DoD Awards $39.7M Contract for Bachelor Enlisted Quarters at Camp Lejeune to Sundt Construction
Contract Overview
Contract Amount: $39,737,388 ($39.7M)
Contractor: Sundt Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-06-02
End Date: 2015-12-01
Contract Duration: 1,643 days
Daily Burn Rate: $24.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 24
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P1317 BACHELOR ENLISTED QUARTERS - FRENCH CREEK AT MCB CAMP LEJEUNE, NC
Place of Performance
Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547
Plain-Language Summary
Department of Defense obligated $39.7 million to SUNDT CONSTRUCTION, INC. for work described as: P1317 BACHELOR ENLISTED QUARTERS - FRENCH CREEK AT MCB CAMP LEJEUNE, NC Key points: 1. The contract value of $39.7 million for barracks construction is significant for the sector. 2. Sundt Construction, a large firm, secured this award, indicating a competitive landscape for major construction projects. 3. The project's duration of 1643 days suggests potential for cost overruns or delays. 4. This spending falls under the Defense sector, specifically for military infrastructure.
Value Assessment
Rating: fair
The contract value of $39.7 million for barracks construction appears within a reasonable range for a project of this scale and duration. Benchmarking against similar military housing projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while competition was sought, certain sources were excluded, potentially limiting price discovery and the most competitive outcome.
Taxpayer Impact: Taxpayer funds are being used for essential military infrastructure, but the limited competition may have resulted in a higher price than a fully open process.
Public Impact
Improved living conditions for enlisted personnel at MCB Camp Lejeune. Supports military readiness and retention by providing adequate housing. Economic impact through construction jobs and material procurement in North Carolina.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have inflated costs.
- Long project duration increases risk of cost escalation.
- Firm Fixed Price contract offers limited flexibility for unforeseen issues.
Positive Signals
- Addresses critical need for enlisted housing.
- Awarded to an established construction firm.
- Supports military personnel and readiness.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant area of government spending, particularly for defense installations. Benchmarks for similar military barracks construction projects would be needed for a precise comparison.
Small Business Impact
The awardee, Sundt Construction, Inc., is a large business. There is no indication in the provided data that small businesses were significantly involved as subcontractors, suggesting limited direct benefit to the small business sector from this specific award.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place, but the effectiveness of oversight for a project of this duration and complexity is key.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition.
- Long project duration.
- Potential for cost overruns.
- Firm Fixed Price contract limitations.
Tags
commercial-and-institutional-building-co, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.7 million to SUNDT CONSTRUCTION, INC.. P1317 BACHELOR ENLISTED QUARTERS - FRENCH CREEK AT MCB CAMP LEJEUNE, NC
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 Navy).
What is the total obligated amount?
The obligated amount is $39.7 million.
What is the period of performance?
Start: 2011-06-02. End: 2015-12-01.
What was the rationale for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and how did this impact the final contract price?
The rationale for excluding sources typically relates to specific technical requirements, past performance, or security clearances. Without further details on the exclusion criteria, it's difficult to definitively assess the price impact. However, limiting the pool of potential bidders can reduce competitive pressure, potentially leading to a higher price than if all qualified firms had been allowed to compete.
Given the 1643-day duration, what risk mitigation strategies are in place to manage potential cost increases due to inflation, material shortages, or unforeseen site conditions?
Mitigation strategies for long-duration projects often include robust contingency planning, escalation clauses for materials and labor (though less common in Firm Fixed Price contracts), and detailed site investigations to identify potential issues early. The effectiveness of these strategies depends on the contract's specific terms and the contractor's proactive management.
How does the final cost of these Bachelor Enlisted Quarters compare to similar projects completed by the Department of Defense or other federal agencies in recent years?
A direct comparison requires access to a database of similar projects with detailed cost breakdowns. Factors like location, specific amenities, building codes, and prevailing labor/material costs vary significantly. However, the $39.7 million award for barracks construction suggests a substantial investment in military housing infrastructure.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N4008510R5322
Offers Received: 24
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Sundt Companies Inc
Address: 2620 S 55TH ST, TEMPE, AZ, 85282
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,737,388
Exercised Options: $39,737,388
Current Obligation: $39,737,388
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-06-02
Current End Date: 2015-12-01
Potential End Date: 2015-12-01 00:00:00
Last Modified: 2023-09-23
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