Department of Defense awarded $45.1M for site prep and temporary facilities to Straub Construction, Inc

Contract Overview

Contract Amount: $45,116,035 ($45.1M)

Contractor: Straub Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-07-25

End Date: 2011-02-01

Contract Duration: 921 days

Daily Burn Rate: $49.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P710: SITE PREPARATION & TEMP FACILITIES

Place of Performance

Location: TWENTYNINE PALMS, SAN BERNARDINO County, CALIFORNIA, 92278

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $45.1 million to STRAUB CONSTRUCTION, INC. for work described as: P710: SITE PREPARATION & TEMP FACILITIES Key points: 1. The contract value of $45.1M for site preparation and temporary facilities appears to be within a reasonable range for large-scale construction projects. 2. Full and open competition was utilized, suggesting a robust market for these services and potential for competitive pricing. 3. The fixed-price contract type generally shifts risk to the contractor, which can be beneficial for the government if managed effectively. 4. The project duration of 921 days indicates a significant undertaking, requiring substantial contractor resources and oversight. 5. The contract was awarded by the Department of the Navy, a major component of the Department of Defense, indicating a substantial need within naval infrastructure development. 6. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities for small businesses are not explicitly mandated by this award.

Value Assessment

Rating: good

The contract value of approximately $45.1 million for site preparation and temporary facilities is substantial. Benchmarking against similar large-scale construction projects for military installations would be necessary for a precise value-for-money assessment. However, given the scope implied by site preparation and temporary facilities for a major defense project, the price appears to be in line with industry standards for such complex undertakings. The firm fixed-price nature of the contract suggests that the government has secured a defined cost, assuming the contractor's bid adequately accounted for all project risks.

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 fact that there were 5 bids received suggests a healthy level of competition for this significant construction project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value. The presence of multiple bids allows for a direct comparison of proposals and pricing, facilitating informed selection.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces. It ensures that the government is not limited to a few providers, increasing the chances of obtaining services at a fair market price and maximizing the return on taxpayer investment.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Navy, who will receive the necessary site preparation and temporary facilities for their operations. The services delivered include essential construction activities that lay the groundwork for larger military projects or ongoing operational needs. The geographic impact is localized to California, where the contract was performed, potentially creating local employment and economic activity. Workforce implications include the creation of construction jobs, likely requiring skilled labor in various trades, benefiting the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
Ensuring timely completion within the 921-day duration is critical to avoid impacting follow-on military projects.
Quality control and adherence to specifications for site preparation and temporary facilities are paramount for the success of subsequent construction phases.

Positive Signals

The use of full and open competition suggests a competitive bidding process that likely resulted in a fair price.
The firm fixed-price contract type transfers significant risk to the contractor, protecting the government from cost escalations.
The award to Straub Construction, Inc. indicates a selection based on their ability to meet the government's requirements, implying a level of contractor capability.

Sector Analysis

The construction sector, particularly for government and defense projects, is characterized by large contract values and stringent requirements. Site preparation and temporary facilities are foundational elements for any major construction or infrastructure development. This contract fits within the broader category of military construction and base development, which is a significant area of federal spending. Comparable spending benchmarks would involve looking at other large-scale base improvement or new construction projects awarded by the Department of Defense or other federal agencies.

Small Business Impact

The contract was not awarded as a small business set-aside, and the 'sb' flag is false. This indicates that the primary contract was competed without specific set-aside provisions for small businesses. While the prime contractor, Straub Construction, Inc., may or may not be a small business itself (further verification needed), the award structure does not prioritize small business participation directly. Subcontracting opportunities may arise, but they are not explicitly mandated by this award's structure. The impact on the small business ecosystem depends on whether the prime contractor actively seeks small business subcontractors for specialized services or materials.

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 Navy. Accountability measures are embedded in the firm fixed-price contract terms, which stipulate performance requirements and penalties for non-compliance. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if allegations of fraud, waste, or abuse arise during the contract's performance or closeout.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Naval Facilities Engineering Command (NAVFAC) Contracts
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting follow-on military projects.
Ensuring quality control over an extended construction period.
Contractor financial stability over the 921-day performance period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.1 million to STRAUB CONSTRUCTION, INC.. P710: SITE PREPARATION & TEMP FACILITIES

Who is the contractor on this award?

The obligated recipient is STRAUB CONSTRUCTION, 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 $45.1 million.

What is the period of performance?

Start: 2008-07-25. End: 2011-02-01.

What is the track record of Straub Construction, Inc. with federal contracts, particularly with the Department of Defense?

Straub Construction, Inc. has a history of federal contracting, primarily with the Department of Defense. Data indicates they have been awarded multiple contracts, including this significant Delivery Order valued at $45.1 million for site preparation and temporary facilities. Their performance history on these contracts, including adherence to schedule, budget, and quality standards, would be a key factor in assessing their reliability. A review of past performance evaluations and any contract disputes or terminations would provide further insight into their capabilities and track record with federal agencies. Specific details on their past projects, their scope, and their outcomes would be necessary for a comprehensive assessment.

How does the awarded amount of $45.1 million compare to similar site preparation and temporary facility contracts awarded by the Department of Defense?

The $45.1 million award for site preparation and temporary facilities is a substantial sum, indicative of a large-scale project. To benchmark this value, one would compare it to other contracts of similar scope and complexity awarded by the Department of Defense or other federal agencies for military base development or major construction projects. Factors such as geographic location (e.g., California), specific site conditions, duration of the project (921 days), and the types of temporary facilities required would influence comparability. Without access to a detailed database of comparable projects, it's difficult to provide an exact benchmark, but this figure suggests a significant investment in infrastructure.

What are the primary risks associated with a firm fixed-price contract for site preparation and temporary facilities, and how are they mitigated?

The primary risk with a firm fixed-price contract is that the contractor may incur costs exceeding the agreed-upon price, potentially leading to financial distress or a desire to cut corners on quality to maintain profitability. For site preparation and temporary facilities, unforeseen geological conditions, extreme weather events, or changes in scope (if not managed through formal change orders) can significantly impact costs. Mitigation strategies include thorough site investigations prior to bidding, robust contract language that clearly defines scope and responsibilities, stringent quality assurance and inspection protocols during performance, and effective project management by the government to monitor progress and address issues proactively. The contractor's own risk assessment and contingency planning are also crucial.

What is the expected effectiveness of the site preparation and temporary facilities in supporting the Department of Defense's mission?

The effectiveness of the site preparation and temporary facilities is directly tied to their role in enabling subsequent, larger military construction or operational activities. Proper site preparation ensures a stable and suitable foundation for new structures, while adequate temporary facilities provide essential support for personnel, equipment, and operations during the construction phase. If executed according to specifications, these elements are critical for the timely and successful completion of the overall military project, thereby directly supporting the Department of Defense's mission by providing necessary infrastructure. The 921-day duration suggests these facilities are intended for a prolonged period, indicating a significant and ongoing operational requirement.

How has federal spending on site preparation and temporary facilities evolved over the past five years, and does this contract align with trends?

Federal spending on site preparation and temporary facilities is often tied to broader trends in military construction, infrastructure upgrades, and base development. Over the past five years, defense spending has generally remained robust, with significant investments in modernizing facilities and preparing sites for new capabilities. This $45.1 million contract aligns with the expectation of continued substantial investment in military infrastructure. Trends may show an increase in spending on resilient infrastructure, energy efficiency, or specialized facilities, depending on strategic priorities. Analyzing historical spending data for similar projects within the Department of the Navy would reveal if this award is consistent with or deviates from established patterns.

What are the potential implications of the 921-day duration for project management and contractor performance?

A 921-day duration (approximately 2.5 years) for site preparation and temporary facilities signifies a long-term project. This extended timeline requires robust project management from both the contractor and the government to maintain momentum, control costs, and ensure quality over an extended period. For the contractor, it necessitates sustained resource allocation, potential workforce rotation, and careful financial planning to manage cash flow. For the government, it demands consistent oversight, regular progress reviews, and effective communication to address any issues that arise. The extended duration also increases the risk of scope creep or changes in requirements due to evolving military needs or technological advancements.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247307R2002

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5256 S MISSION RD STE 310, BONSALL, CA, 92003

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $45,116,035

Exercised Options: $45,116,035

Current Obligation: $45,116,035

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247308D8610

IDV Type: IDC

Timeline