StructSure Projects Inc. awarded $16.38M for Air Force medical facility construction, highlighting fixed-price contract for building services

Contract Overview

Contract Amount: $16,382,383 ($16.4M)

Contractor: Structsure Projects Inc

Awarding Agency: Department of Defense

Start Date: 2007-09-28

End Date: 2008-09-30

Contract Duration: 368 days

Daily Burn Rate: $44.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: IDIQ FOR AIR FORCE MEDICAL DESIGN-BUILD

Place of Performance

Location: LACKLAND AFB, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to STRUCTSURE PROJECTS INC for work described as: IDIQ FOR AIR FORCE MEDICAL DESIGN-BUILD Key points: 1. The contract utilized a fixed-price structure, aiming to control costs for the Air Force medical facility. 2. Competition was full and open, suggesting a robust bidding process that could lead to competitive pricing. 3. The contract duration of 368 days indicates a focused, medium-term project timeline. 4. The award was a delivery order under an IDIQ, suggesting it's part of a larger framework agreement. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The project is located in Texas, potentially impacting local construction labor markets and material sourcing.

Value Assessment

Rating: good

The fixed-price nature of this contract suggests an effort to manage cost overruns. Benchmarking against similar Air Force medical facility construction projects would provide a clearer picture of value for money. Without specific cost breakdowns or comparisons to market rates for similar construction services in Texas, a definitive value assessment is challenging. However, the fixed-price approach generally offers predictability for the government.

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 fact that it was a delivery order under an IDIQ suggests that the initial IDIQ contract itself was competed, and this specific order was then awarded based on proposals submitted under that IDIQ. The number of bidders for this specific delivery order is not provided, but the initial competition for the IDIQ likely fostered price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of contractors to bid, potentially driving down prices and improving the quality of services offered.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and potentially the wider military community who will utilize the improved medical facilities. The contract delivers construction services for a medical facility, implying upgrades or new builds to enhance healthcare infrastructure. The geographic impact is localized to Texas, where the construction will take place, potentially creating local jobs and utilizing local resources. The project will likely involve a workforce of construction laborers, project managers, engineers, and subcontractors within the Texas region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the initial IDIQ scope was not precisely defined, leading to cost increases beyond the fixed price.
Reliance on a single delivery order under an IDIQ might not fully capture the competitive landscape for ongoing medical facility needs.
Construction projects inherently carry risks of delays due to weather, material availability, or unforeseen site conditions, which could impact project completion.
The fixed-price contract might incentivize the contractor to cut corners on quality if not rigorously overseen.

Positive Signals

The fixed-price contract provides cost certainty for the government, limiting exposure to cost overruns.
Awarding under full and open competition suggests a commitment to leveraging market competition for best value.
The IDIQ structure allows for streamlined future task orders, potentially reducing administrative burden for subsequent medical facility needs.
The project addresses critical infrastructure for Air Force medical services, indicating a focus on essential government functions.

Sector Analysis

The construction sector, particularly commercial and institutional building, is a significant part of the U.S. economy. Federal spending in this area often supports critical infrastructure for government operations, including healthcare facilities. The NAICS code 236220 covers a broad range of non-residential construction. Spending benchmarks for similar medical facility construction projects by the Department of Defense would be necessary for a precise comparison, but federal construction contracts are substantial drivers of activity within this sector.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. This suggests the contract was competed broadly. There is no explicit information on subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts often have subcontracting goals that could indirectly benefit small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army or Air Force. The fixed-price nature necessitates monitoring for performance and adherence to specifications. Transparency is generally provided through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Military Construction
Healthcare Infrastructure Projects
Department of Defense Facilities Management
Indefinite Delivery Indefinite Quantity (IDIQ) Contracts
Fixed-Price Construction Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of quality compromise in fixed-price contracts.
Construction project inherent risks (delays, site conditions).
Contractor performance history not detailed.
Market volatility impacting material costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to STRUCTSURE PROJECTS INC. IDIQ FOR AIR FORCE MEDICAL DESIGN-BUILD

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 $16.4 million.

What is the period of performance?

Start: 2007-09-28. End: 2008-09-30.

What is the track record of StructSure Projects Inc. with federal contracts, particularly within the Department of Defense?

Information on StructSure Projects Inc.'s track record with federal contracts, especially within the Department of Defense, would require a detailed search of federal procurement databases. This would involve examining past awards, contract performance reviews (if publicly available), and any history of disputes or terminations. A positive history with similar projects, particularly in medical facility construction, would indicate lower risk and potentially better performance. Conversely, a history of performance issues or contract disputes could signal higher risk for future projects awarded to this contractor. Without specific data on StructSure's past federal performance, it's difficult to provide a definitive assessment.

How does the awarded amount of $16.38 million compare to the typical cost of similar Air Force medical facility construction projects?

To benchmark the $16.38 million award, one would need to compare it against the costs of similar Air Force medical facility construction projects completed recently. This comparison should account for project size (square footage), complexity (e.g., specialized medical equipment integration), location (which affects labor and material costs), and the specific scope of work (new build vs. renovation). Data from the Federal Procurement Data System (FPDS) or other government cost-estimating resources could provide comparable contract values. If this project's cost per square foot or per functional unit is significantly higher or lower than similar projects, it could indicate either exceptional value or potential overpricing/underbidding.

What are the primary risk indicators associated with this specific delivery order, considering it's a fixed-price contract for construction?

Key risk indicators for this fixed-price construction delivery order include the potential for scope creep if the initial IDIQ requirements were not precisely defined, which could lead to change orders that increase costs. The fixed-price nature itself can be a risk if the contractor underestimated costs, potentially leading to quality compromises or contractor default. Construction projects inherently face risks from unforeseen site conditions, material price volatility, labor availability, and weather delays, all of which can impact schedule and budget adherence. The contractor's experience with similar medical facilities and their financial stability are also critical risk factors. Finally, the effectiveness of government oversight in ensuring quality and adherence to specifications is paramount.

How effective is the IDIQ contract vehicle in ensuring long-term value and flexibility for the Air Force's medical facility needs?

The effectiveness of an IDIQ contract vehicle for long-term medical facility needs depends on how well it is structured and managed. IDIQs offer flexibility by allowing multiple delivery orders to be placed against a pre-competed contract, streamlining procurement for recurring needs. For the Air Force, this can ensure a consistent pool of qualified contractors and potentially leverage competition across multiple orders. However, the value realized depends on the initial competition for the IDIQ itself and the subsequent competition or fair pricing of individual delivery orders. If the IDIQ is broad and well-defined, it can provide significant long-term value and adaptability. Conversely, poorly defined IDIQs or a lack of robust competition for delivery orders can diminish its effectiveness and lead to suboptimal pricing.

What are the historical spending patterns for Air Force medical facility construction, and how does this $16.38M award fit within that trend?

Analyzing historical spending patterns for Air Force medical facility construction would involve examining aggregate data over several fiscal years. This would reveal the typical annual investment in such infrastructure, the average size and cost of projects, and the primary contracting mechanisms used (e.g., IDIQs, specific construction contracts). This $16.38 million award needs to be contextualized within these historical trends. If it represents a typical project size and cost for a single facility upgrade or build, it aligns with past spending. If it's unusually large or small, or if the cost per square foot deviates significantly from historical averages, it warrants further investigation into the specific scope and market conditions influencing this particular contract.

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: W9126G04R0002

Offers Received: 2

Pricing Type: FIXED PRICE (J)

Contractor Details

Address: 8041 WEST 47TH STREET, SUI, OVERLAND PARK, KS, 66203

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $16,382,383

Exercised Options: $16,382,383

Current Obligation: $16,382,383

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G04D0011

IDV Type: IDC

Timeline