Fort Carson hangar construction contract awarded to Straub Construction for $62.9M, completed over 1295 days

Contract Overview

Contract Amount: $62,888,819 ($62.9M)

Contractor: Straub Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-09-07

End Date: 2021-03-25

Contract Duration: 1,295 days

Daily Burn Rate: $48.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF M 4TH ID CAB ATTACK BATTALION MAINTENANCE HANGAR CONSTRUCTION, PAVEMENTS, SITEWORK&DEMO LOCATED AT FORT CARSON, CO

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80913

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $62.9 million to STRAUB CONSTRUCTION, INC. for work described as: IGF::OT::IGF M 4TH ID CAB ATTACK BATTALION MAINTENANCE HANGAR CONSTRUCTION, PAVEMENTS, SITEWORK&DEMO LOCATED AT FORT CARSON, CO Key points: 1. The contract's value of $62.9 million represents a significant investment in military infrastructure. 2. Competition dynamics for this large construction project are crucial for ensuring taxpayer value. 3. Performance timelines and potential delays are key risk indicators for infrastructure projects of this scale. 4. The project's completion within the specified duration provides context for contractor performance. 5. This contract falls within the broader sector of commercial and institutional building construction for the Department of Defense.

Value Assessment

Rating: fair

The contract value of $62.9 million for a maintenance hangar, pavements, and sitework at Fort Carson is substantial. Benchmarking this against similar military construction projects would be necessary for a precise value-for-money assessment. However, given the scope and duration, the price appears within a reasonable range for large-scale federal construction, though without detailed cost breakdowns or comparisons to private sector equivalents, a definitive judgment on optimal value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of 5 bids suggests a competitive environment, which generally aids in price discovery and can lead to more favorable pricing for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the competition.

Taxpayer Impact: A competitive bidding process for this substantial contract helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Army units stationed at Fort Carson, Colorado, who will gain improved maintenance facilities. The services delivered include the construction of a maintenance hangar, associated pavements, and site demolition. The geographic impact is localized to Fort Carson, Colorado, enhancing operational capabilities at this specific military installation. The project likely involved a significant construction workforce, contributing to employment in the local and regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in large-scale construction projects.
Risk of schedule delays impacting military operational readiness.
Ensuring compliance with environmental and safety regulations during construction.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Completed within a defined contract duration, indicating project management adherence.
The contract type (Firm Fixed Price) generally limits the government's exposure to cost increases.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on institutional and commercial building construction. The market for military construction is substantial, driven by the Department of Defense's continuous need to modernize and maintain its facilities. Comparable spending benchmarks would involve analyzing other large-scale military base construction projects, such as barracks, training facilities, or vehicle maintenance depots, to understand typical cost structures and project scales.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Straub Construction, Inc. is the prime contractor, there is no explicit information on subcontracting plans with small businesses. The impact on the small business ecosystem would depend on whether the prime contractor actively engaged small businesses for specialized services or materials, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and project management personnel within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which shifts cost risk to the contractor. Transparency is generally provided through contract award databases, though detailed project progress reports and final inspection records may not be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Base Construction
Department of Defense Infrastructure Projects
Fort Carson Facilities Modernization
Army Corps of Engineers Construction Contracts

Risk Flags

Potential for cost overruns
Risk of schedule delays
Ensuring quality of construction
Environmental compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.9 million to STRAUB CONSTRUCTION, INC.. IGF::OT::IGF M 4TH ID CAB ATTACK BATTALION MAINTENANCE HANGAR CONSTRUCTION, PAVEMENTS, SITEWORK&DEMO LOCATED AT FORT CARSON, CO

Who is the contractor on this award?

The obligated recipient is STRAUB CONSTRUCTION, 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 $62.9 million.

What is the period of performance?

Start: 2017-09-07. End: 2021-03-25.

What is the track record of Straub Construction, Inc. on federal contracts, particularly within the Department of Defense?

Straub Construction, Inc. has a history of performing federal contracts, including work for the Department of Defense. Analyzing their past performance ratings, any contract disputes, or awards for similar projects would provide insight into their reliability and capability. For this specific contract, the completion within the defined duration suggests a degree of successful project execution. Further investigation into their portfolio of military construction projects would offer a more comprehensive understanding of their experience and performance trends.

How does the final cost of $62.9 million compare to the initial estimated cost or bids received?

The provided data indicates the awarded amount ($62.9M) and the number of bids (5), but not the initial estimates or the specific values of all bids. To assess value, a comparison of the awarded price against the government's independent cost estimate and the range of submitted bids is crucial. If the awarded price was significantly lower than other bids and within the government's estimate, it suggests good price negotiation. Conversely, if it was at the high end or exceeded estimates, further scrutiny of the bidding process and contractor justification would be warranted.

What were the primary risk factors identified during the bidding and execution phases of this contract, and how were they mitigated?

For a large construction project like this hangar, primary risks likely included unforeseen site conditions, material cost fluctuations, labor availability, and weather delays. Mitigation strategies would involve thorough site investigations, robust contract clauses addressing price escalation (though less common in FFP), contingency planning for labor, and scheduling buffers for weather. The firm-fixed-price nature of the contract inherently transfers some cost risk to the contractor. Specific mitigation plans are typically detailed in the contract's SOW and performance work statement.

What is the long-term impact of this facility upgrade on the operational readiness and efficiency of the military units at Fort Carson?

The construction of a new maintenance hangar directly enhances operational readiness by providing a dedicated, modern facility for vehicle and equipment maintenance. This can lead to reduced downtime for critical assets, improved quality of repairs, and better protection of equipment from environmental factors. Increased efficiency stems from optimized workflows, better tool and parts storage, and potentially more advanced diagnostic capabilities within the new structure. The facility upgrade supports the overall mission effectiveness of the units stationed at Fort Carson.

How does spending on construction and maintenance facilities at military bases like Fort Carson compare to other types of military spending?

Spending on construction and maintenance facilities represents a significant portion of the Department of Defense's overall budget, often categorized under 'Military Construction' (MILCON) or 'Operations and Maintenance' (O&M). While specific figures fluctuate annually, MILCON appropriations are substantial, funding new facilities and major renovations. O&M covers routine maintenance and repairs. Compared to spending on personnel, procurement of major weapon systems, or research and development, infrastructure spending is a critical, albeit often less visible, component that ensures the long-term viability and effectiveness of military installations.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9128F16R0067

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 202 W COLLEGE ST STE 201, FALLBROOK, CA, 92028

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

Financial Breakdown

Contract Ceiling: $65,106,819

Exercised Options: $62,888,819

Current Obligation: $62,888,819

Actual Outlays: $3,382,130

Subaward Activity

Number of Subawards: 44

Total Subaward Amount: $139,929,944

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline