Army Reserve Center Construction Awarded for $24.6M, Highlighting Commercial Building Sector Activity
Contract Overview
Contract Amount: $24,603,371 ($24.6M)
Contractor: COX Construction CO
Awarding Agency: Department of Defense
Start Date: 2017-11-09
End Date: 2021-09-30
Contract Duration: 1,421 days
Daily Burn Rate: $17.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONTRACT AWARD FOR THE CONSTRUCTION OF A NEW 400 MEMBER ARMY RESERVE CENTER (ARC) IN MIRAMAR, CA. INITIAL CONTRACT AWARD CONSISTS OF THE BASE PROPOSAL AND OPTION D. THE REMAINING OPTIONS MAY BE EXERCISED IN THE FUTURE VIA MODIFICATION TO THE CONTRACT.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92145
Plain-Language Summary
Department of Defense obligated $24.6 million to COX CONSTRUCTION CO for work described as: CONTRACT AWARD FOR THE CONSTRUCTION OF A NEW 400 MEMBER ARMY RESERVE CENTER (ARC) IN MIRAMAR, CA. INITIAL CONTRACT AWARD CONSISTS OF THE BASE PROPOSAL AND OPTION D. THE REMAINING OPTIONS MAY BE EXERCISED IN THE FUTURE VIA MODIFICATION TO THE CONTRACT. Key points: 1. Contract awarded for a new 400-member Army Reserve Center in Miramar, CA. 2. The award includes base proposal and one option, with potential for future modifications. 3. Construction falls under the Commercial and Institutional Building Construction NAICS code. 4. The contract type is a Definitive Contract with a Firm Fixed Price. 5. The duration of the contract is 1421 days, spanning from late 2017 to late 2021. 6. No small business set-asides were utilized for this procurement.
Value Assessment
Rating: fair
The total award amount of $24.6 million for a 400-member Army Reserve Center appears to be within a reasonable range for large-scale construction projects of this nature. Benchmarking against similar military construction projects would provide a more precise value-for-money assessment. Factors such as specific facility requirements, site conditions, and prevailing labor costs in Southern California would influence the final price. Without detailed cost breakdowns or comparisons to similar projects, a definitive assessment of exceptional value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating that the government sought proposals from all responsible sources after initially excluding certain ones, likely due to specific requirements or prior solicitations. Six bids were received, suggesting a competitive environment. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.
Taxpayer Impact: The competitive bidding process for this construction project likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.
Public Impact
The primary beneficiaries are the U.S. Army Reserve personnel who will utilize the new facility. The contract delivers a new construction facility designed to support military training and operations. The geographic impact is localized to Miramar, California, providing a new base of operations. The project implies workforce implications for construction labor in the Southern California region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if remaining options are exercised without careful management.
- Construction delays could impact the operational readiness of the Army Reserve unit.
- Scope creep during the construction phase could lead to increased costs.
Positive Signals
- Firm Fixed Price contract structure helps to control costs and manage budget.
- Full and open competition suggests a robust bidding process leading to competitive pricing.
- The award to Cox Construction Co. indicates a potentially established contractor in the sector.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building of facilities for various organizations, including government entities. The market size for government construction projects is substantial, driven by the need for infrastructure, operational facilities, and modernization across federal agencies. This award represents a typical investment in facility upgrades and new construction to meet operational demands.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the award details. This suggests that the primary contractor, Cox Construction Co., will likely manage the project with its own resources or through larger subcontractors, potentially limiting direct opportunities for small businesses in this specific award, unless they are part of the larger subcontracting chain.
Oversight & Accountability
The oversight for this contract would typically fall under the Department of the Army's contracting and engineering commands. Accountability measures are inherent in the Definitive Contract structure with Firm Fixed Price terms, which obligates the contractor to deliver the specified construction within the agreed-upon cost. Transparency is generally maintained through contract award databases and public reporting, though detailed oversight reports are not provided here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Army Reserve Readiness and Training Facilities
- Military Construction Projects
- Federal Building Construction Contracts
- Department of Defense Infrastructure
Risk Flags
- Potential for cost escalation if future options are exercised without competitive re-bidding.
- Risk of construction delays impacting unit readiness.
- Dependence on contractor's past performance for successful project completion.
Tags
construction, army-reserve, miramar-california, definitive-contract, firm-fixed-price, full-and-open-competition, department-of-defense, department-of-the-army, commercial-institutional-building-construction, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.6 million to COX CONSTRUCTION CO. CONTRACT AWARD FOR THE CONSTRUCTION OF A NEW 400 MEMBER ARMY RESERVE CENTER (ARC) IN MIRAMAR, CA. INITIAL CONTRACT AWARD CONSISTS OF THE BASE PROPOSAL AND OPTION D. THE REMAINING OPTIONS MAY BE EXERCISED IN THE FUTURE VIA MODIFICATION TO THE CONTRACT.
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 $24.6 million.
What is the period of performance?
Start: 2017-11-09. End: 2021-09-30.
What is the track record of Cox Construction Co. in performing similar federal construction contracts?
A review of federal contract databases would be necessary to fully assess Cox Construction Co.'s track record. However, being awarded a contract of this magnitude by the Department of the Army suggests they possess the necessary qualifications and experience. Further investigation would involve examining past performance evaluations, any history of contract disputes or terminations, and the successful completion of similar-sized military or institutional building projects. Understanding their past performance is crucial for gauging the likelihood of successful project delivery within budget and schedule.
How does the per-square-foot cost of this Army Reserve Center compare to similar facilities?
To compare the per-square-foot cost, we would need the total square footage of the constructed facility, which is not provided in the award data. Assuming a typical size for a 400-member ARC, we could estimate a range. However, without the actual square footage, a direct comparison is impossible. Benchmarking against other Army Reserve Centers or similar military facilities constructed in comparable geographic regions and timeframes would be the most effective method. Factors like specialized training areas, security requirements, and site-specific challenges can significantly influence per-square-foot costs.
What are the primary risks associated with the remaining contract options?
The primary risks associated with the remaining contract options are potential cost increases and schedule delays if these options are exercised. Without competitive re-bidding for these future phases, the government may not secure the best possible pricing. Furthermore, unforeseen construction challenges, material cost fluctuations, or changes in military requirements could necessitate modifications to the original scope, leading to budget overruns. Careful management, clear scope definition, and potentially seeking competitive pricing for future option exercises are key to mitigating these risks.
What is the projected impact of this facility on Army Reserve operational readiness in the region?
The construction of a new 400-member Army Reserve Center is expected to significantly enhance operational readiness by providing modern, purpose-built facilities. This includes adequate space for training, administrative functions, equipment storage, and personnel support. A new, well-equipped facility can improve morale, facilitate more effective training programs, and ensure that reserve components are better prepared to mobilize and deploy when needed. The specific impact will depend on the facility's design and its integration into the broader reserve component support network.
How does this contract's value compare to the average annual spending on Army Reserve construction?
Determining the precise average annual spending on Army Reserve construction requires access to historical budget data and contract awards specifically for this branch. This single $24.6 million award represents a significant investment for one facility. To compare, one would need to aggregate data on all Army Reserve construction contracts over several fiscal years and calculate an average. This contract's value could be above, below, or in line with the average, depending on the scale and frequency of other construction projects undertaken by the Army Reserve annually.
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: W912QR17R0053
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1210 DISTRIBUTION WAY, 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: $25,203,371
Exercised Options: $24,603,371
Current Obligation: $24,603,371
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $17,351,449
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-11-09
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2022-08-02
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