J.E. Dunn Construction awarded $54.7M for Design Build Initial Outfitting Project in Nevada

Contract Overview

Contract Amount: $54,740,535 ($54.7M)

Contractor: J. E. Dunn Construction Company

Awarding Agency: Department of Defense

Start Date: 2018-08-23

End Date: 2022-03-29

Contract Duration: 1,314 days

Daily Burn Rate: $41.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD INITIAL OUTFITTING PROJECT

Place of Performance

Location: NELLIS AFB, CLARK County, NEVADA, 89191

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $54.7 million to J. E. DUNN CONSTRUCTION COMPANY for work described as: DESIGN BUILD INITIAL OUTFITTING PROJECT Key points: 1. The contract value represents a significant investment in infrastructure development for the Department of the Army. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The firm-fixed-price contract type shifts cost risk to the contractor, which can be beneficial for the government. 4. The project duration of 1314 days indicates a substantial and complex undertaking. 5. The contract was awarded under the Commercial and Institutional Building Construction NAICS code. 6. The absence of small business set-aside flags suggests the primary contractor is likely a large business.

Value Assessment

Rating: good

The contract value of $54.7 million for a design-build initial outfitting project appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for government entities, especially those involving design and outfitting, suggests this price falls within expected ranges. The firm-fixed-price structure provides cost certainty for the government, assuming the contractor's bid accurately reflects project complexities and risks. Without specific details on the project's deliverables, a precise value-for-money assessment is challenging, but the competitive nature of the award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. With five bids received, the competition level appears healthy, suggesting that multiple contractors were interested and capable of undertaking this project. This level of competition generally fosters price discovery and encourages bidders to offer their most competitive terms, which is advantageous for the government in securing a fair price.

Taxpayer Impact: The full and open competition and multiple bids received suggest that taxpayer dollars were likely used efficiently, as the government benefited from a competitive bidding environment that aimed to secure the best value.

Public Impact

The primary beneficiaries are the Department of the Army personnel who will utilize the newly outfitted facilities. The project delivers essential infrastructure and outfitting services, likely supporting military readiness or operational capabilities. The geographic impact is concentrated in Nevada, where the construction and outfitting activities will take place. The project will likely involve a significant construction workforce, potentially creating jobs in the local Nevada economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive construction and outfitting phases.
Dependency on the contractor's ability to manage complex supply chains for outfitting materials.
Risk of schedule delays impacting the operational readiness of the facility.
Ensuring compliance with all federal building codes and environmental regulations throughout the project lifecycle.

Positive Signals

Firm-fixed-price contract mitigates budget uncertainty for the government.
Full and open competition suggests a competitive pricing environment.
Experienced contractor likely selected through a rigorous bidding process.
Project duration allows for thorough planning and execution.
Awarded to a single entity for streamlined project management.

Sector Analysis

The Commercial and Institutional Building Construction sector is a vital part of the U.S. economy, encompassing a wide range of projects from office buildings to specialized government facilities. Federal spending in this sector is substantial, supporting national infrastructure and operational needs. This $54.7 million contract for design-build initial outfitting fits within this sector, representing a significant investment in specialized construction services. Comparable projects often involve extensive planning, design, and execution phases, with costs varying widely based on size, complexity, and location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). The primary awardee, J. E. Dunn Construction Company, is a large construction firm. This suggests that subcontracting opportunities may exist for small businesses within the project's scope, but there is no explicit requirement for a small business set-aside. The impact on the small business ecosystem will depend on the extent to which the prime contractor utilizes small business subcontractors and the nature of those subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Military Construction Projects
Facility Outfitting and Furnishing
Design-Build Contracts
General Building Construction

Risk Flags

Potential for scope creep if project requirements are not clearly defined.
Risk of contractor default or performance issues on a large, long-term project.
Dependency on timely government approvals and feedback during the design and outfitting phases.
Unforeseen environmental or site conditions could impact cost and schedule.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.7 million to J. E. DUNN CONSTRUCTION COMPANY. DESIGN BUILD INITIAL OUTFITTING PROJECT

Who is the contractor on this award?

The obligated recipient is J. E. DUNN CONSTRUCTION COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $54.7 million.

What is the period of performance?

Start: 2018-08-23. End: 2022-03-29.

What is the track record of J. E. Dunn Construction Company with federal contracts, particularly in design-build projects?

J. E. Dunn Construction Company has a substantial history of securing and executing federal contracts. While specific details for this particular $54.7 million design-build initial outfitting project are not provided in the summary data, their portfolio typically includes large-scale construction and renovation projects for various government agencies. Federal procurement databases often show a pattern of successful contract completions, indicating experience with federal regulations, reporting requirements, and performance standards. Their involvement in numerous projects suggests a capacity to manage complex logistics, diverse teams, and stringent quality controls necessary for government work. Further analysis would involve reviewing their past performance evaluations and any documented issues on prior federal contracts to assess their reliability and expertise in similar endeavors.

How does the awarded amount of $54.7 million compare to similar design-build initial outfitting projects for the Department of Defense?

The awarded amount of $54.7 million for a design-build initial outfitting project by J. E. Dunn Construction Company for the Department of the Army falls within a common range for significant federal construction endeavors. Projects of this nature, which encompass both the design phase and the physical outfitting of facilities, are inherently complex and costly. Benchmarking against publicly available data for similar projects reveals that values can range from tens of millions to hundreds of millions of dollars, depending on the scale, location, specific requirements (e.g., specialized equipment, security features), and duration. The firm-fixed-price nature of this contract also suggests an effort to contain costs. Without more granular details on the project's specific scope and deliverables, a precise comparison is difficult, but the $54.7 million figure appears to be a substantial but not outlier investment for such a comprehensive federal facility project.

What are the primary risks associated with a firm-fixed-price contract for a project of this magnitude and duration?

The primary risk associated with a firm-fixed-price (FFP) contract for a project of this magnitude ($54.7 million) and duration (1314 days) lies with the contractor, J. E. Dunn Construction Company. If the contractor underestimates costs, encounters unforeseen site conditions, or experiences significant material price increases, they bear the financial burden of these overruns. Conversely, the government benefits from cost certainty. However, risks for the government can emerge if the contractor attempts to cut corners on quality or scope to protect their profit margin, or if the initial price was inflated due to the contractor anticipating potential risks. Effective oversight by the government is crucial to ensure the contractor meets all contract specifications and quality standards despite the FFP structure.

What does the 'NV' status code signify for this contract, and what are its implications?

The 'NV' status code for this contract likely signifies 'Not Validated' or a similar designation indicating that the contract data may be preliminary, incomplete, or requires further validation before being considered final or fully processed within the federal procurement system. This could be due to various reasons, such as the contract being recently awarded, undergoing administrative review, or having specific data fields that are pending confirmation. The implication is that while the award has been made and the contractor identified, certain aspects of the contract's details or its official status might still be subject to change or require further official confirmation. Users should exercise caution when interpreting data marked with such codes and refer to official contract documentation or agency points of contact for definitive information.

How does the number of bids (5) influence the potential value for taxpayers in this full and open competition?

Receiving five bids in a full and open competition for this $54.7 million design-build initial outfitting project is a positive indicator for taxpayer value. A higher number of bids generally suggests a more competitive marketplace, where contractors are incentivized to offer lower prices and better terms to win the contract. With five bidders, the Department of the Army had a reasonable selection of proposals to evaluate, increasing the likelihood that the awarded price reflects a competitive market rate rather than an inflated one. This level of competition helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging innovation among the bidding firms. It reduces the risk of awarding a contract at an unreasonable price due to limited vendor interest.

What is the significance of the 'Delivery Order' (DO) award type in the context of this contract?

The 'Delivery Order' (DO) award type, in this context, suggests that the $54.7 million contract is likely a type of indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle, under which specific tasks or quantities are ordered over time. However, the data provided indicates a single award to J. E. Dunn Construction Company for a specific project ('DESIGN BUILD INITIAL OUTFITTING PROJECT') with a defined start and end date. This might imply that 'Delivery Order' here refers to the specific mechanism by which the project's phases or deliverables are formally initiated and funded, rather than a call against a broader IDIQ. If it were a true IDIQ, the $54.7M would represent the ceiling, and actual spending would depend on orders placed. Given the specific project title and dates, it's more probable that this DO represents the formal authorization and funding for this particular design-build project.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9127S16R6000

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: JE Dunn Construction Group Inc

Address: 1001 LOCUST, KANSAS CITY, MO, 64106

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: $54,740,535

Exercised Options: $54,740,535

Current Obligation: $54,740,535

Subaward Activity

Number of Subawards: 57

Total Subaward Amount: $45,704,921

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127S17D6003

IDV Type: IDC

Timeline