DoD Awards $52.4M Clearing & Grubbing Contract to R. C. Construction Co., Inc

Contract Overview

Contract Amount: $52,417,000 ($52.4M)

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

Awarding Agency: Department of Defense

Start Date: 2024-07-15

End Date: 2026-10-05

Contract Duration: 812 days

Daily Burn Rate: $64.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CLEARING & GRUBBING

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $52.4 million to R. C. CONSTRUCTION CO., INC. for work described as: CLEARING & GRUBBING Key points: 1. Contract Value: $52.4 million for clearing and grubbing services. 2. Competition: Awarded under full and open competition. 3. Risk: Firm fixed price contract type may mitigate cost overrun risk. 4. Sector: Commercial and Institutional Building Construction.

Value Assessment

Rating: good

The contract value of $52.4 million appears substantial for clearing and grubbing services. Benchmarking against similar contracts would be necessary to fully assess pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing competitive pricing.

Public Impact

Supports infrastructure development projects by preparing land for construction. Ensures compliance with environmental regulations during land clearing. Provides essential services for military base construction and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for site preparation. Spending in this sector can fluctuate based on infrastructure needs and government project pipelines.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-aside goals were considered or met through subcontracting.

Oversight & Accountability

The Department of the Army awarded this contract, implying oversight from this branch of the Department of Defense. Standard procurement regulations and oversight mechanisms should apply.

Related Government Programs

Risk Flags

Tags

commercial-and-institutional-building-co, department-of-defense, nc, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.4 million to R. C. CONSTRUCTION CO., INC.. CLEARING & GRUBBING

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 $52.4 million.

What is the period of performance?

Start: 2024-07-15. End: 2026-10-05.

What is the typical cost range for clearing and grubbing services of this magnitude in North Carolina?

The typical cost range for clearing and grubbing services of this magnitude can vary significantly based on factors like terrain, vegetation density, environmental regulations, and specific project requirements. Without detailed project specifications, providing a precise benchmark is challenging. However, for a project of this scale, costs could range from several million to tens of millions of dollars, with the $52.4 million award suggesting a large or complex undertaking.

What are the potential risks associated with a firm fixed price contract for a long-duration project?

A firm fixed price contract for a long-duration project like this carries risks for both parties. The contractor assumes the risk of cost overruns if expenses exceed estimates, potentially leading to reduced profit or even losses. Conversely, the government risks paying a premium if the contractor's initial bid was high, as the price is fixed regardless of actual costs incurred. Scope creep or unforeseen site conditions can exacerbate these risks.

How effectively does full and open competition ensure optimal value for taxpayer money in construction-related services?

Full and open competition is designed to maximize value by encouraging multiple bidders to offer their best pricing and technical solutions. This competitive pressure typically drives down costs and improves the quality of services. However, effectiveness can be influenced by the clarity of the solicitation, the responsiveness of potential bidders, and the government's ability to accurately define requirements and evaluate proposals to ensure the lowest price technically acceptable or best value is achieved.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912HN24B3002

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 310 W PARK AVE, GREENWOOD, MS, 38930

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

Financial Breakdown

Contract Ceiling: $52,417,000

Exercised Options: $52,417,000

Current Obligation: $52,417,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2024-07-15

Current End Date: 2026-10-05

Potential End Date: 2026-10-05 00:00:00

Last Modified: 2024-10-15

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