Army awards $86.5M barracks construction contract to Sundt Construction under full and open competition

Contract Overview

Contract Amount: $86,528,014 ($86.5M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-01-30

End Date: 2010-11-19

Contract Duration: 658 days

Daily Burn Rate: $131.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF BARRACKS

Place of Performance

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

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $86.5 million to SUNDT CONSTRUCTION, INC. for work described as: CONSTRUCTION OF BARRACKS Key points: 1. The contract value of $86.5M is significant for a single construction project. 2. Sundt Construction, a large firm, secured this award. 3. The project involves building barracks, a common military infrastructure need. 4. The award was made under full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: fair

The contract value of $86.5M for barracks construction needs to be benchmarked against similar projects to assess value. Without specific per-unit cost data, a definitive assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which typically leads to better price discovery and potentially lower costs for the government. The use of a delivery order suggests it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple bidders to offer competitive pricing, potentially reducing overall government expenditure.

Public Impact

Military personnel will benefit from improved housing facilities. Local economy in Texas may see a boost from construction jobs and related activities. The construction sector experiences demand from government infrastructure projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific cost breakdowns makes value assessment challenging.
Potential for cost overruns in large construction projects.
Dependence on a single large contractor for a significant project.

Positive Signals

Awarded under full and open competition.
Project addresses essential military infrastructure needs.
Fixed-price contract type can help control costs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense is substantial, driven by the need for military infrastructure and facilities worldwide. Benchmarks for barracks construction vary widely based on location, size, and amenities.

Small Business Impact

The award was made to Sundt Construction, Inc., a large business. There is no explicit indication of small business participation in this specific award, which warrants further investigation to ensure opportunities for small businesses were considered.

Oversight & Accountability

The Department of the Army's contracting process is subject to oversight from various bodies, including the Government Accountability Office (GAO) and the Department of Defense's Inspector General. The use of delivery orders under potentially larger IDIQ contracts requires careful management to ensure compliance and prevent abuse.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost overruns due to project scale and duration.
Lack of detailed cost breakdown for value assessment.
Limited information on small business participation.
Contract awarded as a delivery order, requiring scrutiny of the parent contract (if applicable).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.5 million to SUNDT CONSTRUCTION, INC.. CONSTRUCTION OF BARRACKS

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 $86.5 million.

What is the period of performance?

Start: 2009-01-30. End: 2010-11-19.

What is the cost per square foot or per bed for this barracks construction, and how does it compare to industry benchmarks for similar military housing projects?

Without detailed cost breakdowns, it's challenging to establish a precise cost per square foot or per bed. However, the total contract value of $86.5 million for barracks construction suggests a significant investment. A thorough analysis would require comparing this figure against publicly available data for similar military barracks projects, considering factors like location, size, materials, and included amenities to determine if the pricing is competitive and represents good value for the taxpayer.

What are the specific risks associated with the firm-fixed-price contract type for a project of this duration and complexity, and how are they being mitigated?

A firm-fixed-price contract, while aiming to control costs, can expose the contractor to risks if unforeseen issues arise during the 658-day duration, such as material price fluctuations or unexpected site conditions. The government's mitigation strategy likely involves robust contract specifications, clear performance requirements, and potentially liquidated damages clauses for delays. The contracting agency should also monitor progress closely to identify and address potential problems early.

How effectively does this barracks construction project contribute to the Department of the Army's overall mission readiness and personnel welfare?

The construction of new barracks directly addresses the critical need for adequate and modern housing for service members, which is fundamental to morale, retention, and overall mission readiness. Improved living conditions can enhance quality of life, reduce distractions, and ensure personnel are well-rested and prepared for duty. The effectiveness is measured by the timely completion of a facility that meets or exceeds standards for habitability and security.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9126G07R0111

Offers Received: 6

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

Financial Breakdown

Contract Ceiling: $86,528,014

Exercised Options: $86,528,014

Current Obligation: $86,528,014

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G09D0011

IDV Type: IDC

Timeline