DoD contract for Scott AFB building alterations awarded to River City Construction LLC for over $36.9M

Contract Overview

Contract Amount: $36,944,319 ($36.9M)

Contractor: River City Construction LLC

Awarding Agency: Department of Defense

Start Date: 2020-07-29

End Date: 2024-07-31

Contract Duration: 1,463 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ADDITIONS AND ALTERATIONS TO BUILDING 1575 AT SCOTT AIR FORCE BASE, IL.

Place of Performance

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

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $36.9 million to RIVER CITY CONSTRUCTION LLC for work described as: ADDITIONS AND ALTERATIONS TO BUILDING 1575 AT SCOTT AIR FORCE BASE, IL. Key points: 1. Contract value exceeds $36.9 million, indicating a significant investment in facility upgrades. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration spans over 1400 days, implying a complex and lengthy project. 4. The fixed-price nature of the contract shifts cost risk to the contractor. 5. This project falls under the Commercial and Institutional Building Construction NAICS code. 6. The contract was awarded by the Department of the Army, a major component of the DoD. 7. The project is located in Illinois, impacting the local construction economy.

Value Assessment

Rating: fair

The contract value of over $36.9 million for building alterations at Scott Air Force Base is substantial. Benchmarking against similar large-scale construction projects within the Department of Defense or other federal agencies would be necessary for a precise value-for-money assessment. However, the fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined. Without specific cost breakdowns or comparisons to industry standards for similar alterations, a definitive 'excellent' rating is not possible.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' procurement method, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, three offers generally provide a reasonable basis for price discovery and selection of the best value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider selection of qualified contractors.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel at Scott Air Force Base, who will gain improved facilities. The contract delivers construction services for the alteration of Building 1575. The geographic impact is localized to Scott Air Force Base in Illinois. The project will likely have implications for the local construction workforce, potentially creating jobs and demand for skilled labor in Illinois.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large, multi-year construction projects if not meticulously managed.
Reliance on a single contractor for a significant duration could pose risks if performance issues arise.
The fixed-price nature, while beneficial, requires a very clear and detailed scope of work to avoid disputes.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified bidders.
The fixed-price contract type transfers cost overrun risk to the contractor.
The project aims to improve critical infrastructure at a military installation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The federal government is a significant consumer of construction services, particularly for maintaining and upgrading its vast portfolio of facilities. Spending in this sector is influenced by infrastructure needs, modernization efforts, and national security requirements. Comparable spending benchmarks would typically involve analyzing other large-scale federal building renovation or construction contracts.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem through this specific award appears limited, though River City Construction LLC may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are inherent in the contract terms, particularly the fixed-price structure. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress and specific cost breakdowns may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Facility Sustainment, Restoration, and Modernization (FSRM)
Department of Defense Construction Contracts
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Contractor performance risk over a long project duration.
Reliance on a single contractor for critical facility upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.9 million to RIVER CITY CONSTRUCTION LLC. ADDITIONS AND ALTERATIONS TO BUILDING 1575 AT SCOTT AIR FORCE BASE, IL.

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 $36.9 million.

What is the period of performance?

Start: 2020-07-29. End: 2024-07-31.

What is the track record of River City Construction LLC with federal contracts, particularly within the Department of Defense?

River City Construction LLC has been awarded federal contracts, including this significant award from the Department of the Army. A comprehensive review of their federal contracting history would involve examining past performance on similar projects, including their on-time and on-budget delivery rates, any past disputes or contract terminations, and their overall CPARS (Contractor Performance Assessment Reporting System) ratings. Understanding their experience with large-scale building alterations and their safety records would provide further insight into their capabilities and reliability for this specific project at Scott Air Force Base.

How does the awarded amount of over $36.9 million compare to the estimated cost or budget for this project?

The provided data shows the awarded contract value at $36,944,319.33. Without access to the government's independent government cost estimate (IGCE) or the initial budget allocated for the alteration of Building 1575, it is difficult to definitively assess whether the award represents a good or fair value relative to expectations. If the award was significantly below the IGCE, it could indicate strong competition or effective negotiation. Conversely, if it was at or above the IGCE, further analysis of the scope and market conditions would be needed to determine value.

What are the primary risks associated with a fixed-price contract for a multi-year building alteration project?

The primary risks with a fixed-price contract for a project of this duration and scope (over 1400 days) revolve around the definition and management of the work. If the scope of work is not meticulously detailed and understood by both parties, there is a significant risk of change orders, which can lead to cost increases and schedule delays, potentially negating the benefits of the fixed price. Contractor performance risk is also present; if River City Construction LLC encounters unforeseen difficulties or performance issues, they bear the financial burden, which could impact project completion. Conversely, the government benefits from cost certainty, assuming the scope is well-managed.

What is the typical duration for similar large-scale building alteration projects within the Department of Defense?

The duration of this contract, set at 1463 days (approximately 4 years), is substantial for a building alteration project. Typical durations for similar large-scale projects within the Department of Defense can vary widely based on the complexity, size of the facility, and the scope of alterations. Projects involving structural changes, extensive system upgrades (HVAC, electrical, plumbing), or modernization of specialized military facilities often extend beyond two years. Shorter durations are more common for smaller renovations or upgrades with less complex requirements. This 4-year timeline suggests a comprehensive and potentially complex undertaking.

How does the number of bidders (3) impact the potential for cost savings for the government on this contract?

Having three bidders for this contract suggests a moderate level of competition. While more bidders could theoretically lead to greater price reductions due to increased market pressure, three offers generally provide a reasonable basis for the government to evaluate proposals and select the best value. The impact on cost savings depends heavily on the competitiveness of the bids submitted and the government's negotiation strategy. If the bids were closely contested and well-aligned with the government's estimate, significant cost savings could be realized. However, fewer than five bidders might indicate potential barriers to entry or limited market interest, which could slightly temper the competitive pressure.

What are the potential implications of awarding a large construction contract to a single entity for an extended period?

Awarding a large construction contract like this to a single entity, River City Construction LLC, for an extended period (over 4 years) concentrates project execution risk and reward with that contractor. Positively, it can foster a strong working relationship and streamline project management by having a single point of contact and responsibility. However, it also means the government is heavily reliant on that contractor's performance, financial stability, and resource availability throughout the project's lifecycle. Any significant issues with the contractor could lead to substantial delays and cost impacts, despite the fixed-price nature, if scope changes or disputes arise.

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: W912QR20R0005

Offers Received: 3

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: $37,110,319

Exercised Options: $36,944,319

Current Obligation: $36,944,319

Actual Outlays: $235,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline