DoD's $22.6M Reserve Center Construction Contract Awarded to W. G. Yates & Sons

Contract Overview

Contract Amount: $22,604,038 ($22.6M)

Contractor: W. G. Yates & Sons Construction Company

Awarding Agency: Department of Defense

Start Date: 2009-09-15

End Date: 2012-02-23

Contract Duration: 891 days

Daily Burn Rate: $25.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN & CONSTRUCT ARMED FORCES RESERVE CENTER, JONESBORO, AR

Place of Performance

Location: JONESBORO, CRAIGHEAD County, ARKANSAS, 72401

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $22.6 million to W. G. YATES & SONS CONSTRUCTION COMPANY for work described as: DESIGN & CONSTRUCT ARMED FORCES RESERVE CENTER, JONESBORO, AR Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns. 3. The project duration of 891 days points to a significant construction timeline. 4. The contract was awarded by the Department of the Army, a component of the Department of Defense. 5. The project is located in Jonesboro, Arkansas, impacting local construction and workforce. 6. The contract value of approximately $22.6 million falls within a moderate range for large construction projects.

Value Assessment

Rating: fair

Benchmarking the value of this specific construction project is challenging without detailed cost breakdowns and comparable project data. However, the firm-fixed-price nature suggests a defined cost ceiling. The contract value of $22.6 million for a reserve center construction project of this scale appears within a typical range for such endeavors, though a more granular analysis of the scope of work against industry benchmarks would be necessary for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 8 bidders indicates a healthy level of competition for this project. A competitive bidding process generally leads to better price discovery and can result in more favorable pricing for the government.

Taxpayer Impact: The robust competition for this construction project likely resulted in a more cost-effective outcome for taxpayers, as multiple firms vied to offer the most attractive bid.

Public Impact

The primary beneficiaries are the U.S. Armed Forces Reserve personnel who will utilize the new facility. The project delivers a new Armed Forces Reserve Center, providing essential infrastructure for military training and readiness. The geographic impact is localized to Jonesboro, Arkansas, potentially stimulating the local economy through construction jobs and related services. The construction phase will likely involve a significant number of skilled and unskilled laborers, impacting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting readiness timelines.
Risk of unforeseen site conditions affecting project costs or schedule.
Ensuring compliance with all environmental and building regulations during construction.

Positive Signals

Firm-fixed-price contract mitigates cost overrun risk for the government.
Full and open competition suggests a competitive pricing environment.
Award to an established construction company implies experience in similar projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by a wide range of project sizes and complexities, from small renovations to large-scale public facilities. The market size for federal construction projects is substantial, with significant annual spending across various agencies. This reserve center construction project represents a typical investment in military infrastructure, aligning with broader government spending trends in facilities development.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, W. G. Yates & Sons Construction Company, may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the contracting agency (Department of the Army) through contract officers and inspectors. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of the specified facility. Transparency is generally maintained through contract award databases, though detailed project progress and specific oversight reports may not always be publicly accessible.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Reserve Component Readiness
Federal Building Construction
Construction Contracts

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Quality control during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.6 million to W. G. YATES & SONS CONSTRUCTION COMPANY. DESIGN & CONSTRUCT ARMED FORCES RESERVE CENTER, JONESBORO, AR

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 $22.6 million.

What is the period of performance?

Start: 2009-09-15. End: 2012-02-23.

What is the track record of W. G. Yates & Sons Construction Company with federal contracts, particularly within the Department of Defense?

W. G. Yates & Sons Construction Company has a history of performing federal construction contracts. While specific details on all their past performance are not provided here, their selection for this significant Department of Defense project suggests they possess the necessary experience and qualifications. A deeper dive into their contract history, including past performance reviews, any disputes, and the types of projects they have completed for the government, would offer a more comprehensive understanding of their reliability and expertise in executing similar federal construction endeavors.

How does the awarded amount of $22.6 million compare to similar Armed Forces Reserve Center construction projects?

Comparing the $22.6 million award to similar projects requires access to a database of comparable federal construction contracts, including their scope, size, and location. Without such a benchmark, it's difficult to definitively state if this amount is high or low. However, the firm-fixed-price contract and the fact that it was awarded under full and open competition with 8 bidders suggest that the pricing was likely competitive at the time of award. Factors such as specific facility requirements, regional construction costs, and the complexity of the site can significantly influence project costs.

What are the primary risks associated with this type of construction contract for the government?

For a firm-fixed-price contract like this, the primary risk for the government is ensuring the contractor meets all specifications and quality standards within the agreed-upon price. While the contractor assumes cost overrun risk, the government still faces risks related to schedule delays, potential disputes over contract scope or quality, and ensuring the final product meets all operational requirements. Inadequate oversight or unforeseen site conditions could also pose risks, potentially leading to change orders or claims, though the FFP structure aims to minimize these.

How effective is the 'full and open competition' approach in ensuring value for money for taxpayer-funded construction projects?

The 'full and open competition' approach is generally considered highly effective in ensuring value for money. By allowing all responsible sources to bid, it fosters a competitive environment where multiple companies present their proposals, including pricing and technical solutions. This competition drives down prices as contractors strive to offer the most attractive bid to win the contract. Furthermore, it increases the likelihood that the government will receive a high-quality product or service at a fair market price, as the best-qualified and most cost-effective providers are encouraged to participate.

What are the potential long-term implications of this reserve center construction on military readiness and local community?

The construction of a new Armed Forces Reserve Center directly enhances military readiness by providing modern, functional facilities for training, equipment storage, and personnel support. This improved infrastructure can lead to increased operational effectiveness for reserve components. For the local community in Jonesboro, Arkansas, the project brings immediate economic benefits through job creation during the construction phase and potentially long-term benefits through the presence of a military facility, which can include increased local spending by personnel and support services. It also signifies a commitment to the region's defense infrastructure.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this contract that are publicly available?

Publicly available contract award data typically does not include specific performance metrics or Key Performance Indicators (KPIs) for construction projects. These are usually detailed within the contract's statement of work and are monitored internally by the contracting agency. Performance is generally assessed based on adherence to the construction schedule, quality of work, adherence to specifications, and final project completion within the agreed-upon price. While the contract award itself is public, the granular performance data is often considered internal government information.

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: W912QR09R0071

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: ONE GULLY AVE, PHILADELPHIA, MS, 03

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

Financial Breakdown

Contract Ceiling: $22,704,038

Exercised Options: $22,604,038

Current Obligation: $22,604,038

Contract Characteristics

Cost or Pricing Data: NO

Timeline