DOT awards $20.6M contract to StructSure Projects Inc. for building modernization in Warrenton, VA

Contract Overview

Contract Amount: $20,561,083 ($20.6M)

Contractor: Structsure Projects Inc

Awarding Agency: Department of Transportation

Start Date: 2023-03-16

End Date: 2026-03-27

Contract Duration: 1,107 days

Daily Burn Rate: $18.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MODERNIZE A BUILDING RECENTLY ACQUIRED BY THE FAA AT 3721 MACINTOSH DR., WARRENTON, VA

Place of Performance

Location: WARRENTON, FAUQUIER County, VIRGINIA, 20186

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $20.6 million to STRUCTSURE PROJECTS INC for work described as: MODERNIZE A BUILDING RECENTLY ACQUIRED BY THE FAA AT 3721 MACINTOSH DR., WARRENTON, VA Key points: 1. The contract value of $20.6 million for building modernization appears substantial, warranting a close look at the scope and deliverables. 2. Competition dynamics are favorable with 3 bidders, suggesting a competitive pricing environment. 3. The firm-fixed-price contract type generally transfers risk to the contractor, which can be beneficial for cost certainty. 4. The project duration of 1107 days indicates a significant undertaking in terms of scale and complexity. 5. The contract is categorized under Commercial and Institutional Building Construction, a common sector for federal infrastructure projects. 6. The project is located in Virginia, a state with a notable presence of federal facilities and related construction activity.

Value Assessment

Rating: good

The contract value of $20.6 million for modernizing a recently acquired FAA building is a significant investment. Benchmarking against similar federal building modernization projects would be necessary for a precise value-for-money assessment. However, the firm-fixed-price structure suggests that the contractor bears the primary cost risk, which can lead to more predictable outcomes for the government. The number of bidders (3) indicates a degree of competition, which typically helps in achieving fair market pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating it was likely a full and open competition among eligible bidders. With 3 bids received, there was a reasonable level of competition, which generally supports price discovery and can lead to more favorable pricing for the government. The SAP process is designed to be efficient for smaller to medium-sized procurements while still ensuring fair opportunity.

Taxpayer Impact: The competitive bidding process for this contract suggests that taxpayer funds are likely being used efficiently, as multiple companies vied for the opportunity, driving down potential costs.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the Department of Transportation (DOT), who will gain a modernized facility. The services delivered include the comprehensive modernization of a commercial and institutional building. The geographic impact is localized to Warrenton, Virginia, where the facility is situated. Workforce implications may include job creation for construction workers, engineers, and project managers involved in the modernization effort.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during modernization, despite the firm-fixed-price contract.
Ensuring the modernization meets long-term operational needs and technological advancements for the FAA.
Coordination challenges between the contractor, government oversight, and any existing facility operations.

Positive Signals

Firm-fixed-price contract type mitigates cost uncertainty for the government.
Multiple bidders suggest a healthy competitive environment, likely leading to a fair price.
The project addresses a specific need for facility modernization, improving operational capabilities.

Sector Analysis

The Commercial and Institutional Building Construction sector is a significant part of the federal contracting landscape, encompassing a wide range of projects from renovations to new builds. Federal agencies frequently engage in such contracts to maintain and upgrade their infrastructure. Spending in this sector is influenced by agency needs, budget allocations, and the condition of existing federal properties. This contract fits within the broader category of federal real property management and facility upgrades.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures (SAP) and awarded as a definitive contract. There is no explicit mention of small business set-asides or subcontracting goals in the provided data. Further investigation would be needed to determine if small businesses were involved as prime contractors or subcontractors, and whether the competition under SAP provided adequate opportunity for them.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA) contracting officer and potentially through project managers assigned to oversee the modernization. Accountability measures are embedded in the firm-fixed-price contract terms, requiring StructSure Projects Inc. to deliver the specified modernization within the agreed-upon price and timeframe. Transparency would be enhanced through contract award databases and potentially through public reporting on project milestones.

Related Government Programs

Federal Building Construction
Facility Modernization Projects
Department of Transportation Contracts
Federal Aviation Administration Infrastructure

Risk Flags

Potential for scope creep
Unforeseen site conditions
Contractor performance risk
Budgetary constraints impacting future phases

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $20.6 million to STRUCTSURE PROJECTS INC. MODERNIZE A BUILDING RECENTLY ACQUIRED BY THE FAA AT 3721 MACINTOSH DR., WARRENTON, VA

Who is the contractor on this award?

The obligated recipient is STRUCTSURE PROJECTS INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $20.6 million.

What is the period of performance?

Start: 2023-03-16. End: 2026-03-27.

What is the historical track record of StructSure Projects Inc. with federal contracts, particularly in building modernization?

A review of federal procurement data would be necessary to fully assess StructSure Projects Inc.'s track record. This would involve examining past contract awards, performance evaluations (if available), and any history of contract disputes or terminations. Understanding their experience with similar-sized projects, firm-fixed-price contracts, and specific types of building modernization (e.g., HVAC, electrical, structural) would provide crucial context for evaluating their capability to successfully execute this $20.6 million contract. Without specific historical data, it's difficult to definitively assess their past performance.

How does the $20.6 million contract value compare to similar FAA building modernization projects?

To benchmark the value, one would need to compare this $20.6 million contract against other recent FAA or DOT building modernization projects of comparable scope and complexity. Factors such as the size of the building, the extent of the modernization (e.g., gut renovation vs. targeted upgrades), and the geographic location (which can influence labor and material costs) are critical for a fair comparison. If similar projects have been awarded for significantly less, or if the scope here is unusually extensive for the price, it might indicate a deviation from typical market rates. Conversely, if it aligns with or is below benchmarks, it suggests reasonable pricing.

What are the key risk indicators associated with this specific building modernization project?

Key risk indicators for this project could include the age and condition of the recently acquired building, potential for unforeseen structural or environmental issues (e.g., asbestos, lead paint) that could increase costs or delays, and the complexity of integrating modern systems (HVAC, IT, security) into an existing structure. The firm-fixed-price nature transfers cost risk to the contractor, but significant unforeseen issues could still lead to claims or disputes. The project duration of over 1000 days also presents risks related to material price fluctuations and potential labor shortages over the extended period.

How effective is the Simplified Acquisition Procedures (SAP) process in ensuring value for money for contracts of this size?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for acquisitions valued below the SAT (currently $250,000, though thresholds can be higher for certain types of procurements). For a $20.6 million contract, it's unusual to see it competed under SAP unless specific exceptions apply or the initial award was significantly smaller and modified. If the entire $20.6M was competed under SAP, it might suggest less rigorous competition or documentation than a full and open competition above the SAT. However, if it was competed appropriately within SAP guidelines (e.g., using GSA schedules or other authorized methods), it can still yield good value by reducing administrative burden. The presence of 3 bidders indicates some level of competition was achieved.

What is the historical spending trend for building modernization by the Federal Aviation Administration?

Analyzing historical spending data for the FAA's building modernization efforts would reveal trends in investment levels, common project types, and average contract values. This context is crucial for understanding if the $20.6 million award represents a typical investment, an increase, or a decrease in spending for such projects. It would also help identify if the FAA has a consistent strategy for facility upgrades or if spending is project-driven. Examining past performance on similar modernization contracts could also highlight recurring challenges or successes that inform future procurements.

Are there any specific performance metrics or deliverables outlined in the contract that can be used to assess project success?

The provided data does not detail specific performance metrics or deliverables. A comprehensive contract review would be needed to identify these. Typically, building modernization contracts include specifications for work quality, adherence to building codes, completion of specific systems upgrades (e.g., electrical, plumbing, HVAC), and final inspections. Success would be measured against these defined requirements, project timelines, and the final cost. Without access to the contract's statement of work and performance standards, a detailed assessment of success criteria is not possible.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 697DCK-23-R-00033

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 903 E 104TH ST, KANSAS CITY, MO, 64131

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,561,083

Exercised Options: $20,561,083

Current Obligation: $20,561,083

Actual Outlays: $19,874,837

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline