J.C.N. CONSTRUCTION CO., INC. awarded $23.6M for commercial building construction by the Department of the Army

Contract Overview

Contract Amount: $23,564,123 ($23.6M)

Contractor: J.C.N. Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-20

End Date: 2015-12-01

Contract Duration: 1,167 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT AFRC

Place of Performance

Location: BRUNSWICK, CUMBERLAND County, MAINE, 04011, UNITED STATES OF AMERICA

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $23.6 million to J.C.N. CONSTRUCTION CO., INC. for work described as: CONSTRUCT AFRC Key points: 1. Contract value of $23.6M for commercial and institutional building construction. 2. Awarded by the Department of the Army, indicating a focus on defense-related infrastructure. 3. Contract duration of 1167 days suggests a significant, long-term project. 4. Firm Fixed Price contract type implies predictable costs for the government. 5. The contract was awarded under Full and Open Competition after Exclusion of Sources, suggesting a competitive process with specific criteria. 6. The North American Industry Classification System (NAICS) code 236220 points to general commercial and institutional building construction.

Value Assessment

Rating: fair

The contract value of $23.6 million for commercial and institutional building construction appears within a reasonable range for a project of this scope and duration. Benchmarking against similar large-scale construction projects awarded by the Department of Defense would provide a more precise assessment of value for money. The firm fixed price structure helps mitigate cost overruns, but the initial bid competitiveness is crucial for ensuring optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that while the competition was open, certain sources were excluded based on specific criteria, likely related to qualifications, past performance, or security requirements. The presence of 8 bidders suggests a reasonably competitive environment, which should have contributed to price discovery and a fair market price.

Taxpayer Impact: The competitive nature of this award, despite source exclusions, suggests that taxpayers likely benefited from a range of bids, leading to a more efficient use of funds compared to a sole-source procurement.

Public Impact

The primary beneficiaries are likely the Department of the Army and its personnel, who will utilize the constructed facilities. The services delivered include the construction of commercial and institutional buildings, essential for military operations and support. The geographic impact is centered in Maine (ST: ME, SN: MAINE), where the construction project is located. Workforce implications include job creation for construction workers, engineers, project managers, and related trades in the local Maine economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if excluded sources had offered significantly lower bids.
Risk of project delays if construction complexities were underestimated.
Dependence on the performance and financial stability of J.C.N. CONSTRUCTION CO., INC. for project completion.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Multiple bidders (8) indicate a competitive process that likely drove a reasonable price.
Long contract duration (1167 days) allows for thorough project execution and quality control.

Sector Analysis

The construction sector is a significant component of federal spending, particularly for agencies like the Department of Defense that require extensive infrastructure. This contract falls under general commercial and institutional building construction, a broad category encompassing a wide range of facilities. Federal spending in this area often involves large, complex projects requiring specialized expertise and adherence to stringent regulations. Comparable spending benchmarks would typically be assessed based on the type of facility, square footage, and location.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary focus was on securing the best value through open competition. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem. Future analysis could explore if any subcontractors were small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army, responsible for monitoring performance, quality, and compliance. Accountability measures are embedded in the firm fixed price contract, which penalizes the contractor for cost overruns. Transparency is generally maintained through contract award databases, though specific project details and oversight reports may not always be publicly accessible.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Federal Building Construction
Department of Defense Facilities Management

Risk Flags

Potential for cost overruns if contractor underestimates project scope.
Risk of quality compromise if contractor faces financial pressure under FFP.
Dependence on contractor's ability to meet specific exclusion criteria for competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.6 million to J.C.N. CONSTRUCTION CO., INC.. CONSTRUCT AFRC

Who is the contractor on this award?

The obligated recipient is J.C.N. 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 $23.6 million.

What is the period of performance?

Start: 2012-09-20. End: 2015-12-01.

What is the track record of J.C.N. CONSTRUCTION CO., INC. with federal contracts, particularly with the Department of Defense?

A review of federal contract databases would be necessary to fully assess J.C.N. CONSTRUCTION CO., INC.'s track record. This would involve examining past awards, performance evaluations (if available), and any history of contract disputes or terminations. Understanding their experience with similar-sized projects and their performance on firm fixed-price contracts would provide crucial context for evaluating their reliability and capability in executing this $23.6 million award. Without specific historical data, it's difficult to definitively gauge their past performance.

How does the awarded amount of $23.6 million compare to similar commercial building construction projects by the Department of Defense?

To benchmark the $23.6 million award, one would need to compare it against contracts for similar types of commercial and institutional buildings (NAICS 236220) awarded by the Department of Defense or other federal agencies over a comparable period. Factors such as square footage, complexity of construction, location, and specific facility requirements (e.g., security, specialized equipment) would need to be considered. A higher number of bidders in this contract (8) suggests a competitive market, which typically leads to more favorable pricing for the government compared to sole-source or limited competition awards for similar projects.

What are the primary risks associated with a firm fixed-price contract for a large construction project like this?

The primary risk with a firm fixed-price (FFP) contract for a large construction project is that the contractor bears the brunt of any cost overruns. While this protects the government from unexpected price increases, it can incentivize the contractor to cut corners on quality or scope if they encounter unforeseen difficulties, potentially leading to disputes or subpar results. Conversely, if the contractor significantly underestimates costs, they may face financial distress, impacting project completion. Effective oversight is crucial to ensure the contractor maintains quality standards despite the FFP structure.

What does the 'Exclusion of Sources' in the competition type imply for the overall fairness and competitiveness of the award?

The 'Exclusion of Sources' within a 'Full and Open Competition' framework implies that while the competition was broadly open, specific potential bidders were disqualified based on predefined criteria. These criteria could relate to security clearances, specialized certifications, past performance issues, or specific technical capabilities deemed essential for the project. While this narrows the field, it is intended to ensure that only qualified and capable contractors participate, potentially leading to a more successful project outcome. The presence of 8 bidders suggests that even with exclusions, a sufficient number of qualified entities remained to foster competition.

What is the historical spending pattern for commercial and institutional building construction by the Department of the Army?

Analyzing historical spending patterns for commercial and institutional building construction by the Department of the Army would involve examining contract awards over several fiscal years, categorized by NAICS code 236220. This would reveal trends in contract values, average contract durations, and the prevalence of different contract types (e.g., FFP, cost-plus). Understanding these patterns can help identify periods of increased investment in infrastructure, potential budget fluctuations, and the typical scale of projects undertaken by the Army, providing context for the $23.6 million award.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 155 DOW ST STE 301, MANCHESTER, NH, 03101

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

Financial Breakdown

Contract Ceiling: $23,991,423

Exercised Options: $23,564,123

Current Obligation: $23,564,123

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,759,760

Contract Characteristics

Cost or Pricing Data: NO

Timeline