DoD awards $26.9M for Fort Campbell construction, raising questions on value and competition

Contract Overview

Contract Amount: $26,934,202 ($26.9M)

Contractor: W. G. Yates & Sons Construction Company

Awarding Agency: Department of Defense

Start Date: 2006-06-14

End Date: 2009-01-12

Contract Duration: 943 days

Daily Burn Rate: $28.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200608!601319!2100!W912QR!USA ENGINEER DIST LOUISVILLE !W912QR06C0031 !A!N! !N! ! !20060614!20070801!004032132!004032132!017041232!N!W G YATES & SONS CONSTRUCTION !1 GULLY AVE !PHILADELPHIA !MS!39350!28468!047!21!FORT CAMPBELL !CHRISTIAN !KENTUCKY !+000025300000!N!N!000025300000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!010!B! !D!Y!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! ! ! ! !0001! !

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $26.9 million to W. G. YATES & SONS CONSTRUCTION COMPANY for work described as: 200608!601319!2100!W912QR!USA ENGINEER DIST LOUISVILLE !W912QR06C0031 !A!N! !N! ! !20060614!20070801!004032132!004032132!017041232!N!W G YATES & SONS CONSTRUCTION !1 GULLY AVE !PHILADELPHIA !MS!39350!28468!047!21!FORT CAMPBELL !CHRI… Key points: 1. Contract awarded for construction services at Fort Campbell, Kentucky. 2. The contract value is $26,934,202. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is Construction, specifically Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

The contract value of $26.9M for construction services appears within a reasonable range for large-scale building projects. However, without specific details on the scope of work, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were allowed to submit proposals. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.

Public Impact

Construction services at a major military installation like Fort Campbell impact local economies and military readiness. The fixed-price contract type suggests a defined scope of work, with the contractor bearing cost overruns. The duration of the contract (943 days) indicates a significant project requiring substantial resources and oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific project details limits full value assessment.
Potential for cost overruns despite fixed-price contract if scope changes.
Long contract duration may introduce risks related to material costs and labor availability.

Positive Signals

Full and open competition promotes competitive pricing.
Fixed-price contract provides cost certainty for the government.
Award to a single contractor streamlines project management.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. Spending in this sector can fluctuate based on infrastructure needs and economic conditions. DoD construction spending is a significant portion of the federal construction budget.

Small Business Impact

While the contract was awarded under full and open competition, there is no explicit information provided regarding small business participation or subcontracting goals within this data. Further investigation would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract was awarded by the Department of the Army, indicating oversight by a specific military branch. The duration and value suggest a need for robust project management and oversight to ensure timely completion and adherence to specifications.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of detailed scope of work.
Potential for cost escalation over the long contract duration.
Limited information on small business participation.
Contract awarded to a single entity, requiring close monitoring of performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to W. G. YATES & SONS CONSTRUCTION COMPANY. 200608!601319!2100!W912QR!USA ENGINEER DIST LOUISVILLE !W912QR06C0031 !A!N! !N! ! !20060614!20070801!004032132!004032132!017041232!N!W G YATES & SONS CONSTRUCTION !1 GULLY AVE !PHILADELPHIA !MS!39350!28468!047!21!FORT CAMPBELL !CHRISTIAN !KENTUCKY !+000025300000!N!N!000025300000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is W. G. YATES & SONS CONSTRUCTION COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.9 million.

What is the period of performance?

Start: 2006-06-14. End: 2009-01-12.

What specific construction services were procured under this contract, and how do they align with Fort Campbell's operational needs?

The data indicates the contract is for 'OTHER MISCELLANEOUS BUILDINGS' (PSC NAICS 236220). This suggests a broad category of construction, potentially including barracks, administrative buildings, or support facilities. Understanding the exact nature of these buildings is crucial to assessing their alignment with Fort Campbell's current and future operational requirements and ensuring the funds are allocated effectively towards critical infrastructure.

Given the fixed-price nature, what mechanisms are in place to manage potential scope creep or unforeseen issues during the 943-day performance period?

Fixed-price contracts aim to transfer cost risk to the contractor. However, managing scope creep requires clear contract language, a strong change order process, and diligent government oversight. For a project of this duration, the contracting officer must actively monitor progress, review any proposed changes for necessity and cost impact, and ensure that the contractor adheres strictly to the defined scope to prevent budget overruns and maintain value for the taxpayer.

How did the 'full and open competition' process ensure the best value was achieved, considering the contract's significant value and duration?

Full and open competition allows all responsible sources to submit bids, fostering a competitive environment that typically drives down prices and improves quality. The government likely evaluated proposals based on a combination of price and technical factors. To confirm best value, an analysis of the number of bids received, the competitiveness of the pricing, and the contractor's past performance would be necessary. The long duration also implies a need to assess the contractor's capacity and long-term viability.

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

Offers Received: 10

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Yates Companies Inc (UEI: 017041232)

Address: 1 GULLY AVE, PHILADELPHIA, MS, 39350

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline