J.E. Dunn Construction awarded $57.9M for Langley-Eustis Hospital Addition, highlighting significant defense infrastructure investment
Contract Overview
Contract Amount: $57,914,485 ($57.9M)
Contractor: J. E. Dunn Construction Company
Awarding Agency: Department of Defense
Start Date: 2018-01-18
End Date: 2023-03-15
Contract Duration: 1,882 days
Daily Burn Rate: $30.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF CONSTRUCTION - JOINT BASE LANGLEY-EUSTIS HOSPITAL ADDITION AND CUP
Place of Performance
Location: LANGLEY AFB, HAMPTON CITY County, VIRGINIA, 23665
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $57.9 million to J. E. DUNN CONSTRUCTION COMPANY for work described as: IGF::OT::IGF CONSTRUCTION - JOINT BASE LANGLEY-EUSTIS HOSPITAL ADDITION AND CUP Key points: 1. Contract value represents a substantial investment in military healthcare facilities. 2. Full and open competition suggests a potentially competitive bidding environment. 3. Long performance period (1882 days) indicates a complex, multi-phase project. 4. Firm Fixed Price contract type shifts cost risk to the contractor. 5. Project located in Virginia, impacting regional construction and healthcare sectors. 6. This contract contributes to the broader Department of Defense infrastructure modernization efforts.
Value Assessment
Rating: good
The contract value of $57.9 million for a hospital addition appears reasonable for a project of this scale within a military installation. Benchmarking against similar large-scale healthcare construction projects for the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator for the government if the scope is well-defined. However, without detailed cost breakdowns or comparisons to private sector hospital construction of equivalent complexity, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the data shows two bids were received, the number of bidders does not inherently reflect the intensity of the competition. A higher number of bidders typically suggests a more competitive landscape, potentially leading to better pricing for the government. The fact that it was competed openly is a positive sign for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where multiple companies vie for the contract, driving down prices and encouraging efficiency.
Public Impact
Military personnel and their families stationed at Joint Base Langley-Eustis will benefit from improved healthcare facilities. The project delivers essential infrastructure upgrades to a critical military healthcare service. The geographic impact is concentrated at Joint Base Langley-Eustis in Virginia. The construction project will likely create numerous jobs in the local and regional construction workforce. Enhanced medical facilities can improve readiness and quality of life for service members.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-duration construction projects if not managed tightly.
- Reliance on a single contractor for a critical infrastructure project carries inherent risks.
- The firm fixed-price nature could incentivize cost-cutting that might impact quality if oversight is insufficient.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- Firm fixed-price contract aligns incentives for contractor cost control.
- Project addresses a critical need for healthcare infrastructure at a major military installation.
Sector Analysis
This contract falls within the construction sector, specifically commercial and institutional building construction, serving the federal government's defense infrastructure needs. The market for large-scale federal construction projects, particularly those on military bases, is specialized and often involves significant pre-qualification requirements. Comparable spending benchmarks would involve analyzing other large hospital or facility construction contracts awarded by the Department of Defense or the General Services Administration. The total contract value of $57.9 million places it as a significant project within this niche.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. This suggests that the primary competition was likely among larger construction firms. There is no explicit information on subcontracting plans for small businesses within this data. The absence of a small business set-aside means that opportunities for small businesses would primarily arise through subcontracting opportunities offered by the prime contractor, J.E. Dunn Construction.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army or the base command at Joint Base Langley-Eustis. The firm fixed-price nature necessitates close monitoring of project progress, quality control, and adherence to the contract's scope to prevent cost overruns or deviations. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.
Related Government Programs
- Department of Defense Military Construction
- Healthcare Facility Construction
- Base Realignment and Closure (BRAC) Projects
- Federal Building and Infrastructure Projects
Risk Flags
- Long contract duration increases exposure to market volatility and scope definition challenges.
- Firm Fixed Price contracts can incentivize cost-cutting if not rigorously overseen.
- Dependence on a single prime contractor for critical infrastructure.
Tags
construction, department-of-defense, healthcare-infrastructure, firm-fixed-price, full-and-open-competition, military-base, virginia, hospital-construction, large-contract, army
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.9 million to J. E. DUNN CONSTRUCTION COMPANY. IGF::OT::IGF CONSTRUCTION - JOINT BASE LANGLEY-EUSTIS HOSPITAL ADDITION AND CUP
Who is the contractor on this award?
The obligated recipient is J. E. DUNN CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $57.9 million.
What is the period of performance?
