DoD Awards $1.647 Billion Contract to R. C. Construction for Commercial Building Construction
Contract Overview
Contract Amount: $16,473,522 ($16.5M)
Contractor: R. C. Construction CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2005-09-30
End Date: 2008-01-25
Contract Duration: 847 days
Daily Burn Rate: $19.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: SAVANNAH, CHATHAM County, GEORGIA, 31405
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $16.5 million to R. C. CONSTRUCTION CO., INC. for work described as: Key points: 1. Significant contract value of $1.647 billion awarded. 2. Full and open competition utilized, suggesting a competitive bidding process. 3. Contract duration of 847 days indicates a substantial project timeline. 4. Firm Fixed Price contract type aims to control costs for the government.
Value Assessment
Rating: fair
The contract value of $1.647 billion is substantial. Benchmarking against similar large-scale commercial and institutional building construction contracts would be necessary to fully assess pricing reasonableness. The firm fixed price nature provides cost certainty.
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 considered. This method generally promotes price discovery and competitive pricing, although the specific number of bids received is not provided.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value through competitive pricing. The firm fixed price contract further protects taxpayer funds by establishing a ceiling on costs.
Public Impact
Large-scale construction projects can impact local economies through job creation and material sourcing. The Department of the Army's investment in infrastructure through this contract supports its operational capabilities. Long-term maintenance and usability of the constructed facilities will be a key factor in the overall value delivered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the scope of work and deliverables.
- Potential for cost overruns if unforeseen issues arise, despite fixed price.
- Need for robust oversight to ensure quality and timely completion.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type offers cost certainty.
- Significant investment in infrastructure.
Sector Analysis
The construction sector is vital for government infrastructure development. This contract falls under Commercial and Institutional Building Construction, a broad category encompassing various building types. Benchmarks for similar large-scale federal construction projects would provide further context on pricing and efficiency.
Small Business Impact
The data indicates that the awardee is R. C. CONSTRUCTION CO., INC., and that small business participation (sb) was false. This suggests that small businesses were not directly involved as the prime contractor on this specific award, though they may have participated as subcontractors.
Oversight & Accountability
The contract is managed by the Department of the Army, a component of the Department of Defense. Oversight would typically involve project managers ensuring adherence to contract terms, quality standards, and timelines. The 'st' (status) field as 'GA' (Georgia) might indicate the location of the project or the contracting office.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large contract value increases financial risk.
- Contract duration of over two years presents schedule risks.
- Lack of small business prime awardee.
- Potential for cost escalation if fixed price is not strictly managed.
- Need for detailed scope of work clarification.
Tags
commercial-and-institutional-building-co, department-of-defense, ga, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.5 million to R. C. CONSTRUCTION CO., INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is R. C. CONSTRUCTION CO., 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 $16.5 million.
What is the period of performance?
Start: 2005-09-30. End: 2008-01-25.
What specific types of commercial and institutional buildings are being constructed under this contract, and how do they align with the Department of the Army's strategic needs?
The provided data does not specify the exact nature of the commercial and institutional buildings. Understanding the project's scope, such as barracks, administrative facilities, or training centers, is crucial to assess its strategic alignment with the Department of the Army's operational requirements and long-term infrastructure planning. Further details would be needed to evaluate this aspect.
Given the firm fixed price, what mechanisms are in place to manage potential scope creep or unforeseen site conditions that could impact the project's overall value and timeline?
While a firm fixed price contract aims to cap costs, robust contract management is essential. The Department of the Army likely employs change order processes for any approved scope modifications, requiring justification and potential price adjustments. Site investigation reports and contingency planning during the bidding phase are critical to mitigate risks associated with unforeseen conditions and maintain project value.
How will the success and effectiveness of this $1.647 billion construction project be measured beyond simple completion, considering factors like long-term durability, operational efficiency, and user
Effectiveness will likely be measured through post-occupancy evaluations, adherence to building codes and standards, energy efficiency ratings, and lifecycle cost analyses. The Department of the Army will probably have performance metrics related to facility functionality, maintenance requirements, and user feedback to ensure the constructed facilities meet long-term operational needs and provide sustained value.
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: HZE
Contractor Details
Address: 311 W PARK AVE, GREENWOOD, MS, 02
Business Categories: Category Business, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $12,994
Exercised Options: $12,994
Current Obligation: $16,473,522
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-09-30
Current End Date: 2008-01-25
Potential End Date: 2008-01-25 00:00:00
Last Modified: 2007-12-05
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