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

State: Washington Government Spending

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

Positive Signals

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

Risk Flags

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: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION 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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