DoD awards $34M for Aircraft Instructional Facility to Senate Builders & Construction Managers, Inc
Contract Overview
Contract Amount: $34,072,757 ($34.1M)
Contractor: Senate Builders & Construction Managers, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-09-25
End Date: 2019-05-23
Contract Duration: 1,701 days
Daily Burn Rate: $20.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF PROJECT # 420051: AIRCRAFT MAINT INSTRUCTIONAL FACILITY, SOLICITATION W912KC-14-R-0003.
Place of Performance
Location: ANNVILLE, LEBANON County, PENNSYLVANIA, 17003
Plain-Language Summary
Department of Defense obligated $34.1 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC. for work described as: IGF::OT::IGF PROJECT # 420051: AIRCRAFT MAINT INSTRUCTIONAL FACILITY, SOLICITATION W912KC-14-R-0003. Key points: 1. The contract value of $34.07 million is significant for a single construction project. 2. Competition was full and open after exclusion of sources, suggesting a potentially competitive process. 3. The project falls under the Commercial and Institutional Building Construction sector. 4. Fixed-price contracts can offer cost certainty but may limit flexibility for unforeseen issues.
Value Assessment
Rating: fair
The contract value of $34.07 million appears to be within a reasonable range for a large-scale construction project of this nature. Benchmarking against similar government construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This method implies that while the competition was intended to be broad, certain sources were excluded, potentially impacting the breadth of price discovery and the final negotiated price.
Taxpayer Impact: Taxpayer funds are being utilized for this significant construction project. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.
Public Impact
Construction projects of this magnitude can impact local economies through job creation and material sourcing. The facility's purpose (aircraft maintenance instruction) suggests a role in military readiness and training. Government construction contracts are subject to public scrutiny regarding cost, schedule, and quality.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Exclusion of sources in competition
- Potential for cost overruns in fixed-price contracts
- Long project duration (over 4 years)
Positive Signals
- Significant investment in critical infrastructure
- Award to a named construction firm
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector, which is a substantial part of federal spending, particularly for agencies like the Department of Defense. Benchmarks for similar projects would indicate if the $34 million award is competitive.
Small Business Impact
The contract was awarded to Senate Builders & Construction Managers, Inc. There is no indication from the provided data whether small businesses were involved as subcontractors or if this firm itself is a small business. Further analysis would be needed to assess small business participation.
Oversight & Accountability
Oversight would typically involve contract administration by the Department of the Army to ensure adherence to terms, quality standards, and timely completion. Accountability rests with the contracting officers and the performance of the contractor.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition due to source exclusion
- Potential for contractor risk impacting project delivery
- Lack of transparency on small business participation
- Long contract duration may increase risk exposure
Tags
commercial-and-institutional-building-co, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.1 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC.. IGF::OT::IGF PROJECT # 420051: AIRCRAFT MAINT INSTRUCTIONAL FACILITY, SOLICITATION W912KC-14-R-0003.
Who is the contractor on this award?
The obligated recipient is SENATE BUILDERS & CONSTRUCTION MANAGERS, 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 $34.1 million.
What is the period of performance?
Start: 2014-09-25. End: 2019-05-23.
What was the rationale for excluding specific sources in the 'full and open competition after exclusion of sources' method?
The rationale for excluding specific sources typically relates to ensuring that only qualified and capable contractors are considered for the bid. This could be due to specialized requirements, past performance issues with certain firms, or specific security clearances needed for the project. Understanding the exclusion criteria is crucial for assessing the fairness and competitiveness of the procurement process.
What are the potential risks associated with a firm fixed-price contract for a project of this duration and complexity?
Firm fixed-price contracts offer cost certainty to the government but place the risk of cost overruns on the contractor. For a long and complex project like this, risks include the contractor underestimating costs, encountering unforeseen site conditions, or material price escalations. If the contractor cannot absorb these costs, it could lead to delays, quality compromises, or even contract disputes.
How does the $34 million award compare to industry benchmarks for similar aircraft instructional facilities?
Without specific industry benchmark data for aircraft instructional facilities, a direct comparison is difficult. However, $34 million represents a substantial investment. A thorough analysis would involve comparing the cost per square foot, scope of work, and specific features against comparable projects in the construction market to determine if the price is competitive and represents good value.
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
Solicitation ID: W912KC14R0003
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2232 DEKALB PIKE, NORRISTOWN, PA, 19401
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $34,072,757
Exercised Options: $34,072,757
Current Obligation: $34,072,757
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-09-25
Current End Date: 2019-05-23
Potential End Date: 2019-05-23 00:00:00
Last Modified: 2019-09-26
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