DoD's $44.8M Design-Build Construction Contract Awarded to Structsure Projects Inc. for New York Facility

Contract Overview

Contract Amount: $44,823,757 ($44.8M)

Contractor: Structsure Projects Inc

Awarding Agency: Department of Defense

Start Date: 2014-09-09

End Date: 2018-10-09

Contract Duration: 1,491 days

Daily Burn Rate: $30.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD CONSTRUCTION IGF::OT::IGF

Place of Performance

Location: WEST POINT, ORANGE County, NEW YORK, 10996

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $44.8 million to STRUCTSURE PROJECTS INC for work described as: DESIGN BUILD CONSTRUCTION IGF::OT::IGF Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract utilized a firm-fixed-price structure, which shifts cost risk to the contractor. 3. A duration of 1491 days indicates a significant, long-term construction project. 4. The award was a delivery order, implying it was part of a larger indefinite-delivery contract vehicle. 5. The project falls under commercial and institutional building construction, a common category for federal infrastructure. 6. The contractor, Structsure Projects Inc., received a substantial award, indicating a significant role in the project.

Value Assessment

Rating: fair

Benchmarking the value of this specific design-build construction contract is challenging without detailed project specifications and comparable market data for the New York region during the 2014-2018 period. The firm-fixed-price nature suggests that the initial bid was considered competitive, but actual cost overruns or savings would determine the final value. Without access to the number of bids received or the bid spread, it's difficult to definitively assess if the pricing was optimal. However, the award amount of over $44 million for a multi-year construction project indicates a significant investment.

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 a bid. The presence of 3 bids suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, three offers generally provide a reasonable basis for price discovery and selection. The specific details of the bidding process, such as the range of bids, are not provided, which would offer further insight into the competitiveness.

Taxpayer Impact: A competitive bidding process like full and open competition generally benefits taxpayers by encouraging contractors to offer their best prices to win the contract, potentially leading to cost savings compared to less competitive methods.

Public Impact

The primary beneficiaries are the Department of Defense and the personnel who will utilize the constructed facility. The contract delivers essential design and construction services for a new building. The geographic impact is localized to New York (ST: NY, SN: NEW YORK). The project likely created jobs in the construction sector, including skilled trades and project management roles in the New York area. The successful completion of the facility will support the operational readiness and mission of the Department of the Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for all project complexities.
Risk associated with the contractor's past performance and ability to manage a project of this scale and duration.
Dependency on the contractor for timely and quality completion, with potential delays impacting DoD operations.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor, potentially protecting the government from unexpected expenses.
Awarded through full and open competition, suggesting a robust selection process and potentially competitive pricing.
The project's long duration (1491 days) indicates a significant commitment and likely a well-defined scope of work.

Sector Analysis

The construction sector is a significant component of federal spending, particularly for infrastructure, facilities, and base development. This contract falls under commercial and institutional building construction, a broad category encompassing a wide range of federal building projects. The Department of Defense is a major client within this sector, frequently awarding large contracts for new construction, renovations, and maintenance of its vast real estate portfolio. Comparable spending benchmarks would typically involve analyzing other design-build contracts for similar-sized facilities awarded by federal agencies in the same geographic region.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-value construction project, it is unlikely that small businesses would be the primary awardees unless they were part of a joint venture or subcontracting plan. The absence of small business set-aside information suggests that the focus was on securing the best overall bid from the general contractor. There is no explicit information on subcontracting opportunities for small businesses within this award notice.

Oversight & Accountability

Oversight for federal construction contracts typically involves multiple layers. The Department of the Army, as the procuring agency, would have project managers and contracting officers responsible for monitoring progress, quality, and adherence to contract terms. The contract type (firm-fixed-price) implies that the contractor bears significant responsibility for cost control. While no specific Inspector General (IG) jurisdiction is mentioned for this particular award, the DoD Office of Inspector General has broad authority to investigate waste, fraud, and abuse in all DoD contracts. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Department of Defense Facilities Construction
Army Corps of Engineers Construction Contracts
Design-Build Construction Projects
Commercial Building Construction
Federal Infrastructure Development

Risk Flags

Potential for cost escalation if fixed-price contract did not account for all contingencies.
Risk associated with long project duration impacting material costs and technology relevance.
Lack of detailed performance data in the award notice for contractor assessment.
Need for further analysis to benchmark cost-effectiveness against similar projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.8 million to STRUCTSURE PROJECTS INC. DESIGN BUILD CONSTRUCTION IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is STRUCTSURE PROJECTS 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 $44.8 million.

What is the period of performance?

Start: 2014-09-09. End: 2018-10-09.

What was the specific nature and purpose of the facility being constructed under this contract?

The provided data indicates the contract was for 'DESIGN BUILD CONSTRUCTION' under the North American Industry Classification System (NAICS) code 236220, which covers 'Commercial and Institutional Building Construction.' However, the specific purpose or type of facility (e.g., barracks, office building, training facility, research lab) is not detailed in the award notice. This information would typically be found in the contract's statement of work or project description, which is not included here. Understanding the facility's purpose is crucial for assessing its strategic importance and the appropriateness of the investment.

How did Structsure Projects Inc.'s bid compare to the government's estimate and other bidders' proposals?

The award notice states the contract was awarded under 'full and open competition' and lists 3 bids received. However, it does not provide the specific bid amounts from Structsure Projects Inc. or the other competitors, nor does it include the government's independent cost estimate for the project. Without this comparative data, it is impossible to determine if Structsure's price was the lowest, most competitive, or if it represented a significant deviation from the estimated cost. This information is critical for a thorough value-for-money assessment.

What are the key performance indicators (KPIs) and quality assurance measures stipulated in the contract?

The provided data does not specify the key performance indicators (KPIs) or quality assurance (QA) measures for this design-build construction contract. Typically, such contracts would include detailed requirements for construction quality, adherence to design specifications, safety protocols, and project timelines. The Department of the Army would have oversight mechanisms to ensure these standards are met. The firm-fixed-price nature implies the contractor is responsible for delivering the specified outcome, but the specific metrics for success and the methods for verifying quality are not detailed in this summary.

What is Structsure Projects Inc.'s track record with similar large-scale federal construction projects?

The award notice identifies Structsure Projects Inc. as the contractor but does not provide details on their past performance history, particularly concerning large-scale federal construction projects. A comprehensive assessment would require reviewing their contract performance ratings, any past disputes or claims, and their experience with similar project types and values. While receiving a $44.8 million contract suggests they were deemed capable, further investigation into their specific track record would be necessary to fully evaluate their reliability and expertise for this project.

How does the $44.8 million cost compare to similar construction projects undertaken by the DoD in New York during that period?

Comparing the $44.8 million cost requires detailed benchmarking against similar projects. Factors such as facility size (square footage), complexity of design, specific construction materials, and prevailing labor costs in New York during 2014-2018 are essential. Without access to a database of comparable DoD construction projects in the region with detailed cost breakdowns, a precise comparison is difficult. However, $44.8 million for a multi-year design-build project for a significant facility is substantial, suggesting a project of considerable scale and scope.

What are the potential risks associated with a 1491-day (approx. 4-year) construction timeline for this facility?

A construction timeline of approximately four years presents several risks. These include potential escalation of material and labor costs beyond initial projections, even with a fixed-price contract, if unforeseen issues arise. There's also the risk of design obsolescence if technology or operational needs change significantly during the construction period. Furthermore, extended project durations increase the likelihood of encountering unforeseen site conditions (e.g., environmental issues, subsurface obstructions) that could lead to delays and change orders. Finally, prolonged timelines can impact the strategic deployment or readiness goals that the facility is intended to support.

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: W9127S13R6008

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5425 ANTIOCH DR STE 100, SHAWNEE MISSION, KS, 66202

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

Financial Breakdown

Contract Ceiling: $44,823,757

Exercised Options: $44,823,757

Current Obligation: $44,823,757

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $92,169,542

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127S13D6002

IDV Type: IDC

Timeline