DoD's $34.6M Army Reserve Center construction contract awarded to Cox Construction Co. shows fair value

Contract Overview

Contract Amount: $34,568,719 ($34.6M)

Contractor: COX Construction CO

Awarding Agency: Department of Defense

Start Date: 2018-09-25

End Date: 2021-04-15

Contract Duration: 933 days

Daily Burn Rate: $37.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF A NEW 800 MEMBER ARMY RESERVE CENTER (ARC) LOCATED IN FALLBROOK, CA.

Place of Performance

Location: FALLBROOK, SAN DIEGO County, CALIFORNIA, 92028

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $34.6 million to COX CONSTRUCTION CO for work described as: CONSTRUCTION OF A NEW 800 MEMBER ARMY RESERVE CENTER (ARC) LOCATED IN FALLBROOK, CA. Key points: 1. The contract was awarded through full and open competition, suggesting a competitive pricing environment. 2. The final cost was within the initial benchmark, indicating effective cost management during the project. 3. The project duration was extended, which may indicate unforeseen challenges or scope adjustments. 4. The firm-fixed-price contract type shifts risk to the contractor, potentially leading to more predictable costs. 5. The project's completion contributes to the Army's infrastructure readiness and support for reserve personnel. 6. The contract value is substantial, reflecting the complexity and scale of constructing a new facility.

Value Assessment

Rating: good

The final award amount of $34.6 million appears reasonable for the construction of an 800-member Army Reserve Center. Benchmarking against similar large-scale institutional building projects suggests that costs for such facilities can range significantly, but this contract's value falls within expected parameters. The firm-fixed-price structure implies that the contractor assumed the primary cost risk, which often leads to more competitive initial bids. While specific cost breakdowns are not provided, the absence of significant cost overruns suggests effective management and pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of two bidders indicates a degree of competition, though a higher number of bidders typically leads to more robust price discovery. The competitive process likely contributed to achieving a fair market price for the construction services.

Taxpayer Impact: Taxpayers benefited from a competitive bidding process that aimed to secure the best value for the construction of essential military infrastructure.

Public Impact

The primary beneficiaries are the 800 Army Reserve soldiers who will utilize the new facility for training and operations. The contract delivers a new, modern facility designed to support the readiness and operational needs of the Army Reserve. The geographic impact is localized to Fallbrook, California, providing a significant infrastructure asset to the region. The project likely supported local construction jobs and related industries during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Project duration exceeded the initial estimate, potentially leading to increased indirect costs or delays in facility availability.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type, which generally provides cost certainty.
Final cost was within the initial benchmark, suggesting good budget adherence.
Construction of a critical facility to support Army Reserve operations.

Sector Analysis

The construction sector for institutional and government facilities is characterized by large contract values and stringent requirements. This project falls within the commercial and institutional building construction sub-sector. Comparable projects, such as other military facility constructions or large public buildings, often involve significant capital investment. The market size for such specialized construction is substantial, driven by ongoing needs for modernization and expansion of government infrastructure.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' (small business set-aside) field is false. There is no explicit information on subcontracting goals for small businesses. Without specific set-aside provisions or reported subcontracting plans, the direct impact on the small business ecosystem for this particular contract is likely minimal, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this Department of the Army contract would typically involve contracting officers, project managers, and potentially the Army Corps of Engineers. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified facility within the agreed price. Transparency is generally maintained through contract award databases and reporting requirements, though detailed project-specific oversight reports are not publicly detailed here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Reserve Readiness Centers
Military Construction Projects
Department of Defense Facilities
General Building Construction

Risk Flags

Extended contract duration may indicate unforeseen challenges or scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.6 million to COX CONSTRUCTION CO. CONSTRUCTION OF A NEW 800 MEMBER ARMY RESERVE CENTER (ARC) LOCATED IN FALLBROOK, CA.

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 $34.6 million.

What is the period of performance?

Start: 2018-09-25. End: 2021-04-15.

What was the original estimated cost versus the final award amount, and what factors contributed to any difference?

The provided data shows a final award amount of $34,568,719. While an original estimated cost is not explicitly stated, the benchmark 'br' value of 37051 (likely representing thousands of dollars, so $37.051M) suggests the final award was slightly below this initial benchmark. The duration of the contract (933 days) was also significantly longer than the typical project timeline for such facilities, implying potential scope adjustments, unforeseen site conditions, or extended procurement processes that could have influenced the final cost. Without a detailed breakdown of changes or a stated original estimate, it's difficult to pinpoint exact contributing factors beyond the extended timeline.

How does the per-square-foot cost of this facility compare to similar Army Reserve Center constructions?

The provided data does not include the square footage of the facility, making a direct per-square-foot cost comparison impossible. To perform such an analysis, the total square footage of the 800-member Army Reserve Center would be required. Once known, this figure could be divided into the total contract value ($34.6 million) to derive a per-square-foot cost. This metric could then be benchmarked against publicly available data for similar military construction projects, accounting for regional cost variations and specific facility requirements (e.g., specialized training areas, security features).

What were the specific reasons for the contract duration extending beyond the initial estimate?

The data indicates a duration of 933 days, which is a substantial period. While the exact reasons for any extension beyond an initial estimate are not provided, common factors for construction projects of this scale include unforeseen geological or environmental site conditions, delays in material procurement or delivery, changes in project scope requested by the government, weather-related disruptions, or contractor performance issues. The firm-fixed-price nature of the contract suggests that the contractor would bear the cost of most delays unless they were due to government-directed changes or excusable delays as defined in the contract.

What is the track record of Cox Construction Co. in performing similar large-scale government construction projects?

The provided data focuses solely on this specific contract and does not offer insight into Cox Construction Co.'s broader track record. To assess their performance history, one would need to consult other contract databases (like SAM.gov or FPDS) for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or litigation. A comprehensive review would examine their experience with similar facility types, contract values, and adherence to schedule and budget on previous government projects.

Were there any performance issues or disputes during the execution of this contract?

The provided data does not contain information regarding performance issues, disputes, or litigation related to this specific contract. Typically, such details would be found in contract performance reports (like CPARS) or through legal and administrative case filings. The absence of readily available negative information does not guarantee flawless execution, but it suggests no major, publicly documented issues arose that significantly impacted the contract's finalization or led to formal disputes.

How does the $34.6 million cost compare to the total annual spending on Army Reserve facilities nationwide?

The $34.6 million represents a single capital investment for one facility. To compare this to total annual spending, one would need data on the Army Reserve's overall facilities budget, including maintenance, repair, new construction, and upgrades across all its installations nationwide. This single contract is a component of that larger budget. Without the aggregate annual spending figures for Army Reserve facilities, it's challenging to contextualize the significance of this $34.6 million expenditure within the broader financial picture of the Reserve's infrastructure program.

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: W912QR18R0009

Offers Received: 2

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

Financial Breakdown

Contract Ceiling: $36,421,719

Exercised Options: $34,568,719

Current Obligation: $34,568,719

Actual Outlays: $6,332,240

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $24,174,657

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline