DoD's $29.7M SERE Dormitory Construction Contract Awarded to Garco Construction

Contract Overview

Contract Amount: $29,745,710 ($29.7M)

Contractor: Garco Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-12-28

End Date: 2022-04-08

Contract Duration: 1,197 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONSTRUCT SERE PIPELINE DORMITORY

Place of Performance

Location: FAIRCHILD AFB, SPOKANE County, WASHINGTON, 99011

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $29.7 million to GARCO CONSTRUCTION, INC. for work described as: IGF::OT::IGF CONSTRUCT SERE PIPELINE DORMITORY Key points: 1. Contract value represents a significant investment in military readiness infrastructure. 2. The use of a firm-fixed-price contract aims to control costs and manage risk. 3. A single award for a large-scale construction project suggests a focused approach to delivery. 4. The contract duration of nearly four years indicates a complex and lengthy construction timeline. 5. The project's success hinges on timely completion and adherence to quality standards for SERE facilities.

Value Assessment

Rating: good

The contract value of $29.7 million for the SERE dormitory construction appears reasonable for a project of this scale and complexity, especially given the firm-fixed-price structure which transfers risk to the contractor. Benchmarking against similar large-scale institutional building projects, the cost per square foot would be a key metric for a more precise value assessment. However, without detailed project specifications and scope, a definitive comparison is challenging. The award to a single entity suggests a competitive process that identified a capable contractor at a price deemed acceptable by the Army.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this significant construction project. While two bidders are better than one, a higher number of bids could potentially lead to more aggressive pricing and a wider selection of capabilities. The Army's decision to proceed with a single award implies that one offer was deemed the most advantageous.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of contractors to compete, potentially driving down prices and ensuring the government receives the best value. Even with two bidders, the competitive nature of the process likely resulted in a more cost-effective outcome than a sole-source award.

Public Impact

Service members undergoing Survival, Evasion, Resistance, and Escape (SERE) training will benefit from improved living and training facilities. The construction project directly supports the Department of the Army's mission readiness by providing essential infrastructure. The project is located in Washington state, implying a positive economic impact on the local and regional construction workforce and related industries. The construction activities will likely create numerous jobs for skilled tradespeople, project managers, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting training schedules.
Risk of cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Ensuring the quality of construction meets the specific demands of SERE training environments.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a single contractor streamlines project management and execution.
Full and open competition suggests a robust vetting of potential contractors.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The market for government construction projects is substantial, driven by the need for infrastructure supporting defense, education, and public services. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per bed for similar dormitory or training facility constructions across federal agencies. The size of this contract indicates a significant project within its specific niche.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting goals for small businesses explicitly stated in the provided data. This suggests that the primary award went to a larger entity capable of handling the full scope of the project. The absence of small business set-aside provisions means that opportunities for small businesses would likely be through subcontracting, if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes the contractor to complete the work within budget. Transparency is typically managed through contract award databases and reporting requirements. The Inspector General's office may conduct audits or investigations if specific concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Military Construction (MILCON)
Training Facility Construction
Department of Defense Infrastructure Projects
General Building Construction

Risk Flags

Potential for schedule delays impacting training.
Risk of unforeseen site conditions impacting cost/schedule.
Ensuring construction quality meets specialized SERE facility needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to GARCO CONSTRUCTION, INC.. IGF::OT::IGF CONSTRUCT SERE PIPELINE DORMITORY

Who is the contractor on this award?

The obligated recipient is GARCO CONSTRUCTION, 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 $29.7 million.

What is the period of performance?

Start: 2018-12-28. End: 2022-04-08.

What is the track record of Garco Construction, Inc. with federal contracts, particularly with the Department of Defense?

Garco Construction, Inc. has a history of performing federal construction contracts, including work for the Department of Defense. Analyzing their past performance on similar projects, such as barracks, training facilities, or other institutional buildings, would provide insight into their reliability, quality of work, and adherence to schedules and budgets. A review of their contract history might reveal any past performance issues, awards for exceptional performance, or the types of contracts they have successfully executed. This context is crucial for assessing the risk associated with this specific award and understanding their capacity to deliver the SERE dormitory pipeline project successfully.

How does the awarded amount compare to the estimated cost or budget for this project?

The provided data shows an awarded amount of $29,745,710. Without access to the government's initial cost estimates or approved budget for this project, it is difficult to definitively state whether the award represents a significant deviation. However, the fact that it was awarded under full and open competition with two bids suggests that the pricing was competitive and likely within an acceptable range for the procuring agency. A comparison would ideally involve looking at the bid spread between the two offers and understanding the government's independent government cost estimate (IGCE) if that information were publicly available.

What are the key performance indicators (KPIs) and quality assurance measures for this construction contract?

For a construction contract of this magnitude, key performance indicators would likely include adherence to the project schedule, quality of workmanship, safety compliance, and final project completion within the agreed-upon scope. Quality assurance measures would involve regular site inspections by government representatives (e.g., Contracting Officer's Representatives - CORs), material testing, and review of construction plans against specifications. The firm-fixed-price nature of the contract inherently drives performance, as deviations from quality or schedule can lead to contractor liability or penalties. Specific KPIs and QA procedures would be detailed in the contract's statement of work and associated clauses.

What is the potential impact of the contract duration (1197 days) on the operational readiness of the SERE training program?

A contract duration of 1197 days (approximately 3 years and 4 months) for the construction of SERE dormitories indicates a substantial and potentially complex project. The primary impact on operational readiness would be the potential for disruption or delay in the availability of adequate training facilities. If existing facilities are aging or insufficient, the extended construction period could strain current resources or necessitate temporary solutions. Conversely, the successful and timely completion of the new facilities would significantly enhance the training environment and capacity, ultimately boosting operational readiness once the project is finalized. Effective project management and communication are crucial to mitigate any negative impacts during the construction phase.

Are there any specific environmental or site condition risks associated with this construction project in Washington?

Construction projects, especially in diverse geographic locations like Washington state, can carry inherent environmental and site condition risks. These could include factors such as soil stability, potential for seismic activity, groundwater issues, or the presence of protected flora or fauna. Depending on the specific site, weather patterns in Washington (e.g., rainfall, snow) could also impact construction schedules. While the firm-fixed-price contract shifts some risk to the contractor, significant unforeseen conditions could still lead to change orders or disputes. A thorough pre-construction site assessment and environmental review would have been critical during the procurement phase to identify and mitigate these potential risks.

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: W912DW18R0019

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4114 E BROADWAY AVE, SPOKANE, WA, 99202

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

Financial Breakdown

Contract Ceiling: $35,696,710

Exercised Options: $29,745,710

Current Obligation: $29,745,710

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline