DoD awards $42.4M for Lackland AFB Child Development Center construction, with 11 bids received

Contract Overview

Contract Amount: $42,430,433 ($42.4M)

Contractor: Federal Contracting Inc

Awarding Agency: Department of Defense

Start Date: 2025-12-01

End Date: 2027-11-20

Contract Duration: 719 days

Daily Burn Rate: $59.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF THE CHILD DEVELOPMENT CENTER AT LACKLAND AIR FORCE BASE

Place of Performance

Location: JBSA LACKLAND, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $42.4 million to FEDERAL CONTRACTING INC for work described as: CONSTRUCTION OF THE CHILD DEVELOPMENT CENTER AT LACKLAND AIR FORCE BASE Key points: 1. The contract value represents a significant investment in military family support infrastructure. 2. A high number of bids suggests a competitive market for this type of construction. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. Project duration of nearly two years indicates a substantial construction undertaking. 5. The location in Texas positions the project within a region with active construction markets. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $42.4 million for a child development center is substantial. Benchmarking against similar military construction projects would provide a clearer picture of value for money. The firm-fixed-price structure suggests that the initial bid was considered competitive and that the contractor assumes cost overruns. Without specific cost breakdowns or comparisons to similar facilities, a precise value assessment is challenging, but the competitive bidding process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 11 bids received. This indicates a robust bidding environment, suggesting that multiple qualified contractors were interested and capable of undertaking the project. The high number of bidders generally leads to more competitive pricing as contractors vie for the award. The agency's ability to attract this level of interest implies a well-defined scope of work and a desirable project.

Taxpayer Impact: The extensive competition is beneficial for taxpayers, as it likely drove down the final contract price compared to a sole-source or limited competition scenario. This ensures that federal funds are used more efficiently for infrastructure development.

Public Impact

Military families at Lackland Air Force Base will benefit from a new, modern child development center. The project will deliver essential childcare services, supporting military readiness and personnel retention. Construction activities will have a localized economic impact in the San Antonio, Texas area. The construction phase will create jobs for skilled tradespeople and construction workers. The completed facility will enhance the quality of life for service members and their families stationed at the base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite firm-fixed-price.
Risk of construction delays impacting the operational readiness of the facility.
Ensuring compliance with all environmental and safety regulations during construction.
Potential for contractor performance issues impacting quality or schedule.

Positive Signals

Firm-fixed-price contract mitigates budget uncertainty for the government.
High number of bidders suggests strong contractor interest and capability.
Project duration is clearly defined, allowing for planning.
Awarded to a contractor with experience in commercial and institutional building construction.
Clear end date for the contract provides a defined project timeline.

Sector Analysis

The construction of the Child Development Center falls within the broader Commercial and Institutional Building Construction sector. This sector is characterized by a wide range of projects, from small commercial renovations to large-scale institutional facilities. Federal spending in this area often supports military installations, government buildings, and public infrastructure. The market size for federal construction is substantial, with significant annual outlays. This specific contract represents a targeted investment in military family support infrastructure, aligning with broader DoD initiatives to improve quality of life for service members.

Small Business Impact

This contract was not set aside for small businesses and did not indicate any specific subcontracting requirements for small businesses in the provided data. While the primary awardee is not a small business, the large scale of the project may present subcontracting opportunities for smaller firms in specialized trades. Further analysis of the awarded contractor's subcontracting plan would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, under the Department of Defense. The firm-fixed-price nature of the contract places significant responsibility on the contractor for managing costs and schedule. The contract includes specific performance standards and delivery dates. Transparency is facilitated through the federal procurement data system. Inspector General oversight may be invoked if specific allegations of fraud, waste, or abuse arise.

Related Government Programs

Military Construction, Army
Child Care Services
Department of Defense Family Housing
Base Realignment and Closure (BRAC) Construction

Risk Flags

Potential for schedule delays
Risk of cost overruns for contractor
Ensuring quality of construction
Availability of skilled labor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.4 million to FEDERAL CONTRACTING INC. CONSTRUCTION OF THE CHILD DEVELOPMENT CENTER AT LACKLAND AIR FORCE BASE

Who is the contractor on this award?

The obligated recipient is FEDERAL CONTRACTING 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 $42.4 million.

What is the period of performance?

Start: 2025-12-01. End: 2027-11-20.

What is the track record of FEDERAL CONTRACTING INC. with the Department of Defense?

FEDERAL CONTRACTING INC. has a history of performing work for the Department of Defense, as indicated by this award. To fully assess their track record, a review of past contracts would be necessary. This would include examining contract values, performance ratings (if available), and any history of disputes or contract modifications. Understanding their past performance on similar construction projects, particularly those on military installations, would provide valuable insight into their reliability and capability for executing the Lackland AFB Child Development Center project successfully. Without access to detailed past performance data, it's difficult to provide a comprehensive assessment beyond the fact that they have secured this significant contract.

How does the awarded price compare to similar child development center construction projects at other military bases?

Benchmarking the $42.4 million contract value against similar child development center construction projects at other military bases is crucial for assessing value for money. Factors such as square footage, specific amenities, regional construction costs, and the complexity of site preparation can significantly influence project costs. A preliminary comparison suggests that this value is within a reasonable range for a facility of this nature, especially considering potential regional cost variations in Texas. However, a detailed analysis comparing cost per square foot, cost per child capacity, and inclusion of specific features (e.g., playgrounds, specialized learning areas) across multiple comparable projects would be needed for a definitive value assessment. The competitive bidding process, yielding 11 offers, suggests the price was likely competitive within the market.

What are the primary risks associated with this firm-fixed-price construction contract?

The primary risk associated with a firm-fixed-price (FFP) contract, while beneficial for budget certainty, lies in potential cost overruns for the contractor if unforeseen issues arise. For this project, risks include unexpected subsurface conditions (e.g., soil instability, underground utilities), material price escalations beyond what was factored into the bid, labor shortages driving up wages, or design deficiencies discovered during construction. While the FFP shifts the financial risk to FEDERAL CONTRACTING INC., significant contractor financial distress or bankruptcy could lead to project delays or abandonment, impacting the government. The government's risk is primarily related to schedule delays and potential disputes if the contractor claims unforeseen conditions warranting adjustments, or if performance quality is subpar.

What is the expected impact of this project on military family support and readiness at Lackland AFB?

This project is expected to significantly enhance military family support and readiness at Lackland Air Force Base by providing a modern, safe, and adequate facility for child development services. High-quality, accessible childcare is a critical factor in retaining military personnel, as it alleviates a major concern for service members with families. A new facility can accommodate more children, potentially reducing waitlists and improving access to care. This, in turn, allows service members to focus more effectively on their military duties, knowing their children are in a secure and enriching environment. The improved infrastructure contributes to overall morale and quality of life, which are directly linked to mission readiness.

How does the number of bidders (11) influence the price discovery and potential savings for the government?

The participation of 11 bidders in this full and open competition is a strong indicator of a healthy and competitive market for this type of construction project. A larger number of bids generally leads to more robust price discovery, as contractors are compelled to offer their most competitive pricing to win the contract. This increased competition typically results in lower prices for the government compared to scenarios with fewer bidders, maximizing the value of taxpayer dollars. The diversity of bidders can also introduce innovative approaches or efficiencies. The government benefits from a wider range of options and a higher likelihood of securing the project at a price that reflects true market value, minimizing the risk of overpayment.

What are the implications of the contract duration (719 days) for project completion and operational readiness?

The contract duration of 719 days, approximately two years, indicates a substantial construction timeline for the Child Development Center. This duration allows for thorough planning, execution, and quality control throughout the various phases of construction, from site preparation to final fit-out. For the government, this extended period necessitates careful project management and oversight to ensure adherence to the schedule and prevent delays. From an operational readiness perspective, the two-year timeline means that the benefits of the new facility will not be realized immediately. However, a well-managed, longer duration can contribute to a higher quality end product and reduce the likelihood of rushed work or compromises that could impact long-term usability and safety. Planning for interim childcare solutions during this period will be essential for military families.

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: W9126G24R0125

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5475 TECH CENTER DR, COLORADO SPRINGS, CO, 80919

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

Financial Breakdown

Contract Ceiling: $42,430,433

Exercised Options: $42,430,433

Current Obligation: $42,430,433

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline