Department of Defense awards $22.2M contract for HRSC consolidation at MCAS Miramar
Contract Overview
Contract Amount: $22,199,479 ($22.2M)
Contractor: Straub Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-09-11
End Date: 2011-07-01
Contract Duration: 658 days
Daily Burn Rate: $33.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P-176 D/B HRSC CONSOLIDATION MCAS, MIRAMAR
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92145
Plain-Language Summary
Department of Defense obligated $22.2 million to STRAUB CONSTRUCTION, INC. for work described as: P-176 D/B HRSC CONSOLIDATION MCAS, MIRAMAR Key points: 1. Contract awarded to Straub Construction, Inc. for building construction services. 2. The contract was procured through full and open competition. 3. The duration of the contract was 658 days. 4. The contract type was Firm Fixed Price. 5. The award was made by the Department of the Navy. 6. The project is located in San Diego, California.
Value Assessment
Rating: fair
The contract value of $22.2 million for commercial and institutional building construction appears to be within a reasonable range for a project of this scope, though specific benchmarks are unavailable without more detailed project specifications. The firm fixed-price nature suggests that the contractor assumed the risk for cost overruns, which can be beneficial for the government. However, without comparable project data or detailed cost breakdowns, a precise value-for-money assessment is challenging.
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 bids. The presence of 6 bids suggests a healthy level of competition for this project. A competitive bidding process generally leads to better price discovery and can result in more favorable pricing for the government.
Taxpayer Impact: The full and open competition and multiple bids received are positive indicators for taxpayers, suggesting that the government likely received competitive pricing and a wider range of potential solutions.
Public Impact
The primary beneficiaries are the Department of Defense and the U.S. Marine Corps, who will receive consolidated Human Resources Service Center facilities. The services delivered include the construction of commercial and institutional buildings. The geographic impact is concentrated in San Diego, California, specifically at MCAS Miramar. The project likely involved a significant construction workforce, contributing to local employment in the skilled trades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if project scope changes significantly, despite firm fixed-price contract.
- Construction delays could impact operational readiness at MCAS Miramar.
- Quality control during construction needs to be rigorously monitored to ensure long-term durability.
Positive Signals
- Firm fixed-price contract shifts cost risk to the contractor.
- Full and open competition with multiple bidders suggests competitive pricing.
- Award to a single contractor streamlines project management and accountability.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The Department of Defense is a significant client for construction services, with substantial annual spending on infrastructure and facilities. Benchmarking this specific contract's value against similar military construction projects would require detailed analysis of project scope, size, and location.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Straub Construction, Inc. voluntarily engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the firm fixed-price contract type, which places financial responsibility on the contractor. Transparency is generally maintained through contract award databases, though detailed project progress and inspection reports may not be publicly accessible.
Related Government Programs
- Military Construction
- Base Realignment and Closure (BRAC) Projects
- Department of Defense Facilities Management
- Naval Facilities Engineering Command Contracts
Risk Flags
- Potential for scope creep impacting budget.
- Risk of construction delays affecting operational timelines.
- Need for robust quality assurance and inspection protocols.
Tags
construction, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, commercial-and-institutional-building-construction, california, large-contract, defense-infrastructure, mc-miramar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.2 million to STRAUB CONSTRUCTION, INC.. P-176 D/B HRSC CONSOLIDATION MCAS, MIRAMAR
Who is the contractor on this award?
The obligated recipient is STRAUB CONSTRUCTION, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $22.2 million.
What is the period of performance?
Start: 2009-09-11. End: 2011-07-01.
What was the specific scope of work for the HRSC Consolidation project at MCAS Miramar?
The provided data indicates the contract was for 'P-176 D/B HRSC CONSOLIDATION MCAS, MIRAMAR' and falls under the 'Commercial and Institutional Building Construction' NAICS code. This suggests the project involved the design and construction of facilities to consolidate Human Resources Service Center operations at the Marine Corps Air Station Miramar. Specific details regarding the size, number of buildings, specialized equipment, or interior fit-out requirements are not available in the provided data but would be crucial for a comprehensive understanding of the project's complexity and value.
How does the awarded amount of $22.2 million compare to similar construction projects for military HRSC consolidation?
A direct comparison of the $22.2 million award to similar HRSC consolidation projects is challenging without access to a database of comparable military construction projects with detailed scope and location information. However, for context, large-scale institutional building projects can range from tens to hundreds of millions of dollars depending on size, complexity, and location. The firm fixed-price nature of this contract suggests a defined scope was established prior to award, and the number of bids (6) indicates a competitive market for this type of work, which generally supports reasonable pricing.
What are the potential risks associated with a firm fixed-price construction contract of this magnitude?
While firm fixed-price contracts are designed to transfer cost risk to the contractor, potential risks remain. These include the possibility of the contractor cutting corners on quality to maintain profitability if unforeseen issues arise, or disputes over change orders if the initial scope is not perfectly defined. For the government, the primary risk is ensuring the contractor has the financial stability and expertise to complete the project to specifications. Delays, even if not directly costing the government more in contract value, can impact operational readiness and incur indirect costs.
What was the track record of Straub Construction, Inc. prior to this award?
The provided data does not include information on Straub Construction, Inc.'s prior track record, such as past performance ratings, previous contract values, or types of projects completed. A thorough assessment would require accessing historical contract data, performance reviews, and potentially litigation history for the contractor. Without this information, it's difficult to evaluate their experience and reliability specifically for a project of this scale and type.
How did the Department of the Navy ensure fair pricing through the full and open competition process?
The Department of the Navy utilized a full and open competition process, which is a standard government procurement method designed to maximize competition and achieve fair pricing. By allowing all eligible responsible sources to submit proposals, the agency aimed to receive bids from multiple contractors. The fact that six bids were received suggests a competitive environment. The agency would have evaluated these bids based on established criteria, likely including price, technical approach, and past performance, to select the offer that represented the best value to the government.
What is the significance of the NAICS code 236220 (Commercial and Institutional Building Construction) in understanding this contract?
The NAICS code 236220 signifies that the primary business activity for this contract is the construction of non-residential buildings, such as commercial, industrial, or institutional facilities. This code helps categorize the contract within the broader construction industry and allows for comparisons with other similar projects. It indicates that the work involved standard building construction practices rather than specialized areas like heavy civil engineering or residential construction. This classification is crucial for industry analysis and benchmarking.
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: N6247307R2003
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5256 S MISSION RD STE 310, BONSALL, CA, 48
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,199,479
Exercised Options: $22,199,479
Current Obligation: $22,199,479
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247308D8616
IDV Type: IDC
Timeline
Start Date: 2009-09-11
Current End Date: 2011-07-01
Potential End Date: 2011-07-01 00:00:00
Last Modified: 2011-05-02
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