DoD's $23.5M Facility Contract Awarded to Record Steel and Construction, Inc. for Squad Operations
Contract Overview
Contract Amount: $23,528,077 ($23.5M)
Contractor: Record Steel and Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-08-15
End Date: 2026-01-30
Contract Duration: 899 days
Daily Burn Rate: $26.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DB FY22 SQUAD OPERATIONS 6 FACILITY
Place of Performance
Location: LUKE AFB, MARICOPA County, ARIZONA, 85309
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $23.5 million to RECORD STEEL AND CONSTRUCTION, INC. for work described as: DB FY22 SQUAD OPERATIONS 6 FACILITY Key points: 1. The contract is for facility support services, indicating a need for infrastructure maintenance or development. 2. Competition was full and open, suggesting a competitive bidding process was utilized. 3. The contract duration is substantial at 899 days, implying a long-term need. 4. The award amount of $23.5M represents a significant investment in facility operations.
Value Assessment
Rating: fair
The contract value of $23.5M for a 899-day duration appears reasonable for facility operations. Benchmarking against similar large-scale construction and maintenance contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayer funds are being used for facility operations, with the competitive nature of the award aiming to ensure efficient use of these funds.
Public Impact
Ensures operational readiness and infrastructure support for Department of the Army. Supports local economy through construction and operational jobs in Arizona. Potential for long-term facility improvements and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration may lead to price escalation risks.
- Scope creep potential in facility operations over 899 days.
Positive Signals
- Full and open competition promotes best value.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for maintaining and developing government infrastructure, with benchmarks varying widely based on project scope and location.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor is not listed as a small business. Opportunities for small businesses may exist as subcontractors.
Oversight & Accountability
Oversight will be crucial to ensure the contractor meets performance standards and manages costs effectively throughout the 899-day contract period, especially given the firm fixed price structure.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration
- Potential for cost escalation
- Scope creep
- Lack of small business set-aside
Tags
commercial-and-institutional-building-co, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.5 million to RECORD STEEL AND CONSTRUCTION, INC.. DB FY22 SQUAD OPERATIONS 6 FACILITY
Who is the contractor on this award?
The obligated recipient is RECORD STEEL AND CONSTRUCTION, 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 $23.5 million.
What is the period of performance?
Start: 2023-08-15. End: 2026-01-30.
What specific services are included in 'SQUAD OPERATIONS FACILITY' to justify the $23.5M cost?
The specific services are not detailed in the provided data. However, 'Squad Operations Facility' typically implies support for personnel, equipment, and administrative functions necessary for unit readiness. This could encompass maintenance, utilities, security, and minor construction or upgrades within a designated facility area.
What are the potential risks associated with a firm fixed price contract for facility operations over nearly three years?
A primary risk is that unforeseen cost increases (e.g., materials, labor) could erode the contractor's profit margin, potentially leading to reduced quality or disputes. Conversely, if costs decrease significantly, the government might be overpaying. Effective oversight is needed to ensure performance standards are met despite potential contractor cost pressures.
How does the $23.5M award compare to similar facility operations contracts awarded by the DoD?
Without specific details on the scope and location, a direct comparison is difficult. However, $23.5M for nearly three years of facility operations suggests a substantial requirement, potentially involving significant infrastructure or a large number of personnel. Benchmarking against contracts for similar-sized bases or operational units would be necessary for a precise assessment.
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: W912PL23R0037
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 333 W ROSSI ST STE 200, BOISE, ID, 83706
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,528,077
Exercised Options: $23,528,077
Current Obligation: $23,528,077
Actual Outlays: $517,867
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,699,720
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-08-15
Current End Date: 2026-01-30
Potential End Date: 2026-01-30 00:00:00
Last Modified: 2025-08-05
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