DoD's $1.25B Utah Data Center Contract Awarded to Balfour Beatty/DPR/Big-D JV Under Full and Open Competition
Contract Overview
Contract Amount: $1,251,343,793 ($1.3B)
Contractor: Balfour Beatty/Dpr/Big-D, a Joint Venture
Awarding Agency: Department of Defense
Start Date: 2010-09-24
End Date: 2015-08-27
Contract Duration: 1,798 days
Daily Burn Rate: $696.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: UTAH DATA CENTER, CAMP WILLIAMS, UT
Place of Performance
Location: CEDAR HILLS, UTAH County, UTAH, 84062
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $1.25 billion to BALFOUR BEATTY/DPR/BIG-D, A JOINT VENTURE for work described as: UTAH DATA CENTER, CAMP WILLIAMS, UT Key points: 1. The contract awarded to a joint venture indicates significant project scope and potential for large-scale construction. 2. Full and open competition suggests a robust bidding process, likely leading to competitive pricing. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially protecting taxpayers from overruns. 4. Construction of a data center implies a need for specialized infrastructure and technology integration.
Value Assessment
Rating: good
The contract value of $1.25 billion is substantial for a single construction project. Benchmarking against similar large-scale data center or institutional building projects would be necessary for a precise comparison, but the firm-fixed-price structure suggests an effort to control costs upfront.
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 were encouraged to participate. This method typically fosters price discovery and can lead to more favorable pricing for the government compared to limited or sole-source procurements.
Taxpayer Impact: The use of full and open competition and a firm-fixed-price contract are positive indicators for taxpayer value, aiming to secure the best possible price and manage costs effectively.
Public Impact
Taxpayers benefit from a competitive bidding process designed to secure the best value for a major infrastructure project. The construction of a significant data center could enhance national security capabilities and data processing infrastructure. The project's duration of nearly five years suggests a substantial economic impact through job creation and resource utilization in Utah.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or quality assurance details in the provided data.
- Potential for cost overruns if unforeseen complexities arise during construction, despite the fixed-price nature.
- Dependency on the contractor's ability to deliver specialized data center infrastructure.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Firm-fixed-price contract type transfers significant cost risk to the contractor.
- Large contract value indicates a significant investment in critical infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Large-scale government construction projects, especially those involving specialized facilities like data centers, often represent significant portions of federal spending in this sector, requiring robust oversight and competitive procurement strategies.
Small Business Impact
The data indicates the award went to a joint venture (Balfour Beatty/DPR/Big-D), and there is no specific mention of small business participation or subcontracting. Further investigation would be needed to determine if small businesses were involved in the project.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard government oversight mechanisms for large construction projects would apply, including contract management, quality assurance, and financial monitoring to ensure compliance and taxpayer value.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep or change orders impacting the final cost.
- Reliance on a joint venture may introduce coordination challenges.
- Long project duration increases exposure to market fluctuations and technological obsolescence.
- Lack of explicit small business participation noted.
Tags
commercial-and-institutional-building-co, department-of-defense, ut, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.25 billion to BALFOUR BEATTY/DPR/BIG-D, A JOINT VENTURE. UTAH DATA CENTER, CAMP WILLIAMS, UT
Who is the contractor on this award?
The obligated recipient is BALFOUR BEATTY/DPR/BIG-D, A JOINT VENTURE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $1.25 billion.
What is the period of performance?
Start: 2010-09-24. End: 2015-08-27.
What was the specific scope of work for the Utah Data Center, and how did it align with the Department of Defense's strategic data management needs?
The provided data does not detail the specific scope of work beyond 'Commercial and Institutional Building Construction' for the Utah Data Center. However, given its location at Camp Williams and the awarding agency (Department of the Army), it likely involved the construction of secure, high-capacity facilities designed to house and process sensitive military data, supporting strategic operational and intelligence requirements.
How effectively did the full and open competition process ensure competitive pricing and prevent potential contractor collusion or bid-rigging?
Full and open competition is designed to maximize the number of bidders, thereby increasing price competition and reducing the likelihood of collusion. The government's procurement process typically includes checks and balances, such as bid protests and post-award reviews, to ensure fairness and integrity. The success in achieving competitive pricing would be evident in the final awarded price relative to independent cost estimates.
What mechanisms were in place to monitor the contractor's performance and ensure the data center was built to the required specifications and security standards?
Government contracts, especially for critical infrastructure like data centers, usually involve detailed performance work statements, quality assurance surveillance plans (QASPs), and dedicated contract officers' representatives (CORs). These mechanisms ensure adherence to specifications, security protocols, and timelines, with regular inspections and reporting throughout the project lifecycle.
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: W912DR10R0015
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 404 W 400 S, SALT LAKE CITY, UT, 84101
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,251,343,793
Exercised Options: $1,251,343,793
Current Obligation: $1,251,343,793
Subaward Activity
Number of Subawards: 159
Total Subaward Amount: $1,072,615,132
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-24
Current End Date: 2015-08-27
Potential End Date: 2015-08-27 00:00:00
Last Modified: 2021-02-25
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