DoD's $25M Army contract for site prep in Texas awarded to Sundt Construction, Inc

Contract Overview

Contract Amount: $24,984,177 ($25.0M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-03-05

End Date: 2010-11-30

Contract Duration: 635 days

Daily Burn Rate: $39.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: COMMUNITY FACILITIES INFRASTRUCTURE

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79906

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $25.0 million to SUNDT CONSTRUCTION, INC. for work described as: COMMUNITY FACILITIES INFRASTRUCTURE Key points: 1. The contract value of $24.98 million represents a significant investment in infrastructure development. 2. Competition dynamics for this contract are assessed to understand price discovery and potential value. 3. Risk indicators are evaluated based on contract type, duration, and contractor performance history. 4. Performance context is provided by comparing this award to similar site preparation projects. 5. The contract's sector positioning within Defense infrastructure spending is analyzed. 6. The firm-fixed-price contract type suggests a defined scope and cost control measures.

Value Assessment

Rating: good

The awarded amount of $24.98 million for site preparation appears reasonable when benchmarked against similar large-scale infrastructure projects undertaken by the Department of Defense. While specific per-unit cost data is not provided, the firm-fixed-price structure suggests that the contractor assumed a significant portion of the cost risk. Further analysis would involve comparing the scope of work and the specific services rendered to comparable contracts to ascertain optimal 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 multiple bidders were likely solicited. The presence of four bids suggests a healthy level of competition, which typically drives more competitive pricing and encourages contractors to offer their best value. The specific number of bidders and the evaluation criteria would provide a clearer picture of the competitive intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where multiple companies vie for the contract, leading to potentially lower prices and higher quality services.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who will gain improved facilities or operational capabilities. The services delivered include site preparation, crucial for the foundational stages of construction projects. The geographic impact is localized to Texas, where the project is situated. Workforce implications include job creation for construction workers and related trades in the project's vicinity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial site conditions are more complex than anticipated.
Reliance on a single contractor for a critical phase of infrastructure development.
Ensuring timely completion within the specified duration to avoid project delays.

Positive Signals

Firm-fixed-price contract helps manage cost overruns.
Awarded through full and open competition, suggesting competitive pricing.
Contractor has experience in large-scale construction projects.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on infrastructure development and construction services. The market for site preparation contractors is competitive, with numerous firms capable of undertaking such projects. The $24.98 million award is a substantial sum, indicative of a significant project scope. Comparable spending benchmarks in this category often involve large civil engineering and construction firms competing for government contracts.

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. Further investigation into the subcontracting plan would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Army contracting command. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within budget. Transparency is generally maintained through contract award databases, though detailed project progress reports may not always be publicly accessible.

Related Government Programs

Army Corps of Engineers Construction Contracts
Department of Defense Infrastructure Modernization Programs
Federal Construction and Engineering Services

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor's ability to manage large-scale infrastructure projects effectively.
Ensuring compliance with all environmental and safety regulations during site preparation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.0 million to SUNDT CONSTRUCTION, INC.. COMMUNITY FACILITIES INFRASTRUCTURE

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 Army).

What is the total obligated amount?

The obligated amount is $25.0 million.

What is the period of performance?

Start: 2009-03-05. End: 2010-11-30.

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

Sundt Construction, Inc. has a substantial history of performing federal contracts, including numerous awards from the Department of Defense and other federal agencies. Their portfolio often includes large-scale construction and infrastructure projects, demonstrating experience with government procurement processes and requirements. Analyzing their past performance on similar projects, including any reported issues or successes, provides insight into their capability to execute this specific contract effectively. A review of their federal contract history would reveal their success rate, types of projects undertaken, and overall client satisfaction, offering a baseline for assessing their reliability and expertise in fulfilling the current award.

How does the awarded amount of $24.98 million compare to the average cost of similar site preparation projects for the Army?

Benchmarking the $24.98 million award against similar Army site preparation projects requires access to a comprehensive database of historical contract data. Factors such as project scope, geographic location, specific site conditions (e.g., soil type, terrain), and the complexity of required earthwork, grading, and utility installation significantly influence costs. Without detailed project specifications for this contract and comparable projects, a precise comparison is challenging. However, the firm-fixed-price nature and the number of bidders suggest a competitive process that likely resulted in a market-driven price. Generally, larger, more complex projects command higher dollar values, and the $24.98 million figure indicates a substantial undertaking.

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

The primary risk with a firm-fixed-price (FFP) contract for site preparation lies with the contractor, who assumes the risk of cost overruns. If unforeseen conditions arise (e.g., unexpected subsurface obstructions, difficult soil remediation, extreme weather), the contractor may incur higher costs than anticipated, potentially impacting their profit margin or, in extreme cases, their financial stability. Mitigation strategies employed by the government include thorough pre-bid site investigations, clearly defined contract scope and specifications, and robust oversight during execution. The government also benefits from cost certainty, as the price is fixed. Sundt Construction, as the awardee, would have factored potential risks into their bid price, and their experience in federal contracting suggests they are equipped to manage these challenges.

What is the typical duration for site preparation contracts of this magnitude, and does the 635-day period align with industry standards?

The duration of site preparation contracts can vary significantly based on the project's scale, complexity, geographic location, and environmental factors. A 635-day period (approximately 21 months) for a contract valued at $24.98 million suggests a substantial project scope. This duration appears reasonable for large-scale site preparation, which may involve extensive earthmoving, grading, utility trenching, and potentially environmental remediation. Industry standards for such projects often span 12 to 24 months, depending on these variables. The Army's specific requirements and the contractor's proposed schedule, evaluated during the bidding process, would have determined this duration. Factors like seasonal weather patterns in Texas could also influence the planned timeline.

How does the geographic location in Texas influence the cost and execution of this site preparation contract?

The geographic location in Texas can influence the cost and execution of this site preparation contract in several ways. Texas's climate, particularly its potential for extreme heat and heavy rainfall, can affect work schedules and require specific construction methods or protective measures. Soil conditions can also vary widely across Texas, potentially leading to unexpected challenges in excavation, grading, or foundation preparation, which could impact costs and timelines. Labor costs in Texas are also a factor, influenced by local market rates and the availability of skilled construction workers. Furthermore, specific state and local regulations regarding environmental protection, land use, and construction practices must be adhered to, potentially adding complexity and cost to the project.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › Site Preparation Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation ID: W9126G08R0205

Offers Received: 4

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, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $25,027,156

Exercised Options: $25,027,156

Current Obligation: $24,984,177

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G09D0004

IDV Type: IDC

Timeline