DoD awards $35.8M for new tool and die facility construction in Iowa

Contract Overview

Contract Amount: $35,835,161 ($35.8M)

Contractor: Perini Management Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-10-08

End Date: 2025-10-03

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS CONTRACT IS TO BUILD A NEW TOOL AND DIE FACILITY. THE PROJECT INCLUDES SITE IMPROVEMENTS AND CONSTRUCTING A NEW 56,000 SF INDUSTRIAL FACILITY. THE PROJECT ALSO INCLUDES MOVING OLD EQUIPMENT FROM THE EXISTING FACILITY INTO THE NEW FACILITY.

Place of Performance

Location: MIDDLETOWN, DES MOINES County, IOWA, 52638

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $35.8 million to PERINI MANAGEMENT SERVICES, INC. for work described as: THIS CONTRACT IS TO BUILD A NEW TOOL AND DIE FACILITY. THE PROJECT INCLUDES SITE IMPROVEMENTS AND CONSTRUCTING A NEW 56,000 SF INDUSTRIAL FACILITY. THE PROJECT ALSO INCLUDES MOVING OLD EQUIPMENT FROM THE EXISTING FACILITY INTO THE NEW FACILITY. Key points: 1. Project scope includes site improvements and construction of a 56,000 SF industrial facility. 2. Contract involves relocation of existing equipment to the new facility. 3. Awarded to Perini Management Services, Inc. 4. Contract type is Firm Fixed Price, indicating defined costs. 5. Project duration is approximately one year. 6. Facility is intended for industrial building construction needs.

Value Assessment

Rating: good

The contract value of $35.8 million for a 56,000 SF industrial facility, including site improvements and equipment relocation, appears reasonable for the scope of work. Benchmarking against similar industrial construction projects of this size and complexity would provide a more precise value-for-money assessment. The firm fixed price structure helps control costs, but the final value will depend on the execution and any unforeseen site conditions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. The presence of three bidders indicates a competitive environment, which typically drives better pricing and value for the government. The specific details of the bidding process and the evaluation criteria would further clarify the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, potentially saving taxpayer dollars compared to sole-source or limited competition awards.

Public Impact

Benefits the Department of Defense by providing essential infrastructure for tool and die operations. Delivers a new, modern industrial facility to support critical manufacturing and maintenance functions. Geographic impact is focused on Iowa, potentially creating local construction jobs. Workforce implications include employment for construction workers and specialized trades during the building phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if site conditions are more complex than anticipated.
Risk of schedule delays impacting operational readiness if construction is not completed on time.
Ensuring the successful relocation of sensitive equipment requires careful planning and execution.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Full and open competition suggests a competitive pricing environment.
Award to an experienced contractor like Perini Management Services, Inc. can mitigate execution risks.

Sector Analysis

The industrial building construction sector is a significant part of the broader construction industry. This contract falls within the specialized segment of constructing facilities for manufacturing and industrial processes. Comparable spending benchmarks for industrial facilities of this size can vary widely based on location, specific requirements, and market conditions. The $35.8 million award for a 56,000 SF facility suggests a cost of approximately $630 per square foot, which needs to be evaluated against regional construction cost indices and the specific technical requirements of a tool and die facility.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and the prime contractor, Perini Management Services, Inc., is likely a large business. There is no explicit information regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small business participation is a requirement or a goal for this project and to assess its potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army project management office. The firm fixed price nature of the contract provides a degree of accountability for the contractor to deliver the project within the agreed-upon cost. Transparency will depend on the public availability of contract modifications, performance reports, and any audits conducted by the Inspector General.

Related Government Programs

Military Construction
Industrial Facility Development
Defense Manufacturing Support
Government Facility Construction

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting operational readiness.
Complexity of equipment relocation requires careful management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to PERINI MANAGEMENT SERVICES, INC.. THIS CONTRACT IS TO BUILD A NEW TOOL AND DIE FACILITY. THE PROJECT INCLUDES SITE IMPROVEMENTS AND CONSTRUCTING A NEW 56,000 SF INDUSTRIAL FACILITY. THE PROJECT ALSO INCLUDES MOVING OLD EQUIPMENT FROM THE EXISTING FACILITY INTO THE NEW FACILITY.

Who is the contractor on this award?

The obligated recipient is PERINI MANAGEMENT SERVICES, 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 $35.8 million.

What is the period of performance?

Start: 2025-10-08. End: 2025-10-03.

What is the track record of Perini Management Services, Inc. with similar government construction projects?

Perini Management Services, Inc. has a significant history of performing large-scale construction and facilities management contracts for the U.S. government, including projects for the Department of Defense and other federal agencies. Their portfolio often includes complex projects such as military installations, correctional facilities, and critical infrastructure. A review of their past performance ratings, any contract disputes, and the successful completion of similar industrial or manufacturing facility projects would provide insight into their capability to execute this specific contract effectively. Their experience in managing firm-fixed-price contracts and adhering to strict timelines and budgets is a key factor in assessing their suitability.

How does the cost per square foot for this facility compare to industry benchmarks for industrial building construction?

The awarded amount of $35,835,161 for a 56,000 square foot facility equates to approximately $630 per square foot. This figure needs to be benchmarked against current construction cost indices for industrial buildings, considering the specific location (Iowa) and the specialized nature of a tool and die facility, which may require robust foundations, specialized ventilation, and heavy-duty electrical systems. National averages for industrial construction can range from $100 to $400 per square foot, but specialized facilities, high-cost regions, or projects with extensive site work and equipment relocation can significantly increase this cost. A detailed cost breakdown and comparison with similar DoD projects would be necessary for a definitive value assessment.

What are the primary risks associated with constructing a new tool and die facility, and how are they being mitigated?

Key risks in constructing a tool and die facility include unforeseen subsurface conditions impacting site improvements and foundation work, potential delays in material procurement or specialized equipment delivery, and challenges in relocating existing, potentially sensitive, machinery. The firm fixed-price contract structure incentivizes the contractor, Perini Management Services, Inc., to manage these risks within the budget. Mitigation strategies likely involve thorough site investigations prior to construction, detailed scheduling and procurement plans, and a robust project management approach for the equipment move. The government's oversight will be crucial in monitoring progress and ensuring adherence to the contract's technical specifications and timelines.

What is the expected impact of this new facility on the Department of Defense's operational capabilities?

The construction of a new tool and die facility is intended to enhance the Department of Defense's (DoD) capabilities by providing modern, efficient infrastructure for manufacturing, maintaining, and repairing critical tooling and components. This can lead to reduced lead times for essential parts, improved quality control, and potentially lower costs compared to relying solely on external suppliers or outdated facilities. The new facility's capabilities will directly support readiness and sustainment efforts across various DoD branches, ensuring that necessary equipment and systems can be effectively maintained and upgraded.

How does this contract's value compare to historical spending on similar industrial facility construction by the DoD?

Comparing this $35.8 million contract to historical spending requires access to detailed databases of past DoD construction projects, categorized by facility type, size, and location. Without specific historical data, it's difficult to provide a precise comparison. However, the cost per square foot ($630) can be used as a proxy. If historical data shows similar specialized industrial facilities were built for significantly less per square foot, it might indicate a higher-than-average cost for this project. Conversely, if costs have risen due to inflation or increased material/labor expenses, this award might be in line with recent trends. A comprehensive analysis would involve trend analysis of construction costs over several years.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tutor Perini Corporation

Address: 73 MOUNT WAYTE AVE, FRAMINGHAM, MA, 01702

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

Financial Breakdown

Contract Ceiling: $35,835,161

Exercised Options: $35,835,161

Current Obligation: $35,835,161

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline