DoD awards $78.4M for Cadet Fieldhouse repair, a large project in commercial building construction
Contract Overview
Contract Amount: $78,392,495 ($78.4M)
Contractor: Tutor Perini Corporation
Awarding Agency: Department of Defense
Start Date: 2023-03-01
End Date: 2026-05-18
Contract Duration: 1,174 days
Daily Burn Rate: $66.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: WORK TO COMPLETE REPAIR CADET FIELDHOUSE
Place of Performance
Location: USAF ACADEMY, EL PASO County, COLORADO, 80840
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $78.4 million to TUTOR PERINI CORPORATION for work described as: WORK TO COMPLETE REPAIR CADET FIELDHOUSE Key points: 1. The contract value is substantial, indicating a significant investment in facility infrastructure. 2. The firm-fixed-price structure shifts cost risk to the contractor, potentially leading to higher initial bids. 3. A single award suggests a focused approach, but the competition dynamics warrant further examination. 4. The project duration of over three years points to a complex and lengthy renovation process. 5. The geographic location in Colorado may influence labor costs and material availability. 6. The absence of small business set-asides means opportunities for smaller firms may be limited.
Value Assessment
Rating: fair
The contract value of $78.4 million for repairing a fieldhouse is a significant expenditure. Benchmarking against similar large-scale construction projects for institutional facilities is necessary to determine if the pricing is competitive. The firm-fixed-price contract type suggests that the government has locked in a price, but the initial bid could reflect anticipated costs and contractor risk premiums. Without detailed cost breakdowns or comparisons to similar projects, assessing the true value-for-money 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 all responsible sources were permitted to submit offers. While the number of bidders is not specified, this procurement method generally fosters a competitive environment, which can lead to better pricing and quality. The fact that it was competed broadly suggests that the government sought the best value from the market.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and increasing the likelihood of selecting a cost-effective solution.
Public Impact
The primary beneficiaries are the Department of Defense and its personnel who will utilize the repaired Cadet Fieldhouse. The services delivered include comprehensive repair and renovation of a significant athletic and event facility. The geographic impact is concentrated in Colorado, where the facility is located. Workforce implications include job creation for construction workers, engineers, and project managers in the local area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen issues arise during the extensive renovation.
- Risk of schedule delays given the multi-year duration and complexity of the project.
- Dependence on a single contractor for a large and critical facility repair.
- Limited visibility into the specific cost components of the firm-fixed-price contract.
Positive Signals
- Awarded through full and open competition, suggesting a robust bidding process.
- Firm-fixed-price contract shifts significant cost risk to the contractor.
- Clear project scope for repair and renovation of a key facility.
- Long-term duration allows for thorough execution and quality assurance.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building and renovation of non-residential structures. The Department of Defense is a significant client in this sector, frequently awarding large contracts for infrastructure maintenance and upgrades. The market size for institutional construction is substantial, driven by government, educational, and healthcare facilities. This specific contract represents a major investment in a specialized facility.
Small Business Impact
The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses may be limited to direct subcontracting roles, if any, determined by the prime contractor. The absence of explicit set-asides means the direct economic benefit to the small business ecosystem from this specific award is likely minimal.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting office. The firm-fixed-price nature of the contract implies that oversight will focus on schedule adherence, quality of work, and compliance with contract terms. Transparency may be limited by the proprietary nature of construction bids, but contract award details and progress reports should be publicly accessible. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse.
Related Government Programs
- Military Base Infrastructure Projects
- Federal Building Renovations
- Large-Scale Construction Contracts
- Department of Defense Facilities Management
Risk Flags
- Potential for cost overruns due to multi-year duration and fixed price.
- Risk of schedule delays impacting facility availability.
- Contractor performance on large, complex federal projects.
- Adequacy of competition for a project of this scale.
Tags
construction, department-of-defense, department-of-the-army, definitive-contract, firm-fixed-price, full-and-open-competition, commercial-and-institutional-building-construction, colorado, large-contract, facility-repair
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $78.4 million to TUTOR PERINI CORPORATION. WORK TO COMPLETE REPAIR CADET FIELDHOUSE
Who is the contractor on this award?
The obligated recipient is TUTOR PERINI CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $78.4 million.
What is the period of performance?
Start: 2023-03-01. End: 2026-05-18.
What is the track record of Tutor Perini Corporation on similar large-scale federal construction projects?
Tutor Perini Corporation has a significant history of undertaking large and complex construction projects for various federal agencies, including the Department of Defense. Their portfolio includes military bases, government buildings, and infrastructure. While they possess the capacity for such projects, past performance reviews, including any instances of cost overruns, schedule delays, or contract disputes on similar federal contracts, would be crucial for a comprehensive risk assessment. Analyzing their performance on previous firm-fixed-price contracts of comparable value and complexity would provide insight into their ability to manage this project effectively within budget and on schedule.
How does the awarded amount compare to the estimated cost or budget for repairing the Cadet Fieldhouse?
The awarded amount of $78.4 million represents the government's commitment to the contractor for the completion of the specified work. Without access to the government's independent cost estimate or the detailed breakdown of the contractor's bid, it is difficult to definitively state whether this amount represents excellent, fair, or questionable value. However, the fact that it was awarded under full and open competition suggests that the price was deemed acceptable relative to the bids received. Further analysis would require comparing this figure to similar renovation projects of comparable size and scope, considering factors like location, age of the facility, and the extent of repairs required.
What are the primary risks associated with a firm-fixed-price contract for a multi-year construction project?
The primary risk with a firm-fixed-price (FFP) contract, especially for a multi-year project like the Cadet Fieldhouse repair, is that the contractor bears the brunt of cost overruns. While this shifts risk from the government, it can lead to contractors inflating their initial bids to account for potential unforeseen issues, material price escalations, or labor cost increases over the project's duration. If the contractor miscalculates costs or encounters significant unexpected problems, they may struggle to complete the project, potentially leading to quality compromises or even default. Conversely, if the contractor manages costs exceptionally well, they can achieve higher profit margins. For the government, the risk is paying a potentially higher initial price to secure cost certainty.
What is the historical spending pattern for facility maintenance and repair at this specific military installation?
Analyzing historical spending patterns for facility maintenance and repair at the specific military installation where the Cadet Fieldhouse is located would provide valuable context. This includes examining the frequency and cost of previous repair contracts, the types of work performed, and the contractors involved. Significant increases or decreases in spending, or a pattern of recurring issues requiring frequent repairs, could indicate underlying problems with facility condition or maintenance strategies. Understanding past investments helps in evaluating whether the current $78.4 million award is an anomaly, a necessary catch-up investment, or part of a consistent long-term facility management plan.
How does the duration of this contract (1174 days) compare to typical renovation timelines for similar facilities?
A contract duration of 1174 days, approximately 3.2 years, for the repair of a fieldhouse is substantial and suggests a complex scope of work. Typical renovation timelines for institutional buildings can vary widely based on the size, age, and extent of the required upgrades. For a project of this magnitude, involving potentially structural, mechanical, electrical, and aesthetic improvements, a multi-year duration is not uncommon, especially if it includes demolition, extensive reconstruction, and specialized system installations. However, it is important to benchmark this against similar projects to ensure it aligns with industry standards and to identify any potential for schedule creep or inefficiencies.
What are the implications of the 'CO' (Colorado) state code on this contract's execution and cost?
The 'CO' state code indicates that the contract is being performed in Colorado. This has several implications for execution and cost. Labor costs in Colorado may differ from national averages, potentially influencing the contractor's pricing. The availability of specialized construction labor and materials within the region will also play a role. Furthermore, local building codes, environmental regulations, and permitting processes specific to Colorado must be adhered to, which can impact project timelines and costs. Proximity to the facility for project management and oversight personnel is also a factor. The contractor's familiarity with the local construction environment and regulatory landscape can be an advantage.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9128F22R0018
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 15901, OLDEN STREET, SYLMAR, CA, 91342
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $79,237,847
Exercised Options: $78,392,495
Current Obligation: $78,392,495
Actual Outlays: $7,911,713
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-03-01
Current End Date: 2026-05-18
Potential End Date: 2026-05-18 00:00:00
Last Modified: 2025-12-11
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