DoD awards $43.6M for Madigan Army Medical Center potable water system repair to Structsure Projects Inc

Contract Overview

Contract Amount: $43,649,612 ($43.6M)

Contractor: Structsure Projects Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-18

End Date: 2026-12-14

Contract Duration: 1,183 days

Daily Burn Rate: $36.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: JOINT BASE LEWIS MCCHORD, MADIGAN ARMY MEDICAL CENTER, BUILDING 9040, REPAIR POTABLE WATER SYSTEM.

Place of Performance

Location: JOINT BASE LEWIS MCCHORD, PIERCE County, WASHINGTON, 98431

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $43.6 million to STRUCTSURE PROJECTS INC for work described as: JOINT BASE LEWIS MCCHORD, MADIGAN ARMY MEDICAL CENTER, BUILDING 9040, REPAIR POTABLE WATER SYSTEM. Key points: 1. Contract value represents a significant investment in critical infrastructure at a major military medical facility. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price contract type aims to control costs and provide predictability for the government. 4. The project duration of nearly three years indicates a complex and extensive repair effort. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. The geographic location in Washington state may influence labor costs and material availability.

Value Assessment

Rating: good

The contract value of $43.6 million for repairing a potable water system at a large medical center appears reasonable given the scope and duration. Benchmarking against similar large-scale infrastructure repair projects for federal facilities suggests this price is within expected ranges. The firm-fixed-price structure provides cost certainty, which is a positive indicator for value. However, without detailed cost breakdowns or comparisons to private sector projects of similar complexity, a definitive value-for-money assessment is challenging.

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 2 bids suggests a moderate level of competition for this significant infrastructure project. While two bidders participated, the specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not fully detailed here. A higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best value. The presence of at least two bids suggests that the market is responsive to this type of federal contracting opportunity.

Public Impact

Beneficiaries include military personnel, their families, and civilian staff receiving healthcare services at Madigan Army Medical Center. The primary service delivered is the repair and modernization of the potable water system, ensuring safe and reliable water supply. The geographic impact is localized to Joint Base Lewis-McChord in Washington state. The project will likely involve a workforce of construction professionals, tradespeople, and project managers, potentially creating temporary employment opportunities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for project delays impacting critical medical facility operations.
Risk of cost overruns if unforeseen issues arise during complex infrastructure repairs.
Dependence on a single contractor for a critical utility system poses a risk if performance issues emerge.

Positive Signals

Firm-fixed-price contract type helps mitigate cost escalation risks.
Award to a single contractor for the entire project can ensure continuity and accountability.
The project addresses a critical need for infrastructure maintenance, ensuring operational readiness of a key medical facility.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on infrastructure repair for a large federal medical facility. The construction market for federal buildings is substantial, with significant annual spending on maintenance, repair, and new construction. This contract represents a specific instance of investment in essential facility upkeep, ensuring the continued operation of a vital healthcare resource for the Department of Defense. Comparable spending benchmarks would typically involve analyzing other large-scale repair or renovation projects at federal medical centers or similar institutional facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Structsure Projects Inc. is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this award notice. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Army, likely through contracting officers and project managers responsible for ensuring compliance with the contract terms and specifications. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the project within the agreed-upon budget. Transparency is facilitated by the public nature of federal contract awards, allowing for general oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Maintenance
Military Medical Infrastructure
Potable Water System Upgrades
Federal Building Construction Contracts
Army Corps of Engineers Projects

Risk Flags

Potential for operational disruption at a critical medical facility.
Complexity of infrastructure repair in an active environment.
Limited number of bidders (2) may indicate potential for higher pricing.
Long project duration increases exposure to unforeseen issues and market changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.6 million to STRUCTSURE PROJECTS INC. JOINT BASE LEWIS MCCHORD, MADIGAN ARMY MEDICAL CENTER, BUILDING 9040, REPAIR POTABLE WATER SYSTEM.

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 $43.6 million.

What is the period of performance?

Start: 2023-09-18. End: 2026-12-14.

What is the track record of Structsure Projects Inc. in performing similar large-scale federal construction projects, particularly those involving critical infrastructure like water systems?

Assessing the track record of Structsure Projects Inc. requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, their value, scope, and on-time/on-budget completion rates. Specifically, looking for experience with projects at military installations or large healthcare facilities would be pertinent. A history of successful project delivery, positive past performance reviews (e.g., CPARS), and demonstrated expertise in complex utility system repairs would indicate a lower risk for this current project. Conversely, a history of significant delays, cost overruns, or performance disputes would raise concerns about their capability to execute this $43.6 million contract effectively.

How does the awarded price of $43.6 million compare to the estimated cost or bids from other potential contractors for this specific project?

The provided data indicates two bids were received, with this award being $43,649,612. To assess value, we would need to know the value of the second bid or the government's independent cost estimate. If the awarded price is significantly lower than other bids or the estimate, it suggests strong price competition and good value. If it is higher, it might indicate less competitive pricing or a more comprehensive scope than initially estimated. Without the other bid price or the estimate, it's difficult to definitively benchmark the value. However, the firm-fixed-price nature suggests the government aimed to lock in a price, and the competition, while limited to two bidders, should have provided some market validation.

What are the primary risks associated with repairing a potable water system at an active military medical center, and how are they mitigated by this contract?

Primary risks include disruption to ongoing medical operations, potential contamination during repair, unforeseen structural issues within existing plumbing, and delays due to site access or coordination with base activities. Mitigation strategies embedded in this contract include the firm-fixed-price structure, which shifts cost overrun risk to the contractor. The extended duration (1183 days) allows for careful planning and execution, potentially minimizing operational disruption. The Department of the Army's oversight and Structsure Projects Inc.'s presumed experience in similar environments are also risk mitigators. However, the critical nature of the facility means any disruption, even if managed, could have significant consequences.

What is the historical spending pattern for potable water system maintenance and repair at Madigan Army Medical Center or similar Army medical facilities?

Analyzing historical spending requires access to detailed budget and expenditure data for Madigan Army Medical Center and comparable Army medical facilities over several years. This would involve looking at the frequency and cost of past repairs, upgrades, or replacements of water systems. Significant historical investment might indicate recurring issues or an aging infrastructure. Conversely, a lack of substantial prior spending could suggest this is a major, long-overdue project. Understanding this pattern helps contextualize the $43.6 million award, determining if it represents a typical maintenance cycle cost or a substantial capital investment driven by specific needs or system failures.

How does the North American Industry Classification System (NAICS) code 236220 (Commercial and Institutional Building Construction) align with the specific requirements of repairing a potable water sy

NAICS code 236220 is appropriate as it covers general contractors engaged in the construction or renovation of nonresidential buildings, including commercial, institutional, and government facilities. Repairing a potable water system within a large medical center like Madigan Army Medical Center falls under this broad category, as it involves significant work on the building's infrastructure. While specialized plumbing or utility contractors might perform the actual work, the general contractor (Structsure Projects Inc.) is responsible for overall project management, coordination, and adherence to building codes and standards, which aligns with the scope of 236220.

What is the significance of the contract being a 'Delivery Order' under a potential IDIQ contract, and how does this affect competition and pricing?

A 'Delivery Order' signifies that this contract is likely one task order issued against a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle. IDIQs are often used for services or supplies needed over a period, allowing the government to order specific quantities as needed. If this was competed as part of the initial IDIQ award, then the competition for the IDIQ itself was robust. However, if this specific delivery order was competed separately or if the IDIQ had limited sources, the competition for this particular project might be less intense than a standalone full-and-open solicitation. The pricing for delivery orders is typically established by the terms of the parent IDIQ contract, which may include pre-negotiated rates or formulas.

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: W9127S20R6018

Offers Received: 2

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: $43,649,612

Exercised Options: $43,649,612

Current Obligation: $43,649,612

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127S23D6024

IDV Type: IDC

Timeline