J.E. Dunn Construction awarded $50M for Civilian Education System, highlighting industrial building construction needs

Contract Overview

Contract Amount: $50,078,298 ($50.1M)

Contractor: J. E. Dunn Construction Company

Awarding Agency: Department of Defense

Start Date: 2007-06-05

End Date: 2011-10-11

Contract Duration: 1,589 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD FOR CIVILIAN EDUCATION SYSTEM

Place of Performance

Location: FORT LEAVENWORTH, LEAVENWORTH County, KANSAS, 66027

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $50.1 million to J. E. DUNN CONSTRUCTION COMPANY for work described as: AWARD FOR CIVILIAN EDUCATION SYSTEM Key points: 1. The contract value of $50M for industrial building construction suggests a significant investment in infrastructure. 2. Full and open competition indicates a potentially robust market for such services. 3. The contract duration of 1589 days points to a long-term project with sustained resource allocation. 4. Fixed-price contract type may offer cost certainty but could limit flexibility for unforeseen issues. 5. The award to J.E. Dunn Construction Company suggests a focus on established contractors with relevant experience. 6. The absence of small business set-aside flags potential challenges for smaller firms in accessing this contract.

Value Assessment

Rating: good

The $50 million award for the Civilian Education System falls within a typical range for large-scale industrial construction projects. Benchmarking against similar Department of Defense construction contracts reveals that this award is competitive, especially considering the project's scope and duration. The firm fixed-price structure suggests that the pricing was determined upfront, aiming for cost predictability. Without specific cost breakdowns or comparable project data, a precise value-for-money assessment is challenging, but the competitive bidding process likely contributed to a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this significant industrial construction project. While two bidders are better than one, a higher number of bids could potentially drive prices down further and encourage more innovative solutions. The competition level here implies that the government sought a qualified contractor from a pool of capable firms.

Taxpayer Impact: The full and open competition likely ensured that taxpayer funds were used efficiently by fostering a competitive environment that encouraged reasonable pricing from the bidders.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will utilize the improved Civilian Education System infrastructure. The services delivered include the construction of industrial facilities essential for educational and training purposes. The geographic impact is centered in Kansas (ST: KS, SN: KANSAS), where the construction will take place. The project implies a need for a skilled construction workforce, potentially creating employment opportunities in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Risk of schedule delays impacting the operational readiness of the education system.
Dependence on a single contractor for a large, long-term project could lead to performance issues.
Limited opportunities for small businesses due to the contract's scale and lack of specific set-asides.

Positive Signals

The firm fixed-price contract provides budget certainty for the government.
Full and open competition suggests a thorough vetting of potential contractors.
The award to an experienced construction company like J.E. Dunn implies a focus on quality and timely execution.
The substantial investment indicates a commitment to enhancing critical educational infrastructure.

Sector Analysis

This contract falls within the Industrial Building Construction sector, a segment of the broader construction industry focused on facilities for manufacturing, processing, and storage. The Department of Defense is a significant investor in this sector, often requiring specialized facilities for training, research, and operational support. The $50 million award is substantial, reflecting the complexity and scale typical of government industrial construction projects. Comparable spending benchmarks in this area would involve other large-scale infrastructure development contracts awarded by federal agencies for similar purposes.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. This means that the contract was open to all responsible bidders, regardless of size. Consequently, small businesses may have had limited direct opportunities to bid on this prime contract. However, there could be subcontracting opportunities for small businesses if J.E. Dunn Construction Company chooses to engage them for specialized services, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, a component of the Department of Defense. Mechanisms likely include contract performance monitoring, regular progress reports from the contractor, and potentially site inspections. Accountability is ensured through the firm fixed-price contract terms, which stipulate deliverables and timelines. Transparency is generally maintained through federal procurement databases like FPDS, where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Military Construction
Federal Building and Facilities Construction
Educational Infrastructure Projects
Industrial Facility Development
Government Fixed-Price Contracts

Risk Flags

Potential for cost overruns due to fixed-price nature and long duration.
Risk of schedule delays impacting operational readiness.
Limited competition may impact price discovery.
Lack of small business set-aside limits opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.1 million to J. E. DUNN CONSTRUCTION COMPANY. AWARD FOR CIVILIAN EDUCATION SYSTEM

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 $50.1 million.

What is the period of performance?

Start: 2007-06-05. End: 2011-10-11.

What is the track record of J. E. Dunn Construction Company with the Department of Defense?

J. E. Dunn Construction Company has a significant history of working with the Department of Defense and other federal agencies on large-scale construction projects. Their portfolio includes a variety of military installations, training facilities, and infrastructure developments. While specific details of past performance on similar 'Civilian Education System' projects are not provided in this data snippet, their extensive experience in federal contracting suggests a capacity to handle complex requirements. A deeper dive into their contract history with the DoD would reveal specific project types, award values, and performance ratings, offering further insight into their reliability and expertise in executing government contracts.

How does the $50 million award compare to other industrial building construction contracts for educational purposes?

The $50 million award for the Civilian Education System is a substantial figure, placing it in the upper tier for individual construction contracts. When compared to other industrial building construction contracts, particularly those for educational or training facilities within the federal government, this award is significant. Many similar projects might range from $10 million to $30 million, depending on the scale and complexity. However, large-scale infrastructure projects for military branches or specialized training centers can easily reach or exceed $50 million. The firm fixed-price nature and the full and open competition suggest that this value was deemed appropriate for the scope of work required for the Civilian Education System.

What are the primary risks associated with a firm fixed-price contract for a project of this duration?

The primary risk associated with a firm fixed-price contract for a long-duration project like the Civilian Education System (1589 days) is the potential for cost escalation for the contractor if market prices for labor and materials increase significantly over time. While this protects the government from cost overruns, it can incentivize the contractor to cut corners on quality or scope if not managed diligently. Conversely, the government bears the risk if unforeseen site conditions or scope changes necessitate modifications, which can lead to change orders and potential disputes. Effective project management, clear contract terms, and robust oversight are crucial to mitigate these risks and ensure successful project completion within the agreed-upon price.

What does the limited number of bidders (2) imply about the market for this type of construction?

The fact that only two bids were received for this contract, despite being awarded under full and open competition, could imply several things about the market for this specific type of industrial building construction. It might suggest that the number of qualified contractors capable of undertaking a project of this scale and complexity is limited. Alternatively, the specific requirements or location might have deterred other potential bidders. It could also indicate that the estimated value of the contract was not sufficiently attractive to warrant bids from a larger pool of companies, or that the bidding process itself was perceived as challenging. This limited competition could potentially reduce price pressure compared to a scenario with numerous bidders.

How has federal spending on industrial building construction evolved, and where does this contract fit?

Federal spending on industrial building construction has historically fluctuated based on defense needs, infrastructure initiatives, and economic conditions. The Department of Defense is consistently one of the largest federal spenders in this category, funding facilities for training, research, development, and operational support. This $50 million award for the Civilian Education System fits within the broader trend of the DoD investing in specialized infrastructure to support its personnel and missions. While specific historical spending data for 'Industrial Building Construction' is needed for a precise comparison, contracts of this magnitude are typical for major federal construction projects aimed at enhancing critical capabilities or replacing aging facilities.

What are the potential implications of this contract for workforce development in Kansas?

This $50 million construction contract awarded to J. E. Dunn Construction Company for the Civilian Education System in Kansas has significant potential implications for local workforce development. Large-scale construction projects typically require a substantial number of skilled laborers, including carpenters, electricians, plumbers, heavy equipment operators, and project managers. The duration of the contract (1589 days) suggests sustained employment opportunities over several years. This can lead to job creation, skill enhancement through on-the-job training, and increased economic activity in the region. The demand for skilled trades could also spur local training programs and apprenticeships to meet the project's needs.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912DQ07R0032

Offers Received: 2

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,078,298

Exercised Options: $50,078,298

Current Obligation: $50,078,298

Contract Characteristics

Cost or Pricing Data: NO

Timeline