Suffolk Construction awarded $44.8M contract for DOL Motor Pool Relocation by Department of the Army

Contract Overview

Contract Amount: $44,797,438 ($44.8M)

Contractor: Suffolk Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-03-05

End Date: 2016-09-30

Contract Duration: 2,766 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DOL MOTOR POOL RELOCATION

Place of Performance

Location: WEST POINT, ORANGE County, NEW YORK, 10996

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $44.8 million to SUFFOLK CONSTRUCTION COMPANY, INC. for work described as: DOL MOTOR POOL RELOCATION Key points: 1. Contract value represents a significant investment in facility infrastructure. 2. Competition dynamics suggest a robust bidding process for this large-scale project. 3. Project duration of over 7 years indicates a long-term commitment and potential for scope changes. 4. Fixed-price contract type aims to control costs, but requires careful management of potential overruns. 5. Geographic focus on New York highlights regional infrastructure development. 6. The contract's scale positions it as a major project within the commercial construction sector.

Value Assessment

Rating: good

The contract value of $44.8 million for the DOL Motor Pool Relocation appears to be within a reasonable range for a large-scale construction project of this nature. Benchmarking against similar large federal construction contracts would provide a more precise assessment of value for money. The firm fixed-price structure suggests an effort to establish cost certainty, though the extended duration necessitates vigilant oversight to prevent cost creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with nine bidders participating. This high level of competition is generally positive, as it suggests that multiple qualified contractors vied for the work, potentially driving down prices and ensuring a fair market rate. The presence of numerous bidders indicates a healthy market for this type of construction service.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The Department of the Army benefits from the relocation and modernization of its motor pool facilities. Construction services are delivered in New York, supporting regional economic activity. The project implies job creation within the construction sector in the New York area. Improved motor pool facilities can enhance operational efficiency for military personnel and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration (over 7 years) increases the risk of cost escalation due to inflation or unforeseen site conditions.
Firm fixed-price contracts can expose the government to higher costs if the contractor encounters unexpected challenges.
The sheer scale of the project may present logistical and management complexities.

Positive Signals

Awarded under full and open competition, indicating a competitive market and potentially better pricing.
The contractor, Suffolk Construction Company, Inc., likely has a track record in large-scale construction projects.
The firm fixed-price nature of the contract provides cost certainty if managed effectively.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area supports infrastructure development and modernization across various government agencies. The market for large-scale federal construction projects is competitive, with established firms like Suffolk Construction often securing these awards. Comparable spending benchmarks would involve analyzing other large federal building projects awarded over similar timeframes.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business. Further investigation would be needed to determine if any subcontracting opportunities were made available to small businesses by the prime contractor, Suffolk Construction Company, Inc.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which places the cost risk on the contractor. Transparency is generally facilitated through contract award databases, though detailed project progress and specific oversight activities may not be publicly available.

Related Government Programs

Military Construction
Federal Building Construction
Department of Defense Facilities Management
Infrastructure Modernization Projects

Risk Flags

Potential for cost overruns due to long contract duration.
Risk of contractor performance issues on a large-scale project.
Uncertainty regarding specific oversight mechanisms for a project awarded in 2009.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.8 million to SUFFOLK CONSTRUCTION COMPANY, INC.. DOL MOTOR POOL RELOCATION

Who is the contractor on this award?

The obligated recipient is SUFFOLK CONSTRUCTION COMPANY, 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 $44.8 million.

What is the period of performance?

Start: 2009-03-05. End: 2016-09-30.

What is Suffolk Construction Company, Inc.'s track record with large federal construction contracts?

Suffolk Construction Company, Inc. has a history of undertaking significant construction projects, including those for federal agencies. While specific details on past federal contracts are not provided in this data snippet, their involvement in a $44.8 million project for the Department of the Army suggests they possess the capacity and experience required for large-scale government work. A deeper dive into their contract history would reveal the types of projects, their performance ratings, and any past issues or successes with federal clients. This would help assess their reliability and expertise in managing complex federal construction endeavors.

How does the $44.8 million contract value compare to similar federal building construction projects?

The $44.8 million award for the DOL Motor Pool Relocation is a substantial sum, indicative of a large-scale construction project. To benchmark its value, one would compare it to other federal contracts for similar types of facilities (e.g., motor pools, administrative buildings, maintenance facilities) awarded around the same period (2009-2016) by agencies like the Department of Defense or General Services Administration. Factors such as geographic location (construction costs vary significantly by region), project complexity, and specific requirements would need to be considered. Without direct comparable data, it's difficult to definitively state if this represents excellent or fair value, but the number of bidders suggests a competitive market price was likely achieved.

What are the primary risks associated with a firm fixed-price contract of this duration?

A firm fixed-price (FFP) contract aims to provide cost certainty by locking in the price. However, for a project spanning over seven years (2009-2016), significant risks emerge. The primary risk is that the contractor may incur costs exceeding the fixed price due to unforeseen circumstances like material price escalation, labor cost increases, changes in regulations, or unexpected site conditions. While the contractor bears most of this risk, the government might face pressure to approve change orders or modifications if the contractor struggles, potentially leading to cost increases. Effective contract management, clear scope definition, and robust contingency planning are crucial to mitigate these risks.

How effective is 'full and open competition' in ensuring value for money for large construction projects?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best prices and most efficient solutions to win the contract. For large construction projects like the DOL Motor Pool Relocation, this typically leads to a wider range of proposals, potentially uncovering innovative approaches and ensuring that the government pays a fair market price. The fact that nine bidders participated in this specific contract suggests that the full and open competition strategy was viable and likely contributed to achieving a competitive outcome.

What are the potential workforce implications of a large construction project in New York?

A construction project of this magnitude, valued at $44.8 million and spanning over seven years, would likely have significant workforce implications in the New York region. It would create numerous direct jobs for skilled tradespeople (carpenters, electricians, plumbers, heavy equipment operators, etc.), as well as for project managers, engineers, and administrative staff. Indirect job creation would also occur in supporting industries, such as material suppliers, equipment rental companies, and local service providers. The demand for labor could potentially lead to increased wages and employment opportunities within the local construction sector during the project's lifecycle.

How does the $1.6 billion in related spending compare to this contract?

The provided data indicates $1.6 billion in 'related spending' (br: 16196). It is unclear what this figure represents without further context; it could refer to total spending within a broader program, a previous contract, or a different but related category. If it represents total spending for a larger initiative that this $44.8 million contract is a part of, then this specific contract constitutes a relatively small fraction of that larger investment. Conversely, if it's a benchmark for similar projects, then $44.8 million is a significant individual contract award. Clarification on the nature of the 'related spending' is necessary for a meaningful comparison.

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: W912DS09R0001

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 65 ALLERTON ST, BOSTON, MA, 02119

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $44,827,438

Exercised Options: $44,827,438

Current Obligation: $44,797,438

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline