Gilbane Building Company awarded $50M for Antilles Elementary School construction, a large project for the Department of the Army
Contract Overview
Contract Amount: $49,871,630 ($49.9M)
Contractor: Gilbane Building Company
Awarding Agency: Department of Defense
Start Date: 2012-06-12
End Date: 2014-12-16
Contract Duration: 917 days
Daily Burn Rate: $54.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 20
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ANTILLES ELEMENTARY SCHOOL
Place of Performance
Location: FORT BUCHANAN, BAYAMON County, PUERTO RICO, 00934
Plain-Language Summary
Department of Defense obligated $49.9 million to GILBANE BUILDING COMPANY for work described as: ANTILLES ELEMENTARY SCHOOL Key points: 1. The contract value of $49.9 million represents a significant investment in educational infrastructure. 2. The project was awarded under full and open competition, suggesting a robust bidding process. 3. The firm-fixed-price contract type indicates that cost risks are largely borne by the contractor. 4. The duration of 917 days points to a complex and lengthy construction undertaking. 5. The project's location in Puerto Rico may present unique logistical and environmental considerations. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.
Value Assessment
Rating: good
The contract value of approximately $50 million for the Antilles Elementary School construction appears substantial, aligning with the scale of major educational facility projects. Benchmarking against similar Department of Defense construction contracts for schools of comparable size and complexity would provide a clearer picture of value for money. The firm-fixed-price nature of the award suggests that the contractor assumed significant cost risk, which can be a positive indicator of competitive pricing if the bids were well-evaluated.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 20 bids suggests a healthy level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of selecting the best value proposal for the government.
Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down the final price and ensured the government received a competitive offer for the construction services.
Public Impact
Students and staff at Antilles Elementary School will benefit from new or renovated educational facilities. The project delivers essential construction services for the Department of the Army's infrastructure needs. The geographic impact is concentrated in Puerto Rico, supporting local development and employment. The construction activities will likely create jobs for skilled trades and construction workers in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
- Logistical challenges in Puerto Rico could impact project timelines and material delivery.
- Ensuring quality of construction to meet long-term educational facility standards.
Positive Signals
- Firm-fixed-price contract shifts cost risk to the contractor.
- Extensive competition (20 bidders) suggests a well-contested and potentially cost-effective award.
- Project duration is clearly defined, allowing for structured planning and execution.
Sector Analysis
The construction sector is a significant component of federal spending, particularly for infrastructure projects like schools and military facilities. This contract falls under Commercial and Institutional Building Construction, a broad category encompassing the building of non-residential structures. Federal spending in this area is often driven by modernization needs, base realignments, and the provision of essential services. Comparable projects might include other school constructions on military bases or renovations of government buildings.
Small Business Impact
The contract was not awarded as a small business set-aside, and the data indicates no specific small business participation goals were met directly through the prime contract award. This suggests that opportunities for small businesses would primarily arise through subcontracting by the prime contractor, Gilbane Building Company. Further analysis would be needed to determine the extent of small business subcontracting planned or achieved for this project.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Performance monitoring, site inspections, and adherence to contract terms would be key oversight mechanisms. Transparency is facilitated through contract databases like FPDS, which provide basic award details. Inspector General jurisdiction may apply if fraud, waste, or abuse is suspected.
Related Government Programs
- Military Construction Projects
- School Construction Contracts
- Department of Defense Facilities
- Educational Infrastructure
Risk Flags
- Potential for cost escalation due to remote location logistics.
- Risk of schedule delays due to weather or supply chain issues in Puerto Rico.
- Need for robust quality assurance to ensure long-term facility durability.
Tags
construction, department-of-defense, department-of-the-army, puerto-rico, full-and-open-competition, definitive-contract, firm-fixed-price, commercial-and-institutional-building-construction, school-construction, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.9 million to GILBANE BUILDING COMPANY. ANTILLES ELEMENTARY SCHOOL
Who is the contractor on this award?
The obligated recipient is GILBANE BUILDING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $49.9 million.
What is the period of performance?
Start: 2012-06-12. End: 2014-12-16.
What is the historical spending pattern for Gilbane Building Company with the Department of the Army?
Gilbane Building Company has a significant history of contracting with the Department of the Army, having received numerous awards across various construction and facility management categories. Analyzing their past performance with the Army can provide insights into their reliability, project execution capabilities, and pricing trends. A review of historical data would reveal the volume and types of contracts awarded, their on-time and on-budget performance, and any documented issues or successes. This context is crucial for assessing the risk associated with awarding new, substantial contracts like the Antilles Elementary School project.
How does the cost per square foot for this project compare to similar school construction projects in Puerto Rico or other U.S. territories?
To benchmark the value for money, the cost per square foot for the Antilles Elementary School project needs to be compared against similar constructions. Without the square footage data, a direct comparison is difficult. However, if the total project cost of approximately $50 million is divided by the estimated square footage of the completed school, the resulting figure can be compared to industry averages for educational facilities. Factors such as local labor costs, material availability, shipping expenses to Puerto Rico, and specific design requirements will influence this metric. Higher costs per square foot might be justifiable due to these unique regional factors, but significant deviations from benchmarks could indicate potential overpricing or unforeseen challenges.
What are the primary risks associated with constructing a school in Puerto Rico for the Department of the Army?
Constructing a school in Puerto Rico for the Department of the Army presents several key risks. Logistical challenges related to shipping materials and equipment to the island can lead to delays and increased costs. The region is also susceptible to hurricanes and seismic activity, requiring robust building codes and potentially higher insurance or contingency costs. Furthermore, local labor availability and regulations, as well as potential supply chain disruptions, need careful management. For a military project, ensuring compliance with Department of Defense standards adds another layer of complexity. Effective risk mitigation strategies, including thorough site assessments and contingency planning, are essential for project success.
What is the typical duration for a definitive contract of this magnitude and type?
A definitive contract awarded under full and open competition for a project valued at approximately $50 million, such as the Antilles Elementary School construction, typically has a duration that reflects the complexity and scope of the work. The stated duration of 917 days (approximately 2.5 years) is within the expected range for a large-scale construction project. Factors influencing this duration include the design finalization, permitting processes, site preparation, actual construction phases, and final inspections. Shorter durations might indicate simpler projects or accelerated schedules, while significantly longer ones could suggest potential delays or phased construction.
Were there any performance issues or disputes on previous contracts awarded to Gilbane Building Company by the Department of Defense?
Assessing past performance is critical for evaluating contractor reliability. Information regarding previous performance issues or disputes on contracts awarded to Gilbane Building Company by the Department of Defense would typically be available through contract performance reports (CPARS) or other government databases. A review of these records would indicate whether the company has a history of cost overruns, schedule delays, quality deficiencies, or contractual disputes. Positive performance indicators, such as consistently meeting or exceeding expectations, would strengthen confidence in their ability to successfully execute the Antilles Elementary School project. Conversely, documented issues would warrant closer scrutiny and potentially require enhanced oversight.
What is the significance of the 'PUERTO RICO' location tag in relation to federal construction spending?
The 'PUERTO RICO' location tag signifies that this federal construction project is being undertaken in a U.S. territory. Federal spending in territories like Puerto Rico often aims to support infrastructure development, military readiness, and economic stimulus. Construction projects in these locations can face unique challenges, including higher transportation costs for materials, specific labor market dynamics, and potentially different regulatory environments compared to the mainland U.S. The Department of Defense, in particular, invests in facilities in strategic locations worldwide, and Puerto Rico serves as a key operational area. This tag highlights the geographic specificity of the spending and potential associated logistical considerations.
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: TWO STEP
Solicitation ID: W912EP11R0010
Offers Received: 20
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Gilbane, Inc. (UEI: 022726165)
Address: 7 JACKSON WALKWAY, PROVIDENCE, RI, 02903
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,871,630
Exercised Options: $49,871,630
Current Obligation: $49,871,630
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-06-12
Current End Date: 2014-12-16
Potential End Date: 2014-12-16 00:00:00
Last Modified: 2020-05-29
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