DoD's $25.5M Yuma Landing Field Project Awarded to Sundt Construction, Highlighting Infrastructure Needs

Contract Overview

Contract Amount: $25,542,198 ($25.5M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-06-25

End Date: 2014-01-31

Contract Duration: 585 days

Daily Burn Rate: $43.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P-575 JSF AUXILIARY LANDING FIELD MCAS YUMA, AZ

Place of Performance

Location: YUMA, YUMA County, ARIZONA, 85369, UNITED STATES OF AMERICA

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to SUNDT CONSTRUCTION, INC. for work described as: P-575 JSF AUXILIARY LANDING FIELD MCAS YUMA, AZ Key points: 1. The contract value of $25.5 million for the P-575 JSF Auxiliary Landing Field at MCAS Yuma represents a significant investment in military aviation infrastructure. 2. Sundt Construction, Inc. secured this contract through full and open competition, indicating a competitive bidding process for the project. 3. The project falls under the Highway, Street, and Bridge Construction NAICS code, suggesting a focus on civil engineering and construction services. 4. The firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be beneficial for the government. 5. The duration of the contract (585 days) indicates a substantial construction timeline for the auxiliary landing field. 6. The award to Sundt Construction, a company with a history in large-scale construction projects, suggests a level of confidence in their ability to execute. 7. The geographic location in Yuma, Arizona, points to the strategic importance of this facility for military operations in the region.

Value Assessment

Rating: good

The contract value of $25.5 million for the auxiliary landing field appears reasonable for a project of this scale and complexity, especially considering it was awarded under full and open competition. Benchmarking against similar military airfield construction projects would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract generally aligns with government objectives to control costs and ensure predictable spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of 6 bidders (as indicated by 'no': 6) suggests a healthy level of competition for this project. A competitive bidding process typically leads to more favorable pricing for the government and ensures that the contract is awarded to the most capable and cost-effective offeror.

Taxpayer Impact: The full and open competition for this project is beneficial for taxpayers as it likely resulted in a lower overall cost compared to a sole-source or limited competition award. The multiple bids received indicate that the government received a range of pricing options, allowing for price discovery and selection of the best value.

Public Impact

The primary beneficiaries are the U.S. Marine Corps and Navy, who will utilize the improved auxiliary landing field for training and operational readiness. The project delivers essential construction services for military aviation infrastructure, enhancing the capabilities of Marine Corps Air Station Yuma. The geographic impact is concentrated in Yuma, Arizona, supporting local economic activity through construction jobs and related services. The project implies a demand for skilled construction labor, potentially benefiting the local workforce in Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness if unforeseen issues arise.
Cost overruns are a risk, although mitigated by the firm-fixed-price contract type.
Environmental impact during construction needs careful management to comply with regulations.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm-fixed-price contract type shifts cost risk to the contractor.
Sundt Construction has a track record in large-scale infrastructure projects.
Project addresses a critical need for military aviation infrastructure.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on civil engineering and infrastructure development for military applications. The market for military construction is substantial, driven by the need to maintain and upgrade aging facilities and build new ones to support evolving defense strategies. Comparable spending benchmarks would involve analyzing other military airfield, runway, or base infrastructure projects awarded by the Department of Defense or other federal agencies.

Small Business Impact

The contract was awarded under full and open competition and there is no indication of a small business set-aside (ss: false, sb: false). This means that large businesses were eligible and likely participated in the bidding process. While there's no direct set-aside, large prime contractors often engage small businesses for subcontracting opportunities, which could indirectly benefit the small business ecosystem. Further analysis would be needed to determine the extent of small business subcontracting on this specific project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Navy. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though specific project oversight details may not be publicly detailed.

Related Government Programs

Military Base Construction
Airfield Infrastructure Projects
Department of Defense Facilities Modernization
Civil Engineering and Construction Services

Risk Flags

Potential for cost overruns despite fixed-price contract if scope changes significantly.
Risk of construction delays impacting military operational readiness.
Environmental compliance during construction requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to SUNDT CONSTRUCTION, INC.. P-575 JSF AUXILIARY LANDING FIELD MCAS YUMA, AZ

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 $25.5 million.

