DOD awards $34M construction contract to Messer Construction Co. for WPAFB facility

Contract Overview

Contract Amount: $33,995,420 ($34.0M)

Contractor: Messer Construction CO.

Awarding Agency: Department of Defense

Start Date: 2010-02-23

End Date: 2012-11-30

Contract Duration: 1,011 days

Daily Burn Rate: $33.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: D/B INFO TECHNOLOGY COMPLEX, WPAFB, OH

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $34.0 million to MESSER CONSTRUCTION CO. for work described as: D/B INFO TECHNOLOGY COMPLEX, WPAFB, OH Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $33.99M falls within a typical range for large-scale construction projects. 3. Fixed-price contract type may offer cost certainty for the government, but shifts risk to the contractor. 4. The project duration of 1011 days indicates a significant undertaking requiring substantial resources. 5. Awarded by the Department of the Army, this contract supports military infrastructure development. 6. The contract was awarded to a single entity, Messer Construction Co.

Value Assessment

Rating: good

The contract value of approximately $34 million for a large construction project is within expected parameters for Department of Defense infrastructure. Benchmarking against similar large-scale building construction contracts awarded by the Army or other branches would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests an effort to control costs, with the contractor bearing the risk of cost overruns. The absence of specific performance metrics in the provided data makes a detailed assessment of efficiency challenging, but the duration suggests a complex project.

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 bids. The presence of 13 bids suggests a healthy level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring that government funds are used efficiently and effectively. The robust competition in this instance likely resulted in a more favorable price than a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel at Wright-Patterson Air Force Base, Ohio, who will gain access to a new or improved facility. The contract delivers commercial and institutional building construction services, crucial for maintaining and upgrading military infrastructure. The geographic impact is localized to Wright-Patterson Air Force Base, Ohio, supporting regional economic activity through construction jobs and material procurement. The project will likely create or sustain jobs in the construction sector, including skilled trades, project management, and support staff in the Ohio region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen construction challenges.
Dependence on a single contractor, Messer Construction Co., for project completion, introducing single-source risk.
The long duration of the project (1011 days) increases the risk of schedule delays due to weather, material availability, or labor issues.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process that likely secured a fair price.
The fixed-price contract type provides cost certainty for the government, assuming the contractor's bid was accurate.
The project supports critical military infrastructure, aligning with the Department of Defense's mission objectives.

Sector Analysis

The construction sector is a significant component of federal spending, particularly for infrastructure development and facility maintenance across various agencies. This contract falls within the commercial and institutional building construction sub-sector. Federal spending in construction is influenced by infrastructure needs, modernization efforts, and national security requirements. Comparable benchmarks for large-scale military construction projects can vary widely based on scope, location, and complexity, but a $34 million award for a facility at a major Air Force base is substantial.

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 requirements mandated for small businesses as part of this award. The primary contractor, Messer Construction Co., will likely engage subcontractors based on their own business needs and capabilities, which may or may not include small businesses. The absence of a set-aside means that large businesses were eligible to compete and potentially win the entire contract value.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified construction services within the agreed-upon price. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or closeout.

Related Government Programs

Department of Defense Military Construction
Air Force Base Infrastructure Projects
Federal Building Construction Contracts
Large-Scale Commercial Construction Awards

Risk Flags

Potential for cost escalation if unforeseen site conditions arise.
Risk of schedule delays impacting operational readiness.
Contractor performance risk on a large, multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.0 million to MESSER CONSTRUCTION CO.. D/B INFO TECHNOLOGY COMPLEX, WPAFB, OH

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 $34.0 million.

What is the period of performance?

Start: 2010-02-23. End: 2012-11-30.

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

Messer Construction Co. has a history of securing federal contracts, including those with the Department of Defense. While this specific award is for $33.99 million, a comprehensive review of their federal contracting history would involve examining past performance on similar projects, including their success in meeting deadlines, staying within budget, and adhering to quality standards. Analyzing their past performance ratings, any contract disputes, or terminations would provide a clearer picture of their reliability and capability as a federal contractor. Information on their experience with large-scale institutional or commercial building projects, especially within a military context, is crucial for assessing their suitability for this type of work.

How does the awarded amount of $33.99 million compare to similar construction projects at Air Force bases?

The $33.99 million award for construction at Wright-Patterson Air Force Base is a significant sum, typical for substantial facility upgrades or new constructions at major military installations. To benchmark this value, one would compare it against other firm fixed-price contracts for similar types of buildings (e.g., administrative, training, or support facilities) awarded by the Air Force or other branches of the Department of Defense over the past few years. Factors such as geographic location (which affects labor and material costs), project complexity, and specific requirements (e.g., security, specialized equipment integration) influence cost. Without specific details on the scope of work, a precise comparison is difficult, but the amount suggests a project of considerable scale and importance.

What are the primary risks associated with a firm fixed-price contract for a project of this duration?

A firm fixed-price (FFP) contract, while offering cost certainty to the government, places the primary risk of cost overruns on the contractor. For a project spanning 1011 days (approximately 2.7 years), the risks for Messer Construction Co. include potential increases in material costs, labor shortages or wage inflation, unforeseen site conditions (e.g., hazardous materials, difficult soil), and regulatory changes that could impact project scope or cost. If the contractor's initial bid did not adequately account for these potential fluctuations or unforeseen issues, they could face significant financial losses. Conversely, the government benefits from a predictable final cost, assuming the scope of work remains unchanged.

What is the expected effectiveness of the completed construction in supporting the mission at Wright-Patterson Air Force Base?

The effectiveness of the completed construction hinges on how well the new or renovated facility meets the specific operational needs of Wright-Patterson Air Force Base. As a large Air Force installation, WPAFB hosts diverse missions including research, development, testing, and sustainment operations. The construction project likely aims to modernize infrastructure, enhance operational capacity, improve safety, or provide better working environments for personnel. Its effectiveness will be measured by its contribution to mission readiness, efficiency of operations within the new space, and its ability to support current and future technological advancements or personnel requirements at the base. Detailed project specifications would clarify the intended mission support.

How has federal spending on construction for the Department of Defense evolved in recent years?

Federal spending on construction for the Department of Defense (DOD) has historically been substantial, driven by the need to maintain and modernize global infrastructure, support troop readiness, and adapt to evolving security landscapes. Spending levels can fluctuate based on geopolitical events, budget appropriations, and specific military modernization initiatives. In recent years, there has been a continued emphasis on upgrading aging facilities, investing in resilient infrastructure, and constructing specialized facilities for new technologies or weapon systems. While specific figures vary annually, DOD construction remains a significant portion of the federal procurement budget, reflecting its critical role in national defense.

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: W912QR10R0004

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Messer Construction CO (UEI: 041603499)

Address: 4801 HEMPSTEAD STATION DR UNIT A, DAYTON, OH, 10

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

Financial Breakdown

Contract Ceiling: $37,318,420

Exercised Options: $33,995,420

Current Obligation: $33,995,420

Contract Characteristics

Cost or Pricing Data: NO

Timeline