DOBCO INC awarded $50.8M for West Point elementary school construction, a large project in the Northeast

Contract Overview

Contract Amount: $50,878,598 ($50.9M)

Contractor: Dobco Inc

Awarding Agency: Department of Defense

Start Date: 2017-02-14

End Date: 2021-04-23

Contract Duration: 1,529 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF REPLACE ELEMENTARY SCHOOL, WEST POINT

Place of Performance

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

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $50.9 million to DOBCO INC for work described as: IGF::OT::IGF REPLACE ELEMENTARY SCHOOL, WEST POINT Key points: 1. The contract value of $50.8M for a definitive contract suggests a significant construction undertaking. 2. Awarded under full and open competition, this indicates a broad market solicitation for the project. 3. The firm-fixed-price contract type generally transfers risk to the contractor, potentially stabilizing costs. 4. The duration of 1529 days (over 4 years) points to a complex, multi-phase construction project. 5. The project's location in New York (NY) places it within a high-cost construction market. 6. The absence of small business set-aside flags suggests the primary contractor is likely not a small business, and subcontracting opportunities for small businesses are not explicitly mandated by the contract type.

Value Assessment

Rating: fair

The contract value of $50.8 million for the construction of an elementary school is substantial. Without specific benchmarks for similar school construction projects in the West Point, NY area, a precise value-for-money assessment is difficult. However, the duration of over four years suggests a complex project, and the firm-fixed-price nature aims to control costs. Further analysis would require comparing the cost per square foot or per student capacity to similar recent federal or state school construction projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. With 6 bidders, this suggests a reasonably competitive environment for this large construction project. A higher number of bidders typically leads to more competitive pricing, but the specific pricing outcomes depend on the complexity and specialized nature of the construction required.

Taxpayer Impact: A competitive bidding process for a project of this magnitude is generally favorable for taxpayers, as it encourages multiple firms to offer their best pricing to secure the contract, potentially leading to cost savings compared to a sole-source award.

Public Impact

The primary beneficiaries are students and staff of the new elementary school at West Point, providing modern educational facilities. The project delivers new construction services, specifically a commercial and institutional building. The geographic impact is concentrated in West Point, New York, contributing to local infrastructure development. The construction workforce, including skilled trades and laborers, will be directly impacted by this multi-year project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the fixed-price nature.
Long project duration increases the risk of contractor performance issues or changes in requirements.
Dependence on a single definitive contract for a large-scale project could pose risks if the contractor faces financial or operational difficulties.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Awarded to DOBCO INC, a contractor with experience in large-scale construction projects.
The project addresses a clear need for educational infrastructure at West Point.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). The federal government is a significant consumer of construction services for infrastructure, military bases, and public facilities. The market for large-scale institutional construction is competitive, with established firms often bidding on substantial projects. Benchmarks for similar projects would typically involve cost per square foot, cost per student capacity, and comparison to regional construction cost indices.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests the primary contract was awarded to a large business or that the nature of the work did not lend itself to a small business set-aside. While not directly set aside, large prime contractors are often required to meet small business subcontracting goals, which could create opportunities for small businesses in specialized trades or material supply.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army. The firm-fixed-price nature provides a degree of cost control, but performance monitoring is crucial throughout the multi-year duration. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Construction
Federal School Construction
Department of Defense Facilities
New York State Construction Projects

Risk Flags

Long contract duration increases risk exposure.
Firm-fixed-price contracts can lead to contractor financial strain if costs escalate.
Potential for quality compromises if contractor seeks to recoup costs.
Dependence on a single contractor for a critical facility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.9 million to DOBCO INC. IGF::OT::IGF REPLACE ELEMENTARY SCHOOL, WEST POINT

Who is the contractor on this award?

The obligated recipient is DOBCO 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 $50.9 million.

What is the period of performance?

Start: 2017-02-14. End: 2021-04-23.

What is DOBCO INC's track record with federal construction contracts, particularly those of similar size and scope?

DOBCO INC has a history of performing federal construction contracts. While the provided data highlights this $50.8 million definitive contract for West Point, a deeper dive into their contract history would reveal the number and value of previous federal awards, their performance ratings on past projects (if available through sources like the Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or modifications. Understanding their experience with educational facilities or similar institutional buildings would also be relevant for assessing their capability to successfully execute this specific project.

How does the awarded price of $50.8 million compare to market rates for similar school construction projects in the Northeast region?

Benchmarking the $50.8 million award requires comparing it against similar projects in terms of size (square footage), complexity, and location. Factors like the cost per square foot, cost per student capacity, and the specific amenities included are critical. Given the project's duration of over four years and its location in New York, a high-cost area, the price might be within a reasonable range if the project scope is extensive. However, without detailed project specifications and access to comparable project data (which is often proprietary or requires specialized databases), a definitive comparison is challenging. A thorough analysis would involve consulting construction cost indices and recent bid results for comparable institutional buildings in the region.

What are the primary risks associated with a firm-fixed-price contract for a multi-year construction project of this magnitude?

The primary risk with a firm-fixed-price (FFP) contract, especially for a long-duration project like this (1529 days), is the potential for the contractor to incur significant losses if costs escalate beyond their initial estimates. While FFP aims to protect the government from cost overruns, it places the burden of estimating and managing costs on the contractor. Risks include unforeseen site conditions, unexpected increases in material prices or labor costs, and contractor financial instability. Conversely, the government's risk is that the contractor might cut corners on quality to maintain profitability, necessitating robust oversight and quality assurance measures.

What does the level of competition (6 bidders) suggest about the potential for cost savings for the government on this project?

Having six bidders for a large construction project like this generally indicates a healthy level of competition. More bidders typically mean a wider range of pricing strategies and a greater incentive for each firm to submit a competitive bid to win the contract. This increased competition often translates into better value for the government, as firms vie to offer the most attractive price and technical solution. While it doesn't guarantee the lowest possible price, it significantly increases the likelihood that the awarded price reflects market conditions and efficient cost structures, rather than being inflated due to a lack of alternatives.

How has federal spending on commercial and institutional building construction (NAICS 236220) trended in recent years, and where does this contract fit?

Federal spending on commercial and institutional building construction (NAICS 236220) can fluctuate based on infrastructure needs, military base modernization, and agency priorities. Historically, such spending increases during periods of economic stimulus or when significant upgrades to federal facilities are required. This $50.8 million contract represents a substantial single award within this category. Analyzing broader spending trends would involve looking at aggregate data for NAICS 236220 across all federal agencies over several fiscal years to understand the typical scale and frequency of such large-scale construction awards.

Are there any specific performance concerns or positive indicators associated with DOBCO INC based on past federal contract performance?

Assessing DOBCO INC's past performance requires accessing detailed contract performance reports, such as those found in the Contractor Performance Assessment Reporting System (CPARS). Without direct access to CPARS data for DOBCO INC, it's impossible to definitively state their performance record. However, a $50.8 million definitive contract awarded under full and open competition suggests they were deemed capable and responsible. Positive indicators might include a history of timely project completion, adherence to budget, and positive client feedback. Conversely, any history of significant delays, cost overruns, or quality issues on previous federal contracts would be a concern.

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: W912DS16R0010

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30 GALESI DRIVE SUITE 202A, WAYNE, NJ, 07470

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

Financial Breakdown

Contract Ceiling: $50,878,598

Exercised Options: $50,878,598

Current Obligation: $50,878,598

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline