DoD's $47M roof replacement contract awarded to StructSure Projects Inc. for a 3-year duration

Contract Overview

Contract Amount: $47,016,873 ($47.0M)

Contractor: Structsure Projects Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-20

End Date: 2026-01-06

Contract Duration: 1,204 days

Daily Burn Rate: $39.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION- REPLACE ROOF

Place of Performance

Location: FORT SILL, COMANCHE County, OKLAHOMA, 73503

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $47.0 million to STRUCTSURE PROJECTS INC for work described as: CONSTRUCTION- REPLACE ROOF Key points: 1. Value for money appears fair given the long-term nature of the project and the firm-fixed-price structure. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with the contract type and duration being key factors. 4. Performance context is tied to essential infrastructure maintenance for the Department of the Army. 5. Sector positioning is within the broad construction services category, specifically building maintenance and repair.

Value Assessment

Rating: fair

The contract value of $47 million for a 3-year roof replacement project is substantial. Benchmarking against similar large-scale construction projects for federal agencies suggests this price is within a reasonable range, though specific cost breakdowns are not available. The firm-fixed-price contract type aims to control costs, but the long duration could introduce unforeseen expenses. Without detailed cost data, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance.

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 4 bids suggests a healthy level of interest and competition for this project. A competitive process generally leads to better price discovery and can drive down costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied for the contract, pushing for the most competitive pricing.

Public Impact

The primary beneficiaries are the Department of the Army, ensuring the structural integrity and operational readiness of facilities. The service delivered is the replacement of roofing systems, a critical component of building maintenance. The geographic impact is localized to the specific Army installation in Oklahoma where the work is performed. Workforce implications include employment opportunities for construction workers, project managers, and support staff in the Oklahoma region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1204 days) could lead to cost overruns if material prices or labor costs escalate significantly.
Firm-fixed-price contracts can sometimes disincentivize contractors from seeking innovative cost-saving measures if not carefully managed.
Reliance on a single contractor for a large-scale, multi-year project may limit flexibility if unforeseen issues arise.
The specific nature of roof replacement can be subject to weather delays, potentially impacting project timelines and costs.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, StructSure Projects Inc., has a track record that can be reviewed for performance history.
The project addresses a critical infrastructure need, ensuring long-term facility usability.
The contract duration allows for phased work and potentially better resource allocation.

Sector Analysis

The construction sector, particularly commercial and institutional building construction, is a significant area of federal spending. This contract falls under building maintenance and repair, a recurring need for government facilities. Federal spending in this area often involves large contracts for infrastructure upgrades and upkeep. Comparable benchmarks would include other large-scale roofing or building envelope projects awarded by agencies like the General Services Administration (GSA) or other branches of the Department of Defense.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the large contract value, it is possible that larger firms are the primary awardees, with potential for small business participation through subcontracting opportunities. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army, ensuring compliance with contract terms and quality standards. The firm-fixed-price nature provides a degree of accountability for the contractor to deliver the specified work within the agreed-upon price. Transparency is facilitated by the public award data, but detailed project progress and financial oversight mechanisms are internal to the agency.

Related Government Programs

Department of Defense Facilities Maintenance
Army Corps of Engineers Construction Contracts
Federal Building Infrastructure Projects
Commercial Roofing Contracts

Risk Flags

Long contract duration may expose government to price escalation risks.
Potential for weather-related delays impacting project timeline.
Need for sustained government oversight over a multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.0 million to STRUCTSURE PROJECTS INC. CONSTRUCTION- REPLACE ROOF

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 $47.0 million.

What is the period of performance?

Start: 2022-09-20. End: 2026-01-06.

What is the historical spending pattern for roof replacement projects by the Department of the Army in Oklahoma?

Analyzing historical spending for similar roof replacement projects by the Department of the Army in Oklahoma requires access to detailed federal procurement databases. However, general trends indicate that infrastructure maintenance, including roofing, is a consistent expenditure for military installations. The frequency and scale of such projects are influenced by the age of facilities, environmental factors, and budget allocations. Without specific data for Oklahoma, it's difficult to provide precise historical figures, but it's reasonable to assume that regular investments are made to maintain the integrity of buildings across its bases in the state. This $47 million contract represents a significant, multi-year investment for a specific installation or set of installations.

How does the per-square-foot cost of this roof replacement compare to industry benchmarks?

Determining the per-square-foot cost requires knowing the total square footage of the roof being replaced, which is not provided in the data. However, the total contract value of $47 million over approximately 1204 days (roughly 3.3 years) suggests a substantial project. Typical commercial roofing costs can range widely from $5 to $25 per square foot, depending on the material, complexity of the roof, labor rates, and geographic location. For a project of this magnitude, assuming a large facility, the cost per square foot would need to be calculated once the total area is known. Given the firm-fixed-price nature and competitive award, the government likely secured a price that is competitive within the Oklahoma market for similar commercial roofing services.

What is StructSure Projects Inc.'s track record with similar federal contracts?

StructSure Projects Inc. has a history of performing construction and renovation projects for federal agencies. To assess their track record specifically for large-scale roof replacements, a review of their past performance ratings on federal contracts would be necessary. This would involve examining contract close-out data, any reported disputes or claims, and client feedback. Agencies typically maintain performance information that can be accessed through procurement systems. A positive performance history on similar projects would indicate a lower risk for this current contract, while a history of issues might raise concerns about project execution, cost control, or adherence to schedules.

What are the potential risks associated with a 3-year duration for a roof replacement project?

A 3-year duration for a roof replacement project, while allowing for phased work and potentially better resource management, also introduces several risks. Material price escalation is a significant concern; the cost of roofing materials, labor, and associated supplies could increase substantially over three years, potentially impacting the contractor's profit margin or leading to claims if not adequately accounted for in the fixed price. Weather delays are another risk, as extended periods of adverse weather can significantly push back schedules. Furthermore, a longer project timeline increases the chance of unforeseen site conditions or structural issues being discovered, which could necessitate change orders and increase costs. Finally, maintaining consistent quality control and project oversight over such an extended period requires sustained effort from the government's contracting team.

How does the number of bidders (4) impact the pricing and value for the government?

Having four bidders for this contract is generally a positive indicator for the government. A higher number of bids typically signifies robust competition, which tends to drive down prices as contractors vie to win the award. It suggests that the contract requirements were clear and accessible, attracting multiple capable firms. With four bids, the government has a reasonable basis for comparison to ensure the selected price is competitive and reflects fair market value. While more bidders could theoretically lead to even lower prices, four is often considered a sufficient number to achieve competitive outcomes in many construction sectors, especially for specialized projects like large-scale roof replacements.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY16R0005

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 903 E 104TH ST, 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: $47,016,873

Exercised Options: $47,016,873

Current Obligation: $47,016,873

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY17D0030

IDV Type: IDC

Timeline