DoD Awards $143.7M Construction Contract to Sundt Construction, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $14,369,221 ($14.4M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-02-05

End Date: 2009-08-28

Contract Duration: 2,031 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: BEALE AFB, YUBA County, CALIFORNIA, 95903

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to SUNDT CONSTRUCTION, INC. for work described as: Key points: 1. The contract value of $143.7 million represents a significant investment in infrastructure. 2. Full and open competition suggests a potentially competitive bidding process, aiming for fair pricing. 3. The long duration of 2031 days (over 5 years) indicates a complex, multi-phase project. 4. The sector is Commercial and Institutional Building Construction, a vital area for government facilities.

Value Assessment

Rating: good

The award amount of $143.7 million for commercial building construction appears reasonable given the contract duration and the nature of large-scale construction projects. Benchmarking against similar large federal construction contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the construction services rendered, maximizing the value of the federal investment.

Public Impact

Supports military readiness and operational capabilities through improved facilities. Creates jobs in the construction sector and related industries in California. Enhances the infrastructure of the Department of the Army, potentially impacting troop morale and efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Long contract duration could lead to cost overruns if not managed effectively.
Potential for scope creep over the multi-year project timeline.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Contract awarded to a single entity, potentially streamlining project management.
Fixed price contract type helps control costs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which is crucial for developing and maintaining government facilities. Federal spending in this sector often aligns with infrastructure needs and modernization efforts.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). While large prime contractors are often necessary for major projects, it's important to ensure subcontracting opportunities are available for small businesses to participate.

Oversight & Accountability

The long duration and significant value of this contract necessitate robust oversight from the Department of the Army to ensure adherence to timelines, budget, and quality standards. Regular performance reviews and audits are critical.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration increases risk of cost escalation and schedule delays.
Lack of small business participation as prime contractor.
Potential for scope creep over an extended project timeline.
Dependence on a single contractor for a large-scale, multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 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 Army).

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2004-02-05. End: 2009-08-28.

What specific types of construction or renovations are included in this $143.7 million contract, and how do they align with current military infrastructure needs?

The contract is for Commercial and Institutional Building Construction, likely encompassing a range of facilities such as barracks, administrative buildings, training centers, or maintenance depots. The specific alignment with military needs would depend on the Army's strategic infrastructure development plans, which could include modernization, expansion, or replacement of aging facilities to support operational readiness and troop welfare.

Given the firm fixed price contract type, what mechanisms are in place to manage potential cost increases due to unforeseen site conditions or material price fluctuations over the contract's extended

While a firm fixed price contract aims to cap costs, the contract likely includes clauses for managing unforeseen conditions, such as escalation clauses for specific materials or provisions for change orders if the scope significantly deviates from the original plan. Robust project management and contingency planning by the contractor, coupled with diligent oversight by the Army, are crucial to mitigate risks associated with price volatility and site issues.

How will the success of this multi-year construction project be measured, and what are the key performance indicators (KPIs) for Sundt Construction, Inc.?

Success will likely be measured by adherence to the firm fixed price, completion within the specified duration (though the end date is in 2009, the duration is 2031 days), quality of construction meeting or exceeding specifications, and overall client satisfaction. Key performance indicators may include on-time delivery of milestones, safety record, defect-free completion, and compliance with environmental and security regulations.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

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

Address: 1501 W FOUNTAINHEAD PKWY S, TEMPE, AZ, 04

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline