DoD's $56.8M AIT Barracks Facility Contract with Sundt Construction Faces Scrutiny Over Competition and Cost

Contract Overview

Contract Amount: $56,790,890 ($56.8M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-06-30

End Date: 2019-06-08

Contract Duration: 1,439 days

Daily Burn Rate: $39.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF PHASE 2: CONSTRUCT AIT BARRACKS FACILITY AND DEMO

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95814

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $56.8 million to SUNDT CONSTRUCTION, INC. for work described as: IGF::OT::IGF PHASE 2: CONSTRUCT AIT BARRACKS FACILITY AND DEMO Key points: 1. The contract awarded to Sundt Construction, Inc. for $56.8 million involved a complex procurement process. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method raises questions about the extent of true competition. 3. While the project aimed to construct barracks, the final cost and duration warrant a closer look at value for money. 4. The sector is Commercial and Institutional Building Construction, a common area for significant federal investment.

Value Assessment

Rating: fair

The contract's final value of $56.8 million needs to be benchmarked against similar military construction projects to assess its fairness. Without specific cost breakdowns or comparisons to industry standards for barracks construction, it's difficult to definitively state if the pricing was optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The procurement method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggests that while competition was sought, certain sources were excluded, potentially limiting the competitive landscape and impacting price discovery. This could lead to less favorable pricing than a truly open competition.

Taxpayer Impact: The final cost of $56.8 million represents taxpayer funds. The effectiveness of the competition method in securing the best possible price directly impacts the overall taxpayer value.

Public Impact

Military personnel will benefit from improved barracks facilities, enhancing quality of life and readiness. The construction project likely created jobs in the California region, contributing to the local economy. Federal infrastructure investments like this are crucial for maintaining military operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion
Potential for suboptimal pricing
Long project duration (1439 days)

Positive Signals

Construction of essential military infrastructure
Awarded to a known entity (Sundt Construction)

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which is a significant area of federal spending, particularly for defense agencies. Benchmarks for similar projects would typically consider factors like square footage, material costs, and labor rates.

Small Business Impact

The data provided does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this project.

Oversight & Accountability

Oversight would typically involve contract management by the Department of the Army, including monitoring progress, quality, and adherence to contract terms. The Inspector General's office may also conduct audits or investigations into contract performance and spending.

Related Government Programs

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

Risk Flags

Limited competition
Potential for inflated costs
Lack of transparency in source exclusion
Long project duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.8 million to SUNDT CONSTRUCTION, INC.. IGF::OT::IGF PHASE 2: CONSTRUCT AIT BARRACKS FACILITY AND DEMO

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 $56.8 million.

What is the period of performance?

Start: 2015-06-30. End: 2019-06-08.

What was the specific justification for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and how did this impact the final price?

The justification for excluding sources is critical. If based on specific technical requirements or past performance, it might be valid. However, if the exclusion was arbitrary, it could have artificially limited competition, potentially leading to a higher price than achievable through a broader bidding process. Understanding the rationale is key to assessing value.

How does the final cost of $56.8 million compare to the initial estimated cost and to similar barracks construction projects in other military installations?

Comparing the final cost to initial estimates and similar projects provides a crucial benchmark for value. Significant deviations from estimates or higher costs compared to peers could indicate inefficiencies, scope creep, or less competitive pricing. This analysis is essential for determining if taxpayer funds were used effectively.

What were the key performance indicators for this contract, and how effectively did Sundt Construction meet them throughout the 1439-day duration?

Evaluating performance against key indicators such as schedule adherence, quality of construction, and safety compliance is vital. A long duration like 1439 days necessitates robust monitoring to ensure the contractor remains on track and delivers the facility as intended. Any significant delays or quality issues would impact the overall effectiveness and value.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: W9123813R0027

Offers Received: 13

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: $56,790,890

Exercised Options: $56,790,890

Current Obligation: $56,790,890

Actual Outlays: $1,119,331

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline