DLA Warehouse Construction Contract Awarded to R. C. Construction Co. for $22.9 Million

Contract Overview

Contract Amount: $22,936,335 ($22.9M)

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

Awarding Agency: Department of Defense

Start Date: 2008-09-23

End Date: 2011-02-15

Contract Duration: 875 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DLA WAREHOUSE ROBINS AFB GA

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to R. C. CONSTRUCTION CO., INC. for work described as: DLA WAREHOUSE ROBINS AFB GA Key points: 1. Contract value represents a significant investment in logistics infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration of 875 days indicates a substantial construction undertaking. 5. Geographic focus on Georgia highlights regional infrastructure development. 6. No small business set-aside indicates a focus on larger prime contractors.

Value Assessment

Rating: fair

The contract value of $22.9 million for warehouse construction appears within a reasonable range for a project of this scale, though specific benchmarking against similar DLA or DoD warehouse projects would provide a clearer picture of value for money. The firm fixed-price structure suggests an effort to manage cost overruns, but the ultimate value depends on the quality of construction and adherence to schedule. Without detailed cost breakdowns or comparisons to industry benchmarks for similar square footage and complexity, a definitive assessment of excellent value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 5 bidders identified, the competition level appears moderate. A moderate number of bidders can suggest a healthy market interest while potentially preventing the extreme price reductions seen in highly saturated bid environments. This level of competition generally supports price discovery and encourages competitive pricing.

Taxpayer Impact: Full and open competition with multiple bidders is generally favorable for taxpayers, as it increases the likelihood of receiving competitive pricing and encourages contractors to offer their best value proposals to secure the award.

Public Impact

The primary beneficiary is the Defense Logistics Agency (DLA), which gains enhanced warehouse capacity at Robins AFB. The service delivered is the construction of a new warehouse facility, crucial for military supply chain operations. The geographic impact is concentrated in Georgia, specifically at Robins Air Force Base. Workforce implications include job creation for construction workers and related trades in the local Georgia economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price contract.
Risk of schedule delays impacting DLA's operational readiness.
Quality control during construction is critical to ensure long-term durability and functionality.
Dependence on a single prime contractor (R. C. Construction Co., Inc.) for project completion.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type helps to establish cost certainty for the government.
Project located at a major military installation (Robins AFB), indicating strategic importance.
Contract awarded to a company with experience in commercial and institutional building construction.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for large-scale construction projects, particularly for government facilities, is substantial. This project aligns with broader federal spending trends in infrastructure development and military base support. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar government warehouse constructions in the region or nationally.

Small Business Impact

The absence of a small business set-aside for this contract suggests that the primary focus was on securing the best overall proposal from any responsible source, potentially favoring larger, established construction firms. While R. C. Construction Co., Inc. may engage small businesses as subcontractors, the prime contract itself does not guarantee direct opportunities for small businesses. The subcontracting plan, if required, would detail the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) at Robins AFB. Accountability measures are embedded in the firm fixed-price contract terms, with penalties for delays and requirements for meeting construction standards. Transparency is facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

DLA Warehouse Operations
Military Construction Projects
Robins AFB Infrastructure Development
Federal Building Construction Contracts

Risk Flags

Potential for schedule delays
Risk of cost overruns (contractor side)
Quality control during construction
Dependence on prime contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to R. C. CONSTRUCTION CO., INC.. DLA WAREHOUSE ROBINS AFB GA

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 $22.9 million.

What is the period of performance?

Start: 2008-09-23. End: 2011-02-15.

What is the track record of R. C. Construction Co., Inc. with federal contracts, particularly within the Department of Defense?

R. C. Construction Co., Inc. has a history of performing federal contracts, including those with the Department of Defense. Analyzing their past performance on similar construction projects, including adherence to schedule, budget, and quality standards, is crucial. A review of their contract history would reveal the number and value of previous awards, any performance issues or disputes, and their success rate in completing projects. This information helps assess their capability and reliability for undertaking a significant project like the DLA warehouse construction.

How does the awarded price of $22.9 million compare to industry benchmarks for similar warehouse construction projects?

To benchmark the $22.9 million award, one would compare the cost per square foot against similar government or commercial warehouse construction projects in Georgia or the Southeast region. Factors such as building size, complexity, materials used, and specific site requirements at Robins AFB would need to be considered. Without detailed project specifications (e.g., square footage, ceiling height, specialized storage needs), a precise comparison is challenging. However, general industry data suggests that large-scale industrial construction can range significantly, making a detailed cost-per-square-foot analysis essential for a true value assessment.

What are the primary risks associated with this firm fixed-price construction contract, and how are they mitigated?

The primary risks in a firm fixed-price construction contract include potential cost overruns for the contractor if unforeseen issues arise (e.g., unexpected site conditions, material price increases) and schedule delays. For the government, risks include the contractor potentially cutting corners on quality to maintain profitability or meet deadlines. Mitigation strategies include robust contract oversight, clear performance standards, liquidated damages clauses for delays, and thorough pre-construction site assessments. The government's ability to enforce quality standards and timely completion is key to mitigating these risks.

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

Full and open competition is generally considered the most effective strategy for achieving optimal value, as it maximizes the pool of potential bidders and encourages competitive pricing. With 5 bidders, the competition was likely sufficient to drive down prices. However, the effectiveness also depends on the clarity of the solicitation requirements and the evaluation criteria used. If the solicitation was well-defined and the evaluation process fair and rigorous, this approach should have yielded a competitive price and a qualified contractor. The ultimate measure of effectiveness will be the project's successful completion on time and within budget.

What is the historical spending pattern for warehouse construction or similar facilities by the DLA or Department of the Army at Robins AFB?

Analyzing historical spending patterns for warehouse construction or similar facilities by the DLA or Department of the Army at Robins AFB would provide context for the $22.9 million award. This involves examining past contracts for similar projects, their values, durations, and the contractors involved. Significant past investments might indicate a consistent need for infrastructure upgrades or expansion. Conversely, a lack of recent similar spending could suggest this is a unique or particularly large-scale project. Understanding historical trends helps assess whether this award is an anomaly or part of a sustained investment strategy.

What are the implications of the contract duration (875 days) on the DLA's operational needs and potential disruptions?

A contract duration of 875 days (approximately 2.4 years) for warehouse construction signifies a substantial project timeline. This duration has direct implications for the DLA's operational needs, potentially requiring temporary storage solutions or phased operational adjustments during construction. The longer the project, the greater the potential for disruptions to existing logistics flows and the increased risk of unforeseen issues impacting the schedule. Effective project management and communication between the DLA and the contractor are crucial to minimize operational impact and ensure the new facility is delivered when needed.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 311 W PARK AVE, GREENWOOD, MS, 02

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

Financial Breakdown

Contract Ceiling: $22,936,335

Exercised Options: $22,936,335

Current Obligation: $22,936,335

Contract Characteristics

Cost or Pricing Data: NO

Timeline