DoD Awards $26.7M Construction Contract to Sundt Construction for Virginia Barracks
Contract Overview
Contract Amount: $26,708,592 ($26.7M)
Contractor: Sundt Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-09-23
End Date: 2017-10-23
Contract Duration: 1,126 days
Daily Burn Rate: $23.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF BARRACKS DB B-860, B-861 AND B-862. JEB LITTLE CREEK-FT STORY, VIRGINIA BEACH, VA
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23456
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $26.7 million to SUNDT CONSTRUCTION, INC. for work described as: IGF::OT::IGF BARRACKS DB B-860, B-861 AND B-862. JEB LITTLE CREEK-FT STORY, VIRGINIA BEACH, VA Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $26.7 million is significant for a single delivery order. 3. Fixed-price contract type may shift some risk to the contractor. 4. Construction sector spending can be influenced by economic conditions and infrastructure needs.
Value Assessment
Rating: fair
The contract value of $26.7 million for three barracks buildings appears to be within a reasonable range for large-scale construction projects of this nature. Benchmarking against similar military construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive bidding process is expected to have resulted in a fair market price, maximizing the value of taxpayer funds spent on this infrastructure project.
Public Impact
Improved housing and facilities for military personnel at JEB Little Creek-Fort Story. Supports local employment and economic activity in the Virginia Beach area during the construction period. Enhances the operational readiness and quality of life for service members.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Delays in construction could impact military housing availability.
- Contractor performance risk.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type.
- Significant investment in military infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Government spending on military construction is a key driver in this sector, often involving large-scale projects with complex requirements.
Small Business Impact
While the prime contractor is Sundt Construction, Inc., a large entity, there is potential for subcontracting opportunities for small businesses within the construction trades and material supply chain. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy's acquisition process, including competitive bidding and contract oversight, is designed to ensure accountability. Post-award monitoring by the agency and potential Inspector General reviews would address performance and financial integrity.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration of 1126 days is substantial, increasing exposure to market fluctuations.
- Firm Fixed Price contracts can lead to contractor claims if costs escalate unexpectedly.
- Dependence on a single prime contractor for project completion.
- Potential for scope creep if project requirements evolve significantly.
Tags
commercial-and-institutional-building-co, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.7 million to SUNDT CONSTRUCTION, INC.. IGF::OT::IGF BARRACKS DB B-860, B-861 AND B-862. JEB LITTLE CREEK-FT STORY, VIRGINIA BEACH, VA
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 $26.7 million.
What is the period of performance?
Start: 2014-09-23. End: 2017-10-23.
What was the total number of bids received for this contract?
The provided data indicates 'no': 2, which likely refers to the number of bids received. This suggests a moderate level of competition for this significant construction project. A higher number of bids would typically indicate broader interest and potentially more competitive pricing.
What is the estimated cost per square foot for the barracks construction?
The data does not provide square footage or detailed cost breakdowns, making it impossible to calculate a precise cost per square foot. This metric is crucial for comparing the efficiency of this project against industry benchmarks and similar government contracts.
Were there any performance issues or disputes during the contract period?
The provided data does not contain information on contract performance, disputes, or modifications. A review of contract performance reports and any associated documentation would be necessary to assess any issues that arose during the 2014-2017 period.
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: N4008510R5306
Offers Received: 2
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: $26,708,592
Exercised Options: $26,708,592
Current Obligation: $26,708,592
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N4008510D5332
IDV Type: IDC
Timeline
Start Date: 2014-09-23
Current End Date: 2017-10-23
Potential End Date: 2017-10-23 00:00:00
Last Modified: 2018-02-26
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