Cox Construction awarded $24.7M for Army Reserve training center in California
Contract Overview
Contract Amount: $24,673,321 ($24.7M)
Contractor: COX Construction CO
Awarding Agency: Department of Defense
Start Date: 2015-03-27
End Date: 2017-06-02
Contract Duration: 798 days
Daily Burn Rate: $30.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF - CONSTRUCTION OF A NEW 600-MEMBER ARMY RESERVE TRAINING CENTER, ORGANIZATIONAL MAINTENANCE SHOP, AND UNHEATED STORAGE BUILDING IN TUSTIN, ORANGE COUNTY, CALIFORNIA.
Place of Performance
Location: TUSTIN, ORANGE County, CALIFORNIA, 92780
Plain-Language Summary
Department of Defense obligated $24.7 million to COX CONSTRUCTION CO for work described as: IGF::OT::IGF - CONSTRUCTION OF A NEW 600-MEMBER ARMY RESERVE TRAINING CENTER, ORGANIZATIONAL MAINTENANCE SHOP, AND UNHEATED STORAGE BUILDING IN TUSTIN, ORANGE COUNTY, CALIFORNIA. Key points: 1. The contract value represents a significant investment in military infrastructure. 2. Competition dynamics for this project are noted as 'full and open after exclusion of sources', suggesting a potentially complex procurement process. 3. The firm-fixed-price contract type indicates that the contractor bears the primary risk for cost overruns. 4. The project duration of 798 days suggests a substantial construction undertaking. 5. The contract was awarded by the Department of the Army, a major component of the Department of Defense. 6. The project is located in Tustin, Orange County, California, impacting local construction workforce and economy.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without comparable projects of identical scope and location. However, the total award of $24.7 million for a training center, maintenance shop, and storage building appears within a reasonable range for large-scale construction projects of this nature. Further analysis would require detailed cost breakdowns and comparisons to similar military construction projects awarded around the same period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources'. This indicates that while the competition was intended to be broad, certain sources were excluded, potentially due to specific requirements or pre-qualification processes. The number of bidders (4) suggests a moderate level of competition, which is generally positive for price discovery but may not represent the widest possible market engagement.
Taxpayer Impact: The exclusion of sources, even with four bidders, might have limited the potential for the most competitive pricing. Taxpayers benefit from a competitive process, but the specific exclusion criteria warrant scrutiny to ensure no undue restrictions were placed on potential bidders.
Public Impact
The primary beneficiaries are U.S. Army Reserve personnel who will utilize the new training facilities. The project delivers essential infrastructure including a training center, organizational maintenance shop, and unheated storage. The geographic impact is concentrated in Tustin, Orange County, California, potentially stimulating local economic activity and employment in the construction sector. Workforce implications include job creation for construction workers and related trades during the project's duration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions or material price fluctuations occur, despite the firm-fixed-price structure.
- The 'exclusion of sources' clause in the competition could limit the pool of qualified bidders and potentially impact overall cost-effectiveness.
- Ensuring timely completion within the 798-day duration is critical to meet Army Reserve operational needs.
Positive Signals
- The firm-fixed-price contract type shifts cost risk to the contractor, providing budget certainty for the government.
- Awarding to a single contractor (Cox Construction Co.) can streamline project management and execution.
- The project addresses a clear need for updated and adequate training and storage facilities for the Army Reserve.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. The market for military construction is substantial, driven by the Department of Defense's continuous need to modernize and maintain its infrastructure. Comparable spending benchmarks would involve analyzing other large-scale construction projects awarded by federal agencies for similar facilities, considering regional construction cost variations.
Small Business Impact
The data indicates that small business participation was not a primary set-aside consideration for this contract (ss: false, sb: false). While this was a large prime contract, there may be opportunities for small businesses to participate as subcontractors to Cox Construction Co. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages with and utilizes small business subcontractors for specialized services or materials.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified facilities. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Army Reserve Facilities Construction
- Department of Defense Military Construction
- General Services Administration (GSA) Public Buildings Service
- Federal Buildings Fund Projects
Risk Flags
- Potential for cost overruns if contractor underestimates scope or encounters unforeseen issues.
- Risk of schedule delays impacting operational readiness.
- Ensuring adequate quality control throughout the construction process.
