Sundt Construction Inc. awarded $23.76M for facility maintenance and conservation, highlighting fixed-price contract for construction services

Contract Overview

Contract Amount: $23,759,853 ($23.8M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-05-22

End Date: 2008-11-30

Contract Duration: 923 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200608!600428!96CE!W912HY!USA ENGINEER DISTRICT GALVESTON !DACW6303D0003 !A!N! !N!DZ03 ! !20060522!20080630!098038607!098038607!073354982!N!SUNDT CONSTRUCTION, INC !1501 W FOUNTAIN PKWY STE 6!TEMPE !AZ!85282!10768!061!48!BROWNSVILLE !CAMERON !TEXAS !+000023041099!N!N!000000000000!Z219!MAINT/OTHER CONSERVATION & DEVELOPMENT FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !237990!A!A!5!B!M! !A!B!20080229!B! ! !N!Z!A!U!J!2!002!F! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! !N! ! ! ! !0001! !

Place of Performance

Location: BROWNSVILLE, CAMERON County, TEXAS, 78520

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $23.8 million to SUNDT CONSTRUCTION, INC. for work described as: 200608!600428!96CE!W912HY!USA ENGINEER DISTRICT GALVESTON !DACW6303D0003 !A!N! !N!DZ03 ! !20060522!20080630!098038607!098038607!073354982!N!SUNDT CONSTRUCTION, INC !1501 W FOUNTAIN PKWY STE 6!TEMPE !AZ!85282!10768!061!48!BROWNSVILLE !CAME… Key points: 1. Contract awarded for facility maintenance and conservation, indicating a focus on infrastructure upkeep. 2. Fixed-price contract type suggests predictable costs for the government, mitigating cost overrun risks. 3. Full and open competition was utilized, implying a robust bidding process and potential for competitive pricing. 4. The contract duration of 923 days points to a significant, long-term project requiring substantial resources. 5. The North American Industry Classification System (NAICS) code 236220 categorizes this as commercial and institutional building construction. 6. The contract was awarded by the Department of the Army, a major component of the Department of Defense.

Value Assessment

Rating: good

The contract value of $23.76 million for facility maintenance and conservation appears reasonable given the 923-day duration and the nature of construction services. Benchmarking against similar large-scale construction projects for federal agencies would provide a more precise value-for-money assessment. The fixed-price contract type is generally favorable for the government as it shifts cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified contractors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive offers. The presence of two bids indicates a moderate level of competition for this specific contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a competitive bidding environment, leading to better value for public funds.

Public Impact

The primary beneficiaries are likely military personnel and their families stationed at the facility, who will experience improved living and working conditions. The services delivered include maintenance and conservation of facilities, ensuring operational readiness and longevity of infrastructure. The geographic impact is concentrated in Texas, specifically within Cameron County, supporting local economic activity. The contract supports the construction workforce in Texas, potentially creating or sustaining jobs for skilled laborers and tradespeople.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term construction projects if not managed diligently.
Reliance on a single contractor for an extended period could lead to dependency.
Ensuring compliance with all federal construction standards and environmental regulations requires ongoing oversight.

Positive Signals

Fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a fair and transparent procurement process.
Award to an established contractor like Sundt Construction, Inc. may indicate a track record of successful project completion.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction (NAICS 236220). The federal government is a significant consumer of construction services, awarding billions annually for infrastructure, facilities, and specialized construction projects. This contract represents a portion of the Department of Defense's substantial real property maintenance and construction budget, aiming to preserve and upgrade its extensive asset base.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the contractor, Sundt Construction, Inc., is a large entity. There is no explicit information on subcontracting plans for small businesses within this data, which would typically be a consideration in larger federal contracts to ensure broader economic impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and engineering divisions. Accountability measures are inherent in the fixed-price contract, requiring the contractor to deliver specified services within budget. Transparency is facilitated by the contract's award under full and open competition, with details likely available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Facilities Maintenance Contracts
Department of Defense Construction Projects
Infrastructure Improvement Programs
Conservation and Development Facilities

Risk Flags

Long contract duration increases risk of unforeseen cost impacts.
Potential for scope creep in facility maintenance projects.
Contractor's financial stability and past performance require verification for long-term projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 million to SUNDT CONSTRUCTION, INC.. 200608!600428!96CE!W912HY!USA ENGINEER DISTRICT GALVESTON !DACW6303D0003 !A!N! !N!DZ03 ! !20060522!20080630!098038607!098038607!073354982!N!SUNDT CONSTRUCTION, INC !1501 W FOUNTAIN PKWY STE 6!TEMPE !AZ!85282!10768!061!48!BROWNSVILLE !CAMERON !TEXAS !+000023041099!N!N!000000000000!Z219!MAINT/OTHER CONSERVATION & DEVELOPMENT FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !237990!A!A!5!B!M! !A!B!200

Who is the contractor on this award?

The obligated recipient is SUNDT CONSTRUCTION, 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: 2006-05-22. End: 2008-11-30.

What is Sundt Construction, Inc.'s track record with federal contracts, particularly within the Department of Defense?

Sundt Construction, Inc. has a significant history of performing federal contracts, including numerous projects for the Department of Defense and other agencies. Their portfolio often includes large-scale construction, infrastructure, and facility maintenance projects. While specific details on past performance for similar conservation and development facility contracts would require deeper analysis of their contract history, their established presence suggests experience in meeting federal requirements. A review of past performance evaluations and any reported disputes or claims would offer further insight into their reliability and quality of work on government projects.

How does the $23.76 million award compare to similar facility maintenance and conservation contracts awarded by the Department of the Army?

The $23.76 million award for facility maintenance and conservation over a 923-day period is a substantial contract. To benchmark its value, one would compare it to other similar contracts awarded by the Department of the Army or other DoD components for projects of comparable scope, duration, and complexity. Factors such as geographic location, specific facility types (e.g., barracks, administrative buildings, specialized infrastructure), and the extent of renovation versus new construction would influence pricing. Without direct comparative data, it's difficult to definitively state if this represents excellent or fair value, but the fixed-price nature and competitive award suggest an effort to secure a fair price.

What are the primary risks associated with this fixed-price construction contract, and how are they mitigated?

The primary risks in a fixed-price construction contract typically involve potential cost overruns for the contractor, which could lead to quality compromises or contractor default if not managed properly. For the government, risks include the contractor potentially cutting corners to maintain profitability or disputes arising over scope changes. Mitigation strategies often include robust contract oversight, clear definition of work scope, performance bonds, and regular progress reviews. The contractor's own risk management practices, financial stability, and experience in executing similar projects are also critical mitigating factors.

How effective is the 'full and open competition' process in ensuring competitive pricing for construction contracts of this magnitude?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for federal contracts, including large construction projects. It maximizes the pool of potential bidders, fostering a competitive environment where contractors submit their best offers to win the work. For a contract of this size ($23.76 million), a well-executed full and open competition process should yield multiple bids from qualified firms, driving down prices. However, the effectiveness can be influenced by market conditions, the complexity of the requirements, and the number of truly capable contractors available.

What is the historical spending pattern for facility maintenance and conservation within the Department of the Army, and how does this contract fit?

The Department of the Army consistently allocates significant funding towards facility maintenance and conservation due to its vast real estate holdings. Spending in this category typically fluctuates based on infrastructure needs, modernization initiatives, and budget allocations. This $23.76 million contract represents a specific investment within that broader spending pattern, likely addressing a particular set of needs at a specific installation or set of facilities. Analyzing historical spending trends would reveal the typical scale and frequency of such contracts, helping to contextualize this award within the Army's overall facilities management strategy.

What are the implications of the 923-day duration on project management and potential cost fluctuations?

A 923-day duration (approximately 2.5 years) for a construction project of this scale implies a complex undertaking requiring sustained management and oversight. Longer durations increase the potential for unforeseen issues, such as material price escalations (though mitigated by fixed-price), labor availability changes, and evolving regulatory requirements. Effective project management is crucial to maintain schedule adherence and control costs within the fixed price. The contractor must have robust planning and execution capabilities to manage resources, subcontractors, and potential risks over such an extended period.

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: ONLY ONE SOURCE

Offers Received: 2

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Sundt Companies Inc (UEI: 073354982)

Address: 4101 E IRVINGTON ROAD, TUCSON, AZ, 85714

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DACW6303D0003

IDV Type: IDC

Timeline