J.E. Dunn Construction awarded $33M for Mackown Dental Clinic design-build project in Texas
Contract Overview
Contract Amount: $33,022,058 ($33.0M)
Contractor: J. E. Dunn Construction Company
Awarding Agency: Department of Defense
Start Date: 2010-02-26
End Date: 2014-09-01
Contract Duration: 1,648 days
Daily Burn Rate: $20.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN-BUILD MACKOWN DENTAL CLINIC
Place of Performance
Location: LACKLAND AFB, BEXAR County, TEXAS, 78236
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $33.0 million to J. E. DUNN CONSTRUCTION COMPANY for work described as: DESIGN-BUILD MACKOWN DENTAL CLINIC Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The project involves a design-build approach, which can offer efficiencies in project delivery. 3. The duration of the contract is over four years, indicating a substantial construction undertaking. 4. The firm fixed-price contract type helps manage cost certainty for the government. 5. The project is located in Texas, potentially impacting the local construction workforce and economy.
Value Assessment
Rating: good
The contract value of $33 million for a design-build dental clinic appears reasonable within the context of large-scale construction projects. Benchmarking against similar government or commercial dental facility constructions would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract shifts cost risk to the contractor, which is generally favorable for the government when managed effectively. Without specific cost breakdowns or comparisons to similar projects, a definitive assessment of pricing efficiency is challenging, but the overall award amount is within expected ranges for such a facility.
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 seven bidders suggests a healthy level of competition for this project. A competitive environment typically drives down prices and encourages contractors to offer their best value propositions, leading to better outcomes for the government. The number of bidders implies that the market for this type of construction is robust enough to support multiple interested parties.
Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It ensures that taxpayer funds are used efficiently by leveraging market forces to secure the best possible deal.
Public Impact
Military personnel and their families stationed at the facility will benefit from improved dental care infrastructure. The project delivers a new or renovated dental clinic, enhancing healthcare services for the armed forces. The geographic impact is concentrated in Texas, where the construction will take place. The construction phase will likely create temporary jobs for skilled trades and construction workers in the local Texas area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite the firm fixed-price contract.
- Schedule delays could impact the availability of the new dental facility for service members.
- Quality control during construction is crucial to ensure the long-term functionality and safety of the clinic.
Positive Signals
- The design-build approach can streamline the construction process and potentially reduce overall project timelines.
- Firm fixed-price contract provides cost certainty and limits the government's exposure to price fluctuations.
- Full and open competition suggests a competitive market, likely leading to better pricing and value.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically for healthcare facilities. The design-build delivery method is increasingly common in this sector for its potential to integrate design and construction phases efficiently. The market for military construction projects is significant, with substantial government spending allocated annually to maintain and upgrade facilities. This project represents a specific investment in healthcare infrastructure within the broader defense construction landscape.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. However, the prime contractor, J. E. Dunn Construction Company, may still engage small businesses as subcontractors to fulfill portions of the work, contributing to the broader small business ecosystem. The absence of a set-aside means the opportunity was open to all qualified bidders, regardless of size.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Quality assurance surveillance plans (QASPs) would be employed to monitor construction progress, adherence to specifications, and overall quality. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General (IG) jurisdiction could be invoked if any fraud, waste, or abuse is suspected or reported.
Related Government Programs
- Military Construction
- Healthcare Facilities Construction
- Design-Build Contracts
- Department of Defense Construction Projects
Risk Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Risk of schedule delays impacting facility readiness.
- Quality control during construction is critical.
Tags
construction, department-of-defense, department-of-the-army, texas, full-and-open-competition, firm-fixed-price, design-build, healthcare-facility, large-contract, commercial-and-institutional-building-construction
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.0 million to J. E. DUNN CONSTRUCTION COMPANY. DESIGN-BUILD MACKOWN DENTAL CLINIC
Who is the contractor on this award?
The obligated recipient is J. E. DUNN CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $33.0 million.
What is the period of performance?
Start: 2010-02-26. End: 2014-09-01.
What is J.E. Dunn Construction Company's track record with similar federal design-build projects?
J.E. Dunn Construction Company has a significant history of undertaking large-scale construction projects, including those for federal agencies and healthcare facilities. While specific details on their past federal design-build dental clinic projects are not provided in this data snippet, their extensive experience in commercial and institutional building suggests a capability to manage complex projects. A deeper dive into their contract history with the Department of Defense or other federal entities would reveal their performance on similar projects, including any past issues with cost, schedule, or quality. Their size and market presence indicate they are a capable contractor for projects of this magnitude.
How does the $33 million award compare to the estimated cost or budget for this dental clinic?
The provided data indicates the awarded contract value is $33,022,058. However, it does not include information about the government's initial cost estimate or budget allocated for the Mackown Dental Clinic project. Without this comparative data, it is impossible to definitively assess whether the award was significantly above, below, or in line with expectations. A comparison would require access to pre-award estimates or budget documents. The fact that it was awarded under full and open competition with seven bidders might suggest the award was competitive and potentially close to the government's estimate, but this is speculative without direct evidence.
What are the primary risks associated with a design-build contract of this scale and duration?
Key risks for a design-build contract of this scale ($33 million over 1648 days) include coordination challenges between the design and construction phases, potential for scope creep if initial design is not well-defined, and contractor performance issues. For the government, risks involve ensuring the final design meets all operational requirements and that the contractor maintains quality throughout construction. Site conditions, material availability, and labor shortages are also inherent construction risks. The firm fixed-price nature mitigates cost escalation for the government but places more risk on the contractor for unforeseen issues, potentially leading to disputes or quality compromises if not managed carefully.
What is the expected effectiveness of the new dental clinic once completed?
The effectiveness of the new Mackown Dental Clinic will be measured by its ability to provide timely, high-quality dental care to its intended beneficiaries, likely military personnel and their families. Improved facilities can lead to better patient outcomes, increased patient satisfaction, and potentially a greater capacity to serve the population. The design-build approach aims to deliver a facility that is both functional and efficient to operate. Long-term effectiveness will also depend on maintenance, staffing, and the integration of modern dental technologies within the new space.
How has federal spending on similar construction projects in Texas trended over the past five years?
Federal spending on construction projects in Texas, particularly within the Department of Defense and for healthcare infrastructure, has generally been substantial due to the state's significant military presence and population. Trends often reflect modernization efforts, capacity expansion, and infrastructure upgrades. While specific data for dental clinics isn't isolated, overall military construction spending in Texas has likely remained robust, influenced by national defense priorities and base infrastructure needs. Analyzing broader categories like 'Military Construction' or 'Healthcare Facilities' from federal spending databases would provide a clearer picture of recent trends and investment levels.
What are the implications of the 'firm fixed price' contract type for potential cost savings or overruns?
A firm fixed-price (FFP) contract is designed to provide the government with cost certainty. The contractor assumes the primary risk for cost overruns. This means that J.E. Dunn Construction Company is obligated to complete the project for the agreed-upon $33 million, regardless of their actual costs. This structure incentivizes the contractor to manage their expenses efficiently and control project costs. However, if unforeseen issues arise that are outside the contractor's control (and not excluded by contract terms), or if the initial pricing was overly optimistic, the contractor might face financial losses, potentially impacting their motivation or leading to claims. For taxpayers, FFP generally offers the best protection against cost escalation, assuming the initial price was fair and competitive.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9126G08R0188
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: JE Dunn Construction Group Inc
Address: 929 HOLMES ST, KANSAS CITY, MO, 64106
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,022,058
Exercised Options: $33,022,058
Current Obligation: $33,022,058
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9126G08D0057
IDV Type: IDC
Timeline
Start Date: 2010-02-26
Current End Date: 2014-09-01
Potential End Date: 2014-09-01 00:00:00
Last Modified: 2024-02-09
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