DoD Awards $63.3M Firm Fixed Price Contract for Visiting Quarters Construction to Roy Anderson Corp
Contract Overview
Contract Amount: $63,322,406 ($63.3M)
Contractor: ROY Anderson Corp
Awarding Agency: Department of Defense
Start Date: 2018-06-22
End Date: 2021-11-05
Contract Duration: 1,232 days
Daily Burn Rate: $51.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF VISITING QTRS
Place of Performance
Location: CHARLESTON AFB, CHARLESTON County, SOUTH CAROLINA, 29404
Plain-Language Summary
Department of Defense obligated $63.3 million to ROY ANDERSON CORP for work described as: CONSTRUCTION OF VISITING QTRS Key points: 1. The contract value of $63.3 million is significant for a single construction project. 2. Roy Anderson Corp, the awardee, is a large business, indicating potential competition from other large firms. 3. The 'SC' status code might indicate a specific type of contract or set-aside, requiring further investigation for risk. 4. The sector is Commercial and Institutional Building Construction, a common area for federal spending.
Value Assessment
Rating: fair
The contract value of $63.3 million is substantial. Without specific benchmarks for visiting quarters construction in South Carolina, it's difficult to definitively assess pricing. The provided 'br' value of 51398 might represent a benchmark or previous award, but its context is unclear.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the number of bids received ('no': 2) is relatively low for a large contract, which could indicate limited effective competition or a specialized market.
Taxpayer Impact: The use of firm fixed price is generally favorable for taxpayers as it shifts cost risk to the contractor. The total value indicates a significant investment of taxpayer funds.
Public Impact
Military personnel and their families will benefit from improved visiting quarters. The construction project will likely create jobs in the local South Carolina economy. The duration of the contract (1232 days) suggests a complex and lengthy construction process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Low number of bids (2) for a large contract.
- Unclear meaning of 'br' value.
- Potential for cost overruns despite firm fixed price if scope changes.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
- Project addresses a clear need for military facilities.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector is substantial, covering a wide range of infrastructure and facility projects. Benchmarks would typically be based on square footage, project complexity, and location.
Small Business Impact
The contract was awarded to a large business (ss: false, sb: false), indicating no specific set-aside for small businesses. This means small businesses likely participated as subcontractors, but direct prime contract opportunities were not prioritized.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract management teams ensuring adherence to specifications, timelines, and budget. The firm fixed price nature provides some inherent cost control.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Low bid count.
- Unclear benchmark data ('br').
- Potential for scope creep on long-duration projects.
- Limited visibility into subcontractor participation.
Tags
commercial-and-institutional-building-co, department-of-defense, sc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.3 million to ROY ANDERSON CORP. CONSTRUCTION OF VISITING QTRS
Who is the contractor on this award?
The obligated recipient is ROY ANDERSON CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $63.3 million.
What is the period of performance?
Start: 2018-06-22. End: 2021-11-05.
What is the benchmark cost per square foot for similar visiting quarters construction projects in the region?
Determining the benchmark cost per square foot for similar visiting quarters construction projects in South Carolina requires access to specialized construction cost databases and analysis of comparable government and commercial projects. Factors like material costs, labor rates, specific design requirements, and site conditions significantly influence per-square-foot pricing. Without this granular data, a precise benchmark is unavailable, making it challenging to fully assess the value for money.
What were the primary reasons for the low number of bids received for this substantial contract?
The low number of bids (two) for this $63.3 million contract could stem from several factors. The specialized nature of military construction, stringent pre-qualification requirements, or the specific geographic location might have limited the pool of eligible and interested contractors. Alternatively, the timing of the solicitation or the perceived complexity and risk associated with the project could have deterred broader participation from the market.
How effectively does the firm fixed price contract mitigate potential cost overruns given the project's long duration?
A firm fixed price contract is designed to transfer cost overrun risk to the contractor. However, for a project spanning 1232 days, the risk of unforeseen issues like material price escalation, labor shortages, or design changes remains. Effective mitigation relies on robust contract clauses addressing scope changes, clear performance standards, and diligent oversight by the contracting agency to prevent costly modifications and ensure the contractor manages risks proactively.
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: W912HP17R0020
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tutor Perini Corporation
Address: 11400 REICHOLD RD, GULFPORT, MS, 39503
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,322,406
Exercised Options: $63,322,406
Current Obligation: $63,322,406
Actual Outlays: $58,805
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-06-22
Current End Date: 2021-11-05
Potential End Date: 2021-11-05 00:00:00
Last Modified: 2022-03-16
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