DoD's $103.8M USTRANSCOM Building Project Awarded to River City Construction LLC
Contract Overview
Contract Amount: $103,821,562 ($103.8M)
Contractor: River City Construction LLC
Awarding Agency: Department of Defense
Start Date: 2008-02-12
End Date: 2012-05-31
Contract Duration: 1,570 days
Daily Burn Rate: $66.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ADAL USTRANSCOM CONSOLIDATION - BLDG 1920, BLDG 1900, BLDG 1575, ADDITIONAL PARKING, BLDG 1700, ANTITERRORISM FORCE PROTECTION BARRIER
Place of Performance
Location: SCOTT AFB, ST. CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $103.8 million to RIVER CITY CONSTRUCTION LLC for work described as: ADAL USTRANSCOM CONSOLIDATION - BLDG 1920, BLDG 1900, BLDG 1575, ADDITIONAL PARKING, BLDG 1700, ANTITERRORISM FORCE PROTECTION BARRIER Key points: 1. The contract covers construction of multiple buildings and parking for USTRANSCOM. 2. River City Construction LLC, the sole awardee, has experience in commercial construction. 3. The project's fixed-price nature aims to control costs, but scope creep is a potential risk. 4. This falls under the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: fair
The contract value of $103.8 million for a multi-building construction project appears within a reasonable range for large-scale federal building initiatives. However, without specific details on the scope and complexity of each building and the parking facility, a precise comparison to similar contracts is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The selection of a single contractor implies they offered the best value proposition among competing bids.
Taxpayer Impact: Taxpayer funds are utilized for this infrastructure development, with the expectation of long-term utility and operational benefits for USTRANSCOM.
Public Impact
Enhances USTRANSCOM's operational capabilities through improved facilities. Supports military readiness and logistical operations. Potential for job creation in the construction sector. Infrastructure upgrades contribute to long-term government asset value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen issues arise during construction.
- Dependence on a single contractor for project completion.
- Construction delays could impact USTRANSCOM's operational timelines.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract helps manage cost uncertainty.
- Project aims to improve critical military infrastructure.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector, which involves the erection of non-residential buildings. Federal spending in this sector can fluctuate based on infrastructure needs and modernization efforts, with large projects like this representing significant investments.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it was awarded to River City Construction LLC. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Army, indicating oversight from a major DoD component. The firm fixed-price structure provides a degree of cost control, but ongoing monitoring of progress and quality would be essential for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep impacting final cost.
- Contractor performance risk.
- Construction delays impacting operational readiness.
- Adequacy of competition for specialized construction services.
Tags
commercial-and-institutional-building-co, department-of-defense, il, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $103.8 million to RIVER CITY CONSTRUCTION LLC. ADAL USTRANSCOM CONSOLIDATION - BLDG 1920, BLDG 1900, BLDG 1575, ADDITIONAL PARKING, BLDG 1700, ANTITERRORISM FORCE PROTECTION BARRIER
Who is the contractor on this award?
The obligated recipient is RIVER CITY CONSTRUCTION LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $103.8 million.
What is the period of performance?
Start: 2008-02-12. End: 2012-05-31.
What specific metrics were used to evaluate the 'best value' during the full and open competition process?
The 'best value' determination typically involves a tradeoff analysis between technical approach, past performance, and price. For this project, the evaluation likely considered the contractor's proposed construction methods, their track record on similar projects, and the overall cost competitiveness of their bid to ensure the government received optimal value for its investment.
What are the primary risks associated with the firm fixed-price contract for this large-scale construction project?
The main risk with a firm fixed-price contract is that the contractor bears the brunt of cost overruns. This can incentivize them to cut corners on quality or safety if not properly monitored. Conversely, if the contractor significantly underestimates costs, they may face financial distress, potentially leading to project delays or disputes.
How will the long-term effectiveness and utility of these new USTRANSCOM facilities be measured post-construction?
Effectiveness will be measured by the facilities' ability to support USTRANSCOM's mission without operational disruptions, their energy efficiency, and their adherence to anti-terrorism force protection standards. Post-occupancy evaluations, user feedback, and maintenance records will provide ongoing data on their long-term utility and 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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912QR07R0079
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 101 HOFFER LN, EAST PEORIA, IL, 16
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $103,821,562
Exercised Options: $103,821,562
Current Obligation: $103,821,562
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-02-12
Current End Date: 2012-05-31
Potential End Date: 2012-05-31 00:00:00
Last Modified: 2011-11-23
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