DoD awards $18.16M for elementary school construction in North Carolina

Contract Overview

Contract Amount: $18,158,351 ($18.2M)

Contractor: R. C. Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2007-01-22

End Date: 2008-12-15

Contract Duration: 693 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT ELEMENTARY SCHOOL

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28307

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to R. C. CONSTRUCTION CO., INC. for work described as: CONSTRUCT ELEMENTARY SCHOOL Key points: 1. Contract awarded to R. C. CONSTRUCTION CO., INC. for a firm-fixed-price construction project. 2. Project duration was 693 days, indicating a substantial construction timeline. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. North Carolina is the specified location for the elementary school construction. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded by the Department of the Army, part of the Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this specific elementary school construction contract is challenging without detailed cost breakdowns and comparable project data. The award amount of $18.16 million suggests a significant investment in educational infrastructure. However, without knowing the size, scope, and specific features of the school, it's difficult to assess if the price was competitive or represented good value for money. Further analysis would require comparing the cost per square foot or per student capacity to similar DoD school construction projects in the region or nationally.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of 3 bids indicates a degree of competition for this project. While three bidders suggest some level of market interest, it is not exceptionally high for a project of this magnitude. The level of competition can influence price discovery, and a higher number of bids generally leads to more competitive pricing for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government receives the best possible price for its investment.

Public Impact

The primary beneficiaries of this contract are military families and their children stationed in North Carolina, who will gain access to a new or improved elementary school. The service delivered is the construction of an elementary school facility, providing essential educational infrastructure. The geographic impact is localized to the specific military installation or community in North Carolina where the school is built. The contract supports the construction workforce, including laborers, tradespeople, and project managers, contributing to employment in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Risk of construction delays impacting the school's operational timeline.
Ensuring the quality of construction meets long-term durability standards.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type helps control costs and mitigate financial risk for the government.
The project addresses a clear need for educational facilities for military dependents.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). The Department of Defense is a significant investor in construction projects, including schools, housing, and infrastructure, to support military readiness and personnel welfare. The market for large-scale construction is competitive, with many firms capable of undertaking such projects. Benchmarks for school construction vary widely based on location, size, and specifications, but projects in the multi-million dollar range are common for institutional facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information regarding subcontracting plans for small businesses. Without specific set-aside requirements or reporting on subcontracting, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized services or materials.

Oversight & Accountability

Oversight for this Department of Defense construction contract would typically be managed by the contracting officer and project managers within the Army Corps of Engineers or relevant military branch. Accountability measures would include adherence to contract specifications, timelines, and quality standards. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract lifecycle.

Related Government Programs

Department of Defense Military Construction
Department of Defense Education Activity (DoDEA) Schools
Federal Buildings and Facilities Construction
School Construction Projects

Risk Flags

Potential for cost overruns due to fixed-price nature if unforeseen issues arise.
Risk of schedule delays impacting operational readiness of the school.
Ensuring long-term quality and durability of the constructed facility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to R. C. CONSTRUCTION CO., INC.. CONSTRUCT ELEMENTARY SCHOOL

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 $18.2 million.

What is the period of performance?

Start: 2007-01-22. End: 2008-12-15.

What was the track record of R. C. CONSTRUCTION CO., INC. with the Department of Defense prior to this award?

Analyzing the track record of R. C. CONSTRUCTION CO., INC. with the Department of Defense prior to this $18.16 million elementary school construction award would involve reviewing their past contract history. This includes examining the number of previous awards, their value, the types of services rendered (e.g., construction, maintenance, specific building types), and their performance ratings. A history of successful, on-time, and within-budget completions would indicate a reliable contractor. Conversely, a record of disputes, contract terminations, or poor performance evaluations might raise concerns about their capacity to execute this current project effectively. Without access to specific performance data or past contract details, a definitive assessment of their track record is not possible based solely on the provided award information.

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

The provided data shows the awarded amount for the elementary school construction project is $18,158,351. However, it does not include information about the initial estimated cost or the allocated budget for this project. To assess value for money, a comparison between the awarded price and the government's estimate is crucial. If the award was significantly below the estimate, it could indicate successful competition or a conservative estimate. If it was at or above the estimate, it might suggest the estimate was accurate or that the competition did not yield substantial savings. Without the estimated cost, it's difficult to determine if this award represents a particularly good or bad deal from a budgetary perspective.

What are the key risk indicators associated with a large-scale construction project of this nature?

Key risk indicators for a large-scale construction project like an $18.16 million elementary school include potential for unforeseen site conditions (e.g., soil issues, hazardous materials), weather-related delays impacting the schedule, fluctuations in material costs, labor shortages or disputes, and design or scope changes requested during construction. For a firm-fixed-price contract, the contractor bears more of the cost risk, but scope creep can still lead to change orders and increased costs for the government. Ensuring adequate contingency planning, robust project management, and clear communication channels are vital to mitigate these risks. The 693-day duration also presents a longer window for potential issues to arise.

What is the typical cost range for constructing an elementary school of similar size and scope?

Determining a typical cost range for constructing an elementary school of similar size and scope is complex, as costs vary significantly based on geographic location, specific design requirements, materials used, and prevailing labor rates. However, for a project valued at $18.16 million, it suggests a substantial facility. National averages for K-12 school construction can range from $250 to $500 per square foot, but this is a broad estimate. Factors like specialized facilities (e.g., science labs, gymnasiums), energy efficiency standards, and site preparation can heavily influence the final cost. Without specific details on the square footage, student capacity, or location within North Carolina, a precise benchmark is difficult, but this award falls within the upper range for typical elementary school projects.

How does the competition level (3 bidders) for this contract compare to other similar DoD construction projects?

The fact that this contract received 3 bids under full and open competition provides a moderate level of market engagement. For large-scale construction projects, especially those managed by the Department of Defense, the number of bids can vary. Some highly specialized or geographically constrained projects might attract fewer bidders, while more standard construction efforts could see a dozen or more. Three bidders suggest that the opportunity was known and accessible, but perhaps not so universally appealing or simple that it attracted a vast number of competitors. This level of competition is generally considered adequate to achieve reasonable pricing, but a higher number of bids could potentially have driven the price lower.

What are the implications of a firm-fixed-price contract type for this construction project?

A firm-fixed-price (FFP) contract type, as used in this $18.16 million elementary school construction award, means the price is set and not subject to adjustment based on the contractor's cost experience. This contract type is generally preferred by the government when the scope of work is well-defined and risks are understood, as it provides the most cost certainty. For R. C. CONSTRUCTION CO., INC., it means they assume the risk of cost overruns; if their expenses exceed the fixed price, their profit margin will decrease. Conversely, if they manage costs efficiently, their profit could be higher. This structure incentivizes the contractor to control costs and complete the project efficiently to maximize their profit.

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: W912HN06R0009

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, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $18,673,451

Exercised Options: $18,158,351

Current Obligation: $18,158,351

Contract Characteristics

Cost or Pricing Data: NO

Timeline