Navy awards $82M for family housing construction at Camp Lejeune, North Carolina

Contract Overview

Contract Amount: $82,036,379 ($82.0M)

Contractor: Hunt Building Company, Ltd

Awarding Agency: Department of Defense

Start Date: 2003-03-25

End Date: 2007-08-01

Contract Duration: 1,590 days

Daily Burn Rate: $51.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200306!162301!1700!C2470 !NAVAL FACILITIES ENGINEERING COM!N6247002C2052 !A!N! !N! !20030325!20060418!008001349!129611351!136115255!N!HUNT BUILDING COMPANY, LTD !4401 N MESA !EL PASO !TX!79902!09900!133!37!CAMP LEJEUNE !ONSLOW !N CAROLINA!+000038082000!N!N!000000000000!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !236117!E! !3! ! ! ! ! !99990909!B! ! !B! !A!U!J!2!005!B! !D!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! ! ! ! !0001! !

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $82.0 million to HUNT BUILDING COMPANY, LTD for work described as: 200306!162301!1700!C2470 !NAVAL FACILITIES ENGINEERING COM!N6247002C2052 !A!N! !N! !20030325!20060418!008001349!129611351!136115255!N!HUNT BUILDING COMPANY, LTD !4401 N MESA !EL PASO !TX!79902!09900!133!37!CAMP LEJEUNE !ONSLO… Key points: 1. Contract awarded for construction of family housing facilities. 2. Significant investment in military family housing infrastructure. 3. Long-term contract duration of approximately 4 years. 4. Fixed-price contract type suggests defined scope and cost control. 5. Awarded to a single contractor, Hunt Building Company, Ltd. 6. Competition level was full and open, indicating broad market participation.

Value Assessment

Rating: good

The total award amount of $82,036,379.40 for the construction of family housing facilities appears to be within a reasonable range for a project of this scale and duration. Benchmarking against similar military housing construction contracts would provide a more precise value-for-money assessment. The fixed-price contract type suggests that the government has a clear understanding of the project scope and associated costs, which can help mitigate cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of five bids suggests a healthy level of competition for this significant construction project. This broad competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The full and open competition for this contract likely resulted in a more favorable price for taxpayers by encouraging multiple companies to bid and offer their best pricing.

Public Impact

Benefits military families by providing new housing at Camp Lejeune. Delivers construction services for family housing facilities. Geographic impact is concentrated at Camp Lejeune, North Carolina. Supports the construction workforce in the El Paso, Texas area and potentially North Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise in construction.
Dependence on a single contractor for the duration of the project.
Risk of delays impacting the availability of housing for military families.

Positive Signals

Fixed-price contract helps control costs.
Full and open competition suggests competitive pricing.
Long-term contract provides stability for project execution.

Sector Analysis

This contract falls within the Construction sector, specifically related to building and infrastructure development for government facilities. The market for military construction is substantial, driven by the need to maintain and upgrade bases and housing. Comparable spending benchmarks would involve analyzing other large-scale military housing projects awarded by the Department of Defense or other branches.

Small Business Impact

While this contract was awarded to Hunt Building Company, Ltd., and the data does not explicitly indicate a small business set-aside, the 'full and open competition' suggests a broad range of potential bidders. It is possible that small businesses could participate as subcontractors to the prime contractor, contributing to the overall small business ecosystem. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Facilities Engineering Command (NAVFAC), which is responsible for planning, designing, and constructing facilities for the Navy and Marine Corps. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through contract award databases, though specific project details might be limited.

Related Government Programs

Military Family Housing Construction
Department of Defense Construction Contracts
Naval Facilities Engineering Command Projects
Camp Lejeune Infrastructure Development

Risk Flags

Potential for cost overruns due to unforeseen construction challenges.
Contractor performance risk over the multi-year duration.
Dependency on timely completion to meet housing needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.0 million to HUNT BUILDING COMPANY, LTD. 200306!162301!1700!C2470 !NAVAL FACILITIES ENGINEERING COM!N6247002C2052 !A!N! !N! !20030325!20060418!008001349!129611351!136115255!N!HUNT BUILDING COMPANY, LTD !4401 N MESA !EL PASO !TX!79902!09900!133!37!CAMP LEJEUNE !ONSLOW !N CAROLINA!+000038082000!N!N!000000000000!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !236117!E! !3! ! ! ! ! !99990909!B

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 Navy).

What is the total obligated amount?

The obligated amount is $82.0 million.

What is the period of performance?

Start: 2003-03-25. End: 2007-08-01.

What is the track record of Hunt Building Company, Ltd. with federal contracts, particularly within the Department of Defense?

Hunt Building Company, Ltd. has a history of securing federal contracts, including those with the Department of Defense. Their experience often spans various construction projects, including military family housing. A review of their contract history would reveal the number and value of previous awards, their performance ratings on those contracts, and any instances of disputes or contract modifications. This information is crucial for assessing their capability and reliability in executing large-scale projects like the one at Camp Lejeune. Past performance data, often available through federal procurement databases, can provide insights into their ability to meet deadlines, manage budgets, and adhere to quality standards.

How does the awarded amount of $82 million compare to similar family housing construction projects at other military installations?

To benchmark the $82 million award, one would compare it to the cost per housing unit or the total project cost of similar family housing construction projects at other military installations. Factors influencing cost include the number of units, size and amenities of the units, prevailing labor and material costs in the region, and specific site conditions. For instance, if this contract is for 200 units, the cost per unit would be approximately $410,000. Comparing this to other projects of similar scope and location would indicate whether the price is competitive. Data from the Department of Defense's housing programs or publicly available contract awards can be used for this comparison.

What are the primary risks associated with a fixed-price contract for a large construction project like this?

While fixed-price contracts are designed to control costs for the government, they carry inherent risks, particularly for large construction projects. The primary risk is that the contractor may encounter unforeseen issues (e.g., unexpected site conditions, material price escalations, labor shortages) that increase their costs beyond the fixed price. If the contractor cannot absorb these additional costs, they might seek change orders, potentially leading to cost increases for the government, or they could face financial distress, impacting project completion. Conversely, if the contractor is highly efficient, they may realize significant profit, raising questions about whether the initial price was too high. Effective contract management and clear scope definition are crucial to mitigate these risks.

What is the expected impact of this contract on the availability of housing for military personnel and their families at Camp Lejeune?

This contract is expected to significantly improve the availability of quality housing for military personnel and their families at Camp Lejeune. By funding the construction of new family housing facilities, it directly addresses any existing shortages or the need to replace aging or inadequate housing stock. The completion of these new units will likely enhance the quality of life for service members and their families stationed at the base, contributing to morale and retention. The timeline for construction and occupancy will determine the immediate impact, but the long-term effect is a modernized and potentially expanded housing inventory.

How has federal spending on military family housing construction evolved over the past decade, and where does this contract fit in?

Federal spending on military family housing construction has fluctuated over the past decade, influenced by budget priorities, infrastructure needs assessments, and congressional appropriations. Historically, there have been significant investments to address housing shortages and improve living conditions on bases. This $82 million contract represents a substantial, albeit specific, allocation towards fulfilling these ongoing needs. To understand its place in the broader trend, one would examine annual defense spending bills and reports from the Department of Defense's housing programs. This contract appears to be part of a continuous effort to modernize and maintain military housing infrastructure.

Industry Classification

NAICS: Construction › Residential Building Construction › New Housing For-Sale Builders

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 5

Pricing Type: FIXED PRICE (J)

Contractor Details

Parent Company: Hunt Companies, Inc.

Address: 4401 N MESA, EL PASO, TX, 79902

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $89,957

Exercised Options: $89,957

Current Obligation: $82,036,379

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline