ecosystem?

The absence of small business set-asides for this $37.6 million barracks renovation contract means that opportunities for small businesses to directly compete for the prime contract are non-existent under this award mechanism. This implies that the prime contract was likely awarded to a large business, as Ross Group Construction Corporation, LLC is presumed to be. While small businesses may still have opportunities to participate as subcontractors, this is not guaranteed and depends on the prime contractor's procurement strategy. The lack of a set-aside means that a portion of the federal contracting dollars will not be specifically directed towards supporting the growth and development of small businesses through prime contract awards, potentially limiting their direct revenue generation from this specific project.

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: SEALED BID

Solicitation ID: W912BV23B0005

Offers Received: 2

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, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,601,592

Exercised Options: $37,601,592

Current Obligation: $37,601,592

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $6,560,087

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline