J&J Contractors awarded $18.3M for Vandenberg Gate Complex construction at Hanscom AFB

Contract Overview

Contract Amount: $18,316,692 ($18.3M)

Contractor: J & J Contractors, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-02-18

End Date: 2024-02-04

Contract Duration: 716 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: VANDENBERG GATE COMPLEX, HANSCOM AIR FORCE BASE, BEDFORD, MASSACHUSETTS

Place of Performance

Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to J & J CONTRACTORS, INC. for work described as: VANDENBERG GATE COMPLEX, HANSCOM AIR FORCE BASE, BEDFORD, MASSACHUSETTS Key points: 1. Contract value of $18.3 million represents a significant investment in base infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Construction services are essential for maintaining and upgrading military facilities. 5. Project duration of 716 days indicates a substantial construction undertaking. 6. Geographic location in Massachusetts places the project within a region with established construction markets.

Value Assessment

Rating: fair

The contract value of $18.3 million for the Vandenberg Gate Complex construction at Hanscom AFB appears within a reasonable range for a project of this scope. Benchmarking against similar military construction projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract implies that the contractor bears the primary risk for cost overruns, which can sometimes lead to higher initial bids to account for contingencies. Without specific cost breakdowns or comparisons to industry standards for gate complex construction, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this project. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the nature of the competition would further clarify the effectiveness of the procurement strategy.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers. However, with only two bidders, the potential for significant cost savings might be limited compared to a more crowded field.

Public Impact

The primary beneficiaries are the Department of the Army and the personnel at Hanscom Air Force Base, who will gain improved security and access control. The project delivers essential construction services for a critical military installation. The geographic impact is localized to Bedford, Massachusetts, supporting the local economy through construction jobs. Workforce implications include employment opportunities for construction laborers, tradespeople, and project management staff in the Massachusetts area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Risk of schedule delays due to weather, material availability, or labor shortages.
Ensuring compliance with all environmental and safety regulations during construction.
Adequate oversight is crucial to ensure quality of work and adherence to specifications.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition provides a baseline for fair pricing.
Project duration allows for thorough execution of construction tasks.
Award to J&J Contractors, Inc. suggests they met the required qualifications.

Sector Analysis

The construction sector is a significant part of the federal procurement landscape, encompassing a wide range of projects from infrastructure development to facility maintenance. This contract falls under commercial and institutional building construction, a segment that requires specialized expertise in managing complex building projects. Federal spending in this area is often driven by the need to maintain and modernize aging military installations, ensuring operational readiness and security. Comparable spending benchmarks for similar gate complex or base facility construction projects would be necessary for a more detailed analysis.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. The prime contractor, J&J Contractors, Inc., is not explicitly identified as a small business in the provided data. There is no information available regarding subcontracting plans or their impact on the small business ecosystem. Further investigation into the contractor's size and subcontracting practices would be needed to assess the impact on small businesses.

Oversight & Accountability

Oversight for this construction contract would typically be managed by the contracting officer's representative (COR) from the Department of the Army, ensuring adherence to contract terms, specifications, and quality standards. Accountability measures are embedded in the firm fixed-price contract, which incentivizes the contractor to complete the work within budget. Transparency is generally maintained through contract award databases, though detailed project progress reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Base Construction
Department of Defense Facilities Modernization
Federal Building and Infrastructure Projects
Army Corps of Engineers Construction Contracts

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Quality control during construction
Adequacy of competition (only 2 bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to J & J CONTRACTORS, INC.. VANDENBERG GATE COMPLEX, HANSCOM AIR FORCE BASE, BEDFORD, MASSACHUSETTS

Who is the contractor on this award?

The obligated recipient is J & J CONTRACTORS, 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 $18.3 million.

What is the period of performance?

Start: 2022-02-18. End: 2024-02-04.

What is the track record of J&J Contractors, Inc. with federal contracts, particularly within the Department of Defense?

A review of federal contract databases would be necessary to fully assess J&J Contractors, Inc.'s track record. This would involve examining past performance on similar construction projects, including their timeliness, adherence to budget, and quality of work. Specifically, looking at their history with the Department of Defense and the Army would provide relevant context for their capability to execute the Vandenberg Gate Complex project. Any past performance issues, such as contract disputes or terminations, would be critical indicators of potential risk. Conversely, a history of successful, on-time, and within-budget completions would signal a lower risk profile.

How does the awarded price of $18.3 million compare to similar gate complex construction projects at other military bases?

Benchmarking this $18.3 million contract against similar gate complex construction projects at other military bases is crucial for assessing value for money. This comparison would involve identifying projects with comparable scope, size, security features, and construction complexity. Factors such as geographic location (which can influence labor and material costs), the specific branch of service, and the year of award would need to be standardized or accounted for. Without access to a database of comparable projects and their awarded values, it is difficult to definitively state whether this contract represents a good or fair price. However, the firm fixed-price nature suggests the government has secured a ceiling cost, with the contractor bearing the risk of cost overruns.

What are the primary risks associated with this specific construction project, and how are they being mitigated?

The primary risks associated with this construction project include potential schedule delays due to weather, unforeseen site conditions, or material/labor shortages. There is also a risk related to the quality of construction and ensuring compliance with all security and building codes. Given the firm fixed-price contract type, the contractor, J&J Contractors, Inc., bears the primary financial risk for cost overruns. Mitigation strategies would typically involve detailed project planning, robust oversight by the government's COR, regular progress meetings, and potentially performance bonds. The contract's duration of 716 days allows for a structured approach to managing these risks over the project lifecycle.

What is the historical spending pattern for construction at Hanscom Air Force Base, and how does this contract fit within that trend?

Analyzing historical spending patterns for construction at Hanscom Air Force Base would provide context for this $18.3 million contract. This would involve examining previous years' budgets and expenditures allocated to facility upgrades, new construction, and maintenance at the base. Understanding whether this award represents an increase, decrease, or steady level of investment in construction is important. It would also be beneficial to see if there's a trend of awarding similar types of construction contracts (e.g., gate facilities, administrative buildings) and how the values of those contracts compare. This analysis helps determine if this contract is an anomaly or part of a consistent capital improvement plan for the base.

Given the full and open competition with two bidders, what is the likelihood of price efficiencies or potential for cost savings?

With full and open competition, the intention is to foster price efficiencies. However, having only two bidders for this $18.3 million construction contract suggests a moderate level of competition. While two bidders are preferable to a sole-source award, a more robust competition with a larger number of offers typically drives prices down more effectively. The likelihood of significant price efficiencies depends on the competitiveness of the two bids submitted. If the bids were closely aligned and reflected market rates, the government may have achieved a fair price. If one bid was significantly lower, it could indicate aggressive pricing or a potential risk if the contractor underestimated costs. Further analysis of the bid spread would be informative.

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: TWO STEP

Solicitation ID: W912WJ20R0001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 BILLERICA AVENUE BLDG 5 STE-205, NORTH BILLERICA, MA, 01862

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,067,199

Exercised Options: $18,316,692

Current Obligation: $18,316,692

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline