DoD Awards $73M Sheppard AFB Medical Clinic Replacement to J.E. Dunn Construction
Contract Overview
Contract Amount: $72,934,672 ($72.9M)
Contractor: J. E. Dunn Construction Company
Awarding Agency: Department of Defense
Start Date: 2017-09-12
End Date: 2022-09-01
Contract Duration: 1,815 days
Daily Burn Rate: $40.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF MEDICAL DENTAL CLINIC REPLACEMENT AT SHEPPARD AIR FORCE BASE, TEXAS
Place of Performance
Location: SHEPPARD AFB, WICHITA County, TEXAS, 76311
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $72.9 million to J. E. DUNN CONSTRUCTION COMPANY for work described as: IGF::OT::IGF MEDICAL DENTAL CLINIC REPLACEMENT AT SHEPPARD AIR FORCE BASE, TEXAS Key points: 1. The contract awarded to J.E. Dunn Construction Company for $72.9M represents a significant investment in military healthcare infrastructure. 2. Competition was full and open, suggesting a robust price discovery process. 3. The project's duration of 1815 days indicates a complex, long-term undertaking. 4. The firm-fixed-price contract type shifts risk to the contractor, potentially impacting final cost. 5. The absence of small business participation is noted.
Value Assessment
Rating: good
The $72.9M award for a large-scale construction project appears within a reasonable range for similar military medical facility replacements, though specific benchmarks are unavailable without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, allowing multiple bidders to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective solution for a critical military infrastructure project.
Public Impact
Enhances healthcare access and quality for service members and their families at Sheppard AFB. Represents a substantial federal investment in construction and related industries. Potential for job creation during the construction phase. Long-term asset for military readiness and personnel well-being.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long project duration may introduce cost escalation risks.
Positive Signals
- Full and open competition.
- Firm-fixed-price contract type.
Sector Analysis
This project falls under the Commercial and Institutional Building Construction sector. Federal spending in this sector is substantial, supporting infrastructure development across various government agencies. Benchmarks for similar large-scale medical facility construction can vary widely based on location, complexity, and specific requirements.
Small Business Impact
The contract was not awarded to small businesses, as indicated by 'sb': false. Efforts to ensure small business participation in large federal construction contracts are often a priority, and the absence here warrants further review.
Oversight & Accountability
The award was managed by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract management teams ensuring adherence to terms, quality standards, and timely completion.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation.
- Long contract duration (1815 days).
- Potential for cost escalation in firm-fixed-price contracts over extended periods.
- Dependence on a single large contractor for a critical facility.
Tags
commercial-and-institutional-building-co, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.9 million to J. E. DUNN CONSTRUCTION COMPANY. IGF::OT::IGF MEDICAL DENTAL CLINIC REPLACEMENT AT SHEPPARD AIR FORCE BASE, TEXAS
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 $72.9 million.
What is the period of performance?
Start: 2017-09-12. End: 2022-09-01.
What was the basis for the firm-fixed-price determination, and how did it account for potential material cost fluctuations over the 1815-day duration?
The firm-fixed-price (FFP) contract type suggests the contractor assumed the risk of cost overruns. The pricing would have been established during the initial bidding phase, likely incorporating contingencies for anticipated material and labor costs. However, significant unforeseen market shifts over nearly five years could still strain the contractor's margins or necessitate change orders if not adequately addressed in the contract's escalation clauses.
Given the project's scale and duration, what specific risk mitigation strategies were employed by the Department of the Army to manage potential delays or cost overruns?
While the FFP contract places cost risk on the contractor, the Army likely employed several oversight mechanisms. These could include rigorous project scheduling, regular progress reviews, quality assurance inspections, and defined procedures for change order management. Performance bonds and liquidated damages clauses may also be in place to incentivize timely completion and penalize delays.
How will the successful completion of this new medical clinic impact the operational efficiency and healthcare service delivery at Sheppard Air Force Base?
The replacement of an aging facility with a modern clinic is expected to significantly enhance operational efficiency and service delivery. Modern facilities often incorporate improved layouts, updated technology, and better patient flow, leading to reduced wait times, improved diagnostic capabilities, and a better overall patient and provider experience. This directly supports the health and readiness of the base population.
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: W912BV17R0019
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: JE Dunn Construction Group Inc
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: $72,934,672
Exercised Options: $72,934,672
Current Obligation: $72,934,672
Actual Outlays: $5,444,951
Subaward Activity
Number of Subawards: 47
Total Subaward Amount: $59,355,207
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-09-12
Current End Date: 2022-09-01
Potential End Date: 2022-09-01 00:00:00
Last Modified: 2023-02-01
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- 200305!000084!2100!CA41 !USA Engineer District,Kansas Cty!daca4103c0003 !A!N! !N! !20030121!20040120!008906844!008906844!007836448!N!J E Dunn Construction CO !929 Holmes ST !kansas City !mo!64106!39000!103!20!leavenworth !leavenworth !kansas !+000000348000!n!n!000000348000!y131!schools !C2 !construction !1000!NOT Discernable or Classified !236210!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!j!2!009!b! !D!N!C! ! !N!C!N! ! ! !c!c!a!a!000!a!b!y! !N! !Y! ! !0001! ! — $112.5M (Department of Defense)
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