DoD Awards $18.9M for Arizona Housing Construction to SUNDT CONSTRUCTION, INC
Contract Overview
Contract Amount: $18,926,769 ($18.9M)
Contractor: Sundt Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-03-09
End Date: 2007-03-14
Contract Duration: 1,100 days
Daily Burn Rate: $17.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: TEMPE, MARICOPA County, ARIZONA, 85282
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $18.9 million to SUNDT CONSTRUCTION, INC. for work described as: Key points: 1. Contract awarded to SUNDT CONSTRUCTION, INC. for $18.9 million. 2. Full and open competition was utilized for this contract. 3. The contract is for new single-family housing construction in Arizona. 4. This represents a significant investment in military family housing infrastructure.
Value Assessment
Rating: fair
The contract value of $18.9 million for housing construction appears reasonable given the scope. However, without specific unit counts or detailed specifications, a precise comparison to similar contracts is difficult. Benchmarking against regional construction costs for similar projects would provide better context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified contractors to bid, theoretically driving down costs and ensuring the government receives competitive pricing for the housing construction services.
Taxpayer Impact: Taxpayers benefit from competitive bidding, which aims to secure the best value for the funds allocated to military housing projects.
Public Impact
Enhances quality of life for military families stationed in Arizona. Supports local economy through construction jobs and material procurement. Addresses critical need for adequate and modern housing on military bases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if project scope expands.
- Dependence on SUNDT CONSTRUCTION, INC. for project completion.
- Risk of construction delays impacting housing availability.
Positive Signals
- Utilizes full and open competition for best value.
- Addresses essential military family housing needs.
- Supports economic activity in Arizona.
Sector Analysis
The construction sector, particularly for government projects, often involves large contracts with significant taxpayer investment. Benchmarks for housing construction vary widely by region and material costs, making direct comparisons challenging without detailed project specifics.
Small Business Impact
While this contract was awarded to a large business (SUNDT CONSTRUCTION, INC.), the full and open competition process may have allowed small businesses to participate as subcontractors, contributing to their involvement in government projects.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Standard oversight mechanisms, including site inspections and progress reports, would be in place to ensure compliance with contract terms and quality standards.
Related Government Programs
- New Single-Family Housing Construction (except For-Sale Builders)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost escalation.
- Project timeline adherence.
- Quality of construction.
- Subcontractor performance.
- Environmental compliance.
Tags
new-single-family-housing-construction-e, department-of-defense, az, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.9 million to SUNDT CONSTRUCTION, INC.. See the official description on USAspending.
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 Air Force).
What is the total obligated amount?
The obligated amount is $18.9 million.
What is the period of performance?
Start: 2004-03-09. End: 2007-03-14.
What is the estimated cost per housing unit, and how does it compare to market rates?
The total contract value is $18.9 million over 1100 days. Without the number of housing units, a precise per-unit cost cannot be calculated. If, for example, 100 units were built, the cost would be $189,000 per unit. This figure needs to be compared against regional construction costs for similar quality housing to assess value.
What are the primary risks associated with this large-scale construction project?
Key risks include potential cost overruns due to unforeseen site conditions or material price fluctuations, construction delays impacting timelines for military families, and quality control issues. Effective project management and contingency planning by SUNDT CONSTRUCTION, INC. are crucial to mitigate these risks.
How effectively does this contract address the long-term housing needs of the military personnel in Arizona?
The contract aims to provide new single-family housing, directly addressing a critical need for adequate accommodation. The long-term effectiveness will depend on the durability and suitability of the constructed homes, as well as the ongoing maintenance and management of the housing facilities.
Industry Classification
NAICS: Construction › Residential Building Construction › New Single-Family Housing Construction (except For-Sale Builders)
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Sundt Companies Inc (UEI: 073354982)
Address: 4101 E IRVINGTON RD, TUCSON, AZ, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F4162202D0001
IDV Type: IDC
Timeline
Start Date: 2004-03-09
Current End Date: 2007-03-14
Potential End Date: 2007-03-14 00:00:00
Last Modified: 2011-11-07
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