Department of the Army awards $79.9M contract for JBSA ambulatory care center construction, highlighting firm fixed-price terms

Contract Overview

Contract Amount: $79,862,320 ($79.9M)

Contractor: Structsure Projects Inc

Awarding Agency: Department of Defense

Start Date: 2018-09-24

End Date: 2025-12-18

Contract Duration: 2,642 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTSVCS-AMBULATORY CARE CENTER, PH 4-JBSA

Place of Performance

Location: JBSA LACKLAND, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $79.9 million to STRUCTSURE PROJECTS INC for work described as: CONSTSVCS-AMBULATORY CARE CENTER, PH 4-JBSA Key points: 1. The contract's firm fixed-price structure aims to control costs and provide predictability for the government. 2. Awarded through full and open competition, suggesting a robust market response and potential for competitive pricing. 3. The duration of over 2600 days indicates a long-term, complex construction project with significant resource commitment. 4. The project's focus on healthcare infrastructure aligns with critical government service delivery needs. 5. The contractor, StructSure Projects Inc., will be responsible for delivering a major facility, implying a need for strong project management capabilities. 6. The absence of small business set-aside suggests the prime contract was not specifically targeted for smaller enterprises.

Value Assessment

Rating: good

The total award amount of approximately $79.9 million for a large-scale ambulatory care center construction project appears within a reasonable range for such complex infrastructure. Benchmarking against similar large-scale healthcare facility construction contracts awarded by the Department of Defense or other federal agencies would provide a more precise value assessment. The firm fixed-price contract type suggests that the government has secured a predictable cost ceiling, which is a positive indicator for value management, assuming the initial pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bidders suggests a healthy level of competition for this significant construction project. A competitive bidding process typically leads to more favorable pricing for the government as contractors vie for the award by offering their best terms and prices.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently by leveraging market forces to drive down costs and encourage innovation among bidders.

Public Impact

Beneficiaries include military personnel and their families stationed at Joint Base San Antonio (JBSA) who will gain access to improved healthcare facilities. The project delivers essential ambulatory care center construction services, enhancing the medical readiness and well-being of the armed forces. The geographic impact is concentrated at JBSA in Texas, a major military installation. The construction activities will likely create temporary employment opportunities for skilled trades and labor within the local Texas workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the fixed-price nature.
Contractor performance risk associated with managing a multi-year, complex construction project of this magnitude.
Dependency on timely government approvals and site access, which could impact project schedule.
Ensuring compliance with all environmental and safety regulations throughout the construction lifecycle.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive pricing environment.
Long contract duration allows for thorough planning and execution of complex construction phases.
Award to a single contractor streamlines project management and accountability.
Focus on healthcare infrastructure addresses a critical need for military readiness and family support.

Sector Analysis

The construction sector, particularly for institutional and commercial buildings, is a significant area of federal spending. This contract falls under the Commercial and Institutional Building Construction (NAICS 236220) category. Federal spending in this sector often involves large, complex projects requiring specialized expertise and adherence to stringent government standards. Comparable spending benchmarks would involve analyzing other large-scale healthcare or military facility construction projects awarded by agencies like the Department of Defense, GSA, or VA, considering factors like project scope, location, and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). The prime contract value is substantial, suggesting it was likely awarded to a larger firm capable of managing such a complex project. There is no explicit information on subcontracting plans for small businesses within this data, but it is common practice for large construction projects to include subcontracting opportunities, which could potentially benefit the small business ecosystem if actively pursued.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction may be invoked if allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Military Construction Projects
Healthcare Facility Construction
Department of Defense Procurement
General Services Administration (GSA) Construction Contracts
Veterans Affairs (VA) Medical Facility Construction

Risk Flags

Long project duration increases exposure to market volatility and potential delays.
Complexity of healthcare facility construction requires specialized expertise.
Firm fixed-price contracts can shift significant risk to the contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.9 million to STRUCTSURE PROJECTS INC. CONSTSVCS-AMBULATORY CARE CENTER, PH 4-JBSA

Who is the contractor on this award?

The obligated recipient is STRUCTSURE PROJECTS 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 $79.9 million.

What is the period of performance?

Start: 2018-09-24. End: 2025-12-18.

What is the track record of StructSure Projects Inc. with federal construction contracts, particularly for healthcare facilities?

A review of federal procurement data would be necessary to fully assess StructSure Projects Inc.'s track record. Specifically, one would look for past performance on similar-sized construction projects, especially those involving healthcare or institutional facilities for the Department of Defense or other federal agencies. Key metrics to examine would include on-time completion rates, adherence to budget (especially on fixed-price contracts), quality of work, and any history of disputes or contract modifications. Understanding their experience with government regulations, safety standards, and specific construction techniques relevant to ambulatory care centers would provide crucial context for evaluating their capability to successfully execute this current contract.

How does the per-square-foot construction cost of this ambulatory care center compare to similar projects in Texas or other military bases?

To benchmark the per-square-foot cost, detailed project specifications including the total square footage of the facility would be required. Assuming this information is available, it could be compared against industry cost databases (e.g., RSMeans) and publicly available data for similar federal healthcare or institutional construction projects. Factors such as the complexity of medical systems, specialized equipment installation, site-specific conditions (e.g., soil, seismic requirements), and regional labor and material costs in Texas would need to be considered for an accurate comparison. A higher or lower cost per square foot than benchmarks would warrant further investigation into the underlying reasons, such as scope differences or market conditions.

What are the primary risks associated with a firm fixed-price contract for a long-duration construction project like this?

The primary risk for the government in a firm fixed-price contract, especially one spanning over 2600 days, is that the contractor may not have adequately accounted for future cost increases in materials, labor, or unforeseen site conditions. If these occur, the contractor might seek to mitigate losses through change orders or potentially face financial distress, impacting project completion. For the contractor, the risk is bearing the full brunt of any cost overruns. Effective risk mitigation by the government involves thorough pre-award cost analysis, clear contract scope definition, and robust oversight to prevent scope creep and ensure the contractor's financial stability throughout the project lifecycle.

What is the historical spending pattern for ambulatory care center construction by the Department of the Army over the last five years?

Analyzing historical spending patterns would involve querying federal procurement databases (like USASpending.gov or FPDS) for contracts awarded by the Department of the Army with relevant NAICS codes (e.g., 236220) and keywords related to 'ambulatory care center,' 'medical clinic,' or 'healthcare facility.' This analysis would reveal the total annual expenditure, the number of contracts awarded, average contract values, and potentially identify key contractors or geographic concentrations. Understanding these trends can help assess whether the current $79.9 million award is consistent with past investment levels, indicative of an increasing need, or an outlier, providing context for future budget planning and procurement strategies.

How will the performance of StructSure Projects Inc. on this contract be evaluated, and what are the key performance indicators (KPIs)?

Performance evaluation for this contract will likely be governed by the Federal Acquisition Regulation (FAR) and specific contract clauses. Key Performance Indicators (KPIs) typically include adherence to the project schedule, meeting quality standards and specifications, maintaining a safe work environment (low incident rates), effective project management and communication, and compliance with all contractual terms. The government will likely assign a Contracting Officer's Representative (COR) or a construction representative to monitor progress daily, conduct inspections, and document performance. Formal performance evaluations, such as past performance questionnaires, will be completed at key milestones and upon contract completion, influencing future contract awards.

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: TWO STEP

Solicitation ID: W9126G18R0022

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 903 E 104TH ST, KANSAS CITY, MO, 64131

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $83,193,579

Exercised Options: $83,193,579

Current Obligation: $79,862,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline