Fort Hood Barracks Construction Contract Awarded to Sundt Construction for $40.9M

Contract Overview

Contract Amount: $40,900,449 ($40.9M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-21

End Date: 2012-03-11

Contract Duration: 902 days

Daily Burn Rate: $45.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF THE WT COMPLEX BARRACKS, FORT HOOD, TX

Place of Performance

Location: KILLEEN, BELL County, TEXAS, 76540

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $40.9 million to SUNDT CONSTRUCTION, INC. for work described as: CONSTRUCTION OF THE WT COMPLEX BARRACKS, FORT HOOD, TX Key points: 1. The contract value of $40.9 million for barracks construction at Fort Hood represents a significant investment in military infrastructure. 2. Sundt Construction, Inc. secured this contract through full and open competition, suggesting a competitive bidding process. 3. The project duration of 902 days indicates a substantial construction timeline, requiring careful project management. 4. The firm-fixed-price contract type aims to provide cost certainty for the government, shifting some risk to the contractor. 5. The contract was awarded by the Department of the Army, a key component of the Department of Defense's procurement activities. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction, a specialized sector.

Value Assessment

Rating: good

Benchmarking this contract's value against similar military construction projects would provide a clearer picture of its cost-effectiveness. However, the firm-fixed-price structure generally indicates an effort to control costs. Without specific cost breakdowns or comparisons to industry standards for barracks construction of this scale, a definitive value assessment is challenging. The duration of the project (902 days) also needs to be considered in relation to the scope of work to evaluate overall efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' procurement method, meaning all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, two bidders still indicate that the market was engaged and that the government had options to choose from.

Taxpayer Impact: A competitive bidding process, even with two bidders, generally leads to better price discovery and potentially more favorable pricing for taxpayers compared to sole-source or limited competition scenarios.

Public Impact

This project directly benefits military personnel by providing improved barracks facilities at Fort Hood, Texas. The construction services delivered will enhance the quality of life and readiness for soldiers stationed at the base. The geographic impact is concentrated at Fort Hood, Texas, supporting the local economy through construction jobs and related services. The project implies a demand for skilled labor in the construction sector within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope changes or unforeseen construction challenges arise, despite the fixed-price nature.
Ensuring timely completion within the 902-day duration is critical to avoid impacting military readiness and incurring additional costs.
Quality control during construction is paramount to ensure the longevity and safety of the barracks.

Positive Signals

The firm-fixed-price contract type provides budget certainty for the government.
Full and open competition suggests a robust process for selecting the most qualified and cost-effective contractor.
The award to Sundt Construction, Inc. indicates a selection based on established procurement criteria.

Sector Analysis

The construction sector, particularly for institutional and commercial buildings like military barracks, is a significant part of the U.S. economy. This contract falls under the broader umbrella of government infrastructure spending, which often involves large-scale projects requiring specialized expertise. Comparable spending benchmarks would typically involve analyzing the cost per square foot or cost per bed for similar barracks construction projects across different military installations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and that small business participation was not explicitly mandated (sb: false). This suggests that the primary focus was on securing the best value from the broader market. Subcontracting opportunities may exist for small businesses within the construction trades, but this contract does not appear to have a specific small business subcontracting plan as a requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and potentially the Defense Contract Management Agency (DCMA). Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified work within budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight reports are not detailed here. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Barracks Construction
Fort Hood Infrastructure Projects
Department of Defense Construction Contracts
Firm Fixed Price Construction Awards

Risk Flags

Potential for schedule delays
Risk of cost overruns if scope changes
Contractor performance issues
Unforeseen site conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.9 million to SUNDT CONSTRUCTION, INC.. CONSTRUCTION OF THE WT COMPLEX BARRACKS, FORT HOOD, TX

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 $40.9 million.

What is the period of performance?

Start: 2009-09-21. End: 2012-03-11.

What is Sundt Construction, Inc.'s track record with similar government construction contracts?

Sundt Construction, Inc. has a significant history of working on large-scale construction projects, including many for government and military clients. Their portfolio often includes infrastructure, educational facilities, and healthcare buildings. While specific details on past barracks construction projects are not provided in this data snippet, their general experience suggests they are a capable contractor for complex projects. A deeper dive into their past performance ratings, any past performance issues on similar federal contracts, and their financial stability would be necessary for a comprehensive assessment of their track record for this specific award.

How does the awarded amount of $40.9 million compare to the estimated cost or budget for this project?

The provided data indicates the 'awarded amount' (aw) as $40,900,449. However, it does not specify the 'estimated cost' or the initial budget allocated for the 'CONSTRUCTION OF THE WT COMPLEX BARRACKS, FORT HOOD, TX'. Without this baseline, it's impossible to determine if the contract was awarded above, below, or at the estimated value. Understanding the relationship between the awarded amount and the government's initial cost estimate is crucial for assessing whether the competition effectively drove down prices or if the initial estimate was accurate.

What are the key risk indicators associated with this specific construction contract?

Key risk indicators for this contract include the substantial duration of 902 days, which increases the potential for unforeseen site conditions, material price fluctuations, or labor availability issues. The firm-fixed-price nature, while beneficial for cost control, shifts the risk of cost overruns to the contractor; however, contractor default or performance issues remain a risk. The complexity of constructing barracks that meet military standards and specifications also presents a risk. Furthermore, the geographic location and potential for environmental factors specific to Texas could introduce construction challenges. The number of bidders (2) might also indicate a risk if it suggests limited market interest or capacity for such projects.

How effective is the firm-fixed-price contract type in managing costs for large military construction projects?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in large military construction projects when the scope of work is well-defined and risks are understood. It provides the government with a high degree of cost certainty, as the contractor agrees to a set price regardless of their actual costs. This incentivizes the contractor to manage their own expenses efficiently. However, if the scope is not clearly defined or if significant unforeseen issues arise, contractors may build in substantial contingencies, potentially leading to a higher initial price. For complex construction, FFP can sometimes lead to disputes over change orders if scope creep occurs. Overall, its effectiveness hinges on thorough planning and clear specifications upfront.

What are the historical spending patterns for barracks construction at Fort Hood or similar military installations?

Historical spending patterns for barracks construction at Fort Hood and similar military installations typically show significant investment driven by troop levels, modernization efforts, and infrastructure replacement cycles. Costs can vary widely based on the size of the barracks, the number of personnel they are designed to house, the specific construction standards required (e.g., LEED certification, security features), and regional labor and material costs. Analyzing past contracts for similar projects would reveal trends in cost per square foot, project durations, and the types of contract vehicles used. This specific $40.9 million contract for 902 days of work should be compared against these historical benchmarks to assess its relative cost-effectiveness and efficiency.

What is the significance of the NAICS code 236220 for this contract?

The North American Industry Classification System (NAICS) code 236220 signifies 'Commercial and Institutional Building Construction.' This classification is important because it categorizes the type of construction services being procured. It indicates that the project involves building non-residential structures intended for commercial or institutional use, such as offices, schools, hospitals, or, in this case, military barracks. This code helps in understanding the specific industry segment the contractor operates within and allows for benchmarking against other similar construction projects in the commercial and institutional sector, rather than residential or heavy civil engineering projects.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9126G07R0124

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, 04

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

Financial Breakdown

Contract Ceiling: $40,900,449

Exercised Options: $40,900,449

Current Obligation: $40,900,449

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G08D0066

IDV Type: IDC

Timeline