DOD awards $40.6M for construction services to StructSure Projects Inc

Contract Overview

Contract Amount: $40,603,555 ($40.6M)

Contractor: Structsure Projects Inc

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2025-04-01

Contract Duration: 1,644 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MCC CONSTRUCTION

Place of Performance

Location: FORT LEAVENWORTH, LEAVENWORTH County, KANSAS, 66027

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $40.6 million to STRUCTSURE PROJECTS INC for work described as: MCC CONSTRUCTION Key points: 1. Value for money appears reasonable given the firm-fixed-price contract type, which shifts risk to the contractor. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 4 years) indicates a significant, long-term construction need. 4. The contractor, StructSure Projects Inc., is based in Kansas, potentially indicating regional economic impact. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract is a definitive contract, suggesting a single award for a defined scope of work.

Value Assessment

Rating: good

The contract's firm-fixed-price structure is a positive indicator for value, as it caps costs for the government. Benchmarking against similar large-scale construction projects would provide a more precise value assessment. However, the absence of specific performance metrics or detailed cost breakdowns makes a definitive value-for-money judgment challenging without further data. The total award amount of $40.6 million for over four years of work suggests a substantial project, and the competitive award process likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bids suggests a healthy level of competition for this significant construction project. A competitive process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers by encouraging multiple contractors to offer their best terms.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will utilize the constructed facilities. The contract delivers essential commercial and institutional building construction services. The geographic impact is centered in Kansas, where the contractor is located, potentially creating local jobs and economic activity. Workforce implications include employment opportunities for construction labor and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extended contract period.
Dependence on a single contractor for a significant construction project could pose risks if performance falters.
Limited transparency into the specific breakdown of costs within the $40.6 million award.

Positive Signals

Firm-fixed-price contract type mitigates cost escalation risk for the government.
Full and open competition suggests a robust bidding process and potentially competitive pricing.
The contractor's base in Kansas may foster local economic development and job creation.

Sector Analysis

The construction sector is a significant part of the federal procurement landscape, encompassing a wide range of building and infrastructure projects. This contract falls under commercial and institutional building construction, a segment that includes offices, educational facilities, and other non-residential structures. Federal spending in this area is often driven by the need to maintain, upgrade, or expand government facilities. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per project for similar government construction endeavors.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the absence of specific subcontracting plans or goals mentioned in the provided data means the direct impact on the small business ecosystem is unclear. While large prime contracts can sometimes lead to subcontracting opportunities for small businesses, this is not guaranteed without explicit provisions.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army personnel responsible for the construction project. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally facilitated through contract award databases, but detailed project progress and financial oversight information may not be publicly available.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Federal Building Construction
Department of Defense Facilities Management

Risk Flags

Potential for scope creep if not managed tightly.
Contractor performance risk over a long duration.
Market volatility in construction materials and labor costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.6 million to STRUCTSURE PROJECTS INC. MCC CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is STRUCTSURE PROJECTS 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 $40.6 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-04-01.

What is the track record of StructSure Projects Inc. with federal contracts, particularly with the Department of Defense?

Information regarding StructSure Projects Inc.'s specific track record with federal contracts, especially with the Department of Defense, is not detailed in the provided data. A comprehensive analysis would require examining historical contract awards, performance reviews, and any past issues or successes the company has had with government entities. This would involve searching federal procurement databases like SAM.gov or FPDS-NG for their contract history, including contract values, types, and agencies served. Understanding their past performance is crucial for assessing their capability and reliability in executing this $40.6 million construction project.

How does the $40.6 million award compare to the typical cost of similar construction projects undertaken by the Department of Defense?

Benchmarking the $40.6 million award requires comparing it to the costs of similar construction projects undertaken by the Department of Defense. Factors such as project scope, size (square footage), complexity, location, and specific construction type (e.g., barracks, administrative buildings, specialized facilities) are critical for a meaningful comparison. Without these details, a direct comparison is difficult. However, the award covers a period of over four years, suggesting a substantial and potentially complex undertaking. A thorough analysis would involve identifying comparable projects within the DOD's portfolio and analyzing their total cost, cost per square foot, and duration to assess if this contract represents a fair market value.

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

The primary risks associated with a firm-fixed-price contract of this magnitude ($40.6 million) and duration (over 4 years) for the contractor include potential cost overruns if material prices or labor costs increase unexpectedly, or if unforeseen site conditions arise that were not adequately accounted for during the bidding process. For the government, the main risk is that the contractor may cut corners on quality or scope to maintain profitability if they underestimated costs, although the firm-fixed-price nature does provide cost certainty. Robust project oversight and clear contract specifications are essential to mitigate these risks.

How effective is the full and open competition process in ensuring competitive pricing for large construction contracts?

The full and open competition process is generally considered the most effective method for ensuring competitive pricing for large construction contracts. By allowing all responsible sources to bid, it maximizes the number of potential offerors, thereby increasing the likelihood of receiving competitive bids. This process fosters price discovery and encourages contractors to submit their most competitive proposals to win the contract. The fact that four bids were received for this $40.6 million contract suggests that the process was effective in attracting multiple interested parties, which should have contributed to a fair market price for the government.

What are the potential long-term implications of this contract on the Department of Defense's infrastructure capabilities?

The long-term implications of this contract on the Department of Defense's infrastructure capabilities depend heavily on the specific nature of the construction services provided. If the contract is for building new facilities or significantly upgrading existing ones, it could enhance operational capacity, improve living or working conditions for personnel, or modernize critical infrastructure. Conversely, if the construction addresses aging or inadequate facilities, its successful completion would be crucial for maintaining the DOD's readiness and operational effectiveness. The duration of the contract suggests a significant contribution to the DOD's infrastructure portfolio.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this contract that are publicly available?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) associated with this contract. Typically, such details are outlined in the contract's statement of work (SOW) or performance work statement (PWS). While the firm-fixed-price nature implies the contractor is responsible for delivering the agreed-upon scope, the effectiveness of the construction and adherence to quality standards would ideally be monitored through defined metrics. Accessing these specific KPIs would likely require reviewing the full contract documentation, which is not publicly detailed in the summary data.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W912DQ20R4024

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 903 E 104TH ST # 140, KANSAS CITY, MO, 64131

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: $46,129,417

Exercised Options: $40,603,555

Current Obligation: $40,603,555

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline