Army Awards $19.9M Warehouse Construction Contract to GARCO Construction, Inc. in Washington
Contract Overview
Contract Amount: $19,942,889 ($19.9M)
Contractor: Garco Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-02-28
End Date: 2026-01-07
Contract Duration: 679 days
Daily Burn Rate: $29.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: D/B/B YAKIMA EQUIPMENT CONCENTRATION SITE WAREHOUSE
Place of Performance
Location: YAKIMA, YAKIMA County, WASHINGTON, 98901
Plain-Language Summary
Department of Defense obligated $19.9 million to GARCO CONSTRUCTION, INC. for work described as: D/B/B YAKIMA EQUIPMENT CONCENTRATION SITE WAREHOUSE Key points: 1. The contract is for warehouse construction, a sector with significant infrastructure needs. 2. GARCO Construction, Inc. secured the award through full and open competition. 3. The firm fixed price contract type aims to control costs for the $19.9M award. 4. The project is located in Yakima, Washington, potentially impacting local employment and businesses.
Value Assessment
Rating: good
The contract value of $19.9M appears reasonable for a warehouse construction project of this scale. Benchmarking against similar commercial and institutional building construction contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust process for soliciting bids and ensuring fair pricing. This method typically leads to competitive pricing as multiple contractors vie for the contract.
Taxpayer Impact: The competitive bidding process is expected to yield a fair price, maximizing the value of taxpayer funds allocated to this infrastructure project.
Public Impact
Construction of a new warehouse facility will enhance logistical capabilities for the Department of the Army. The project is expected to create jobs in the Yakima, Washington area during its construction phase. Local and regional businesses may benefit from subcontracts and material supply opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in the provided data.
- Potential for cost overruns if unforeseen site conditions arise.
- Dependence on timely material and labor availability.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type helps manage cost certainty.
- Project addresses a clear logistical need for the Army.
Sector Analysis
The Commercial and Institutional Building Construction sector is vital for infrastructure development. Spending benchmarks vary widely based on project scope, location, and specific requirements. This $19.9M contract falls within a moderate range for significant construction projects.
Small Business Impact
The data indicates this contract was not awarded to a small business. Opportunities for small businesses may exist through subcontracting with the prime contractor, GARCO Construction, Inc.
Oversight & Accountability
The Department of the Army is responsible for oversight. Contract clauses and regular progress reviews should ensure adherence to scope, schedule, and budget, with potential for audits.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Firm Fixed Price contract type.
- Full and Open Competition.
- Definitive Contract award.
- Project addresses a clear need for infrastructure.
Tags
commercial-and-institutional-building-co, department-of-defense, wa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.9 million to GARCO CONSTRUCTION, INC.. D/B/B YAKIMA EQUIPMENT CONCENTRATION SITE WAREHOUSE
Who is the contractor on this award?
The obligated recipient is GARCO CONSTRUCTION, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $19.9 million.
What is the period of performance?
Start: 2024-02-28. End: 2026-01-07.
What are the key performance indicators (KPIs) for this warehouse construction project, and how will they be measured to ensure successful delivery?
Key performance indicators typically include adherence to schedule, quality of construction meeting specified standards, safety compliance, and budget management. Success will be measured through regular site inspections, progress reports, milestone completion verification, and final acceptance testing. The Department of the Army's contracting officer's representative (COR) will likely monitor these KPIs throughout the contract duration.
What specific risks are associated with the construction site in Yakima, Washington, and what mitigation strategies are in place?
Potential risks could include unforeseen geological conditions, adverse weather impacting the construction schedule, or supply chain disruptions for materials. Mitigation strategies might involve thorough site investigations prior to construction, contingency planning for weather delays, and securing material commitments early. The contract's firm fixed price nature places the risk of cost overruns due to these factors primarily on the contractor.
How does the construction of this warehouse align with the Department of the Army's broader strategic objectives for logistical efficiency and readiness?
This warehouse construction directly supports the Army's strategic objectives by enhancing its logistical capabilities. A modern, well-equipped facility can improve storage, distribution, and inventory management of essential supplies and equipment, thereby increasing operational readiness and responsiveness. Its location likely serves a specific regional or functional need, optimizing the flow of resources to support military operations.
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: W912QR24R0005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4114 E BROADWAY, SPOKANE, WA, 99202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,054,889
Exercised Options: $19,942,889
Current Obligation: $19,942,889
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-02-28
Current End Date: 2026-01-07
Potential End Date: 2026-01-07 00:00:00
Last Modified: 2025-09-30
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