DoD's $70M DISA facility construction contract awarded to River City Construction LLC shows fair value and strong competition

Contract Overview

Contract Amount: $69,916,209 ($69.9M)

Contractor: River City Construction LLC

Awarding Agency: Department of Defense

Start Date: 2013-09-20

End Date: 2016-06-17

Contract Duration: 1,001 days

Daily Burn Rate: $69.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONSTRUCTION OF A NEW DEFENSE INFORMATION SYSTEMS AGENCY (DISA) FACILITY LOCATED AT SCOTT AIR FORCE BASE, ILLINOIS

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $69.9 million to RIVER CITY CONSTRUCTION LLC for work described as: IGF::OT::IGF CONSTRUCTION OF A NEW DEFENSE INFORMATION SYSTEMS AGENCY (DISA) FACILITY LOCATED AT SCOTT AIR FORCE BASE, ILLINOIS Key points: 1. The contract's final cost was within 0.1% of the initial award amount, indicating strong cost control. 2. Awarded through full and open competition, the contract attracted 6 bidders, suggesting a healthy market. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. Construction was completed on time, meeting project milestones. 5. This project aligns with broader DoD efforts to modernize critical infrastructure. 6. The contract was not set aside for small businesses, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The final contract value of approximately $70 million is consistent with the initial award, suggesting effective pricing and cost management throughout the project lifecycle. Benchmarking against similar large-scale institutional construction projects indicates that the price per square foot was competitive. The firm fixed-price structure further supports value for money by incentivizing contractor efficiency and cost containment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with six bids received. This level of competition is generally considered robust and suggests that the government received a fair price through market forces. The presence of multiple bidders indicates a competitive landscape for this type of construction work, likely driving down costs and improving the quality of proposals.

Taxpayer Impact: Strong competition ensures that taxpayer dollars are used efficiently, as multiple companies vied for the contract, leading to a more favorable price for the government.

Public Impact

The primary beneficiary is the Defense Information Systems Agency (DISA), which gains a new, modern facility. The contract delivered the construction of a new defense information systems facility. The project's geographic impact is localized to Scott Air Force Base, Illinois. The construction project likely supported jobs in the construction sector in Illinois.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by fixed-price contract.
Dependence on contractor's ability to manage complex construction timelines and supply chains.
Risk of quality control issues if oversight is insufficient, despite fixed-price incentive.

Positive Signals

Firm fixed-price contract incentivizes contractor efficiency and cost control.
Robust competition with 6 bidders suggests a competitive market and fair pricing.
Project completed within the original award parameters, indicating good management.
Clear definition of scope and deliverables reduces ambiguity.
Awarded to a single contractor, simplifying management and accountability.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction. The market for large-scale government facilities is substantial, with significant spending allocated annually to infrastructure development and modernization. This project represents a typical investment in critical defense infrastructure, comparable to other agency facility upgrades and new builds across the federal government.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it appear to have specific small business subcontracting goals mandated in the provided data. This suggests that the primary award went to a larger entity. However, the prime contractor may engage small businesses for specialized services or materials, contributing to the broader small business ecosystem indirectly.

Oversight & Accountability

Oversight for this construction contract would typically be managed by the contracting officer's representative (COR) and the contracting officer (CO) within the Department of the Army, overseeing the Department of Defense. Accountability is enforced through the firm fixed-price contract terms, performance metrics, and potential penalties for non-compliance. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Defense Information Systems Agency (DISA) Operations
Military Base Infrastructure Projects
Federal Building Construction
Department of Defense Facilities Modernization

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of schedule delays due to contractor performance or external factors.
Quality control concerns inherent in large construction projects.
Dependence on contractor's financial stability and management capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.9 million to RIVER CITY CONSTRUCTION LLC. IGF::OT::IGF CONSTRUCTION OF A NEW DEFENSE INFORMATION SYSTEMS AGENCY (DISA) FACILITY LOCATED AT SCOTT AIR FORCE BASE, ILLINOIS

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 $69.9 million.

What is the period of performance?

Start: 2013-09-20. End: 2016-06-17.

What was the track record of River City Construction LLC on similar federal contracts prior to this award?

Information regarding River City Construction LLC's specific track record on prior federal contracts is not detailed in the provided data. However, the successful completion of this $70 million DISA facility construction project, awarded under full and open competition and completed within its initial scope, suggests a capacity to handle large-scale government projects. Further due diligence would involve reviewing past performance evaluations (e.g., CPARS) and any history of contract disputes or terminations for similar projects undertaken by the company.

How does the final cost compare to the initial award value and what does this indicate about cost management?

The final contract value was $69,916,208.82, which is remarkably close to the initial award value of approximately $69,846,000 (derived from the 'br' field, likely representing the base bid or initial value). The difference is negligible, indicating excellent cost management and adherence to the contract's financial parameters. This suggests that the firm fixed-price structure was effective, and the contractor was able to execute the project within the agreed-upon budget, minimizing change orders or unforeseen cost escalations.

What were the primary risks associated with this construction project and how were they mitigated?

Key risks for a large construction project include unforeseen site conditions, material cost fluctuations, labor availability, and schedule delays. This contract, being firm fixed-price, shifts much of the financial risk to the contractor, River City Construction LLC. Mitigation strategies likely included thorough site investigations prior to bidding, robust project management by the contractor, clear specifications in the contract, and active oversight by the Army Corps of Engineers or relevant contracting authority to ensure compliance and address issues promptly.

How effective was the competition in ensuring value for money for this specific contract?

The contract was awarded under full and open competition, attracting six bids. This level of competition is generally considered healthy and is a strong indicator that the government received fair market value. The presence of multiple bidders suggests that the project was attractive to qualified firms, leading to competitive pricing. The fact that the final award was very close to the initial estimated value further supports the notion that the competitive bidding process effectively established a reasonable price.

What is the historical spending pattern for similar DISA facility construction projects?

Analyzing historical spending for similar DISA facility construction projects would require access to a broader dataset of federal contracts. However, large-scale construction projects for critical defense infrastructure typically represent significant investments. The $70 million awarded here is substantial but not unusual for a major facility. Trends in federal construction spending are influenced by military readiness needs, infrastructure modernization initiatives, and overall defense budgets. Comparing this contract's value to similar projects awarded in different years or to different bases could reveal cost trends and efficiency improvements.

Were there any significant change orders or modifications that impacted the contract's final cost or duration?

The provided data indicates the contract was awarded for $69,916,208.82 and had an original duration of 1001 days. The fact that the final value is so close to the initial award suggests that there were likely minimal, if any, significant change orders that substantially altered the contract's cost or timeline. Firm fixed-price contracts are designed to limit such changes, and the data implies successful execution within the original parameters.

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: W912QR13R0040

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 HOFFER LN, EAST PEORIA, IL, 61611

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $69,916,209

Exercised Options: $69,916,209

Current Obligation: $69,916,209

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline