DOD's $29.5M Luke AFB Design-Build Project Awarded to Structsure Projects Inc. in 2014

Contract Overview

Contract Amount: $29,505,788 ($29.5M)

Contractor: Structsure Projects Inc

Awarding Agency: Department of Defense

Start Date: 2014-09-16

End Date: 2017-12-27

Contract Duration: 1,198 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF LUKE AFB DESIGN BUILD FY14 PROJECT

Place of Performance

Location: LUKE AFB, MARICOPA County, ARIZONA, 85309

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $29.5 million to STRUCTSURE PROJECTS INC for work described as: IGF::OT::IGF LUKE AFB DESIGN BUILD FY14 PROJECT Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The project involved commercial and institutional building construction, a common sector for federal spending. 3. The duration of the contract was 1198 days, indicating a medium-to-long term project. 4. The contract type was Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was made by the Department of the Army, a major component of the DOD. 6. The project was located in Arizona, providing a specific geographic context for the spending.

Value Assessment

Rating: fair

Benchmarking the value of this specific design-build contract is challenging without detailed cost breakdowns and comparable project data. However, the firm fixed-price nature suggests an attempt to control costs upfront. The award amount of approximately $29.5 million for a large-scale construction project at a military installation is within a typical range for such endeavors. Further analysis would require comparing the scope, complexity, and final cost against similar military construction projects awarded around the same time.

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 a bid. The presence of 3 bidders suggests a moderate level of competition for this project. While multiple bidders are positive, the exact level of competition and its impact on pricing would depend on the specific qualifications and proposals submitted by each firm.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better value. It ensures that the government explores a wide range of options and selects the most cost-effective solution.

Public Impact

The primary beneficiaries of this contract are the Department of Defense and its personnel stationed at Luke Air Force Base, who will utilize the constructed facilities. The project delivered essential commercial and institutional building construction services, likely for infrastructure improvements or new facilities at the base. The geographic impact is localized to Arizona, specifically the area surrounding Luke Air Force Base. The contract supported the construction workforce in Arizona, providing employment opportunities for skilled trades and related professionals.

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 contingencies.
Risk of delays if unforeseen issues arose during the construction phase, impacting the project timeline.
Quality control concerns inherent in any large construction project, requiring diligent oversight.

Positive Signals

Firm fixed-price contract structure helps to lock in costs and manage budget predictability.
Award through full and open competition suggests a thorough vetting of potential contractors.
Project completion within the specified timeframe (though end date is past) would indicate successful project management.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports infrastructure development, facility upgrades, and new construction for government agencies and military installations. The market size for federal construction is substantial, with numerous firms competing for these projects. This specific contract represents a portion of the Department of Defense's ongoing investment in its physical infrastructure.

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 or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Structsure Projects Inc., would have determined its own subcontracting strategy, which may or may not have involved small businesses.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Department of the Army, likely through contracting officers and project managers responsible for ensuring compliance with the contract terms and specifications. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would be tied to the firm fixed-price contract, with penalties or remedies for non-performance or deviations from the agreed-upon scope and quality.

Related Government Programs

Military Construction Projects
Design-Build Contracts
Federal Building Construction
Department of Defense Infrastructure

Risk Flags

Potential for cost overruns if initial estimates were inaccurate.
Risk of schedule delays due to unforeseen construction challenges.
Quality control concerns requiring diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.5 million to STRUCTSURE PROJECTS INC. IGF::OT::IGF LUKE AFB DESIGN BUILD FY14 PROJECT

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 $29.5 million.

What is the period of performance?

Start: 2014-09-16. End: 2017-12-27.

What was the specific scope of work for the Luke AFB Design Build FY14 Project?

The provided data indicates the project involved 'Commercial and Institutional Building Construction' for Luke Air Force Base. While the exact scope is not detailed, design-build projects typically encompass both the architectural design and the physical construction of a facility. This could include new buildings, renovations, or upgrades to existing structures, aimed at improving operational capabilities, housing, or support services for the base. The firm fixed-price nature suggests a defined scope was established prior to award to facilitate cost control.

How does the $29.5 million award compare to similar military construction projects?

Comparing the $29.5 million award requires context on the size and complexity of the facility constructed. For a large military installation like Luke AFB, this figure is within a reasonable range for a significant construction project. However, without knowing the specific type of building (e.g., barracks, training facility, hangar, administrative building), its square footage, and the level of specialized requirements, a direct comparison is difficult. Benchmarking against other design-build projects of similar scale and purpose awarded by the Department of the Army or other branches around 2014 would provide a more accurate assessment of value.

What were the primary risks associated with this firm fixed-price contract?

The primary risk with a firm fixed-price (FFP) contract, from the government's perspective, is that the contractor might cut corners on quality or scope to maximize profit if their initial cost estimates were too low or if unforeseen issues arise. For the contractor, the risk lies in underestimating costs, leading to reduced profit margins or even losses. In this case, potential risks included unforeseen site conditions, material cost fluctuations (though FFP aims to mitigate this), labor availability issues, and design complexities that could impact the construction timeline and budget. Robust oversight and clear contract specifications are crucial to mitigate these risks.

What is the historical spending pattern for similar construction contracts by the Department of the Army?

The Department of the Army consistently awards a significant volume of construction contracts annually, encompassing a wide range of projects from minor repairs to major facility development. Historical spending patterns show a continuous need for infrastructure maintenance, modernization, and expansion across numerous bases. The total annual spending on construction can fluctuate based on defense budgets, geopolitical needs, and specific modernization initiatives. Contracts like this Luke AFB project are part of a larger, ongoing investment strategy to ensure military readiness and operational effectiveness through adequate facilities.

How effective was the competition level (3 bidders) in ensuring a competitive price?

A competition level of three bidders for a federal contract of this magnitude ($29.5 million) suggests a moderate degree of competition. While more bidders generally lead to more competitive pricing, three offers can still result in a fair market price, especially if the bidders are qualified and the scope is well-defined. The effectiveness hinges on the quality of the proposals submitted and the government's negotiation strategy. Without access to the bid prices and the government's cost estimates, it's difficult to definitively state how competitive the price was. However, full and open competition is the preferred method for maximizing competitive pressure.

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: W9127S13R6006

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: $29,505,788

Exercised Options: $29,505,788

Current Obligation: $29,505,788

Subaward Activity

Number of Subawards: 34

Total Subaward Amount: $73,591,398

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127S13D6002

IDV Type: IDC

Timeline