Army awards $12M construction contract for Fort Hunter Liggett facilities

Contract Overview

Contract Amount: $12,058,762 ($12.1M)

Contractor: Straub Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-06-13

End Date: 2009-06-30

Contract Duration: 748 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF USARC, FT. HUNTER LIGGET, CA

Place of Performance

Location: KING CITY, MONTEREY County, CALIFORNIA, 93930

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to STRAUB CONSTRUCTION, INC. for work described as: CONSTRUCTION OF USARC, FT. HUNTER LIGGET, CA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $12.06 million falls within a moderate spending range for construction projects of this nature. 3. Fixed-price contract type may limit cost overruns for the government. 4. Project duration of approximately two years indicates a significant undertaking. 5. The award to Straub Construction, Inc. represents a single contractor's engagement for this specific project. 6. Geographic focus on California may indicate regional economic impact.

Value Assessment

Rating: good

The contract value of $12.06 million for the construction of USARC facilities at Fort Hunter Liggett appears reasonable for a project of this scope and duration. Benchmarking against similar military construction projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type is generally favorable for cost control, shifting some risk to the contractor. Without specific details on the scope of work and materials, a direct per-unit cost comparison is difficult, but the overall award seems aligned with typical federal construction expenditures.

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 multiple bidders, though not explicitly stated in the provided data, is implied by this competition type. A competitive process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards. The specific number of bids received would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and quality. This process helps prevent inflated pricing that can occur when competition is restricted.

Public Impact

The primary beneficiaries are the U.S. Army Reserve Command (USARC), which will gain new or improved facilities at Fort Hunter Liggett. The project delivers essential construction services, likely involving the building or renovation of barracks, training facilities, or administrative buildings. The geographic impact is concentrated in Monterey County, California, potentially creating local employment opportunities during the construction phase. The construction workforce, including skilled trades and laborers, will be directly impacted by the employment generated by this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial project requirements are not clearly defined.
Risk of construction delays due to unforeseen site conditions or weather.
Dependence on a single contractor for project completion could lead to issues if the contractor faces financial or operational difficulties.

Positive Signals

Firm-fixed-price contract helps mitigate cost escalation risks for the government.
Award through full and open competition suggests a robust selection process.
Project duration is defined, allowing for structured planning and oversight.

Sector Analysis

This contract falls within the construction sector, specifically for institutional and commercial building construction. The federal government is a significant client in this sector, awarding numerous contracts for military bases, government buildings, and infrastructure projects. The market for military construction is often characterized by large-scale projects requiring specialized expertise and adherence to stringent government standards. Comparable spending benchmarks would involve analyzing other military construction contracts awarded by the Department of Defense for similar facility types and geographic regions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were not the primary target for this award. However, the prime contractor, Straub Construction, Inc., may engage small businesses as subcontractors to fulfill portions of the work. The extent of small business subcontracting would depend on the prime contractor's policies and any specific requirements outlined in the contract, impacting the broader small business ecosystem within the construction industry.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed project progress reports may not always be publicly accessible. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Military Construction Program
Army Facilities Sustainment, Restoration, and Modernization
Department of Defense Construction Contracts
Fort Hunter Liggett Operations

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Risk of construction delays due to unforeseen site conditions.
Contractor performance risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to STRAUB CONSTRUCTION, INC.. CONSTRUCTION OF USARC, FT. HUNTER LIGGET, CA

Who is the contractor on this award?

The obligated recipient is STRAUB 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 $12.1 million.

What is the period of performance?

Start: 2007-06-13. End: 2009-06-30.

What is the track record of Straub Construction, Inc. with federal contracts, particularly within the Department of Defense?

Analyzing the contract history of Straub Construction, Inc. reveals their experience with federal projects. While specific details on past performance metrics are not provided here, a review of federal procurement databases would indicate the number and types of contracts they have previously secured, their performance ratings on those contracts, and any history of disputes or contract modifications. This information is crucial for assessing their reliability and capability to successfully execute the Fort Hunter Liggett construction project. A pattern of successful, on-time, and within-budget completions would be a positive indicator, whereas frequent issues or contract terminations would raise concerns.

How does the awarded amount compare to similar construction projects for military reserve facilities?

To benchmark the value of this $12.06 million contract, it's essential to compare it against similar construction projects for U.S. Army Reserve facilities or other military reserve components. Factors such as square footage, type of construction (e.g., barracks, training centers, administrative buildings), location, and the specific year of award significantly influence costs. If data from similar projects awarded around 2007-2009 in comparable geographic regions indicates substantially lower or higher costs for equivalent scope, it would suggest potential overpayment or exceptional value. Without access to a detailed database of comparable projects with specific scope breakdowns, a precise value-for-money assessment remains challenging, but the award appears within a typical range for such endeavors.

What are the primary risks associated with this specific construction project at Fort Hunter Liggett?

Key risks for this construction project include potential environmental considerations at Fort Hunter Liggett, such as unexploded ordnance or soil contamination, which could necessitate costly remediation and cause delays. The firm-fixed-price contract, while beneficial for cost control, places the burden of unforeseen cost increases on the contractor, potentially leading to pressure to cut corners if not adequately supervised. Furthermore, the project's duration of approximately two years means it is susceptible to changes in military requirements or funding priorities. Labor availability and material cost fluctuations in California's construction market during the 2007-2009 period also represent potential risks that could impact project timelines and the contractor's ability to maintain the fixed price.

What is the historical spending pattern for construction at Fort Hunter Liggett over the last decade prior to this award?

Examining historical spending patterns for construction at Fort Hunter Liggett in the decade preceding this 2007 award would provide context for the $12.06 million contract. This analysis would involve identifying the frequency and value of previous construction contracts awarded for the base, noting any trends in project types or sizes. Understanding whether this contract represents a significant increase or decrease in typical spending levels can indicate shifts in base development priorities or infrastructure needs. For instance, a period of low construction spending followed by this award might suggest a backlog of deferred maintenance or a new strategic initiative. Conversely, if this award is part of a consistent pattern of significant investment, it reflects ongoing base development.

How effective are firm-fixed-price contracts in ensuring cost efficiency for large-scale military construction projects like this one?

Firm-fixed-price (FFP) contracts are generally considered effective tools for ensuring cost efficiency in large-scale military construction projects when the scope of work is well-defined and risks are understood. By establishing a ceiling price upfront, FFP contracts incentivize the contractor to manage costs diligently and complete the project within budget, as any cost overruns are absorbed by the contractor. This shifts significant financial risk from the government to the contractor. However, the effectiveness hinges on the accuracy of the initial cost estimates and the clarity of the contract specifications. If the scope is poorly defined or unforeseen issues arise, contractors may build in substantial contingencies, potentially inflating the initial price, or seek change orders, which can negate the cost-saving benefits. Robust government oversight is still crucial to ensure quality and adherence to specifications.

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: W912QR06R0076

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5256 S MISSION RD STE 310, BONSALL, CA, 48

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,058,762

Exercised Options: $12,058,762

Current Obligation: $12,058,762

Contract Characteristics

Cost or Pricing Data: NO

Timeline