Department of Defense awards $54.5M contract for truck company operations complex to Straub Construction, Inc

Contract Overview

Contract Amount: $54,451,505 ($54.5M)

Contractor: Straub Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-22

End Date: 2015-09-24

Contract Duration: 1,463 days

Daily Burn Rate: $37.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P-1014 TRUCK COMPANY OPERATIONS COMPLEX

Place of Performance

Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $54.5 million to STRAUB CONSTRUCTION, INC. for work described as: P-1014 TRUCK COMPANY OPERATIONS COMPLEX Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract with a firm fixed price, indicating cost certainty. 3. The project duration was 1463 days, spanning over four years. 4. The contract was awarded to a single vendor, Straub Construction, Inc. 5. The project is located in California, a significant hub for construction and defense contracting. 6. The contract value of $54.5 million falls within a moderate range for large construction projects.

Value Assessment

Rating: fair

The contract value of $54.5 million for a truck company operations complex appears to be within a reasonable range for a project of this scale and duration. Benchmarking against similar large-scale construction projects for military facilities would provide a more precise assessment of value for money. The firm fixed-price nature of the contract helps manage cost overruns, but the long duration could introduce risks if not managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 17 bids received, the competition level was robust. This suggests that the government likely received competitive pricing, and the selection process was based on a thorough evaluation of proposals, potentially including price, technical capability, and past performance.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs and ensuring that the government receives the best value for its investment. The presence of multiple bidders increases the likelihood of a fair market price being established.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who will utilize the new truck company operations complex. The contract delivers essential infrastructure for military vehicle operations and maintenance. The project's geographic impact is concentrated in California, supporting local economic activity. The construction activities likely involved a significant workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1463 days) may increase risk of cost escalation or scope creep if not meticulously managed.
Reliance on a single contractor for the entire project duration could pose a risk if performance issues arise.
Firm fixed price contracts can sometimes lead to contractors cutting corners on quality if not adequately overseen.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potential for good value.
Firm fixed price contract provides cost certainty for the government.
The project addresses a specific operational need for the Department of Defense.

Sector Analysis

The construction sector is a significant component of federal spending, particularly for infrastructure projects supporting defense, transportation, and other government functions. This contract falls under commercial and institutional building construction, a broad category encompassing a wide range of facilities. Federal spending in this area is often driven by the need to modernize aging infrastructure, expand capabilities, or support new operational requirements, as is likely the case here with a truck company operations complex.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is Straub Construction, Inc., the extent of small business subcontracting is not detailed here. Large federal construction contracts often involve significant subcontracting opportunities, but without specific set-aside goals or reporting, the direct impact on the small business ecosystem is unclear. Further investigation into subcontracting plans would be necessary to assess this impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions. The firm fixed-price nature of the contract, combined with the definitive contract award, suggests a structured approach to management. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases, though detailed project progress and oversight reports may not always be publicly accessible.

Related Government Programs

Military Construction
Base Operations Support
Department of Defense Facilities
Naval Facilities Engineering Command Contracts

Risk Flags

Long contract duration
Potential for scope creep
Quality control during extended construction period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.5 million to STRAUB CONSTRUCTION, INC.. P-1014 TRUCK COMPANY OPERATIONS COMPLEX

Who is the contractor on this award?

The obligated recipient is STRAUB 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 $54.5 million.

What is the period of performance?

Start: 2011-09-22. End: 2015-09-24.

What was the specific purpose and scope of the P-1014 Truck Company Operations Complex?

The P-1014 Truck Company Operations Complex was a construction project undertaken by the Department of the Navy to provide dedicated facilities for the operation, maintenance, and support of truck companies. This typically includes vehicle storage, maintenance bays, administrative offices, and potentially training areas. The objective is to enhance the operational readiness and efficiency of military logistics and transportation units by consolidating essential functions into a purpose-built facility. The contract value of $54.5 million suggests a substantial facility, likely designed to accommodate a significant number of vehicles and personnel.

How does the $54.5 million contract value compare to similar military construction projects?

The $54.5 million contract value for the P-1014 Truck Company Operations Complex is within the moderate to large range for federal construction projects, particularly those involving specialized military facilities. Comparable projects, such as barracks construction, vehicle maintenance depots, or training facilities, can range from tens of millions to hundreds of millions of dollars depending on size, complexity, and location. Given the duration of over four years and the firm fixed-price nature, this value suggests a comprehensive build-out. A detailed benchmark analysis against projects with similar square footage, functional requirements, and geographic locations would be needed for a precise value-for-money assessment.

What were the key performance indicators (KPIs) or deliverables expected under this contract?

While specific KPIs are not detailed in the provided data, typical deliverables for a construction contract of this nature would include adherence to project timelines, completion of construction milestones, quality of workmanship meeting specified standards (e.g., building codes, military specifications), and final project handover. For a truck company operations complex, key performance aspects would relate to the functionality of maintenance bays, the adequacy of vehicle storage capacity, the efficiency of administrative and support spaces, and the overall durability and safety of the facility. The firm fixed-price contract implies that meeting these deliverables within the agreed-upon cost was paramount.

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

Straub Construction, Inc. has a history of securing and executing federal construction contracts. While the provided data does not detail their entire contract portfolio, their successful bid for a $54.5 million project indicates they possess the capacity and qualifications required for large-scale government work. A comprehensive review of their past performance, including project completion records, safety ratings, and client feedback (particularly from agencies like the Department of Defense or its branches like the Navy), would be necessary to fully assess their track record. Their ability to win a competitive bid suggests a positive standing.

Were there any significant risks identified during the bidding or execution phases of this contract?

The primary risks associated with a large, long-duration construction project like this typically include potential cost overruns (mitigated by the firm fixed-price structure, though scope creep remains a risk), schedule delays due to unforeseen site conditions, weather, or supply chain issues, and quality control challenges. The long duration (1463 days) inherently increases the exposure to these risks. The competitive bidding process likely involved bidders assessing and pricing these risks into their proposals. Effective project management and oversight by the Navy would be crucial to mitigate these potential issues throughout the contract's lifecycle.

How does this contract fit into the broader context of Department of the Navy infrastructure spending in California?

This $54.5 million contract represents a significant investment in the Department of the Navy's infrastructure in California, a state hosting numerous naval bases and facilities. Spending on operational complexes like this is crucial for maintaining and enhancing the readiness and capabilities of naval forces stationed in the region. It aligns with broader trends of military infrastructure modernization and investment aimed at supporting evolving operational needs and ensuring facilities are up-to-date. The specific location within California would further contextualize its importance to regional naval operations.

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

Solicitation Procedures: TWO STEP

Solicitation ID: N6247311R0405

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 700 LA TERRAZA BLVD STE 110, ESCONDIDO, CA, 92025

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,451,505

Exercised Options: $54,451,505

Current Obligation: $54,451,505

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $2,653,837

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline