DoD's $40M Army Construction Contract with Skanska USA Building Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $40,088,175 ($40.1M)
Contractor: Skanska USA Building Inc
Awarding Agency: Department of Defense
Start Date: 2012-10-30
End Date: 2020-06-12
Contract Duration: 2,782 days
Daily Burn Rate: $14.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF AWG COMPLEX CONSTRUCTION
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $40.1 million to SKANSKA USA BUILDING INC for work described as: IGF::OT::IGF AWG COMPLEX CONSTRUCTION Key points: 1. The contract value is $40.09 million, indicating a significant investment in construction services. 2. Skanska USA Building Inc. secured this award, suggesting strong capabilities in complex construction. 3. Awarded under full and open competition, this method generally promotes competitive pricing. 4. The project falls under the Commercial and Institutional Building Construction sector, a common area for large federal contracts.
Value Assessment
Rating: fair
The contract value of $40.09 million for complex construction is substantial. Benchmarking against similar large-scale institutional building projects would be necessary to definitively assess its value, but the duration and scope suggest a potentially fair price given the market.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically allows all responsible sources to submit an offer. This competitive environment is expected to drive price discovery and potentially lead to more favorable pricing for the government.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive bidding process, potentially resulting in cost savings compared to less competitive methods.
Public Impact
This contract supports infrastructure development within the Department of Defense, potentially impacting military readiness or base operations. The scale of the project suggests a significant impact on the local economy through job creation and material sourcing. The duration of the contract (over 7 years) indicates a long-term commitment to the construction project and its associated services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is exceptionally long (2782 days).
- No small business participation noted.
- PSC code is missing, hindering specific sector analysis.
Positive Signals
- Awarded via full and open competition.
- Firm Fixed Price contract type can provide cost certainty.
- Significant contract value suggests a substantial project.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector is substantial, supporting a wide range of government facilities. Benchmarks for similar large-scale construction projects would typically range from tens to hundreds of millions of dollars.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. This suggests the prime contractor did not subcontract to small businesses or that the contract's nature did not lend itself to small business participation.
Oversight & Accountability
The contract was awarded in 2012 and completed in 2020, spanning over 7 years. Oversight would have been crucial throughout this extended period to ensure adherence to specifications, budget, and timeline, especially given the complexity of large construction projects.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (2782 days).
- No indication of small business participation.
- Missing PSC code hinders detailed sector analysis.
- Potential for cost overruns or scope creep over the extended period.
Tags
commercial-and-institutional-building-co, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.1 million to SKANSKA USA BUILDING INC. IGF::OT::IGF AWG COMPLEX CONSTRUCTION
Who is the contractor on this award?
The obligated recipient is SKANSKA USA BUILDING 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 $40.1 million.
What is the period of performance?
Start: 2012-10-30. End: 2020-06-12.
What specific construction project was undertaken, and how did its complexity justify the long duration and significant cost?
The specific construction project details are not provided in the data. However, complex construction projects often involve intricate designs, specialized materials, challenging site conditions, or integration with existing infrastructure. The long duration (2782 days) suggests a multi-phase build, potentially including design, demolition, new construction, and extensive testing or commissioning, all contributing to the $40 million cost.
Given the absence of small business participation, were there opportunities missed for economic inclusion, or was the scope inherently unsuitable for smaller firms?
The lack of small business participation (sb: false) raises questions about economic inclusion. While some large, specialized construction projects may be difficult for small businesses to undertake independently, opportunities for subcontracting should ideally be explored. Further investigation into the contract's structure and the prime contractor's subcontracting plan would clarify whether small businesses were excluded or if the scope was genuinely prohibitive.
How does the final cost of $40.09 million compare to initial estimates or industry benchmarks for similar large-scale institutional building projects?
Without initial estimates or specific project details, a direct cost comparison is challenging. However, $40.09 million is a significant sum for a single construction contract. Assessing its reasonableness would require comparing it against the square footage, complexity, location, and specific building type (e.g., barracks, administrative facilities, specialized training centers) against publicly available data for similar DoD or large institutional construction 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: W912DR12R0021
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Skanska AB (UEI: 353937956)
Address: 700 KING FARM BLVD STE 200, ROCKVILLE, MD, 20850
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $45,237,632
Exercised Options: $40,088,175
Current Obligation: $40,088,175
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $28,903,146
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-10-30
Current End Date: 2020-06-12
Potential End Date: 2020-06-12 00:00:00
Last Modified: 2020-06-26
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