Navy awards $20.8M flight simulator construction contract to Sundt Construction, Inc

Contract Overview

Contract Amount: $20,766,346 ($20.8M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-06-03

End Date: 2013-04-19

Contract Duration: 686 days

Daily Burn Rate: $30.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P533 FLIGHT SIMULATOR

Place of Performance

Location: YUMA, YUMA County, ARIZONA, 85369

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to SUNDT CONSTRUCTION, INC. for work described as: P533 FLIGHT SIMULATOR Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 686 days indicates a significant construction project. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The project is located in Arizona, potentially impacting local construction workforce. 5. The value of the contract is substantial for a single construction project. 6. The award was a delivery order, implying it's part of a larger contract vehicle.

Value Assessment

Rating: good

The contract value of approximately $20.8 million for a flight simulator facility appears reasonable given the scope of construction. Benchmarking against similar large-scale institutional building projects suggests that the pricing is within expected ranges. The firm fixed-price nature of the contract provides cost certainty, which is a positive indicator of value for money, assuming the final delivered product meets all specifications.

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 9 bidders suggests a healthy level of competition for this project. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the final price and encouraged contractors to offer their best value propositions.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who will utilize the flight simulator for training. The contract delivers a critical infrastructure component for naval aviation training. The project's geographic impact is concentrated in Arizona, potentially creating local construction jobs. The construction phase will likely involve a skilled construction workforce, contributing to employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in construction impacting training schedules.
Ensuring the final facility meets all advanced technological requirements for flight simulation.

Positive Signals

Awarded through full and open competition with multiple bidders.
Firm fixed-price contract type provides cost predictability.
Contract awarded to a known entity, Sundt Construction, Inc.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for specialized facilities. The construction of advanced training facilities like flight simulators represents a niche but critical segment of the broader construction market. Comparable spending benchmarks for large institutional or specialized government facilities would place this contract in the mid-to-high range for a single project of this nature.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Sundt Construction, Inc. voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed to assess the full impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified facilities. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Aviation Training Programs
Military Construction Projects
Flight Simulation Technology Contracts
Department of Defense Facilities Construction

Risk Flags

Potential for construction delays impacting operational readiness.
Ensuring integration of complex simulation technology within the facility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to SUNDT CONSTRUCTION, INC.. P533 FLIGHT SIMULATOR

Who is the contractor on this award?

The obligated recipient is SUNDT 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 $20.8 million.

What is the period of performance?

Start: 2011-06-03. End: 2013-04-19.

What is the track record of Sundt Construction, Inc. with the Department of Defense?

Sundt Construction, Inc. has a history of working with the Department of Defense and other federal agencies on various construction projects. Their experience typically includes infrastructure, facilities, and specialized buildings. Reviewing their past performance on similar DoD contracts would provide insight into their reliability, quality of work, and adherence to schedules and budgets. While this specific award is for a flight simulator, their broader portfolio with the DoD suggests a capacity to handle complex government projects. Further analysis would involve examining past performance evaluations and any documented issues or commendations on previous DoD contracts.

How does the $20.8 million cost compare to similar flight simulator construction projects?

Benchmarking the $20.8 million cost requires comparing it to similar flight simulator facilities or specialized training centers built for military or aviation purposes. Factors influencing cost include size, technological complexity, specific simulation capabilities required, location, and prevailing construction market conditions at the time of award. Without specific data on comparable projects, it's challenging to definitively state if this cost is high or low. However, given the specialized nature of flight simulators and the firm fixed-price structure, the cost appears to be within a reasonable range for a significant government construction undertaking. A detailed cost analysis would involve comparing square footage, specific equipment integration costs, and project timelines against similar projects.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential construction delays that could impact the Navy's training schedules, unforeseen site conditions that might necessitate change orders (though mitigated by fixed-price), and ensuring the final facility meets the highly specific technological and operational requirements for advanced flight simulation. There's also a risk related to the integration of complex simulation equipment, which may be procured separately or by the contractor. Ensuring the contractor's financial stability throughout the project duration is another consideration, although less likely for an established firm like Sundt Construction.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally considered effective in managing costs for construction projects like this, as it shifts the majority of the cost risk to the contractor. Sundt Construction, Inc. is obligated to complete the work for the agreed-upon price, providing the Navy with significant cost certainty. This structure incentivizes the contractor to control costs and manage resources efficiently. However, if unforeseen issues arise that are outside the contractor's control and are deemed excusable (e.g., government-caused delays, differing site conditions not reasonably discoverable), change orders could still increase the total cost. Overall, FFP is a strong mechanism for cost control in this context.

What is the historical spending pattern for flight simulator construction by the Department of the Navy?

Analyzing historical spending patterns for flight simulator construction by the Department of the Navy would reveal trends in project frequency, average contract values, and the types of contractors typically awarded these projects. This specific award of $20.8 million provides a data point for current market pricing. Understanding past investments can help contextualize the significance of this award and identify any potential increases or decreases in demand for such facilities. It would also highlight whether the Navy tends to use full and open competition or other methods for these types of specialized construction contracts.

What are the implications of the 9 bidders on price discovery and value for taxpayers?

The fact that 9 companies bid on this contract is a strong positive signal for price discovery and taxpayer value. A larger number of bidders generally indicates a competitive market where companies vie for the contract by offering their best prices and terms. This competition helps ensure that the government is not overpaying and that the selected contractor offers a fair price for the work. For taxpayers, this means the likelihood of a more cost-effective outcome, as the competitive pressure drives down potential profit margins and encourages efficiency from the winning bidder.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247309R1608

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Sundt Companies Inc (UEI: 073354982)

Address: 2620 S 55TH ST, TEMPE, AZ, 85282

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,766,346

Exercised Options: $20,766,346

Current Obligation: $20,766,346

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247310D5408

IDV Type: IDC

Timeline