Army awards $18.8M for Malmstrom AFB family housing, highlighting construction needs in Montana

Contract Overview

Contract Amount: $18,892,611 ($18.9M)

Contractor: Atherton Construction LLC

Awarding Agency: Department of Defense

Start Date: 2004-03-31

End Date: 2016-09-23

Contract Duration: 4,559 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200408!000611!2100!W912DW!* !W912DW04C0008 !A!N! !N! ! !20040331!20040325!188021604!188021604!024288230!N!ATHERTON CONSTRUCTION INC !3855 S JONES BOULEVARD, S!LAS VEGAS !NV!89103!47275!013!30!MALMSTROM AFB !CASCADE !MONTANA !+000016350380!N!N!000000000000!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !* !236116!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!008!B! !D!N!C! ! !N!C!N! ! ! !D!D!A!A!000!A!B!Y! !N! ! ! ! !0001! !

Place of Performance

Location: MALMSTROM AFB, CASCADE County, MONTANA, 59402, UNITED STATES OF AMERICA

State: Montana Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to ATHERTON CONSTRUCTION LLC for work described as: 200408!000611!2100!W912DW!* !W912DW04C0008 !A!N! !N! ! !20040331!20040325!188021604!188021604!024288230!N!ATHERTON CONSTRUCTION INC !3855 S JONES BOULEVARD, S!LAS VEGAS !NV!89103!47275!013!30!MALMSTROM AFB !CASC… Key points: 1. Contract awarded for new multifamily housing construction, indicating a focus on improving living conditions for military personnel. 2. The duration of the contract (over 12 years) suggests a long-term commitment to facility maintenance and development. 3. The fixed-price contract type aims to provide cost certainty for the government, though it may shift some risk to the contractor. 4. The award to Atherton Construction LLC, a single entity, warrants a review of its capacity and past performance for such a large project. 5. The project's location in Montana suggests a need for construction services in regions with potentially limited local contractor pools. 6. The absence of small business set-asides means opportunities for smaller firms may be limited to subcontracting roles.

Value Assessment

Rating: fair

The awarded amount of $18.8 million for new multifamily housing construction at Malmstrom AFB appears substantial. Benchmarking this against similar projects would be crucial to assess value for money. Without comparative data on per-unit construction costs for military housing in similar geographic areas or for projects of this scale, it is difficult to definitively assess if the pricing is competitive. The long contract duration (over 12 years) also suggests potential for escalation or the inclusion of maintenance components, which would need further breakdown for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The data shows 8 bids were received, suggesting a reasonable level of competition for this construction project. A healthy number of bids generally supports price discovery and can lead to more competitive pricing for the government. However, the specific details of the bidding process and the nature of the bidders (e.g., their size and experience) would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from contractors.

Public Impact

Military families at Malmstrom Air Force Base will benefit from improved housing facilities. The contract delivers new multifamily housing, directly addressing infrastructure needs. The geographic impact is concentrated in Cascade, Montana, supporting local economic activity through construction. The project implies a need for skilled construction labor in the region, potentially creating jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 12 years) could lead to cost overruns if not managed effectively.
Reliance on a single prime contractor for a large-scale construction project may pose risks if the contractor faces financial or performance issues.
The specific scope of 'New Multifamily Housing Construction' needs detailed breakdown to ensure all requirements are met within budget.
Potential for unforeseen site conditions or material cost fluctuations over the extended project timeline.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Fixed-price contract type provides budget certainty for the government.
The project addresses a clear need for improved military family housing.
The contractor, Atherton Construction LLC, has been awarded this significant contract, implying some level of pre-qualification or past performance assessment.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on residential and multifamily housing. The market for military housing construction is a specialized segment within the broader construction industry, often involving specific government requirements and security protocols. Comparable spending benchmarks would typically involve analyzing other military housing projects awarded by the Department of Defense or other branches, considering factors like location, size, and type of construction. The total value of $18.8 million positions this as a significant project within its niche.

Small Business Impact

The contract data indicates that this was not set aside for small businesses (ss: false, sb: false). This means the competition was open to all qualified contractors, including large businesses. While this maximizes the pool of potential bidders, it may limit direct opportunities for small businesses unless they are involved as subcontractors. The prime contractor, Atherton Construction LLC, will determine the extent of small business subcontracting, which is a key factor in assessing the impact on the small business ecosystem for this project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the Army Corps of Engineers or a specific installation contracting office. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Military Family Housing Construction
Department of Defense Construction Contracts
Army Corps of Engineers Projects
Malmstrom Air Force Base Infrastructure

Risk Flags

Long contract duration may increase risk of cost escalation.
Potential for contractor performance issues over extended period.
Need for detailed review of contractor's past performance on similar projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to ATHERTON CONSTRUCTION LLC. 200408!000611!2100!W912DW!* !W912DW04C0008 !A!N! !N! ! !20040331!20040325!188021604!188021604!024288230!N!ATHERTON CONSTRUCTION INC !3855 S JONES BOULEVARD, S!LAS VEGAS !NV!89103!47275!013!30!MALMSTROM AFB !CASCADE !MONTANA !+000016350380!N!N!000000000000!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !* !236116!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is ATHERTON CONSTRUCTION LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2004-03-31. End: 2016-09-23.

What is the track record of Atherton Construction LLC in completing large-scale military housing projects?

Information regarding Atherton Construction LLC's specific track record on large-scale military housing projects is not detailed in the provided data snippet. The award of this $18.8 million contract suggests they possess the necessary qualifications and potentially past performance that met the Department of the Army's criteria. To fully assess their reliability, a deeper dive into their contract history, including project completion times, adherence to budget, quality of work on similar federal contracts, and any past performance reviews or disputes, would be necessary. Examining their experience with the specific requirements of multifamily housing construction, particularly within a military installation context, is also crucial.

How does the $18.8 million cost compare to similar multifamily housing construction projects for the military?

A direct comparison of the $18.8 million cost to similar military multifamily housing projects requires access to a broader dataset of federal contract awards. Factors such as geographic location (construction costs vary significantly by region), specific unit types (e.g., number of bedrooms, amenities), construction materials, and prevailing labor rates all influence project costs. Without these comparative benchmarks, it's challenging to definitively state whether this award represents excellent, fair, or questionable value. However, the duration of the contract (over 12 years) suggests it might encompass more than just initial construction, potentially including long-term maintenance or lifecycle support, which would need to be factored into a comprehensive value assessment.

What are the primary risks associated with a construction contract of this duration and value?

The primary risks associated with a construction contract valued at $18.8 million and spanning over 12 years include potential cost escalation due to inflation in labor and materials, unforeseen site conditions requiring additional work, contractor performance issues (delays, quality defects), and changes in government requirements. For a fixed-price contract, the contractor bears the brunt of cost overruns, but scope creep or poorly defined requirements can still lead to disputes or claims. The long duration also increases the risk of contractor financial instability or changes in key personnel. Effective project management, clear contract terms, robust oversight, and contingency planning are essential to mitigate these risks.

How effective is 'full and open competition' likely to be in ensuring the best value for this specific housing project?

Full and open competition, as indicated for this contract with 8 bids received, is generally the most effective method for ensuring best value as it maximizes the pool of potential offerors, fostering price competition and encouraging innovation. However, effectiveness also depends on the clarity of the solicitation requirements, the evaluation criteria used, and the capabilities of the bidding firms. For a specialized area like military housing construction, ensuring that the evaluation process adequately assesses technical capability and past performance, not just price, is critical. If the competition successfully brought forth multiple capable bidders who understood the requirements, it likely contributed to achieving a competitive price and suitable solution for the Army.

What are the historical spending patterns for multifamily housing construction at Malmstrom AFB or similar installations?

Historical spending patterns for multifamily housing construction at Malmstrom AFB or similar installations are not provided in the current data. To analyze this, one would need to query historical contract databases for awards related to housing construction at this specific base or comparable Air Force/Army installations over several years. This analysis would reveal trends in contract values, types of construction (new build vs. renovation), competition levels, and the primary contractors involved. Understanding these patterns can help contextualize the current $18.8 million award, identify potential budget fluctuations, and assess whether spending aligns with perceived needs and infrastructure investment cycles.

Industry Classification

NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Woodside Group Inc. (UEI: 024288230)

Address: 3855 S JONES BOULEVARD, S, LAS VEGAS, NV, 89103

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $56,722

Exercised Options: $56,722

Current Obligation: $18,892,611

Contract Characteristics

Cost or Pricing Data: NO

Timeline