What is the period of performance?

Start: 2012-06-25. End: 2014-01-31.

What is Sundt Construction's track record with Department of Defense contracts, particularly for airfield construction?

Sundt Construction, Inc. has a significant history of working with the Department of Defense on various construction projects. While specific details on all their airfield construction contracts are not immediately available from this data alone, their involvement in projects like the P-575 JSF Auxiliary Landing Field suggests experience in this specialized area. A deeper dive into their contract history would reveal the scale, complexity, and success rates of their previous military aviation infrastructure projects. This would include examining past performance reviews, any contract disputes or modifications, and the types of facilities they have previously built or renovated for the DoD. Their ability to win a full and open competition bid for this Yuma project implies they met the necessary qualifications and demonstrated capability.

How does the $25.5 million cost compare to similar auxiliary landing field construction projects?

Benchmarking the $25.5 million cost against similar auxiliary landing field projects requires access to a database of comparable federal contracts. Factors influencing cost include project scope (e.g., size of the field, associated support facilities), geographic location (labor and material costs vary significantly), specific technical requirements (e.g., pavement strength, lighting systems), and the year of award. Without direct comparisons, it's difficult to definitively state if this project represents excellent or fair value. However, given it was awarded under full and open competition with multiple bidders, it suggests a competitive market price was achieved. Further analysis would involve identifying contracts for similar-sized airfields or landing zones awarded within the last few years by the DoD or other agencies.

What are the primary risks associated with this type of military construction contract?

The primary risks associated with this military construction contract include potential construction delays due to unforeseen site conditions (e.g., soil issues, weather), supply chain disruptions for materials, and labor shortages. While the firm-fixed-price contract shifts the financial risk of cost overruns to the contractor, Sundt Construction could still face challenges in meeting performance deadlines. There's also a risk related to the integration of new infrastructure with existing base operations, requiring careful coordination. Environmental compliance during construction and ensuring the final product meets stringent military specifications are also critical risk areas. Effective project management, contingency planning, and robust oversight are crucial to mitigating these risks.

How effective is the firm-fixed-price contract type in ensuring program effectiveness for airfield construction?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring program effectiveness in airfield construction when the scope of work is well-defined and unlikely to change significantly. FFP incentivizes the contractor to control costs and complete the project efficiently, as any savings are retained by the contractor and overruns are absorbed by them. This can lead to a more predictable final cost for the government. For airfield construction, where specifications are typically detailed, FFP helps ensure that the project is delivered within budget and on schedule. However, if unforeseen issues necessitate significant scope changes, the FFP structure can sometimes lead to contract modifications or disputes if not managed carefully. Overall, for a project like this, FFP promotes cost control and timely delivery, contributing to program effectiveness.

What are the historical spending patterns for airfield construction within the Department of the Navy?

Historical spending patterns for airfield construction within the Department of the Navy reveal a consistent need for investment in maintaining and upgrading aviation infrastructure. This spending is driven by the operational tempo, aircraft modernization, and the aging of existing facilities. The Navy, along with the Marine Corps, allocates significant funds annually towards projects such as runway repairs, apron expansions, hangar construction, and the development of new training facilities. Spending can fluctuate based on major modernization initiatives, budget allocations, and national security priorities. Analyzing historical data would show trends in contract values, types of projects awarded, and the prime contractors most frequently engaged. This specific contract for the Yuma auxiliary landing field fits within this broader pattern of ongoing investment in naval aviation infrastructure.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6247312R1802

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 2620 S 55TH ST, TEMPE, AZ, 85282

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

Financial Breakdown

Contract Ceiling: $25,542,198

Exercised Options: $25,542,198

Current Obligation: $25,542,198

Contract Characteristics

Cost or Pricing Data: NO

Timeline