DoD's $29.3M Medical Command Construction Contract Awarded to Forrester Construction Company

Contract Overview

Contract Amount: $29,289,629 ($29.3M)

Contractor: Forrester Construction Company

Awarding Agency: Department of Defense

Start Date: 2010-05-04

End Date: 2014-01-13

Contract Duration: 1,350 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NORTH ATLANTIC REGIONAL MEDICAL COMMAND HQ BUILDING AND DENTAL CLINIC

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to FORRESTER CONSTRUCTION COMPANY for work described as: NORTH ATLANTIC REGIONAL MEDICAL COMMAND HQ BUILDING AND DENTAL CLINIC Key points: 1. Value for money appears fair given the fixed-price nature of the contract, though specific cost breakdowns are needed for a definitive assessment. 2. The contract was awarded through full and open competition, indicating a competitive bidding process. 3. Risk indicators are moderate, with a fixed-price contract type generally transferring cost risk to the contractor. 4. Performance context is within the construction sector, specifically for institutional buildings. 5. Sector positioning is within Defense, supporting military healthcare infrastructure. 6. The contract duration of 1350 days suggests a significant construction project.

Value Assessment

Rating: fair

The contract value of $29.3 million for the construction of a medical command HQ and dental clinic appears within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale institutional construction projects would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator for the government if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit a bid. With 7 bidders identified, the level of competition was substantial, which typically leads to more competitive pricing and a wider selection of qualified contractors. The presence of multiple bids suggests that the government likely received a range of proposals, allowing for a thorough evaluation of technical capabilities and cost.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the final award price compared to a sole-source or limited competition scenario. This process helps ensure that taxpayer funds are used efficiently by selecting the best value offer.

Public Impact

The primary beneficiaries are the personnel of the North Atlantic Regional Medical Command, who will gain improved facilities. The contract delivers essential infrastructure for healthcare services, including a headquarters building and a dental clinic. The geographic impact is focused on the area where the North Atlantic Regional Medical Command is located, likely within Virginia. The project will likely involve a significant number of construction workers, providing employment opportunities in the skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not precisely defined, leading to cost increases despite fixed-price contract.
Ensuring timely completion within the 1350-day duration is critical to avoid operational disruptions for the medical command.
Quality control and adherence to construction standards for a medical facility require rigorous oversight.

Positive Signals

The firm fixed-price contract structure incentivizes the contractor to manage costs effectively.
Full and open competition suggests a strong pool of qualified bidders, increasing the likelihood of selecting a capable contractor.
The award to Forrester Construction Company, a known entity in the construction space, may indicate a track record of successful project completion.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for government construction projects is substantial, driven by the need for modern and specialized facilities. This project specifically supports the healthcare infrastructure within the defense sector, a critical area for government spending. Comparable spending benchmarks would involve analyzing other large-scale medical or institutional building projects undertaken by federal agencies.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the contract was not set aside for small businesses and the contractor is not listed as a small business. There is no explicit information on subcontracting plans for small businesses. Further investigation into the contractor's subcontracting history would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, with penalties or incentives tied to performance and completion. Transparency is generally maintained through contract award databases and reporting requirements, though detailed project-specific oversight information may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction Projects
Healthcare Facility Construction
Department of Defense Facilities
General Building Construction
Medical Command Infrastructure

Risk Flags

Potential for cost overruns if scope is not tightly managed, despite fixed-price contract.
Risk of project delays impacting operational readiness of the medical command.
Ensuring compliance with stringent healthcare facility construction standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to FORRESTER CONSTRUCTION COMPANY. NORTH ATLANTIC REGIONAL MEDICAL COMMAND HQ BUILDING AND DENTAL CLINIC

Who is the contractor on this award?

The obligated recipient is FORRESTER CONSTRUCTION COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2010-05-04. End: 2014-01-13.

What is Forrester Construction Company's track record with similar large-scale federal construction projects, particularly within the Department of Defense or healthcare sectors?

Forrester Construction Company has a history of undertaking significant construction projects. While specific details on their track record with large-scale federal projects, especially within the DoD or healthcare sectors, require deeper database analysis, their involvement in this $29.3 million contract suggests they possess the capacity and experience for such endeavors. A comprehensive review would involve examining past performance evaluations, project completion timelines, and any reported disputes or claims on previous government contracts. Understanding their experience with similar facility types (e.g., medical, command centers) would provide further insight into their suitability and potential risks associated with this specific award.

How does the final award price of $29.3 million compare to the initial estimated cost or budget for the North Atlantic Regional Medical Command HQ and Dental Clinic project?

The provided data only includes the award amount ($29,289,629.44) and does not contain information on the initial estimated cost or budget. To assess value for money, a comparison between the award price and the government's pre-solicitation estimate is crucial. If the award was significantly below the estimate, it could indicate strong competition or effective negotiation. Conversely, if it was at or above the estimate, further scrutiny of the estimate's accuracy and the contractor's pricing would be warranted. Without the estimated cost, it is difficult to definitively state whether the price achieved represents optimal value.

What were the key performance metrics and quality assurance procedures stipulated in the contract to ensure the successful construction of the medical facility?

The contract data specifies a 'FIRM FIXED PRICE' type and a duration of 1350 days, indicating a commitment to a set cost and timeline. However, the specific performance metrics and quality assurance procedures are not detailed in the provided summary. Typically, for a project of this nature, contracts would include clauses related to construction standards (e.g., building codes, healthcare facility regulations), material quality, safety protocols, and inspection schedules. A robust quality assurance plan, likely overseen by the Army Corps of Engineers or a designated representative, would be essential to ensure the facility meets all functional and safety requirements for a medical command and dental clinic. Further review of the full contract document would be necessary to identify these specific clauses.

What is the historical spending pattern for the North Atlantic Regional Medical Command's facility upgrades or construction over the past 5-10 years?

The provided data focuses solely on this single contract award of $29.3 million for the HQ building and dental clinic. It does not offer insights into the historical spending patterns for facility upgrades or construction by the North Atlantic Regional Medical Command over the past 5-10 years. To establish such a pattern, a broader analysis of federal procurement databases would be required, searching for all contracts awarded to or for the benefit of this command. This would help determine if this project represents a significant one-time investment, a continuation of a regular upgrade cycle, or an anomaly in their capital expenditure.

Were there any significant challenges or disputes encountered during the execution of this contract, and how were they resolved?

The provided summary data does not contain information regarding challenges or disputes encountered during the execution of this contract. Contract performance details, including any modifications, change orders, claims, or litigation, are typically found in more detailed contract files or performance reports. While the contract was awarded in May 2010 and ended in January 2014, the absence of dispute information in this summary does not necessarily mean none occurred. It simply indicates that such details are not part of the high-level data presented here. A thorough review of contract administration records would be needed to identify any such issues and their resolutions.

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: W912DR09R0125

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12231 PARKLAWN DR, ROCKVILLE, MD, 20852

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

Financial Breakdown

Contract Ceiling: $32,121,963

Exercised Options: $29,289,629

Current Obligation: $29,289,629

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline