J. E. Dunn Construction awarded $92.9M for Regional Confinement Facility, highlighting significant investment in infrastructure
Contract Overview
Contract Amount: $92,886,545 ($92.9M)
Contractor: J. E. Dunn Construction Company
Awarding Agency: Department of Defense
Start Date: 2006-09-28
End Date: 2010-06-26
Contract Duration: 1,367 days
Daily Burn Rate: $67.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REGIONAL CONFINEMENT FACILITY PN 64700
Place of Performance
Location: FORT LEAVENWORTH, LEAVENWORTH County, KANSAS, 66027
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $92.9 million to J. E. DUNN CONSTRUCTION COMPANY for work described as: REGIONAL CONFINEMENT FACILITY PN 64700 Key points: 1. The contract value of $92.9 million represents a substantial commitment to facility construction. 2. Competition dynamics for this large-scale project are crucial for ensuring taxpayer value. 3. Performance risk is moderate, given the complexity of large construction projects. 4. The project's duration of over three years suggests a long-term operational need. 5. This contract falls within the broad category of commercial and institutional building construction. 6. The firm-fixed-price structure aims to control costs and provide predictability.
Value Assessment
Rating: good
The contract value of $92.9 million for a regional confinement facility appears to be within the expected range for projects of this scale and complexity. Benchmarking against similar large-scale construction projects for government facilities would provide a more precise assessment of value for money. The firm-fixed-price contract type suggests an effort to manage cost overruns, which is a positive indicator for value.
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 had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and achieving competitive pricing. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust bidding process.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors, driving down costs through market forces.
Public Impact
The primary beneficiaries are likely the Department of Defense and potentially other federal agencies requiring secure confinement facilities. The services delivered include the construction of a significant regional confinement facility. The geographic impact is centered in Kansas, where the facility is located. Workforce implications include job creation for construction workers, engineers, architects, and related trades during the construction phase.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting project completion timelines.
- Risk of cost escalation if unforeseen site conditions arise, despite fixed-price contract.
- Ensuring compliance with all environmental and safety regulations during construction.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- Firm-fixed-price contract type helps to mitigate cost overrun risks.
- The contractor, J. E. Dunn Construction Company, is a reputable firm with experience in large-scale projects.
Sector Analysis
This contract falls within the construction sector, specifically commercial and institutional building construction. The market for large government facilities is substantial, with significant annual spending by various federal agencies. This project represents a notable investment in secure infrastructure, comparable to other large-scale building projects undertaken by the government.
Small Business Impact
The provided data indicates that small business participation (set-aside or subcontracting) was not a specific requirement or focus for this contract (sb: false, ss: false). This suggests that the primary contractor, J. E. Dunn, likely managed the project with its own resources or through larger subcontractors, with limited direct impact on the small business ecosystem unless they were engaged as lower-tier subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer's representative (COR) from the Department of the Army, ensuring adherence to contract terms, specifications, and timelines. Accountability measures are embedded in the firm-fixed-price structure, which incentivizes the contractor to complete the project within budget. Transparency is generally maintained through contract award databases and reporting requirements.
Related Government Programs
- Military Construction
- Federal Building Construction
- Correctional Facility Construction
- Department of Defense Infrastructure Projects
Risk Flags
- Potential for unforeseen site conditions impacting budget and schedule.
- Risk of delays due to specialized security system integration.
- Ensuring compliance with stringent safety and environmental regulations.
Tags
construction, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, large-contract, infrastructure, kansas, commercial-and-institutional-building-construction
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $92.9 million to J. E. DUNN CONSTRUCTION COMPANY. REGIONAL CONFINEMENT FACILITY PN 64700
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 $92.9 million.
What is the period of performance?
Start: 2006-09-28. End: 2010-06-26.
What is the historical spending pattern for regional confinement facilities by the Department of Defense?
Historical spending on regional confinement facilities by the Department of Defense can vary significantly based on geopolitical factors, military readiness requirements, and the aging of existing infrastructure. While specific data for 'regional confinement facilities' as a distinct category might be aggregated under broader 'military construction' or 'facility maintenance' budgets, large-scale projects like this one are typically funded through specific appropriations. Analyzing past appropriations for similar construction projects, especially those involving secure facilities, would reveal trends in investment. For instance, periods of increased troop deployment or shifts in detention policies could correlate with higher spending in this area. Without access to detailed historical appropriations specifically for confinement facilities, it's challenging to provide precise figures, but such projects are often multi-year, high-value endeavors.
How does the awarded amount compare to the estimated cost or bid range for similar projects?
The awarded amount of $92.9 million for the Regional Confinement Facility needs to be benchmarked against the estimated cost or bid range for similar projects to assess value. Typically, government agencies develop independent cost estimates before soliciting bids. The number of bids received and the variance between them and the government estimate provide insights into the competitiveness and reasonableness of the pricing. If multiple bids were received and the awarded amount was close to the lower end of the competitive range, it suggests good value. Conversely, if the awarded amount significantly exceeded estimates or if there was a wide disparity among bids, it might indicate potential issues with cost estimation or market conditions. Further analysis would require access to the bid tabulation and the agency's cost estimates for this specific project.
What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this project?
Key performance indicators (KPIs) for a large construction project like the Regional Confinement Facility typically focus on schedule adherence, quality of work, safety compliance, and budget management. For a firm-fixed-price contract, meeting the final delivery date and ensuring the facility is built to specified standards without exceeding the contracted price are paramount. Specific KPIs might include milestones for foundation completion, structural erection, interior finishing, and final inspection. Safety KPIs would involve tracking incident rates (e.g., lost time injuries). Quality KPIs could relate to the number of defects identified during inspections or the successful completion of system testing. The contracting officer's representative (COR) would monitor these KPIs throughout the project lifecycle.
What is the track record of J. E. Dunn Construction Company with similar government contracts?
J. E. Dunn Construction Company has a significant track record with large-scale construction projects, including those for government entities. Their portfolio often includes complex facilities, educational institutions, healthcare centers, and commercial buildings. To assess their specific performance on similar government contracts, one would examine past contract awards, performance evaluations (if publicly available through systems like the Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract modifications. A history of successful project completion, on time and within budget, for comparable government projects would indicate a lower performance risk for this Regional Confinement Facility contract. Conversely, a pattern of delays, cost overruns, or quality issues on prior government work would raise concerns.
Are there any specific risks associated with the location or type of facility that could impact cost or schedule?
The location in Kansas and the nature of a 'Regional Confinement Facility' present several potential risks. Site-specific risks could include unforeseen geological conditions, extreme weather patterns impacting construction schedules, or local labor market dynamics affecting workforce availability and cost. For a confinement facility, specific risks relate to the stringent security requirements, specialized construction materials and techniques needed for durability and containment, and the integration of complex security systems. Failure to adequately address these specialized requirements could lead to significant cost overruns, schedule delays, or a facility that does not meet operational needs. Thorough site investigations and specialized design considerations are critical to mitigating these risks.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DQ06R0045
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: JE Dunn Construction Group Inc (UEI: 007836448)
Address: 929 HOLMES ST, KANSAS CITY, MO, 05
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $97,157,258
Exercised Options: $92,886,545
Current Obligation: $92,886,545
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-09-28
Current End Date: 2010-06-26
Potential End Date: 2010-06-26 00:00:00
Last Modified: 2010-09-10
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