- Monitoring contractor's financial stability and performance throughout the project lifecycle.
Tags
construction, department-of-defense, department-of-the-army, firm-fixed-price, definitive-contract, full-and-open-competition, california, army-reserve, training-center, institutional-building
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.7 million to COX CONSTRUCTION CO. IGF::OT::IGF - CONSTRUCTION OF A NEW 600-MEMBER ARMY RESERVE TRAINING CENTER, ORGANIZATIONAL MAINTENANCE SHOP, AND UNHEATED STORAGE BUILDING IN TUSTIN, ORANGE COUNTY, CALIFORNIA.
Who is the contractor on this award?
The obligated recipient is COX 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 $24.7 million.
What is the period of performance?
Start: 2015-03-27. End: 2017-06-02.
What is the track record of Cox Construction Co. on similar federal construction projects?
Cox Construction Co. has a history of engaging in significant construction projects, including those for government entities. While specific details on past federal contracts of identical scope and value require deeper database analysis, their involvement in this Army Reserve center suggests they possess the necessary qualifications and experience for large-scale institutional building. A review of their past performance ratings, any past performance issues, and the types of federal projects they have completed would provide a more comprehensive understanding of their reliability and capability in executing similar contracts. This includes examining their history with firm-fixed-price contracts and their ability to manage complex construction timelines and budgets.
How does the awarded price compare to similar Army Reserve training center constructions?
Directly comparing the $24.7 million award to similar Army Reserve training center constructions is challenging without access to a comprehensive database of comparable projects, including their specific features, locations, and construction timelines. Factors such as regional labor costs, material prices, site conditions, and the exact scope of facilities (e.g., square footage, specialized equipment) significantly influence project costs. However, the number of bidders (4) suggests a degree of market competition that likely helped in achieving a reasonable price. A more precise benchmark would involve analyzing projects awarded within a similar timeframe and geographic region, adjusting for inflation and project-specific variables.
What are the primary risks associated with this firm-fixed-price construction contract?
The primary risks associated with this firm-fixed-price contract, while generally favorable to the government by capping costs, lie in potential contractor performance issues. Cox Construction Co. bears the risk of cost overruns due to unforeseen site conditions, labor disputes, material price escalations, or project management inefficiencies. If the contractor underestimates costs or encounters significant challenges, they may face financial strain, potentially impacting project quality or schedule. The government's risk is primarily related to ensuring the contractor has the capability and financial stability to complete the project successfully and to the required standards, and that the initial pricing accurately reflected the scope of work.
What is the expected effectiveness of the new training center in meeting Army Reserve needs?
The effectiveness of the new training center is expected to be high, as it directly addresses the need for modern and adequate facilities for Army Reserve personnel. The construction of a dedicated training center, organizational maintenance shop, and storage building is designed to enhance operational readiness, improve training quality, and provide secure storage for equipment and vehicles. The success will be measured by the facility's utilization rate, its contribution to improved training outcomes, and its ability to support the specific missions of the Army Reserve units stationed or training in the Tustin, California area. The project's completion within schedule and budget will also be a key indicator of its effectiveness from a management perspective.
How has federal spending on similar construction projects evolved over the past five years?
Federal spending on similar construction projects, particularly for military and institutional facilities, has generally remained robust, driven by ongoing modernization efforts and infrastructure sustainment requirements across various agencies, notably the Department of Defense. While specific figures fluctuate annually based on budget allocations and strategic priorities, there has been a consistent demand for construction services. Factors influencing spending include geopolitical conditions, readiness requirements, and the aging state of existing infrastructure. Trends may show increased emphasis on energy efficiency, sustainable building practices, and resilient infrastructure in newer projects. Analyzing aggregate spending data from agencies like the Army Corps of Engineers or GSA would provide a broader context for this specific contract's place within the overall federal construction landscape.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912QR14R0037
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3170 SCOTT ST, VISTA, CA, 92081
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,094,821
Exercised Options: $24,673,321
Current Obligation: $24,673,321
Subaward Activity
Number of Subawards: 40
Total Subaward Amount: $18,632,594
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-03-27
Current End Date: 2017-06-02
Potential End Date: 2017-06-02 00:00:00
Last Modified: 2021-02-25
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