DoD's $28.6M Family Housing Project Awarded to Sundt Construction in 2007

Contract Overview

Contract Amount: $28,622,118 ($28.6M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-09-26

End Date: 2007-10-15

Contract Duration: 19 days

Daily Burn Rate: $1.5M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY07 FAMILY HOUSING REPLACEMENT, FT. HUACHUCA, AZ REPORT NO. 07-0980

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85670

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $28.6 million to SUNDT CONSTRUCTION, INC. for work described as: FY07 FAMILY HOUSING REPLACEMENT, FT. HUACHUCA, AZ REPORT NO. 07-0980 Key points: 1. The contract aimed to address family housing needs at Fort Huachuca, Arizona. 2. Sundt Construction, Inc. was the awarded contractor for this project. 3. The contract was awarded under full and open competition. 4. The project involved new multifamily housing construction. 5. The contract was a firm-fixed-price type, indicating a defined scope and cost. 6. The duration of the contract was 19 days, suggesting a focus on a specific phase or task.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and comparisons to similar housing projects from the same period. The reported award amount of $28.6 million for new multifamily housing construction suggests a significant investment. However, without data on the number of units built, square footage, or specific amenities, it's difficult to assess if this represents good value for money. The firm-fixed-price nature implies cost certainty for the government, but the actual cost-effectiveness relies on the contractor's efficiency and the accuracy of the initial bid.

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 data does not specify the number of bids received, but this method generally promotes a competitive environment. A robust competition typically leads to better pricing and quality as contractors vie for the award. The absence of specific bidder numbers prevents a deeper analysis of the competitive intensity.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage multiple companies to offer their best pricing and solutions.

Public Impact

Military families stationed at Fort Huachuca, Arizona, are the primary beneficiaries, gaining access to new housing. The project delivers new multifamily housing units, improving living conditions for service members and their families. The geographic impact is localized to Fort Huachuca, Arizona. The construction activities likely supported local employment in the construction sector within Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short contract duration (19 days) raises questions about whether it covered the entire construction project or just a specific phase, potentially leading to follow-on contracts.
Without details on the number of housing units or specific construction scope, it's hard to fully assess the value for money.
The contract was awarded in 2007; current market conditions and construction costs may differ significantly, making direct comparisons difficult.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract provides cost certainty for the government.
The project addresses a clear need for family housing at a military installation.

Sector Analysis

This contract falls within the construction sector, specifically focusing on new multifamily housing. The construction industry is characterized by project-based work, varying market conditions, and significant capital investment. Federal spending in military construction is a substantial component of the overall construction market, often driven by specific needs for infrastructure and facilities at military bases. Comparable spending benchmarks would typically involve analyzing the cost per square foot or cost per unit for similar military housing projects awarded around the same time.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no information regarding small business set-asides for this contract. This suggests that the contract was not specifically targeted towards small businesses, and larger firms likely competed for and won the award. Subcontracting opportunities for small businesses may have existed, but this information is not detailed in the provided data. The impact on the small business ecosystem would depend on whether small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army and the Department of Defense. Mechanisms would include contract administration, performance monitoring, and potentially inspections by government representatives. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering the specified scope within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed project oversight reports are not always publicly accessible.

Related Government Programs

Military Construction, Army
Family Housing Construction
Department of Defense Construction Projects
Multifamily Housing Development

Risk Flags

Short contract duration may indicate incomplete scope or phased approach.
Lack of detail on number of units and specific scope makes value assessment difficult.
Comparison to current market costs is limited due to 2007 award date.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.6 million to SUNDT CONSTRUCTION, INC.. FY07 FAMILY HOUSING REPLACEMENT, FT. HUACHUCA, AZ REPORT NO. 07-0980

Who is the contractor on this award?

The obligated recipient is SUNDT CONSTRUCTION, 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 $28.6 million.

What is the period of performance?

Start: 2007-09-26. End: 2007-10-15.

What was the specific scope of work for the FY07 Family Housing Replacement at Fort Huachuca, AZ?

The FY07 Family Housing Replacement project at Fort Huachuca, AZ, awarded to Sundt Construction, Inc. for approximately $28.6 million, focused on the 'New Multifamily Housing Construction (except For-Sale Builders)' category. While the exact number of units or detailed specifications are not provided in the summary data, the contract's objective was to construct new housing facilities to accommodate military families. The firm-fixed-price nature suggests a defined scope was agreed upon, likely including site preparation, building construction, and potentially basic landscaping or utility connections, all within the 19-day contract duration which might indicate a focus on a specific phase or task completion rather than the entire project lifecycle.

How does the $28.6 million award compare to similar military housing projects in FY07?

Comparing the $28.6 million award for the FY07 Family Housing Replacement at Fort Huachuca, AZ, to similar projects requires access to a broader dataset of military construction contracts from that fiscal year. Without specific details on the number of units, square footage per unit, or the type of construction (e.g., barracks vs. family apartments), a direct cost-per-unit or cost-per-square-foot benchmark is difficult. However, $28.6 million represents a substantial investment, typical for large-scale construction initiatives on military installations. Factors like location, prevailing labor costs, material prices, and specific design requirements would influence the cost. Generally, firm-fixed-price contracts awarded under full and open competition aim for competitive pricing, but the ultimate value depends on the execution and final product quality relative to the investment.

What were the potential risks associated with this firm-fixed-price contract for new housing construction?

For a firm-fixed-price contract like the FY07 Family Housing Replacement, the primary risk shifted to the contractor, Sundt Construction, Inc. Potential risks included underestimating construction costs, encountering unforeseen site conditions (e.g., soil issues, hazardous materials), material price fluctuations, or labor shortages, all of which could erode profit margins if not managed effectively. For the government, the main risk was the potential for the contractor to cut corners on quality to maintain profitability, although oversight mechanisms are designed to mitigate this. Delays could also be a risk, impacting the availability of housing for military families. The short 19-day duration might suggest a risk related to the completeness of the scope covered by this specific award.

What is the significance of awarding this contract under 'full and open competition'?

Awarding the FY07 Family Housing Replacement contract under 'full and open competition' signifies that the Department of the Army sought bids from all responsible sources, allowing any qualified construction company to compete. This approach is generally favored as it maximizes the potential for receiving the most competitive pricing and innovative solutions from the market. It implies that there were no specific restrictions or preferences limiting the pool of bidders, such as set-asides for small businesses or specific socio-economic categories. While the number of bidders isn't specified, this method is intended to foster a robust marketplace, ultimately benefiting taxpayers through potentially lower costs and higher quality outcomes compared to sole-source or limited competition scenarios.

How did the contract's 19-day duration impact its overall execution and oversight?

The remarkably short 19-day duration for the FY07 Family Housing Replacement contract awarded to Sundt Construction, Inc. raises significant questions about its scope and execution. It is highly improbable that the entire construction of new multifamily housing could be completed within this timeframe. This suggests the contract likely represented a specific, limited phase of the overall project, such as initial planning, design finalization, a specific construction milestone, or perhaps a task order within a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, though the data doesn't indicate an IDIQ. Consequently, oversight would need to focus intensely on the deliverables within that short window. It also implies that subsequent contracts or phases would be necessary to complete the full housing development, making it crucial to examine the broader program context and subsequent awards to understand the complete picture and total cost.

Industry Classification

NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)

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: W912PL07R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Sundt Companies Inc (UEI: 073354982)

Address: 1501 W FOUNTAINHEAD PKWY STE 600, TEMPE, AZ, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,622,118

Exercised Options: $28,622,118

Current Obligation: $28,622,118

Contract Characteristics

Cost or Pricing Data: NO

Timeline