Army Awards $44.6M Design-Build Contract to Tutor Perini Corp for Fort Hood Barracks
Contract Overview
Contract Amount: $44,560,828 ($44.6M)
Contractor: Tutor Perini Corporation
Awarding Agency: Department of Defense
Start Date: 2008-09-15
End Date: 2009-11-20
Contract Duration: 431 days
Daily Burn Rate: $103.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 60
Pricing Type: FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCT
Plain-Language Summary
Department of Defense obligated $44.6 million to TUTOR PERINI CORPORATION for work described as: DESIGN AND CONSTRUCT Key points: 1. The contract value of $44.6 million falls within typical ranges for large-scale construction projects. 2. Tutor Perini Corporation is a major player in the construction industry, indicating significant competition for such projects. 3. The fixed-price contract type aims to control costs, but potential risks exist in scope changes or unforeseen site conditions. 4. This project falls under the Commercial and Institutional Building Construction sector, a vital area for military infrastructure.
Value Assessment
Rating: good
The $44.6 million award for a design and construct project appears reasonable given the scope. Benchmarking against similar large-scale barracks construction projects would provide a more precise assessment, but the fixed-price nature suggests an effort to establish a clear cost ceiling.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. The fixed-price nature of the contract further supports price discovery by setting a clear ceiling for the contractor's bid.
Taxpayer Impact: Full and open competition is expected to yield a fair price for taxpayers, ensuring that the government receives value for its investment in military infrastructure.
Public Impact
Enhances military readiness by providing modern living quarters for soldiers. Supports local economies through construction jobs and material sourcing. Represents a significant investment in the Department of Defense's infrastructure modernization efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Risk of schedule delays impacting troop housing availability.
- Contractor performance risk on a large, complex project.
Positive Signals
- Fixed-price contract helps control costs.
- Full and open competition likely secured a competitive price.
- Project addresses critical military infrastructure needs.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense is substantial, driven by the need to maintain and upgrade military facilities globally. Benchmarks for similar design-build barracks projects would typically range from tens to hundreds of millions of dollars.
Small Business Impact
While the prime contractor is a large corporation, opportunities for small businesses may exist as subcontractors for specialized services or material supply. The contract details do not specify small business participation goals, which could be an area for further review.
Oversight & Accountability
The Department of the Army's contracting process, including full and open competition, provides a degree of oversight. However, ongoing monitoring of project execution, cost controls, and adherence to the fixed-price agreement is crucial for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep impacting fixed price.
- Reliance on a single large prime contractor.
- Schedule adherence critical for troop readiness.
- Unforeseen site conditions could increase costs.
- Small business participation not explicitly detailed.
Tags
commercial-and-institutional-building-co, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.6 million to TUTOR PERINI CORPORATION. DESIGN AND CONSTRUCT
Who is the contractor on this award?
The obligated recipient is TUTOR PERINI CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $44.6 million.
What is the period of performance?
Start: 2008-09-15. End: 2009-11-20.
What was the basis for the fixed-price determination, and were there significant contingencies included?
The fixed-price determination likely stemmed from detailed cost proposals submitted by competing firms during the full and open solicitation. While fixed-price contracts aim to cap costs, they often include allowances or contingencies for unforeseen issues like site conditions or material price fluctuations. The specific amount of these contingencies and the rationale behind them would be detailed in the contract's cost breakdown, which is not provided here.
How does the awarded price compare to independent cost estimates for similar barracks construction projects?
Without access to independent government cost estimates or detailed market data for comparable projects, a precise comparison is difficult. However, $44.6 million for a design and construct project of this scale (60 units, 431 days duration) appears within a plausible range for major military construction. A more thorough analysis would involve comparing the per-square-foot cost and specific features against industry benchmarks for institutional building construction.
What mechanisms are in place to ensure the quality of construction meets military standards and troop needs?
Quality assurance is typically managed through government-provided inspection services, adherence to detailed architectural and engineering specifications, and potentially third-party quality control by the contractor. The contract likely includes clauses requiring compliance with specific military construction standards and performance requirements. Regular site inspections and progress reviews by Army Corps of Engineers representatives would be standard practice to ensure quality and functionality.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912ER04R0004
Offers Received: 60
Pricing Type: FIXED PRICE (J)
Contractor Details
Address: 73 MT WAYTE AVENUE, FRAMINGHAM, MA, 01701
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $44,560,828
Exercised Options: $44,560,828
Current Obligation: $44,560,828
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912ER04D0008
IDV Type: IDC
Timeline
Start Date: 2008-09-15
Current End Date: 2009-11-20
Potential End Date: 2009-11-20 00:00:00
Last Modified: 2018-10-17
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