DoD Awards $86.4M for New Housing Construction in Texas
Contract Overview
Contract Amount: $86,399,376 ($86.4M)
Contractor: Hunt Building Company, Ltd
Awarding Agency: Department of Defense
Start Date: 2006-05-04
End Date: 2008-10-28
Contract Duration: 908 days
Daily Burn Rate: $95.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: DYESS AFB, TAYLOR County, TEXAS, 79607
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $86.4 million to HUNT BUILDING COMPANY, LTD for work described as: Key points: 1. Significant contract value for new single-family housing construction. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is substantial, indicating a long-term project. 4. The sector is construction, specifically housing development.
Value Assessment
Rating: fair
The contract value of $86.4 million for new single-family housing construction is substantial. Benchmarking against similar large-scale construction projects would be necessary to fully assess its pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The existence of two bids suggests a degree of competition, but the final price relative to the independent government estimate (if available) is key.
Taxpayer Impact: Taxpayer funds are being used for significant infrastructure development, specifically housing. The effectiveness of the competition in securing a fair price will determine the ultimate taxpayer impact.
Public Impact
Provides new housing, potentially impacting military personnel and their families. Supports the construction industry and related supply chains in Texas. Represents a significant investment in military family housing infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (908 days) could lead to cost overruns or scope creep.
- Limited number of bids (2) might indicate less competition than ideal for full and open.
- Firm Fixed Price contract offers less flexibility for changes.
Positive Signals
- Full and open competition was used.
- Contract addresses a critical need for housing.
- Project is located in a specific state (Texas).
Sector Analysis
This contract falls within the construction sector, specifically new single-family housing. Government spending in this area often supports military readiness and personnel welfare. Benchmarks for similar housing projects would provide context for the $86.4 million award.
Small Business Impact
The data indicates this contract was awarded to HUNT BUILDING COMPANY, LTD, and does not specify any small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors or if there were opportunities missed.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight would focus on project milestones, quality of construction, adherence to budget, and timely completion to ensure accountability and effective use of funds.
Related Government Programs
- New Single-Family Housing Construction (except For-Sale Builders)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to long duration.
- Limited competition (2 bids) despite full and open.
- Firm Fixed Price contract limits flexibility for changes.
- Lack of explicit small business participation noted.
Tags
new-single-family-housing-construction-e, department-of-defense, tx, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $86.4 million to HUNT BUILDING COMPANY, LTD. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is HUNT BUILDING COMPANY, LTD.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $86.4 million.
What is the period of performance?
Start: 2006-05-04. End: 2008-10-28.
What was the independent government estimate for this project, and how did the winning bid compare?
Without the independent government estimate (IGE), it's difficult to definitively assess the value for money. The bid of $86.4 million was one of two received. Comparing this to the IGE would reveal if the competition drove the price down effectively or if the estimate was too high or low.
What are the specific risks associated with a 908-day firm-fixed-price contract for new housing construction?
A long duration firm-fixed-price contract carries risks such as potential material cost escalation, unforeseen site conditions, labor shortages, and changes in regulatory requirements. The contractor bears the risk of cost overruns, which could impact quality if not managed properly. The government risks paying a premium for this risk transfer.
How effectively does this contract address the need for military family housing in Texas?
The contract aims to build new single-family housing, directly addressing a need for military family accommodation. The effectiveness will depend on the quality of construction, timely delivery, and whether the housing meets the needs and expectations of military families stationed in the area.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hunt Companies, Inc. (UEI: 136115255)
Address: 4401 N MESA ST STE 201, EL PASO, TX, 16
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-05-04
Current End Date: 2008-10-28
Potential End Date: 2008-10-28 00:00:00
Last Modified: 2009-01-28
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