DoD Awards $70M for Eglin AFB Hospital Renovation to J.E. Dunn Construction
Contract Overview
Contract Amount: $70,139,309 ($70.1M)
Contractor: J. E. Dunn Construction Company
Awarding Agency: Department of Defense
Start Date: 2011-09-23
End Date: 2016-12-31
Contract Duration: 1,926 days
Daily Burn Rate: $36.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: HOSPITAL REALIGNMENT; INITIAL OUTFITTING-TRANSITION FOR DESIGN&CONSTRUCT INFRASTRUCTURE RENOVATIONS TO BUILDINGS 2825, 2794, AND 2795; DESIGN&CONSTRUCT ANNEX FACILITY; 96TH MEDICAL GROUP, EGLIN AIR FORCE BASE, VALPARAISO, OKALOOSA COUNTY, FLORIDA
Place of Performance
Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $70.1 million to J. E. DUNN CONSTRUCTION COMPANY for work described as: HOSPITAL REALIGNMENT; INITIAL OUTFITTING-TRANSITION FOR DESIGN&CONSTRUCT INFRASTRUCTURE RENOVATIONS TO BUILDINGS 2825, 2794, AND 2795; DESIGN&CONSTRUCT ANNEX FACILITY; 96TH MEDICAL GROUP, EGLIN AIR FORCE BASE, VALPARAISO, OKALOOSA COUNTY, FLORIDA Key points: 1. Significant investment in critical medical infrastructure at Eglin AFB. 2. J.E. Dunn Construction, a large firm, secured the contract. 3. The project involves extensive building renovations and a new annex. 4. Long duration suggests complex scope and potential for cost overruns.
Value Assessment
Rating: good
The contract value of $70.1M for a 5-year project involving significant renovations and new construction appears reasonable given the scope. Benchmarking against similar large-scale medical facility construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing, though the final price reflects the complexity and duration.
Taxpayer Impact: Taxpayer funds are being used for essential upgrades to military medical facilities, ensuring readiness and quality of care for service members.
Public Impact
Enhances medical capabilities at Eglin AFB. Supports military personnel and their families' healthcare access. Potential for local economic impact through construction jobs and materials. Modernizes aging infrastructure for long-term operational efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (1926 days) increases risk of scope creep and cost escalation.
- Potential for unforeseen site conditions in existing buildings.
- Reliance on a single large contractor for a multi-year project.
Positive Signals
- Awarded through full and open competition.
- Addresses critical infrastructure needs for a major military installation.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for large-scale federal construction projects of this nature can vary widely based on location, complexity, and specific requirements.
Small Business Impact
The contract was awarded to J.E. Dunn Construction Company, a large business. There is no indication of specific small business subcontracting goals or participation in this award notice.
Oversight & Accountability
The award was managed by the Department of the Army, likely subject to standard federal procurement oversight. The long duration and significant value warrant ongoing monitoring for performance and adherence to contract terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration increases risk.
- Potential for unforeseen site conditions.
- Complexity of medical facility construction.
- Large contract value requires diligent oversight.
Tags
commercial-and-institutional-building-co, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.1 million to J. E. DUNN CONSTRUCTION COMPANY. HOSPITAL REALIGNMENT; INITIAL OUTFITTING-TRANSITION FOR DESIGN&CONSTRUCT INFRASTRUCTURE RENOVATIONS TO BUILDINGS 2825, 2794, AND 2795; DESIGN&CONSTRUCT ANNEX FACILITY; 96TH MEDICAL GROUP, EGLIN AIR FORCE BASE, VALPARAISO, OKALOOSA COUNTY, FLORIDA
Who is the contractor on this award?
The obligated recipient is J. E. DUNN CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $70.1 million.
What is the period of performance?
Start: 2011-09-23. End: 2016-12-31.
What is the estimated cost per square foot for the renovation and new construction, and how does it compare to industry averages for similar medical facilities?
Without detailed square footage data, a precise per-square-foot cost cannot be calculated. However, the total award of $70.1M over a 5-year period for significant renovations and a new annex suggests a substantial investment. Comparing this to industry benchmarks for healthcare construction, which are typically higher than general commercial construction due to specialized requirements (e.g., HVAC, medical gas systems, infection control), would be necessary for a thorough value assessment.
What are the primary risks associated with the long duration of this project, and what mitigation strategies are in place?
The primary risks of a 1926-day project include potential for inflation impacting material and labor costs, changes in military medical requirements over time, and contractor performance degradation. Mitigation strategies likely include robust contract management, phased delivery schedules, clear change order processes, and performance incentives/penalties outlined in the contract.
How effectively will the completed facility meet the evolving needs of the 96th Medical Group, considering the 5-year construction timeline?
The effectiveness hinges on the initial design's foresight and the contractor's ability to adapt to minor changes during construction. The long timeline necessitates that the design anticipates future medical technologies and patient care models. Regular reviews and stakeholder engagement throughout the project lifecycle will be crucial to ensure the final facility remains relevant and functional for the 96th Medical Group's mission.
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: W9127S11R6019
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: JE Dunn Construction Group Inc (UEI: 007836448)
Address: 929 HOLMES ST, KANSAS CITY, MO, 64106
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $70,139,309
Exercised Options: $70,139,309
Current Obligation: $70,139,309
Subaward Activity
Number of Subawards: 147
Total Subaward Amount: $129,217,988
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9126G08D0057
IDV Type: IDC
Timeline
Start Date: 2011-09-23
Current End Date: 2016-12-31
Potential End Date: 2016-12-31 00:00:00
Last Modified: 2016-11-16
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- 200305!000084!2100!CA41 !USA Engineer District,Kansas Cty!daca4103c0003 !A!N! !N! !20030121!20040120!008906844!008906844!007836448!N!J E Dunn Construction CO !929 Holmes ST !kansas City !mo!64106!39000!103!20!leavenworth !leavenworth !kansas !+000000348000!n!n!000000348000!y131!schools !C2 !construction !1000!NOT Discernable or Classified !236210!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!j!2!009!b! !D!N!C! ! !N!C!N! ! ! !c!c!a!a!000!a!b!y! !N! !Y! ! !0001! ! — $112.5M (Department of Defense)
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