Start: 2018-01-18. End: 2023-03-15.
What is the track record of J. E. Dunn Construction Company with federal contracts, particularly within the Department of Defense?
J. E. Dunn Construction Company has a significant history of working with the federal government, including numerous contracts with the Department of Defense and other agencies. Their portfolio often includes large-scale institutional and infrastructure projects. Analyzing their past performance on similar military construction projects, especially healthcare facilities, would reveal their ability to manage complex scopes, adhere to schedules, and maintain quality standards. Past performance evaluations and any reported disputes or contract terminations would be crucial indicators of their reliability and capability in executing projects of this magnitude and importance.
How does the awarded price of $57.9 million compare to similar hospital addition projects on military bases?
Benchmarking the $57.9 million award against similar hospital addition projects on military bases requires access to detailed cost data for comparable projects. Factors such as square footage, complexity of medical equipment integration, specific structural requirements, and geographic location (which influences labor and material costs) heavily influence project pricing. Generally, large-scale healthcare construction is expensive. Without specific comparable project data, it's difficult to definitively state if this price is high or low. However, given the specialized nature of military healthcare facilities and the firm fixed-price contract, the government likely sought competitive bids to ensure value. Further analysis would involve comparing cost per square foot or cost per bed for this project against a curated set of similar federal healthcare construction projects.
What are the primary risks associated with a firm fixed-price contract for a multi-year construction project like this?
The primary risk with a firm fixed-price (FFP) contract for a long-duration construction project is the potential for the contractor to face unforeseen cost increases that erode their profit margin, potentially leading to quality compromises or disputes. While FFP shifts cost risk to the contractor, if the initial cost estimate was flawed or if significant, unanticipatable issues arise (e.g., unexpected site conditions, material price spikes beyond reasonable fluctuation), the contractor may seek change orders or face financial distress. For the government, the risk lies in ensuring the scope is perfectly defined upfront and that robust oversight is in place to prevent substandard work if the contractor is struggling financially. The long duration (1882 days) amplifies these risks due to the increased likelihood of encountering unforeseen circumstances over time.
What is the expected impact of this hospital addition on the healthcare services available at Joint Base Langley-Eustis?
The addition of a hospital facility at Joint Base Langley-Eustis is expected to significantly enhance the capacity, capabilities, and potentially the quality of healthcare services available to military personnel, their families, and potentially eligible beneficiaries. This could translate to reduced wait times, the ability to offer a wider range of specialized medical services, improved patient care environments, and increased readiness for medical support operations. The specific impact will depend on the design and intended use of the new addition, such as whether it includes new operating rooms, expanded emergency services, specialized clinics, or enhanced diagnostic capabilities. Ultimately, it aims to provide modern, state-of-the-art medical facilities commensurate with the needs of a major military installation.
How has federal spending on military construction and healthcare facilities evolved over the past five years, and where does this contract fit?
Federal spending on military construction and healthcare facilities has generally seen consistent investment, driven by the need to modernize aging infrastructure, enhance operational readiness, and improve quality of life for service members. While specific figures fluctuate annually based on budget allocations and strategic priorities, the Department of Defense consistently requests substantial funding for its Military Construction, Defense Health Program, and related infrastructure accounts. This $57.9 million contract for a hospital addition fits within this broader trend of investing in critical healthcare infrastructure. It represents a significant, but not unprecedented, single project award within the larger context of annual federal outlays for defense facilities.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9123616R0005
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1001 LOCUST, KANSAS CITY, MO, 64106
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,914,485
Exercised Options: $57,914,485
Current Obligation: $57,914,485
Subaward Activity
Number of Subawards: 39
Total Subaward Amount: $43,340,330
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9127S13D6001
IDV Type: IDC
Timeline
Start Date: 2018-01-18
Current End Date: 2023-03-15
Potential End Date: 2023-03-15 00:00:00
Last Modified: 2025-06-25
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- 200305!000084!2100!CA41 !USA Engineer District,Kansas Cty!daca4103c0003 !A!N! !N! !20030121!20040120!008906844!008906844!007836448!N!J E Dunn Construction CO !929 Holmes ST !kansas City !mo!64106!39000!103!20!leavenworth !leavenworth !kansas !+000000348000!n!n!000000348000!y131!schools !C2 !construction !1000!NOT Discernable or Classified !236210!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!j!2!009!b! !D!N!C! ! !N!C!N! ! ! !c!c!a!a!000!a!b!y! !N! !Y! ! !0001! ! — $112.5M (Department of Defense)
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