DoD's $24.3M Design-Build Contract for MSC Construction Awarded to Manhattan Construction Company
Contract Overview
Contract Amount: $24,358,209 ($24.4M)
Contractor: Manhattan Construction Company LLC
Awarding Agency: Department of Defense
Start Date: 2008-06-04
End Date: 2010-12-31
Contract Duration: 940 days
Daily Burn Rate: $25.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: TWO PHASE DESIGN BUILD CONSTRUCT MSC
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.4 million to MANHATTAN CONSTRUCTION COMPANY LLC for work described as: TWO PHASE DESIGN BUILD CONSTRUCT MSC Key points: 1. The contract value is $24.3 million, awarded by the Department of the Army. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is a definitive contract with a firm fixed price, indicating cost certainty. 4. The project falls under Commercial and Institutional Building Construction (NAICS 236220).
Value Assessment
Rating: good
The contract value of $24.3 million for a design-build construction project appears reasonable given the scope. 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 use of full and open competition suggests that multiple bidders were likely considered, promoting price discovery and potentially leading to a more competitive price. The award to Manhattan Construction Company indicates they offered the best value under the established criteria.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value. The firm fixed price contract provides cost control, minimizing unexpected expenses for taxpayers.
Public Impact
Construction projects of this magnitude can impact local economies through job creation and material sourcing. The successful completion of this facility is crucial for the operational readiness of the military personnel it serves. Transparency in the bidding process ensures public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite firm fixed price.
- Schedule delays could impact operational readiness if not managed effectively.
Positive Signals
- Firm fixed price contract offers cost certainty.
- Full and open competition promotes competitive pricing.
- Design-build approach can streamline project delivery.
Sector Analysis
This contract falls within the construction sector, specifically commercial and institutional building construction. Spending in this sector by the DoD is substantial and driven by infrastructure needs and modernization efforts.
Small Business Impact
While the primary award went to Manhattan Construction Company, there is no specific information provided regarding the extent of small business subcontracting. Further analysis would be needed to determine their participation.
Oversight & Accountability
The definitive contract award and firm fixed price structure suggest a degree of oversight. However, ongoing monitoring of performance, schedule, and budget adherence by the Department of the Army is critical for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays impacting military readiness.
- Risk of unforeseen site conditions leading to change orders, despite fixed price.
- Dependence on contractor's performance and quality control.
- Limited insight into small business participation.
Tags
commercial-and-institutional-building-co, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.4 million to MANHATTAN CONSTRUCTION COMPANY LLC. TWO PHASE DESIGN BUILD CONSTRUCT MSC
Who is the contractor on this award?
The obligated recipient is MANHATTAN CONSTRUCTION COMPANY 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 $24.4 million.
What is the period of performance?
Start: 2008-06-04. End: 2010-12-31.
What specific facility or purpose does the MSC serve, and how does this construction impact its operational capabilities?
The provided data does not specify the exact purpose of the 'MSC' (likely a Military Sealift Command facility or similar). However, construction projects of this scale typically aim to enhance or establish critical operational infrastructure. The impact would be directly related to the facility's function, potentially improving logistics, training, or administrative capabilities, thereby bolstering overall military readiness and efficiency.
Given the firm fixed price, what mechanisms are in place to manage potential scope creep or unforeseen issues that could inflate costs?
A firm fixed price contract generally places the risk of cost overruns on the contractor. However, robust contract management by the agency is crucial. This includes clear definition of scope in the contract documents, a well-defined change order process to scrutinize any proposed modifications, and diligent oversight of contractor performance to ensure adherence to the original plan and specifications.
How does the $24.3 million contract value compare to industry benchmarks for similar design-build construction projects of this size and complexity?
Without specific details on the project's complexity, location, and exact scope (e.g., square footage, specific building systems), a precise benchmark comparison is difficult. However, $24.3 million for a large-scale design-build institutional building project is within a plausible range. Further analysis would require comparing cost per square foot, specific construction elements, and regional cost indices for similar government or commercial projects.
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
Solicitation ID: W912DR07R0091
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rooney Holdings, Inc. (UEI: 107125957)
Address: 8550 ARLINGTON BLVD STE 204, FAIRFAX, VA, 22031
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $24,358,209
Exercised Options: $24,358,209
Current Obligation: $24,358,209
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-06-04
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2021-04-28
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