DoD awards $31.16M for Barstow warehouse construction; Straub Construction wins full and open competition

Contract Overview

Contract Amount: $31,163,474 ($31.2M)

Contractor: Straub Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-02-28

End Date: 2023-04-30

Contract Duration: 1,522 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD FOR THE CONSTRUCTION OF A TEMF AND WAREHOUSE IN BARSTOW CALIFORNIA

Place of Performance

Location: BARSTOW, SAN BERNARDINO County, CALIFORNIA, 92311

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $31.2 million to STRAUB CONSTRUCTION, INC. for work described as: AWARD FOR THE CONSTRUCTION OF A TEMF AND WAREHOUSE IN BARSTOW CALIFORNIA Key points: 1. Contract value of $31.16 million for a TEMF and warehouse facility. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type indicates price certainty for the government. 4. Long duration of 1522 days (approx. 4.17 years) for construction. 5. Contract awarded to Straub Construction, Inc. 6. Facility to be located in Barstow, California.

Value Assessment

Rating: fair

The award of $31.16 million for a TEMF and warehouse in Barstow, California, appears to be within a reasonable range for large-scale construction projects of this nature. Without specific benchmarks for similar facilities in the region or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract provides cost predictability. The duration of over 1500 days suggests a complex project, and the final cost will need to be evaluated against the initial scope and any change orders.

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 bidders (as suggested by 'no': 4) implies a degree of competition, which is generally favorable for price discovery and achieving a competitive market price. The specific details of the bidding process, such as the number of responsive bids and the spread of pricing, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value. It ensures that the government explores a wide range of potential contractors, increasing the likelihood of selecting the most capable and cost-effective option.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Army, who will receive a new TEMF and warehouse facility. The facility will support logistical operations and storage needs in Barstow, California. The geographic impact is localized to Barstow, California, potentially bringing construction jobs to the area. The project will likely involve a significant construction workforce, including skilled tradespeople and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope changes significantly given the long duration.
Risk of construction delays impacting operational readiness for the Army.
Dependence on a single contractor (Straub Construction) for the entire project duration.
Ensuring compliance with environmental and safety regulations during a large-scale construction project.

Positive Signals

Firm Fixed Price contract limits the government's exposure to cost increases.
Full and open competition suggests a robust selection process.
Award to an established construction company (Straub Construction) may indicate a track record of performance.
The specific location in Barstow, CA, may leverage existing infrastructure or workforce.

Sector Analysis

The construction sector is a significant component of federal spending, particularly for infrastructure and facility development. This contract falls under Commercial and Institutional Building Construction (NAICS 236220). Federal spending in this area supports military readiness, government operations, and public services. The market for large-scale construction is often characterized by a mix of large prime contractors and specialized subcontractors, with competition varying based on project complexity, location, and funding availability.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. However, the prime contractor, Straub Construction, Inc., may engage small businesses as subcontractors to fulfill parts of the construction project, depending on their own subcontracting strategies and the availability of qualified small business firms in the relevant trades.

Oversight & Accountability

Oversight for this construction contract would typically be managed by the contracting officer's representative (COR) from the Department of the Army. The firm fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Warehouse and Logistics Infrastructure
Army Base Development

Risk Flags

Long contract duration increases risk of delays and cost escalation through change orders.
Potential for unforeseen site conditions in large-scale construction projects.
Dependence on a single contractor for a multi-year project.
Ensuring compliance with evolving environmental and safety regulations over the project lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.2 million to STRAUB CONSTRUCTION, INC.. AWARD FOR THE CONSTRUCTION OF A TEMF AND WAREHOUSE IN BARSTOW CALIFORNIA

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 $31.2 million.

What is the period of performance?

Start: 2019-02-28. End: 2023-04-30.

What is the historical spending pattern of the Department of the Army with Straub Construction, Inc. for similar construction projects?

Analyzing the historical spending patterns of the Department of the Army with Straub Construction, Inc. requires access to comprehensive federal procurement databases. Without direct access to such data, it's difficult to provide a precise historical context. However, the award of a significant contract like this suggests that Straub Construction likely has a track record of successfully completing government projects, potentially including those for the Department of Defense or other federal agencies. Further investigation would involve searching contract award histories for Straub Construction to identify previous awards, their values, and the types of services rendered to ascertain their experience and performance trends with the Army or similar entities.

How does the awarded amount of $31.16 million compare to the average cost of similar TEMF and warehouse construction projects by the DoD?

Benchmarking the $31.16 million award against similar Department of Defense (DoD) TEMF and warehouse construction projects is crucial for assessing value. A comprehensive comparison would involve analyzing the square footage, complexity of features (e.g., climate control, security), geographic location, and specific functional requirements of the Barstow facility against other DoD construction contracts. Without access to a detailed cost database of comparable projects, a precise benchmark is challenging. However, large-scale military construction projects often run into tens of millions of dollars, and the final cost is heavily influenced by specific design, materials, and site conditions. The firm fixed-price nature suggests the government aimed for cost certainty upfront.

What are the key performance indicators (KPIs) used to evaluate Straub Construction's performance throughout the contract duration?

Key performance indicators (KPIs) for a construction contract of this magnitude typically focus on schedule adherence, quality of work, safety compliance, and adherence to budget (especially relevant for managing change orders within a fixed-price contract). For this specific contract, the Department of the Army would likely monitor milestones related to design completion, site preparation, foundation work, structural erection, interior finishing, and final handover. Performance would be assessed against the contract's specifications and the project's critical path. Regular site inspections, progress reports, and quality assurance checks would be integral to monitoring Straub Construction's performance throughout the 1522-day duration.

What is the potential risk associated with the 1522-day contract duration for this construction project?

The 1522-day duration (approximately 4.17 years) for the construction of the TEMF and warehouse presents several potential risks. Extended project timelines increase the likelihood of encountering unforeseen site conditions, material price fluctuations (though mitigated by fixed-price), and potential labor availability issues. Furthermore, a longer duration means a greater chance of design changes or evolving operational requirements for the facility, which could lead to costly change orders if not managed carefully. There's also an increased risk of project delays due to weather, regulatory hurdles, or supply chain disruptions over such an extended period. Effective project management and proactive risk mitigation strategies are essential to manage these challenges.

How does the 'full and open competition' designation impact the potential for cost savings for the taxpayer on this $31.16 million contract?

The designation of 'full and open competition' is a positive indicator for taxpayer savings on this $31.16 million contract. It signifies that the Department of the Army solicited bids from all responsible sources, thereby maximizing the pool of potential contractors. This broad competition typically drives down prices as contractors vie for the award by offering their most competitive bids. The presence of multiple bidders, noted as 4 in the data, further supports the likelihood of competitive pricing. While the firm fixed-price structure already caps the government's financial exposure, the competitive bidding process helps ensure that this fixed price is established at a reasonable market rate, preventing potential overpayment that might occur in less competitive scenarios.

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: W912QR19R0001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 202 W COLLEGE ST STE 201, FALLBROOK, CA, 92028

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,770,474

Exercised Options: $31,163,474

Current Obligation: $31,163,474

Actual Outlays: $3,305,316

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $2,878,626

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline