DoD's $111M construction contract for Albany, GA, awarded to CH2M HILL CONSTRUCTORS, INC
Contract Overview
Contract Amount: $111,372,226 ($111.4M)
Contractor: CH2M Hill Constructors, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-02-01
End Date: 2020-10-30
Contract Duration: 1,367 days
Daily Burn Rate: $81.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF GCC-MAC MCLB ALBANY
Place of Performance
Location: ALBANY, DOUGHERTY County, GEORGIA, 31704
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $111.4 million to CH2M HILL CONSTRUCTORS, INC. for work described as: IGF::OT::IGF GCC-MAC MCLB ALBANY Key points: 1. Contract value of $111.37M for construction services. 2. Awarded under full and open competition. 3. Performance period spans over 3 years. 4. Firm Fixed Price contract type suggests cost certainty. 5. No small business set-aside indicated. 6. Geographic focus on Albany, Georgia.
Value Assessment
Rating: good
The contract value of $111.37M for construction services appears to be within a reasonable range for a project of this scale, though specific benchmarks are unavailable without more detailed project scope. The firm fixed price contract type generally offers good value by shifting cost overrun risks to the contractor. Benchmarking against similar large-scale institutional construction projects would provide further insight into its value-for-money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders suggests a healthy level of competition for this significant construction project. This competitive environment is expected to drive more favorable pricing and service offerings for the government.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by ensuring a wide range of contractors can compete, driving down costs through market forces.
Public Impact
The primary beneficiaries are the Department of Defense and its personnel stationed at the Albany, Georgia facility. Services delivered include commercial and institutional building construction. Geographic impact is concentrated in Albany, Georgia. The contract supports construction industry jobs and related supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope significantly deviates from initial fixed-price agreement.
- Dependence on contractor's ability to manage complex construction timelines and logistics.
- Risk of delays impacting facility readiness for military operations.
Positive Signals
- Firm Fixed Price contract mitigates financial risk for the government.
- Full and open competition suggests a competitive bidding process leading to potentially better value.
- Long-term performance period allows for sustained project execution.
Sector Analysis
This contract falls within the broader construction sector, specifically commercial and institutional building construction. The federal government is a significant client in this sector, awarding numerous contracts for infrastructure, facilities, and base development. The market size for federal construction is substantial, with spending often influenced by defense needs and infrastructure investment priorities. This contract represents a notable investment in facility upgrades or new construction for the Department of the Navy.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business entity. The absence of specific small business provisions may limit direct opportunities for small contractors on this particular project, though the prime contractor might engage them for specialized services.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and project management offices. Accountability measures are embedded in the firm fixed price contract terms, requiring the contractor to deliver specified construction services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting, though detailed project-specific oversight information may not be publicly available.
Related Government Programs
- Department of Defense Construction Contracts
- Naval Facilities Engineering Command Projects
- Military Base Infrastructure Development
- Large-Scale Commercial Construction Awards
Risk Flags
- Potential for scope creep in large construction projects.
- Contractor performance and timely delivery risks.
- Dependence on skilled labor availability.
Tags
construction, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, delivery-order, commercial-and-institutional-building-construction, albany-georgia, large-contract, defense-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $111.4 million to CH2M HILL CONSTRUCTORS, INC.. IGF::OT::IGF GCC-MAC MCLB ALBANY
Who is the contractor on this award?
The obligated recipient is CH2M HILL CONSTRUCTORS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $111.4 million.
What is the period of performance?
Start: 2017-02-01. End: 2020-10-30.
What is the specific nature of the construction work performed under this contract?
The contract is categorized under 'Commercial and Institutional Building Construction' (NAICS code 236220). While the specific details of the construction are not provided in the summary data, this classification typically encompasses the construction of non-residential buildings such as offices, warehouses, educational facilities, hospitals, and other institutional structures. Given the Department of the Navy as the agency, it is likely related to the development or renovation of facilities at a naval installation in or near Albany, Georgia.
How does the awarded amount of $111.37M compare to similar construction contracts for military facilities?
Without specific project scope details (e.g., square footage, type of facility, complexity of systems), a direct comparison of the $111.37M award to similar contracts is challenging. However, for large-scale military construction projects, this value is substantial and indicative of a significant undertaking, such as building a new major facility, a complex of buildings, or a substantial renovation. Federal procurement data shows that contracts in the tens to hundreds of millions of dollars are common for major military infrastructure projects, especially those involving new construction or extensive upgrades.
What are the key risks associated with a firm fixed-price contract of this magnitude and duration?
For a firm fixed-price (FFP) contract valued at $111.37M and spanning over three years, key risks for the government are minimal regarding cost overruns, as the contractor assumes most of that risk. However, risks can emerge if the contract scope is poorly defined, leading to disputes or change orders that increase costs. Contractor performance risk is significant; a contractor's inability to manage resources, labor, or subcontractors effectively could lead to delays, quality issues, or even contractor default. For the contractor, the risk lies in underestimating costs or encountering unforeseen site conditions, which could erode profit margins or lead to losses if not managed proactively.
What does the presence of 4 bidders in a full and open competition imply for the government?
Having 4 bidders in a full and open competition for this construction contract is a positive signal. It indicates that the contract requirements were well-defined and attractive enough to solicit interest from multiple qualified firms. A competitive field of this size generally suggests that the government received a range of proposals, allowing for a thorough evaluation and selection of the best value offer. This level of competition typically drives down prices and encourages higher quality performance as contractors vie for the award.
What is the historical spending pattern for commercial and institutional building construction by the Department of the Navy?
The Department of the Navy, like other branches of the DoD, consistently spends significant amounts on construction projects to maintain and upgrade its vast infrastructure. Historical spending data would show a pattern of large-scale awards for barracks, training facilities, administrative buildings, hangars, and port infrastructure. The annual spending can fluctuate based on budget allocations, strategic priorities, and the lifecycle of existing facilities. Contracts in the range of $100M+ are not uncommon for major new builds or comprehensive renovations, reflecting the scale of the Navy's real property portfolio.
What are the potential implications of this contract on the local economy in Albany, Georgia?
A contract of this magnitude ($111.37M) awarded for construction in Albany, Georgia, is likely to have a substantial positive impact on the local economy. It will create numerous direct jobs in construction trades, project management, and engineering. Furthermore, it will generate indirect employment through local suppliers of materials, equipment, and services. The influx of workers may also boost local hospitality and retail sectors. The long-term impact includes improved infrastructure for the military base, potentially enhancing its operational capabilities and personnel support.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6247012R5010
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc
Address: 9189 S JAMAICA ST, ENGLEWOOD, CO, 80112
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $111,372,226
Exercised Options: $111,372,226
Current Obligation: $111,372,226
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6247013D6019
IDV Type: IDC
Timeline
Start Date: 2017-02-01
Current End Date: 2020-10-30
Potential End Date: 2020-10-30 00:00:00
Last Modified: 2022-04-02
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