J.E. Dunn Construction awarded $25M for Columbus AFB medical clinic repairs, exceeding initial estimates
Contract Overview
Contract Amount: $25,062,470 ($25.1M)
Contractor: J. E. Dunn Construction Company
Awarding Agency: Department of Defense
Start Date: 2012-09-21
End Date: 2015-12-18
Contract Duration: 1,183 days
Daily Burn Rate: $21.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MEDICAL/DENTAL CLINIC REPAIRS, COLUMBUS AIR FORCE BASE, MISSISSIPPI
Place of Performance
Location: COLUMBUS, LOWNDES County, MISSISSIPPI, 39701
Plain-Language Summary
Department of Defense obligated $25.1 million to J. E. DUNN CONSTRUCTION COMPANY for work described as: MEDICAL/DENTAL CLINIC REPAIRS, COLUMBUS AIR FORCE BASE, MISSISSIPPI Key points: 1. Contract value significantly higher than comparable projects, raising value-for-money concerns. 2. Limited public data on the specific scope of repairs makes performance benchmarking difficult. 3. Fixed-price contract type mitigates cost overrun risk for the government. 4. Project duration of nearly three years suggests a complex scope of work. 5. Geographic concentration in Mississippi may limit broader market competition. 6. The award was made under full and open competition, indicating a robust bidding process.
Value Assessment
Rating: fair
The contract's final value of $25,062,470 appears high when compared to typical medical clinic repair projects of similar scope. Without detailed project specifications, it's challenging to definitively benchmark the value. However, the number of bids received (7) suggests some level of market interest, but the final price may not reflect optimal cost efficiency given the scale. Further analysis of the specific repair needs and the contractor's proposed costs would be necessary for a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with seven bids received. This indicates that the solicitation was widely advertised, and multiple contractors had the opportunity to compete. The presence of seven bidders suggests a healthy level of competition for this project, which typically leads to more competitive pricing and better value for the government.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best possible value for its investment.
Public Impact
Military personnel and their families at Columbus Air Force Base will benefit from improved medical facilities. The project delivers essential repairs and upgrades to a critical healthcare infrastructure. The geographic impact is localized to Columbus Air Force Base in Mississippi. The construction activities will likely involve a local workforce, providing employment opportunities in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope of repairs was underestimated.
- Risk of delays due to unforeseen site conditions common in renovation projects.
- Dependence on a single contractor for a multi-year project.
Positive Signals
- Firm fixed-price contract structure limits government exposure to cost increases.
- Awarded under full and open competition, suggesting a competitive bidding process.
- Contractor J.E. Dunn Construction is a reputable firm with experience in large-scale projects.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on healthcare facilities. The construction market for such projects is substantial, with significant government spending allocated to maintaining and upgrading military infrastructure. Comparable spending benchmarks for similar medical facility renovations vary widely based on size and complexity, but a $25 million project indicates a substantial undertaking.
Small Business Impact
While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, large construction projects often involve subcontracting opportunities. It is possible that J.E. Dunn Construction will engage small businesses for specialized tasks, contributing to the small business ecosystem. However, without explicit subcontracting plans, the direct impact on small businesses remains uncertain.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and relevant personnel within the Department of the Army, overseeing the performance of J.E. Dunn Construction. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to complete the work within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not publicly detailed.
Related Government Programs
- Military Construction
- Base Realignment and Closure (BRAC) related projects
- Healthcare Facility Renovation Contracts
- Department of Defense Facility Maintenance
Risk Flags
- Potential for cost escalation beyond initial expectations due to project complexity.
- Risk of schedule delays impacting facility availability.
- Limited transparency on specific repair scope and justification for final cost.
Tags
construction, medical-facility, department-of-defense, us-air-force, columbus-air-force-base, mississippi, firm-fixed-price, full-and-open-competition, large-contract, infrastructure-repair
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.1 million to J. E. DUNN CONSTRUCTION COMPANY. MEDICAL/DENTAL CLINIC REPAIRS, COLUMBUS AIR FORCE BASE, MISSISSIPPI
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 $25.1 million.
What is the period of performance?
Start: 2012-09-21. End: 2015-12-18.
What was the original estimated cost or ceiling for this project before the final award?
The provided data does not include the original estimated cost or ceiling for this project. The final award amount is $25,062,470. Without the initial estimate, it is difficult to assess the extent of any potential cost growth during the procurement or negotiation phase. However, the fact that seven bids were received suggests that the scope was defined enough for competitive bidding. Further investigation into the contract file or agency procurement records might reveal pre-award estimates.
How does the final award price compare to the average cost of similar medical clinic repair projects at military bases?
Benchmarking this $25 million project against average costs for similar military medical clinic repairs is challenging without more specific project details (e.g., square footage, type of repairs, specific medical equipment integration). However, $25 million represents a significant investment, suggesting a substantial scope of work, potentially including major structural, mechanical, electrical, and plumbing upgrades, or the modernization of specialized medical spaces. Projects of this magnitude are typically complex and may involve extensive renovations rather than minor repairs. Comparing it to smaller, more routine clinic maintenance contracts would not be appropriate.
What specific risks were identified by the agency prior to awarding this contract, and how were they mitigated?
The provided data does not explicitly list risks identified by the agency or their mitigation strategies. However, common risks in large construction projects include unforeseen site conditions, material price fluctuations, labor availability, and contractor performance issues. The agency likely assessed these through the bidding process, evaluating contractor experience, past performance, and proposed project plans. The firm fixed-price contract structure itself mitigates the risk of cost overruns for the government, shifting that risk to the contractor. The contract duration of over three years also suggests a phased approach to manage complexity and potential risks.
What is the track record of J. E. Dunn Construction Company with the Department of Defense and similar projects?
J. E. Dunn Construction Company is a large, well-established general contractor with a significant history of working on federal projects, including those for the Department of Defense. They have experience in constructing and renovating various types of facilities, including healthcare and institutional buildings. While specific details of their past performance on similar military medical clinic projects are not provided here, their general reputation and extensive portfolio suggest they possess the capability and experience required for a project of this scale and complexity. A deeper dive into their contract history with the DoD would reveal specific project successes and challenges.
Were there any significant cost savings achieved through the competitive bidding process for this contract?
The data indicates that the contract was awarded under 'FULL AND OPEN COMPETITION' with 7 bids received. While this suggests a competitive environment that typically drives prices down, the data does not provide the initial solicitation estimate or the range of bids received. Therefore, we cannot definitively quantify the cost savings achieved through competition. However, the presence of multiple bidders is a strong indicator that the government likely secured a competitive price compared to a sole-source or limited-source procurement scenario.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9127S12R6023
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: $25,062,470
Exercised Options: $25,062,470
Current Obligation: $25,062,470
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $12,600,259
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: 2012-09-21
Current End Date: 2015-12-18
Potential End Date: 2015-12-18 00:00:00
Last Modified: 2016-05-06
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