DoD's $23.8M Clinic Modernization Contract Awarded to Structsure Projects Inc. in Arizona

Contract Overview

Contract Amount: $23,827,903 ($23.8M)

Contractor: Structsure Projects Inc

Awarding Agency: Department of Defense

Start Date: 2007-09-29

End Date: 2010-03-08

Contract Duration: 891 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY07 CLINIC MODERNIZATION

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85003

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $23.8 million to STRUCTSURE PROJECTS INC for work described as: FY07 CLINIC MODERNIZATION Key points: 1. Contract awarded for clinic modernization, indicating investment in healthcare infrastructure. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. The duration of the contract (891 days) suggests a significant scope of work. 4. The firm-fixed-price contract type aims to control costs for the government. 5. Awarded to Structsure Projects Inc., a contractor with experience in construction. 6. The project is located in Arizona, potentially impacting local construction workforce and economy.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of modernization. However, the firm-fixed-price structure suggests an attempt to manage costs upfront. Comparing this to similar clinic modernization projects across the Department of Defense would provide a clearer picture of whether the awarded amount represents a fair market value for the services rendered. The absence of detailed cost breakdowns or performance metrics makes a definitive value assessment difficult.

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 bids. The presence of two bids suggests a moderate level of competition for this project. While two bidders indicate some level of market interest, a higher number of bids would typically lead to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive offers.

Public Impact

Modernized clinic facilities will benefit military personnel and their families by providing improved healthcare environments. The project delivers construction services, contributing to the upkeep and enhancement of military infrastructure. The geographic impact is concentrated in Arizona, where the clinic is located. The contract likely has implications for the local construction workforce in Arizona, creating employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of modernization was underestimated.
Risk of delays in project completion impacting the availability of modernized facilities.
Quality control concerns inherent in large construction projects.

Positive Signals

Firm-fixed-price contract helps mitigate cost escalation risks for the government.
Full and open competition suggests a deliberate effort to secure competitive pricing.
Award to a contractor with experience in commercial and institutional building construction.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is vital for developing and maintaining infrastructure across various industries, including government facilities. The market size for federal construction contracts is substantial, with significant annual spending allocated to building and renovation projects. This specific contract represents a portion of the Department of Defense's investment in its healthcare infrastructure, aiming to provide modern and functional facilities for service members.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Accountability measures are embedded in the firm-fixed-price contract, requiring the contractor to deliver the specified services within the agreed-upon price. Transparency is facilitated through contract award databases, but detailed project oversight and inspector general jurisdiction would depend on the specific terms and any potential issues that arise during performance.

Related Government Programs

Military Construction
Healthcare Facility Renovation
Department of Defense Facilities Management
Government Construction Contracts

Risk Flags

Contract Duration
Number of Bids Received

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 million to STRUCTSURE PROJECTS INC. FY07 CLINIC MODERNIZATION

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 $23.8 million.

What is the period of performance?

Start: 2007-09-29. End: 2010-03-08.

What specific modernization activities were included in this contract?

The provided data indicates the contract was for 'CLINIC MODERNIZATION' under the NAICS code for Commercial and Institutional Building Construction. However, the specific details of the modernization activities (e.g., upgrades to HVAC systems, electrical, plumbing, architectural changes, equipment installation) are not included in this summary. Further review of the contract's Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary to ascertain the precise scope of modernization.

How does the awarded amount compare to similar clinic modernization projects by the DoD?

A direct comparison of the $23.8 million award to similar DoD clinic modernization projects requires access to a broader dataset of comparable contracts. Factors such as the size of the clinic, the extent of the modernization required, and the geographic location can significantly influence project costs. Without a benchmark of similar projects, it is difficult to definitively state whether this award represents a high, low, or average cost for such an undertaking. A comprehensive analysis would involve identifying contracts with similar scopes, durations, and facility types within the DoD.

What is Structsure Projects Inc.'s track record with the federal government, particularly the Department of Defense?

Structsure Projects Inc. has been awarded this $23.8 million contract by the Department of the Army. The data indicates this is a significant award for them. To assess their broader track record, one would need to examine their contract history with the federal government, looking at the number of awards, total value of contracts, performance ratings (if available), and any past performance issues or disputes. Experience in similar construction projects, especially for government clients, would be a key indicator of their capability.

What were the key performance indicators (KPIs) for this clinic modernization project?

The provided summary data does not specify the key performance indicators (KPIs) for this clinic modernization contract. Typically, KPIs for construction projects would include adherence to schedule, budget compliance, quality of workmanship, safety standards, and successful completion of all specified modernization tasks. The firm-fixed-price nature of the contract implies that meeting the defined scope within the agreed price is a primary performance expectation. Actual performance against these KPIs would usually be documented in contract performance reports.

What is the historical spending trend for clinic modernization within the Department of the Army?

Analyzing the historical spending trend for clinic modernization within the Department of the Army would require examining contract awards over multiple fiscal years. This specific contract from FY07 is a single data point. A trend analysis would involve aggregating data on all clinic modernization contracts awarded by the Army, looking for patterns in award values, number of contracts, and types of modernization. This would help determine if spending in this area is increasing, decreasing, or remaining stable, and identify any significant shifts in investment.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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: W9126G04R0002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 8041 WEST 47TH STREET, SUI, OVERLAND PARK, KS, 03

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $23,827,903

Exercised Options: $23,827,903

Current Obligation: $23,827,903

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G04D0011

IDV Type: IDC

Timeline