Department of the Army awards $29.7M construction contract to Cox Construction Co. for Fort Irwin facilities

Contract Overview

Contract Amount: $29,693,323 ($29.7M)

Contractor: COX Construction CO

Awarding Agency: Department of Defense

Start Date: 2013-09-20

End Date: 2016-08-09

Contract Duration: 1,054 days

Daily Burn Rate: $28.2K/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 FT IRWIN MATES PHSIII BASE BID

Place of Performance

Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $29.7 million to COX CONSTRUCTION CO for work described as: CONSTRUCT FT IRWIN MATES PHSIII BASE BID Key points: 1. Contract value represents a significant investment in military infrastructure. 2. Competition was conducted after excluding certain sources, warranting scrutiny of the process. 3. The firm-fixed-price contract type suggests a defined scope and cost structure. 4. Project duration of 1054 days indicates a substantial construction undertaking. 5. The contract was awarded in California, impacting local and regional economies. 6. The base bid was $28.17M, with the final award at $29.69M, a slight increase.

Value Assessment

Rating: fair

The contract value of $29.7 million for industrial building construction at Fort Irwin appears within a reasonable range for large-scale military infrastructure projects. However, without specific benchmarks for similar facility types and complexities at other bases, a precise value-for-money assessment is challenging. The final award was approximately 5.3% above the initial base bid, which could be attributed to scope adjustments or market fluctuations during the contract period. Further analysis would require comparing this cost to similar construction projects within the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were excluded from bidding. The number of bidders was eight, suggesting a moderate level of interest. The exclusion of sources may limit the full benefit of open competition, potentially impacting price discovery and the range of innovative solutions considered.

Taxpayer Impact: Taxpayers benefit from a competitive process, but the exclusion of sources warrants further investigation to ensure the most cost-effective outcome was achieved.

Public Impact

The primary beneficiaries are the U.S. Army personnel and operations at Fort Irwin, California, through improved facilities. The contract delivers industrial building construction services, essential for base maintenance and operational readiness. The geographic impact is concentrated in California, potentially creating local jobs and economic activity. The project likely involved a significant construction workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method raises questions about fairness and potential limitations on cost savings.
The increase from the base bid to the final award amount warrants examination to understand the drivers of the additional cost.
Lack of detailed per-unit cost data makes it difficult to benchmark efficiency against industry standards.

Positive Signals

The award to Cox Construction Co. suggests they met the technical and financial requirements of the Department of the Army.
Eight bidders participated, indicating a degree of market interest and competition.
The firm-fixed-price contract type provides cost certainty for the government once awarded.

Sector Analysis

This contract falls within the Industrial Building Construction sector, a critical component of the broader construction industry supporting government and private infrastructure. The market for large-scale military construction is substantial, with significant annual spending by the Department of Defense. This project at Fort Irwin is one of many such investments aimed at maintaining and upgrading military bases across the country. Comparable spending benchmarks would typically involve analyzing costs for similar military facility construction projects.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Without this information, it's difficult to assess the impact on the small business ecosystem. Typically, large construction contracts may include provisions for small business participation, but this specific award's details are not available.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract structure, which places cost risk on the contractor. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Fort Irwin Military Base Operations
Department of Defense Construction Contracts
Industrial Facility Construction
Army Corps of Engineers Projects

Risk Flags

Competition Method - Exclusion of Sources
Award Value vs. Base Bid Variance
Lack of Detailed Cost Breakdown

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to COX CONSTRUCTION CO. CONSTRUCT FT IRWIN MATES PHSIII BASE BID

Who is the contractor on this award?

The obligated recipient is COX CONSTRUCTION CO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $29.7 million.

What is the period of performance?

Start: 2013-09-20. End: 2016-08-09.

What is the track record of Cox Construction Co. with federal contracts, particularly with the Department of Defense?

Cox Construction Co. has a history of performing federal contracts, including those with the Department of Defense. Analyzing their past performance on similar projects, such as base construction or industrial facility development, would provide insight into their capabilities and reliability. Reviewing contract close-out data, any past performance evaluations, and the number and nature of any disputes or claims filed against them would offer a comprehensive view of their track record. Understanding their experience with firm-fixed-price contracts and projects of similar scale and complexity is crucial for assessing future performance risks.

How does the final award price of $29.7M compare to the initial base bid of $28.17M, and what factors contributed to this increase?

The final award price of $29.7 million represents an increase of approximately $1.52 million, or about 5.3%, over the initial base bid of $28.17 million. This variance could stem from several factors common in large construction projects. These might include adjustments to the scope of work based on detailed site assessments, unforeseen site conditions, escalation of material or labor costs during the bidding and negotiation phase, or the inclusion of options or modifications exercised post-award. A thorough review of the contract modifications and justifications would be necessary to pinpoint the exact reasons for this increase and assess its reasonableness.

What are the specific risks associated with a 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type presents a unique risk profile. While it aims for broad competition, the explicit exclusion of certain sources can limit the pool of potential bidders. This limitation might reduce the likelihood of receiving the most competitive pricing or the most innovative solutions available in the market. The risk lies in whether the exclusion was justified and if it inadvertently led to a higher cost for the government or a less optimal outcome. Transparency regarding the rationale for exclusion is key to mitigating this risk and ensuring fair competition.

What is the estimated value of similar industrial building construction contracts awarded by the Department of the Army in the past five years?

Estimating the value of similar industrial building construction contracts requires accessing and analyzing historical federal procurement data. Based on general market knowledge, large-scale industrial construction projects for military bases can range from tens of millions to hundreds of millions of dollars, depending on the scope, complexity, and location. For instance, projects involving barracks, maintenance facilities, or specialized industrial buildings often fall within this significant investment bracket. A detailed analysis of contracts with similar North American Industry Classification System (NAICS) codes (like 236210 for Industrial Building Construction) awarded by the Department of the Army over the last five years would provide a more precise benchmark for this $29.7 million contract.

What are the potential long-term implications of this contract on the operational capabilities and infrastructure of Fort Irwin?

The construction of new or upgraded industrial facilities at Fort Irwin, funded by this $29.7 million contract, is expected to have positive long-term implications for the base's operational capabilities and infrastructure. Improved facilities can enhance maintenance efficiency, provide better support for training exercises, and ensure compliance with modern safety and environmental standards. This investment contributes to the overall readiness and modernization of the base, potentially reducing future maintenance costs and improving the quality of life for service members stationed there. The specific impact will depend on the exact nature of the industrial buildings constructed.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912LA13R0003

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3170 SCOTT ST, VISTA, CA, 92081

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

Financial Breakdown

Contract Ceiling: $30,323,323

Exercised Options: $29,693,323

Current Obligation: $29,693,323

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $18,614,654

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline