Fort Bliss Hospital Infrastructure Upgrade Awarded to Sundt Construction for $47.5M

Contract Overview

Contract Amount: $47,508,475 ($47.5M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-07-27

End Date: 2013-08-17

Contract Duration: 752 days

Daily Burn Rate: $63.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SITE INFRASTRUCTURE IMPROVEMENTS FOR REPLACEMENT FORT BLISS HOSPITAL

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79906

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $47.5 million to SUNDT CONSTRUCTION, INC. for work described as: SITE INFRASTRUCTURE IMPROVEMENTS FOR REPLACEMENT FORT BLISS HOSPITAL Key points: 1. Contract value of $47.5 million for site infrastructure improvements. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Contract duration of 752 days indicates a significant, multi-year project. 4. The project is categorized under Site Preparation Contractors, a specialized field. 5. Located in Texas, potentially impacting local construction workforce and economy. 6. Firm Fixed Price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $47.5 million for site infrastructure improvements at Fort Bliss appears reasonable given the scope of work for a major military installation. Benchmarking against similar large-scale construction projects for federal facilities would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage cost overruns, which is a positive indicator for fiscal responsibility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of four bidders (no=4) indicates a healthy level of competition for this project. This competitive environment is generally expected to drive down prices and ensure the government receives fair market value for the services rendered.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure the $47.5 million awarded is a fair price for the necessary infrastructure upgrades, minimizing the risk of overpayment.

Public Impact

The primary beneficiaries are the U.S. Army and personnel stationed at Fort Bliss, who will receive improved and reliable site infrastructure. Services delivered include essential site preparation and infrastructure development crucial for hospital operations. The geographic impact is concentrated at Fort Bliss, Texas, supporting military readiness and base operations. Workforce implications include job creation for construction workers and related trades in the local Texas area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting hospital readiness.
Risk of unforeseen site conditions increasing project costs despite fixed-price contract.
Ensuring compliance with environmental regulations during site preparation.

Positive Signals

Firm fixed-price contract helps control costs.
Full and open competition suggests competitive pricing.
Experienced contractor (Sundt Construction) likely brings project management expertise.

Sector Analysis

The contract falls within the Construction and Engineering sector, specifically focusing on site preparation and infrastructure development for a large federal facility. The market for large-scale government construction projects is substantial, with numerous firms capable of undertaking such work. This contract represents a significant investment in military base infrastructure, aligning with broader government efforts to modernize facilities and ensure operational readiness.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, large prime contractors like Sundt Construction are often required to meet subcontracting goals for small businesses. The subcontracting opportunities generated by this $47.5 million project could provide significant work for small businesses in the construction trades and related services within the Texas region.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Performance monitoring, site inspections, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract award databases and reporting requirements, though specific Inspector General (IG) involvement would depend on any identified issues or audits.

Related Government Programs

Fort Bliss Hospital Construction
Military Base Infrastructure Modernization
Army Corps of Engineers Construction Projects
Federal Site Preparation Contracts

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting facility readiness.
Environmental compliance during extensive site work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.5 million to SUNDT CONSTRUCTION, INC.. SITE INFRASTRUCTURE IMPROVEMENTS FOR REPLACEMENT FORT BLISS HOSPITAL

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 $47.5 million.

What is the period of performance?

Start: 2011-07-27. End: 2013-08-17.

What is Sundt Construction's track record with similar federal infrastructure projects?

Sundt Construction has a significant history of undertaking large-scale construction projects, including numerous contracts with federal agencies and military branches. Their portfolio often includes infrastructure development, hospital construction, and base facility upgrades. A review of their past performance on similar Department of Defense projects would reveal their ability to manage complex projects, adhere to budgets, and meet delivery timelines. Their experience suggests a capacity to handle the scope and technical requirements of the Fort Bliss hospital site infrastructure improvements, though specific project outcomes and any past performance issues would require detailed examination of contract histories and performance evaluations.

How does the $47.5 million award compare to the estimated cost or market rates for similar site infrastructure projects?

Without specific details on the scope of 'site infrastructure improvements' (e.g., utility upgrades, grading, roadwork, environmental remediation), a precise comparison to market rates is challenging. However, $47.5 million for a project at a major military installation like Fort Bliss suggests a substantial undertaking. Benchmarking against publicly available data for similar large-scale federal construction projects, particularly those involving base infrastructure or hospital support facilities, would be necessary. Factors such as geographic location, labor costs in Texas, and the complexity of the site conditions would influence market rates. The firm fixed-price nature of the contract implies the government sought to establish a definitive cost upfront, which, combined with full and open competition, suggests an effort to align the award price with market expectations.

What are the primary risks associated with this site infrastructure project, and how are they being mitigated?

Key risks for this project include unforeseen subsurface conditions (e.g., soil instability, underground utilities, hazardous materials), potential environmental compliance issues during site preparation, and the possibility of construction delays impacting the hospital's operational timeline. Mitigation strategies likely include thorough geotechnical surveys and environmental assessments prior to award, contingency planning within the contract for unforeseen conditions, and robust project management oversight by the Army. The firm fixed-price contract also incentivizes the contractor to manage risks effectively to avoid cost overruns. Furthermore, the duration of the contract (752 days) allows for a structured approach to managing these risks over a significant period.

What is the expected impact of these infrastructure improvements on the operational effectiveness of the Fort Bliss hospital?

Improved site infrastructure is critical for the reliable and efficient operation of any hospital, especially a military medical facility. This project likely addresses foundational elements such as utility systems (water, sewer, power, communications), access roads, drainage, and potentially site security. Upgraded infrastructure reduces the risk of service disruptions caused by system failures, enhances accessibility for patients and staff, and ensures that the hospital can function optimally during routine operations and emergency situations. Ultimately, these improvements contribute to the overall readiness and capability of the medical services provided at Fort Bliss.

How has federal spending on site preparation and infrastructure at military bases trended in recent years?

Federal spending on site preparation and infrastructure at military bases has generally been a consistent priority, often fluctuating based on modernization needs, aging facilities, and national security requirements. Following periods of extensive overseas deployments, there has often been a renewed focus on upgrading domestic installations. Spending levels are influenced by annual appropriations, specific military construction bills, and the perceived need to maintain state-of-the-art facilities for training and operations. Data from sources like the Congressional Budget Office or the Department of Defense's own budget requests would show trends, with significant investments typically directed towards enhancing force projection capabilities, improving quality of life for service members, and ensuring infrastructure resilience.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › Site Preparation Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9126G08R0205

Offers Received: 4

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, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $47,519,875

Exercised Options: $47,508,475

Current Obligation: $47,508,475

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G09D0004

IDV Type: IDC

Timeline