Atherton Construction LLC awarded $25.6M for Army housing, highlighting single-family construction needs
Contract Overview
Contract Amount: $25,552,861 ($25.6M)
Contractor: Atherton Construction LLC
Awarding Agency: Department of Defense
Start Date: 2016-09-29
End Date: 2018-10-20
Contract Duration: 751 days
Daily Burn Rate: $34.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF - FY16 ARMY FAMILY HOUSING AT ROCK ISLAND ARSENAL, IL. THE GOVERNMENT ACCEPTS AND AWARDS THE BASE AND ALL OPTIONS WITH THIS AWARD.
Place of Performance
Location: ROCK ISLAND, ROCK ISLAND County, ILLINOIS, 61299
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $25.6 million to ATHERTON CONSTRUCTION LLC for work described as: IGF::OT::IGF - FY16 ARMY FAMILY HOUSING AT ROCK ISLAND ARSENAL, IL. THE GOVERNMENT ACCEPTS AND AWARDS THE BASE AND ALL OPTIONS WITH THIS AWARD. Key points: 1. Contract awarded for new single-family housing construction, indicating a need for residential facilities. 2. The contract was competed under 'Full and Open Competition after Exclusion of Sources', suggesting a deliberate but potentially limited bidding process. 3. Atherton Construction LLC is the sole awardee, raising questions about the breadth of competition. 4. The contract duration of 751 days suggests a significant construction project. 5. The base and all options were accepted, indicating full commitment to the project scope. 6. The fixed-price nature of the contract shifts risk to the contractor. 7. The contract falls under the 'New Single-Family Housing Construction' NAICS code.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific cost breakdowns or comparable project data. The total award of $25.6 million for new single-family housing construction over approximately two years suggests a substantial investment. However, without details on the number of units, square footage, or specific amenities, a precise value-for-money assessment is difficult. The fixed-price contract type implies that the contractor is responsible for cost overruns, which can be a positive indicator if the price was competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition after Exclusion of Sources'. This solicitation method indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The presence of 3 bidders suggests some level of competition, but the exclusion of sources warrants further investigation into why certain contractors were not considered.
Taxpayer Impact: The exclusion of sources, even with multiple bidders, may have limited price discovery and potentially led to a higher cost for taxpayers than a truly open competition.
Public Impact
Military families stationed at Rock Island Arsenal, Illinois, will benefit from new housing. The contract delivers new single-family homes, addressing potential housing shortages or outdated facilities. The geographic impact is localized to Rock Island Arsenal, Illinois. The construction project will likely create jobs in the local construction sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to exclusion of sources may have impacted price.
- Lack of detailed cost breakdowns hinders precise value-for-money assessment.
- The specific reasons for excluding certain sources are not detailed.
Positive Signals
- Fixed-price contract shifts cost overrun risk to the contractor.
- Awarding base and all options indicates a clear project scope and commitment.
- Multiple bidders participated, suggesting some level of market interest.
Sector Analysis
This contract falls within the construction sector, specifically focusing on new residential building. The market for government housing construction is significant, driven by the need to provide adequate facilities for military personnel and their families. Comparable spending benchmarks would typically involve analyzing the cost per square foot or cost per unit for similar government housing projects in different regions or time periods. The NAICS code 236115, 'New Single-Family Housing Construction (except For-Sale Builders)', indicates a specialized segment of the construction industry.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Given the nature of large-scale construction projects, it is common for prime contractors to utilize small business subcontractors, but specific details are absent here.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army and potentially the Department of Defense's Inspector General. Accountability measures are inherent in the firm fixed-price contract type, which places the financial risk on the contractor. Transparency regarding the bidding process and award decision is partially addressed by the contract type designation, but further details on the evaluation criteria and the rationale for excluding sources would enhance transparency.
Related Government Programs
- Military Family Housing
- Department of Defense Construction Contracts
- Army Housing Programs
- New Residential Construction
Risk Flags
- Limited competition due to exclusion of sources.
- Lack of detailed cost breakdown for value assessment.
- Potential for inflated pricing due to limited competition.
Tags
construction, department-of-defense, department-of-the-army, rock-island-arsenal, illinois, definitive-contract, firm-fixed-price, full-and-open-competition-after-exclusion-of-sources, new-single-family-housing-construction, large-contract, residential-construction
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.6 million to ATHERTON CONSTRUCTION LLC. IGF::OT::IGF - FY16 ARMY FAMILY HOUSING AT ROCK ISLAND ARSENAL, IL. THE GOVERNMENT ACCEPTS AND AWARDS THE BASE AND ALL OPTIONS WITH THIS AWARD.
Who is the contractor on this award?
The obligated recipient is ATHERTON 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 $25.6 million.
What is the period of performance?
Start: 2016-09-29. End: 2018-10-20.
What was the specific rationale for excluding certain sources in this 'Full and Open Competition after Exclusion of Sources' award?
The provided data does not specify the rationale for excluding certain sources. This contract type, 'Full and Open Competition after Exclusion of Sources,' implies that while the competition was intended to be open to all responsible sources, specific contractors or types of contractors were deliberately excluded. Common reasons for such exclusions can include national security concerns, specific technological requirements that only a limited number of firms possess, or prior performance issues with certain contractors. Without further documentation from the awarding agency (Department of the Army), the precise justification remains unknown. This lack of transparency can raise concerns about whether the exclusion unduly limited competition and potentially inflated costs for the government.
How does the awarded price of $25.6 million compare to market rates for similar new single-family housing construction projects?
A direct comparison of the $25.6 million award to market rates for similar new single-family housing construction is difficult without knowing the exact scope of work, such as the number of units, average size (square footage), quality of materials, and specific amenities included in the Rock Island Arsenal project. Government construction projects often have unique requirements and specifications that can differ from private sector builds. However, to benchmark, one would typically look at the cost per unit or cost per square foot for comparable projects in the Illinois region or for similar Department of Defense housing initiatives. If this award translates to a significantly higher cost per unit or square foot compared to recent, similar projects, it could indicate potential issues with value for money. Conversely, if it aligns with or is below market rates, it suggests a competitive procurement.
What is Atherton Construction LLC's track record with federal contracts, particularly in housing construction?
Information regarding Atherton Construction LLC's specific track record with federal contracts, especially in housing construction, is not detailed in the provided data snippet. To assess their performance, one would need to examine their contract history, including past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. A review of federal procurement databases like SAM.gov or FPDS could reveal the extent of their federal contracting experience. A strong history of successful, on-time, and within-budget project completion, particularly in similar construction types, would be a positive indicator for this award. Conversely, a history of performance issues could represent a risk.
What are the potential risks associated with a firm fixed-price contract for a project of this duration and scope?
A firm fixed-price (FFP) contract, while generally favorable to the government by shifting cost overrun risk to the contractor, can present risks for a project of this duration (751 days) and scope. If the initial cost estimates were inaccurate or unforeseen issues arise during construction (e.g., material price volatility, unexpected site conditions), Atherton Construction LLC might face significant financial strain. This could potentially lead to pressure on the contractor to cut corners on quality to maintain profitability, although the FFP structure theoretically incentivizes efficient project management. Another risk is that the contractor may have built a substantial contingency into their bid to account for these uncertainties, potentially leading to a higher initial price than a cost-reimbursable contract might have achieved if managed effectively by the government. The government's ability to manage scope changes tightly is crucial under an FFP.
How does this $25.6 million award compare to historical federal spending on new single-family housing construction?
Comparing this $25.6 million award to historical federal spending on new single-family housing construction requires access to broader government spending data. The Department of Defense, particularly the Army, is a significant investor in military family housing. Historical data would show trends in the volume and value of such contracts awarded annually. Factors influencing historical spending include military readiness requirements, budget allocations, and the age and condition of existing housing stock. A single award of $25.6 million represents a substantial investment for one project, but within the context of the entire DoD's housing portfolio, it might be a typical or even modest expenditure depending on the scale (number of units). Analyzing trends over several fiscal years would provide better context on whether this award is indicative of increased or decreased federal investment in this area.
Industry Classification
NAICS: Construction › Residential Building Construction › New Single-Family Housing Construction (except For-Sale Builders)
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: W912QR16R0043
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Woodside Group Inc. (UEI: 024288230)
Address: 50 N GIBSON RD STE 115, HENDERSON, NV, 89014
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,552,861
Exercised Options: $25,552,861
Current Obligation: $25,552,861
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-09-29
Current End Date: 2018-10-20
Potential End Date: 2018-10-20 00:00:00
Last Modified: 2021-02-25
More Contracts from Atherton Construction LLC
- Grsm 149285/149368 - Rehabilitate Sugarlands Headquarters, and Rehab Sugarlands Water and Wastewater Systems Great Smoky Mountains National Park, Gatlinburg TN — $27.7M (Department of the Interior)
- 200408!000611!2100!W912DW!* !w912dw04c0008 !A!N! !N! ! !20040331!20040325!188021604!188021604!024288230!n!atherton Construction Inc !3855 S Jones Boulevard, S!las Vegas !nv!89103!47275!013!30!malmstrom AFB !cascade !montana !+000016350380!n!n!000000000000!y161!family Housing Facilities !C2 !construction !000 !* !236116!E! !3! ! ! ! ! !99990909!B! ! !A! !a!u!j!2!008!b! !D!N!C! ! !N!C!N! ! ! !d!d!a!a!000!a!b!y! !N! ! ! ! !0001! ! — $18.9M (Department of Defense)
- Sloan Canyon Contact Station Construction & Delegated Design — $17.7M (Department of the Interior)
- Nevada Army National Guard (nvarng) Requires the Construction of a NEW Qualification Training Range (QTR) AT Hawthorne Army Depot in Nevada, Project NO: 322440. the QTR Will BE Programmed to Train and Test Soldiers — $15.6M (Department of Defense)
- Milcon Army Family Housing Renovation — $11.6M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)