DoD's $29.4M Tyndall AFB DBIO contract awarded to J. E. Dunn Construction Company

Contract Overview

Contract Amount: $29,422,763 ($29.4M)

Contractor: J. E. Dunn Construction Company

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2024-09-27

Contract Duration: 1,093 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD INITIAL OUTFITTING (DBIO), TYNDALL AFB, FL

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32403

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $29.4 million to J. E. DUNN CONSTRUCTION COMPANY for work described as: DESIGN BUILD INITIAL OUTFITTING (DBIO), TYNDALL AFB, FL Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 3. Delivery order awarded under a larger contract vehicle, indicating potential for follow-on work. 4. The project is located in Florida, potentially impacting local construction workforce and material suppliers. 5. The contract duration of 1093 days points to a significant, multi-year construction effort. 6. The base value of $26.9M suggests a substantial investment in facility development.

Value Assessment

Rating: good

The contract's firm-fixed-price structure is generally favorable for the government, locking in costs. Benchmarking against similar Design-Build-Initial-Outfitting (DBIO) projects for military installations would provide a clearer picture of value. The base award amount of $26.9M for a project of this scope appears reasonable, but a detailed cost breakdown and comparison to industry standards for construction of this type and scale are needed for a definitive assessment.

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 a bid. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred, the number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it generally drives down costs through market forces. The fact that multiple companies vied for this contract suggests that the government received competitive pricing, maximizing the value of taxpayer dollars.

Public Impact

The primary beneficiaries are the Department of the Air Force and its personnel at Tyndall AFB, Florida, who will receive updated facilities. The contract delivers design and construction services for initial outfitting of facilities, crucial for operational readiness. The geographic impact is concentrated in the Florida Panhandle region, potentially stimulating local economic activity. The project will likely involve a significant construction workforce, impacting employment in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for all project complexities.
Risk of schedule delays impacting the operational readiness of Tyndall AFB.
Dependence on the contractor's ability to manage subcontractors effectively for quality and timely delivery.
Potential for scope creep if project requirements are not clearly defined and managed.
Ensuring compliance with environmental and safety regulations throughout the construction process.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor, providing budget certainty for the government.
Awarded under full and open competition, suggesting a competitive pricing environment.
The contractor, J. E. Dunn Construction Company, likely has a track record in large-scale construction projects.
The project's focus on initial outfitting suggests a clear need and defined scope.
Delivery order structure may indicate a streamlined process for awarding subsequent phases or related work.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Defense is a major client for construction services, with substantial annual spending on infrastructure and facilities. Projects like this, involving Design-Build-Initial-Outfitting (DBIO), are common for military bases undergoing modernization or recovery efforts. Comparable spending benchmarks would involve analyzing other large-scale military construction projects, particularly those focused on base resilience and development.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically related to small business set-asides for this particular award. However, the prime contractor, J. E. Dunn Construction Company, may engage small businesses as subcontractors to fulfill portions of the work, which would be subject to their own subcontracting plans and goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army or Air Force, depending on the specific program management. Accountability measures are inherent in the firm-fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Tyndall Air Force Base Reconstruction Program
Military Construction Projects
Design-Build Contracts
Base Realignment and Closure (BRAC) related construction

Risk Flags

Potential for cost escalation if not managed tightly under FFP.
Schedule adherence critical for base operational readiness.
Quality control during construction phase.
Contractor's financial stability for large-scale project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.4 million to J. E. DUNN CONSTRUCTION COMPANY. DESIGN BUILD INITIAL OUTFITTING (DBIO), TYNDALL AFB, FL

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 $29.4 million.

What is the period of performance?

Start: 2021-09-30. End: 2024-09-27.

What is the track record of J. E. Dunn Construction Company on similar federal contracts, particularly those involving military installations?

J. E. Dunn Construction Company has a significant history of performing large-scale construction projects, including many for federal agencies and military installations. Their portfolio often includes complex projects such as educational facilities, healthcare centers, and government buildings. While specific details on their performance for similar Design-Build-Initial-Outfitting (DBIO) contracts at Air Force bases would require deeper analysis of federal procurement data, their general experience suggests a capacity to handle such projects. Reviewing past performance evaluations and any contract disputes or awards would provide a more granular understanding of their reliability and quality of work in the federal sector. Their involvement in post-disaster reconstruction efforts, like those at Tyndall AFB, also indicates adaptability and experience in challenging environments.

How does the awarded amount of $29.4 million compare to the estimated cost or budget for this specific DBIO project at Tyndall AFB?

The provided data shows an award amount of $29,422,763, with a base value of $26,919,000. Without access to the government's initial cost estimates or the contractor's detailed bid breakdown, a direct comparison is challenging. However, the fact that the contract was awarded under full and open competition with 3 bidders suggests that the awarded price was competitive. If the award is significantly below the government's estimate, it could indicate a favorable negotiation or a highly competitive market. Conversely, if it's close to or exceeds the estimate, further scrutiny of the scope and pricing might be warranted. A comprehensive value assessment would require comparing this award to similar DBIO projects at other military installations, considering factors like square footage, complexity, and location.

What are the primary risks associated with a firm-fixed-price contract for a Design-Build-Initial-Outfitting project of this magnitude?

The primary risk with a firm-fixed-price (FFP) contract for a project of this scale is that unforeseen issues or scope changes can lead to significant cost overruns for the contractor, potentially impacting their financial stability or leading to disputes. For the government, the risk is that the contractor may cut corners on quality or safety to maintain profitability if the initial price was too low or if unexpected challenges arise. In a DBIO context, the integration of design and construction adds complexity; if the design is flawed or incomplete, it can lead to costly rework during construction. Effective government oversight is crucial to ensure the contractor adheres to specifications and quality standards throughout the project lifecycle, mitigating these risks.

What is the expected impact of this contract on the local economy and workforce in the Florida Panhandle region?

This $29.4 million Design-Build-Initial-Outfitting contract is expected to have a positive impact on the local economy and workforce in the Florida Panhandle. Construction projects of this size typically require a substantial labor force, creating jobs for skilled tradespeople, project managers, engineers, and support staff. The demand for construction services can also stimulate local businesses that supply materials, equipment, and related services. Furthermore, the investment in upgrading facilities at Tyndall AFB contributes to the long-term economic stability and operational capacity of the base, which is a significant economic driver for the region. The duration of the project (1093 days) suggests a sustained period of economic activity.

How does the competition level (3 bidders) for this delivery order influence the perceived value for taxpayers?

A competition level of 3 bidders for this delivery order suggests a moderate level of market interest and competitive pressure. While more bidders generally lead to more aggressive pricing, three bidders indicate that the opportunity was attractive enough for multiple firms to invest resources in preparing proposals. This level of competition is typically sufficient to prevent a single source from dictating terms and prices, thereby providing a reasonable degree of assurance that the government is receiving fair market value. However, a deeper analysis would involve understanding if these three bidders were the only qualified firms capable of undertaking the project or if other potential bidders were deterred by the contract's complexity, duration, or specific requirements.

What are the potential implications of this contract being a delivery order under a larger contract vehicle?

This contract being a delivery order (aw) under a larger contract vehicle means that the initial award was made through a preceding, potentially broader, contracting process (e.g., an Indefinite Delivery/Indefinite Quantity or IDIQ contract). This structure allows the government to procure goods or services incrementally, often streamlining the acquisition process for subsequent needs. For taxpayers, this can mean faster delivery of necessary services and potentially better pricing if the overarching contract was competitively awarded. It also implies that J. E. Dunn Construction Company was pre-qualified under the parent contract. The delivery order structure can also facilitate follow-on work or modifications, but it necessitates careful management to ensure that the total value and scope remain aligned with the original intent and competitive fairness.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $29,422,763

Exercised Options: $29,422,763

Current Obligation: $29,422,763

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