DoD Awards $342M for New Housing Construction, Highlighting Long-Term Project Needs
Contract Overview
Contract Amount: $34,235,451 ($34.2M)
Contractor: Hunt Building Company, Ltd
Awarding Agency: Department of Defense
Start Date: 2002-04-16
End Date: 2007-09-27
Contract Duration: 1,990 days
Daily Burn Rate: $17.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: DOVER, KENT County, DELAWARE, 19901
State: Delaware Government Spending
Plain-Language Summary
Department of Defense obligated $34.2 million to HUNT BUILDING COMPANY, LTD for work described as: Key points: 1. Significant investment in military family housing infrastructure. 2. Competition method suggests a potentially competitive bidding process. 3. Long contract duration (1990 days) may introduce cost escalation risks. 4. Sector focus on construction, a critical area for military readiness.
Value Assessment
Rating: good
The award value of $342,354,510 for new single-family housing construction appears substantial. Benchmarking against similar large-scale construction projects would be necessary to fully assess its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The substantial investment in housing infrastructure aims to improve living conditions for service members and their families, indirectly supporting recruitment and retention efforts.
Public Impact
Enhances quality of life for military families. Supports local economies through construction jobs. Addresses long-term infrastructure needs for the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to cost overruns.
- Potential for scope creep in large construction projects.
- Reliance on a single contractor for an extended period.
Positive Signals
- Awarded through full and open competition.
- Addresses critical infrastructure needs.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the construction sector, specifically focusing on new single-family housing. Spending in this area is crucial for maintaining military readiness and personnel well-being, with benchmarks varying significantly based on project scale and location.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it was awarded to HUNT BUILDING COMPANY, LTD. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve program managers and contracting officers to ensure compliance with terms and quality standards.
Related Government Programs
- New Single-Family Housing Construction (except For-Sale Builders)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- Potential for material cost escalation.
- Reliance on a single prime contractor.
- Lack of explicit small business subcontracting noted.
Tags
new-single-family-housing-construction-e, department-of-defense, de, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.2 million to HUNT BUILDING COMPANY, LTD. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is HUNT BUILDING COMPANY, LTD.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $34.2 million.
What is the period of performance?
Start: 2002-04-16. End: 2007-09-27.
What is the estimated cost per unit for the housing constructed under this contract, and how does it compare to market rates in the Delaware area?
The total award is $342,354,510 over 1990 days. Without the number of housing units specified, a precise per-unit cost cannot be calculated. However, a rough estimate would place it in the millions per unit, which would need to be benchmarked against local construction costs and similar government housing projects to assess value.
What are the specific risks associated with a 1990-day contract duration for new housing construction, and what mitigation strategies are in place?
A long duration increases risks of material cost fluctuations, labor shortages, unforeseen site conditions, and potential design changes. Mitigation strategies might include robust contingency planning, escalation clauses for specific materials, strong project management oversight, and clear change order procedures to control scope creep.
How effectively does this investment in new housing contribute to the Department of the Army's mission readiness and personnel retention goals?
Investing in modern, adequate housing is a key factor in improving morale and retention among service members and their families. By providing quality living environments, the Army can enhance overall readiness by reducing personnel turnover and increasing job satisfaction, which are critical for mission success.
Industry Classification
NAICS: Construction › Residential Building Construction › New Single-Family Housing Construction (except For-Sale Builders)
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Hunt Companies, Inc. (UEI: 136115255)
Address: 4401 N MESA, EL PASO, TX, 16
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $68,705
Exercised Options: $68,705
Current Obligation: $34,235,451
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-04-16
Current End Date: 2007-09-27
Potential End Date: 2007-09-27 00:00:00
Last Modified: 2009-07-08
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