Fort Liberty supply support contract awarded to Messer Construction Co. for $17.26M

Contract Overview

Contract Amount: $17,255,870 ($17.3M)

Contractor: Messer Construction CO

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2025-12-19

Contract Duration: 812 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PN 87447 SUPPLY SUPPORT ACTIVITY BASED CLINS FOR FORT LIBERTY, NC (USACE - WILMINGTON DISTRICT).

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to MESSER CONSTRUCTION CO for work described as: PN 87447 SUPPLY SUPPORT ACTIVITY BASED CLINS FOR FORT LIBERTY, NC (USACE - WILMINGTON DISTRICT). Key points: 1. Contract value of $17.26M for supply support activities. 2. Awarded to Messer Construction Co. under full and open competition. 3. Contract duration extends to December 2025. 4. Firm Fixed Price contract type suggests predictable costs. 5. Performance location is Fort Liberty, North Carolina. 6. This contract falls under commercial and institutional building construction. 7. Two bids were received, indicating moderate competition.

Value Assessment

Rating: good

The contract value of $17.26M for supply support activities at Fort Liberty appears reasonable given the scope and duration. While specific benchmarks for this exact type of supply support are not readily available, the firm fixed price structure helps control costs. The competition level, with two bidders, suggests a degree of market interest and potential for competitive pricing, though more bidders could have potentially driven prices lower.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Two bids were received, which indicates a moderate level of competition for this requirement. While not a highly contested bid, it suggests that the market was aware of the opportunity and that at least one other entity was interested in performing the work.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it allows for a wider pool of potential contractors, increasing the likelihood of receiving competitive pricing and innovative solutions.

Public Impact

Military personnel and operations at Fort Liberty, North Carolina will benefit from improved supply support. The contract ensures the availability of necessary supplies for base operations. Geographic impact is concentrated in North Carolina. Potential for local workforce engagement through the contractor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Firm Fixed Price contract type provides cost certainty.
Contract duration is clearly defined, allowing for planning.
Contractor is Messer Construction Co., a known entity in construction.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically related to supporting base operations through supply activities. The market for construction and support services for military installations is substantial, with significant government spending allocated annually. This contract represents a portion of that broader spending, aiming to ensure the functional readiness of a key military facility.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, Messer Construction Co., may engage small businesses as subcontractors, which would depend on their own procurement practices and the specific needs of the supply support activities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, specifically the USACE - Wilmington District, given the nature of the work at Fort Liberty. Accountability measures are embedded in the firm fixed price contract type, which incentivizes the contractor to meet performance standards within the agreed-upon budget. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly detailed.

Related Government Programs

Fort Liberty Base Operations Support
USACE Construction Contracts
Department of Defense Supply Chain Management
Military Base Infrastructure Maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to MESSER CONSTRUCTION CO. PN 87447 SUPPLY SUPPORT ACTIVITY BASED CLINS FOR FORT LIBERTY, NC (USACE - WILMINGTON DISTRICT).

Who is the contractor on this award?

The obligated recipient is MESSER 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 $17.3 million.

What is the period of performance?

Start: 2023-09-29. End: 2025-12-19.

What is the track record of Messer Construction Co. with Department of Defense contracts?

Messer Construction Co. has a history of working with the Department of Defense, as indicated by this award. While this specific data point does not provide a comprehensive history, government contract databases often detail past performance, including contract values, types, and agencies served. A deeper dive into federal procurement records would reveal the extent and nature of their prior DoD engagements, including any performance issues or successes. This information is crucial for assessing their reliability and experience in handling similar projects, especially those involving critical supply support for military installations.

How does the $17.26M contract value compare to similar supply support contracts at other military bases?

Benchmarking this $17.26M contract value against similar supply support contracts at other military bases requires access to a broader dataset of comparable awards. Factors such as the size of the base, the specific types of supplies managed, the duration of the contract, and the geographic location (which can influence labor and material costs) all play a significant role. Without direct comparisons, it's difficult to definitively state if this value is high or low. However, for a contract spanning over two years and supporting a major installation like Fort Liberty, the amount appears to be within a plausible range for comprehensive supply chain management and support services.

What are the primary risks associated with this firm fixed price contract for supply support?

The primary risks associated with this firm fixed price (FFP) contract for supply support primarily lie with the contractor, Messer Construction Co. If costs for labor, materials, or logistics exceed the fixed price, the contractor absorbs the loss. Conversely, the government's risk is minimized in terms of cost overruns. However, potential risks for the government include the contractor potentially cutting corners on quality or service to maintain profitability, or facing financial instability that could lead to performance issues or contract termination. Ensuring robust performance monitoring and clear quality standards are essential to mitigate these risks.

How effective is the 'full and open competition' approach for securing competitive pricing in construction support contracts?

The 'full and open competition' approach is generally considered the most effective method for securing competitive pricing in construction support contracts. By allowing all responsible sources to bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving multiple competitive proposals. This competition drives down prices and encourages innovation as contractors vie for the award. While this specific contract received two bids, which is a moderate level of competition, the principle remains that a wider net cast through full and open competition offers the best opportunity for the government to obtain the best value for taxpayer dollars compared to more restrictive procurement methods.

What are the historical spending patterns for supply support activities at Fort Liberty?

Analyzing historical spending patterns for supply support activities at Fort Liberty would require accessing historical contract data for the installation. This would involve looking at previous contracts awarded for similar services, their values, durations, and the contractors involved. Understanding these patterns can reveal trends in cost escalation, contractor stability, and the overall investment in base support functions. Without specific historical data for Fort Liberty's supply support, it is challenging to provide a detailed analysis of past spending trends. However, such an analysis would be critical for future budget planning and identifying potential efficiencies.

What is the potential impact of a two-bid competition on the final contract price?

A competition with only two bids, as seen in this case, generally presents a moderate level of price pressure. While it is better than a sole-source award, it is less competitive than a scenario with numerous bidders. The final contract price is influenced by the specific strategies and cost structures of the two competing firms. It is possible that with more bidders, the price could have been driven lower due to increased competitive tension. However, if both bidders were highly capable and submitted aggressive pricing, the resulting price could still represent good value. The government's negotiation strategy also plays a role in optimizing the final price.

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: W912PM23R0002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 643 W COURT ST, CINCINNATI, OH, 45203

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,255,870

Exercised Options: $17,255,870

Current Obligation: $17,255,870

Actual Outlays: $3,770,133

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline