Department of the Army awards $167.6M construction contract to J & J Contractors, Inc. for facilities at White River Junction

Contract Overview

Contract Amount: $16,764,412 ($16.8M)

Contractor: J & J Contractors, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-28

End Date: 2012-11-30

Contract Duration: 1,159 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WHITE RIVER JUNCTION AFRC

Place of Performance

Location: WHITE RIVER JUNCTION, WINDSOR County, VERMONT, 05009

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to J & J CONTRACTORS, INC. for work described as: WHITE RIVER JUNCTION AFRC Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract with a firm fixed price, indicating price certainty. 3. The duration of the contract is over 3 years, suggesting a significant project scope. 4. The contractor, J & J Contractors, Inc., is a single entity for this award. 5. The project is located in Vermont, impacting the local economy and workforce. 6. The contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

The contract value of $167.6 million for building construction over a period of approximately 3 years appears substantial. Without specific details on the scope of work, it is difficult to benchmark against similar contracts. However, the firm fixed-price nature suggests that the initial pricing was deemed acceptable. Further analysis would require comparing the cost per square foot or per unit of construction against industry standards and other government projects of similar complexity and location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 8 bids suggests a reasonably competitive environment for this project. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: The full and open competition likely resulted in a more competitive pricing structure, potentially saving taxpayer money compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of the Army, which will receive updated or new facilities. The contract delivers construction services for commercial and institutional buildings. The geographic impact is concentrated in White River Junction, Vermont, potentially creating local jobs and economic activity. The project will likely involve a significant construction workforce, including skilled trades and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed price does not adequately account for unforeseen construction challenges.
Dependence on a single contractor for project completion could lead to delays if the contractor faces performance issues.
The long duration of the contract may expose it to market fluctuations in material costs if not properly managed.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract provides cost certainty for the government.
The project addresses a need for facilities, contributing to the operational readiness of the Department of the Army.

Sector Analysis

The Commercial and Institutional Building Construction sector is a significant part of the overall construction industry. Government contracts for building construction are common across various agencies, supporting infrastructure development and operational needs. This contract represents a substantial investment within this sector, likely contributing to the local construction market in Vermont. Benchmarking would involve comparing the contract's value and scope to similar federal, state, and private sector construction projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false) and there were 8 bids received. This suggests that the competition was likely dominated by larger firms. There is no explicit information on subcontracting plans for small businesses within this award. Further investigation into the contractor's subcontracting practices would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally provided through contract award databases, though specific project details and oversight reports may vary in accessibility.

Related Government Programs

Department of Defense Facilities Construction
Army Corps of Engineers Projects
General Services Administration (GSA) Building Contracts
Federal Building and Facilities Management

Risk Flags

Potential for cost overruns if fixed price is not adequately estimated.
Contractor performance risk over a long duration.
Lack of specific details on building types and scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to J & J CONTRACTORS, INC.. WHITE RIVER JUNCTION AFRC

Who is the contractor on this award?

The obligated recipient is J & J CONTRACTORS, 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 $16.8 million.

What is the period of performance?

Start: 2009-09-28. End: 2012-11-30.

What specific types of buildings are being constructed or renovated under this contract?

The provided data indicates the NAICS code is 236220, which covers Commercial and Institutional Building Construction. This typically includes the construction of non-residential buildings such as office buildings, warehouses, factories, schools, hospitals, and other institutional facilities. Without more specific contract details, the exact nature of the buildings (e.g., barracks, administrative offices, training facilities) at White River Junction AFRC remains unspecified. Further analysis would require accessing the contract's statement of work or award description to identify the precise structures being built or renovated.

How does the awarded amount of $167.6 million compare to similar construction projects for the Department of the Army?

Benchmarking $167.6 million requires comparing it to similar construction projects undertaken by the Department of the Army in terms of scope, complexity, and location. For instance, if this contract is for a large-scale barracks complex or a significant administrative facility, the cost might be within the expected range. However, if it's for a smaller structure, it could be considered high. Accessing historical contract data for similar building types and sizes awarded by the Army would be crucial for a precise comparison. Factors like regional construction costs, labor rates, and material prices in Vermont also influence the perceived value.

What are the key performance indicators (KPIs) and deliverables outlined in the contract?

The provided data does not specify the key performance indicators (KPIs) or deliverables for this contract. Typically, for construction contracts, KPIs would relate to project milestones, adherence to schedule, quality of workmanship, safety compliance, and final project completion within budget. Deliverables would include the completed buildings themselves, along with associated documentation such as as-built drawings, warranties, and inspection reports. A thorough review of the contract's statement of work and performance clauses would be necessary to identify these specific metrics and requirements.

What is the track record of J & J Contractors, Inc. on previous government contracts?

Information regarding the track record of J & J Contractors, Inc. on previous government contracts is not included in the provided data. To assess their performance history, one would need to consult federal procurement databases such as SAM.gov (System for Award Management) or FPDS (Federal Procurement Data System) to review past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. A positive performance history would indicate a lower risk for this current contract.

What are the potential risks associated with a firm fixed-price contract of this magnitude and duration?

A firm fixed-price (FFP) contract of $167.6 million over approximately 3 years carries inherent risks, primarily for the contractor. The contractor assumes the risk of cost overruns if actual expenses exceed the fixed price. For the government, the main risk is that the contractor might cut corners on quality or scope to maintain profitability if costs escalate unexpectedly. Additionally, unforeseen site conditions, material price volatility, or labor shortages could impact project timelines and potentially lead to claims or disputes, even under an FFP agreement. Robust oversight and clear contract terms are crucial to mitigate these risks.

How does the competition level (8 bidders) influence the final price and value for taxpayers?

Having 8 bidders for this contract suggests a healthy level of competition, which generally benefits taxpayers. Increased competition typically drives down prices as contractors strive to offer the most competitive bids to win the contract. It also encourages efficiency and innovation among bidders. The presence of multiple bids provides the government with a stronger basis for price negotiation and evaluation, increasing the likelihood that the awarded price reflects fair market value. A lower number of bidders might indicate less competition, potentially leading to higher prices.

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: W912QR09R0069

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 35 MARKET ST STE 401, LOWELL, MA, 01852

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,764,412

Exercised Options: $16,764,412

Current Obligation: $16,764,412

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline