DoD's $86.5M Barracks Construction Contract Awarded to Sundt Construction for Texas Facility

Contract Overview

Contract Amount: $86,451,609 ($86.5M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-01-30

End Date: 2011-04-18

Contract Duration: 808 days

Daily Burn Rate: $107.0K/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 represents a significant investment in military infrastructure, focusing on troop housing. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The fixed-price contract type aims to control costs and manage financial risk. 4. The duration of the project (808 days) indicates a substantial construction undertaking. 5. The contract was awarded to a single prime contractor, Sundt Construction, Inc. 6. The project is located in Texas, potentially impacting the local construction workforce and economy.

Value Assessment

Rating: good

The contract value of $86.5 million for barracks construction appears within a reasonable range for a project of this scale and complexity. Benchmarking against similar military construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator for the government if the initial pricing was competitive. Further analysis of the bid prices from competing firms, if available, would offer deeper insights into the pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bids suggests a healthy level of competition for this significant construction project. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, which is beneficial for the government in securing the best value. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: The full and open competition for this barracks construction project likely resulted in more favorable pricing for taxpayers by fostering a competitive bidding environment. This approach ensures that the Department of Defense receives proposals from multiple qualified contractors, driving down costs through market forces.

Public Impact

Service members stationed at the Texas facility will benefit from improved housing conditions. The project delivers essential infrastructure for troop readiness and morale. The geographic impact is concentrated in Texas, supporting the local economy through construction jobs and material sourcing. The construction activities will likely involve a significant number of skilled laborers, tradespeople, and project managers, impacting the regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial estimates did not fully capture project complexities, despite fixed-price contract.
Delays in construction schedule could impact troop readiness and incur additional costs.
Quality control issues during construction could lead to long-term maintenance problems and reduced facility lifespan.

Positive Signals

Firm fixed-price contract provides cost certainty and shifts risk to the contractor.
Award to an established contractor like Sundt Construction suggests a degree of confidence in their capabilities.
Full and open competition likely secured competitive pricing and a qualified bidder.

Sector Analysis

The construction sector is a vital component of federal spending, encompassing a wide range of projects from infrastructure to facility development. This contract falls under the Commercial and Institutional Building Construction category. Federal spending in this sector is often driven by the need to maintain, upgrade, or expand government facilities, including military installations. Comparable spending benchmarks would involve analyzing the cost per square foot or per bed for similar barracks construction projects across different military branches and geographic locations.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Sundt Construction, Inc., may engage small businesses as subcontractors. The extent of subcontracting to small businesses is not detailed in the provided data but is a crucial factor in assessing the broader economic impact and opportunities for the small business ecosystem within the construction industry.

Oversight & Accountability

Oversight for this Department of the Army contract would typically involve contract officers, contracting specialists, and potentially quality assurance representatives from the Army Corps of Engineers or a similar entity. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified barracks within the agreed-upon price and schedule. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight reports or Inspector General investigations related to this particular contract are not detailed here.

Related Government Programs

Military Construction (MILCON)
Barracks and Dormitory Construction
Department of Defense Facilities
Army Corps of Engineers Projects
Federal Building Construction

Risk Flags

Potential for schedule delays impacting troop readiness.
Risk of quality compromises in materials or workmanship under fixed-price contract.
Site-specific challenges not fully anticipated in bid documents.
Availability of skilled labor in the Texas region for specialized construction tasks.

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: 2011-04-18.

What is Sundt Construction's track record with similar federal construction projects, particularly for military barracks?

Sundt Construction, Inc. has a significant history of undertaking large-scale construction projects for various federal agencies, including the Department of Defense. Their portfolio often includes military housing, training facilities, and infrastructure development. Analyzing their past performance on similar barracks or troop housing projects would involve reviewing contract completion records, any reported disputes or claims, and client satisfaction feedback. A review of their award history indicates experience with firm fixed-price contracts and projects of comparable magnitude, suggesting a capacity to manage complex military construction requirements. Specific details on past barracks projects would require deeper database searches, but their general profile aligns with the type of contractor typically selected for such endeavors.

How does the awarded amount of $86.5 million compare to the average cost of constructing military barracks of similar size and scope?

Benchmarking the $86.5 million award requires detailed project specifications, such as square footage, number of occupants, and specific amenities. However, military barracks construction costs can vary widely based on location, materials, and security requirements. Generally, costs can range from $150,000 to over $300,000 per living unit or bed space. If this contract is for a substantial number of beds, the total cost might appear high, but it could be justified by higher quality finishes, advanced technological integration, or specific site challenges. A direct comparison to projects with identical scope and location is necessary for a definitive value assessment. The number of bids (6) suggests the price was considered competitive among the bidders.

What are the primary risk indicators associated with this firm fixed-price contract for barracks construction?

The primary risk indicator for a firm fixed-price contract, even with an experienced contractor like Sundt Construction, is the potential for the contractor to cut corners on quality or materials to maintain profitability if their initial cost estimates were too low or unforeseen issues arise. While the contractor bears most of the financial risk, the government's risk lies in receiving a substandard product or experiencing delays. Schedule delays are another risk, as they can impact troop readiness and potentially lead to claims for extended overhead. The complexity of construction, site conditions, and availability of specialized labor or materials can also introduce risks that might not be fully captured in the initial bid, potentially leading to disputes or change orders, although the fixed-price nature aims to minimize this.

How effective is full and open competition in ensuring value for money for large federal construction projects like this?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to compete, the government maximizes the pool of potential bidders, which inherently drives down prices through market forces. The presence of six bids for this barracks construction project indicates a robust competitive environment. This level of competition increases the likelihood that the government receives proposals reflecting fair market value and that the selected contractor is highly capable and efficient. While the lowest price isn't always the best value, a competitive process allows for thorough evaluation of technical merit alongside cost, leading to a more informed decision that benefits taxpayers.

What are the historical spending patterns for barracks construction by the Department of the Army in Texas?

Historical spending patterns for barracks construction by the Department of the Army in Texas would reveal trends in contract awards, average project costs, and the types of contractors utilized. Texas, with its significant military presence, likely sees consistent investment in troop housing. Analyzing past contracts would show whether spending has increased or decreased, if projects are predominantly awarded through full and open competition or other methods, and the typical duration and value of such projects. This data can help contextualize the $86.5 million award, indicating if it aligns with historical norms or represents a significant deviation. Such analysis is crucial for budget forecasting and identifying potential cost-saving opportunities in future procurements.

What are the implications of the 808-day duration for this construction project on troop readiness and budget?

An 808-day duration for a barracks construction project, approximately 2.2 years, signifies a substantial undertaking. This extended timeline implies significant planning, phased construction, or complex logistical requirements. For troop readiness, it means that the existing housing conditions will persist for the duration, or temporary housing solutions may be required, potentially impacting morale and operational efficiency. From a budget perspective, a longer project duration increases the risk of cost escalation due to inflation, potential changes in material costs, and extended administrative oversight. It also means that the benefits of the new facility are deferred, requiring careful management to ensure the project stays on track and within the allocated budget.

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, 04

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $86,451,609

Exercised Options: $86,451,609

Current Obligation: $86,451,609

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G09D0011

IDV Type: IDC

Timeline