DOBCO Inc. awarded $37M contract for building repair, highlighting firm fixed-price structure and full and open competition

Contract Overview

Contract Amount: $37,059,932 ($37.1M)

Contractor: Dobco Inc

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2025-12-20

Contract Duration: 1,908 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ALL WORK ASSOCIATED WITH THE REPAIR OF

Place of Performance

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

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $37.1 million to DOBCO INC for work described as: ALL WORK ASSOCIATED WITH THE REPAIR OF Key points: 1. The contract utilizes a firm fixed-price model, which shifts cost risk to the contractor. 2. Full and open competition was employed, suggesting a potentially competitive bidding process. 3. The contract duration of over 1900 days indicates a long-term commitment for building repair services. 4. The award was made by the Department of the Army, a significant federal entity. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract is not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned.

Value Assessment

Rating: good

Benchmarking the value of this contract requires more granular data on the specific repair services and the condition of the facilities. However, the firm fixed-price structure is generally favorable for the government when scope is well-defined, as it caps potential cost overruns. Comparing the per-square-foot repair cost or cost per unit of work against similar projects within the Department of Defense or other federal agencies would provide a clearer picture of value for money. The absence of detailed performance metrics makes a definitive assessment challenging.

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 bids. With 13 bidders participating, the level of competition appears robust. This suggests that the government likely received a range of proposals and pricing, allowing for selection of the most advantageous offer. A higher number of bidders generally correlates with better price discovery and potentially lower costs for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured that the government secured services at a competitive market rate. This process helps prevent inflated costs and promotes efficient use of public funds.

Public Impact

Military personnel and civilian employees stationed at the facility will benefit from improved infrastructure. Essential building repair and maintenance services will be delivered, ensuring operational readiness. The geographic impact is localized to New York, where the contract is being performed. The contract supports jobs within the commercial and institutional building construction sector in the New York region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term repair contracts if not meticulously managed.
Dependence on a single contractor for an extended period could limit flexibility.
Ensuring consistent quality of work over the multi-year duration requires diligent oversight.

Positive Signals

Firm fixed-price contract structure transfers cost risk to the contractor.
Robust competition with 13 bidders suggests a competitive pricing environment.
Long contract duration allows for sustained focus on facility upkeep.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the construction, alteration, and repair of non-residential buildings. Federal spending in this area is crucial for maintaining government infrastructure, including military bases, administrative buildings, and research facilities. Comparable spending benchmarks would involve analyzing the average cost of similar repair and construction projects undertaken by federal agencies, considering factors like building size, age, and complexity of repairs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that both large and small businesses were eligible to compete. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem. However, the absence of a small business set-aside suggests that opportunities for small businesses may arise through subcontracting if the prime contractor, DOBCO INC, chooses to engage them.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring DOBCO INC to deliver specified repairs within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, allowing for scrutiny. The Inspector General's office for the Department of Defense may have jurisdiction for audits and investigations if any irregularities or fraud are suspected.

Related Government Programs

Department of Defense Facilities Maintenance Contracts
General Services Administration (GSA) Building Construction and Repair
Army Corps of Engineers Construction Projects
Federal Buildings Infrastructure Modernization

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep if not managed tightly.
Lack of explicit small business subcontracting goals could limit opportunities for smaller firms.
Absence of detailed performance metrics in the award notice necessitates thorough government oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.1 million to DOBCO INC. ALL WORK ASSOCIATED WITH THE REPAIR OF

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 $37.1 million.

What is the period of performance?

Start: 2020-09-29. End: 2025-12-20.

What is DOBCO INC's track record with the federal government, particularly the Department of the Army?

To assess DOBCO INC's track record, a review of their past federal contract awards and performance evaluations would be necessary. This would involve examining data from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). Key indicators would include the number and value of previous contracts, the agencies they've served, and their performance ratings. A history of successful contract completion, timely delivery, and adherence to quality standards would suggest a reliable contractor. Conversely, a pattern of contract disputes, performance issues, or terminations could raise concerns about their capability to execute this current $37 million repair project effectively over its nearly five-year duration.

How does the $37 million contract value compare to similar building repair projects undertaken by the Department of the Army?

Comparing the $37 million value requires context regarding the scope and scale of the repairs. If this contract covers extensive renovations or structural repairs for multiple buildings on a large military installation, the cost might be reasonable. However, if it pertains to more localized or routine repairs, it could be on the higher end. Benchmarking against similar projects would involve analyzing the cost per square foot, cost per repair type (e.g., roofing, HVAC, electrical), and the duration of similar contracts awarded by the Department of the Army or other federal agencies for facilities of comparable size and condition. Without specific details on the work required, a definitive value comparison is difficult, but the firm fixed-price nature suggests the government has a defined cost ceiling.

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

The primary risk with a firm fixed-price (FFP) contract, especially one spanning over 1900 days (approximately 5.2 years), is the potential for the contractor to cut corners on quality or materials to maintain profitability if costs escalate unexpectedly. While the FFP shifts cost overrun risk to DOBCO INC, unforeseen issues like discovering extensive structural damage beyond initial assessment, or significant increases in material costs not adequately accounted for in their bid, could strain the contractor's resources. This might lead to disputes, delays, or a decline in the quality of work if the contractor struggles to absorb unexpected expenses. Robust government oversight and clear contract specifications are crucial to mitigate these risks and ensure the project's success.

How effective is 'full and open competition' in ensuring cost savings for this type of construction contract?

Full and open competition is generally considered the most effective method for ensuring cost savings in federal contracting, including for construction projects. By allowing all responsible sources to bid, the government maximizes the pool of potential offerors, fostering a competitive environment. This competition drives down prices as contractors vie for the award. The fact that 13 bidders participated in this contract suggests a healthy level of competition, which increases the likelihood that the government received a competitive price. However, the effectiveness also depends on the clarity of the solicitation documents and the evaluation criteria used to select the winning bid.

What are the implications of the contract's end date (2025-12-20) for facility maintenance planning?

The contract's end date of December 20, 2025, implies a defined period for the specific repair work outlined. This allows the Department of the Army to plan its facility maintenance budget and strategy around this project's completion. However, it also means that planning for subsequent maintenance or potential future repair needs must begin well in advance of this date. If the repairs are extensive or address long-term issues, the agency will need to consider ongoing maintenance contracts or future capital investments to ensure the facility's continued upkeep beyond the current contract's term. Proactive planning is essential to avoid gaps in essential facility services.

Are there any specific performance metrics or deliverables clearly defined within the contract award notice?

The provided data snippet for this contract does not explicitly detail specific performance metrics or deliverables. It identifies the award type (Definitive Contract), the contractor (DOBCO INC), the agency (Department of the Army), the price ($37,059,931.50), and the period of performance (2020-09-29 to 2025-12-20). Typically, detailed performance standards, quality assurance surveillance plans (QASPs), and specific deliverables would be outlined in the full contract document, not just the award notice. These are crucial for the government to monitor contractor performance and ensure the repairs meet required specifications and standards.

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: SEALED BID

Solicitation ID: W912DS20B0013

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 GEOFFREY WAY, 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: $37,059,932

Exercised Options: $37,059,932

Current Obligation: $37,059,932

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline