Sauer Construction awarded $24.6M for Mississippi hurricane damage repairs under full and open competition

Contract Overview

Contract Amount: $24,605,703 ($24.6M)

Contractor: Sauer Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2010-12-17

End Date: 2013-12-31

Contract Duration: 1,110 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::21 2050::TAS MATOC UNRESTRICTED GULF COAST REGIONAL CONSTR PROGRAM: DESIGN-BUILD REPAIR HURRICANE DAMAGE - PHASE II, MISSISSIPPI ARMY AMMUNITION PLANT, STENNIS SPACE CENTER, MISSISSIPPI

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $24.6 million to SAUER CONSTRUCTION, LLC for work described as: TAS::21 2050::TAS MATOC UNRESTRICTED GULF COAST REGIONAL CONSTR PROGRAM: DESIGN-BUILD REPAIR HURRICANE DAMAGE - PHASE II, MISSISSIPPI ARMY AMMUNITION PLANT, STENNIS SPACE CENTER, MISSISSIPPI Key points: 1. Contract focused on design-build repair of hurricane damage, indicating a need for specialized construction services. 2. The award was made under a MATOC (Multiple Award Task Order Contract), suggesting a pre-competed framework for similar services. 3. The fixed-price contract type aims to control costs and transfer risk to the contractor. 4. The project duration of approximately 3 years aligns with the scope of significant repair work. 5. The contract was awarded by the Department of the Army, highlighting defense infrastructure needs. 6. The geographic focus on Stennis Space Center, Mississippi, points to specific regional resilience efforts.

Value Assessment

Rating: good

The contract value of $24.6 million for design-build repair of hurricane damage appears reasonable given the scope. Benchmarking against similar large-scale construction repair contracts would provide further context, but the fixed-price nature suggests an effort to achieve value for money. The award was made under a MATOC, implying that pricing was likely evaluated against pre-negotiated rates or competitive bids within that framework.

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 data shows 16 bids were received, suggesting a healthy level of competition for this project. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process for this repair work likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of the Army and the personnel operating at the Mississippi Army Ammunition Plant, ensuring operational readiness. Services delivered include design and construction to repair significant hurricane-related damage, restoring critical infrastructure. The geographic impact is concentrated in Stennis Space Center, Mississippi, supporting regional recovery and infrastructure resilience. Workforce implications include employment opportunities for construction workers, engineers, and project managers involved in the repair efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during the design-build process, despite the fixed-price structure.
Dependence on the contractor's ability to manage complex logistics and supply chains for materials and labor in the region.

Positive Signals

Awarded under full and open competition, maximizing the potential for competitive pricing.
Fixed-price contract type helps to control costs and manage budget certainty.
The use of a MATOC framework suggests a streamlined process for future similar needs.
The contractor, Sauer Construction, LLC, was selected from 16 bidders, indicating a thorough evaluation process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for disaster recovery and infrastructure repair is often driven by unpredictable events like hurricanes, requiring specialized firms capable of rapid response and complex project management. The value of this single contract is substantial, but it represents a fraction of the overall federal spending on construction and infrastructure maintenance, which can span billions annually across various agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. As a large prime contract awarded to Sauer Construction, LLC, the primary impact on small businesses would be through potential subcontracting opportunities if Sauer chooses to engage them. Without specific set-aside provisions, the direct benefit to the small business ecosystem from this particular award is not guaranteed.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified repairs. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Army Corps of Engineers Construction Contracts
Disaster Recovery and Resilience Programs
Federal Building and Infrastructure Repair
MATOC Contracts

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Risk of quality issues if oversight is insufficient.
Dependence on contractor's financial stability and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 million to SAUER CONSTRUCTION, LLC. TAS::21 2050::TAS MATOC UNRESTRICTED GULF COAST REGIONAL CONSTR PROGRAM: DESIGN-BUILD REPAIR HURRICANE DAMAGE - PHASE II, MISSISSIPPI ARMY AMMUNITION PLANT, STENNIS SPACE CENTER, MISSISSIPPI

Who is the contractor on this award?

The obligated recipient is SAUER CONSTRUCTION, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

Start: 2010-12-17. End: 2013-12-31.

What is Sauer Construction, LLC's track record with federal contracts, particularly in disaster recovery or large-scale construction?

Sauer Construction, LLC has a history of federal contracting, including work with the Department of Defense. While specific details on their disaster recovery portfolio require deeper analysis of contract databases, their ability to win a competitive bid for a significant hurricane damage repair project suggests relevant experience. Further investigation into their past performance ratings, project completion history, and any prior awards related to emergency response or infrastructure resilience would provide a more comprehensive understanding of their capabilities and reliability in handling such critical projects.

How does the $24.6 million award compare to similar hurricane damage repair contracts awarded by the Department of Defense?

The $24.6 million award for hurricane damage repair is a substantial sum, indicative of significant infrastructure damage. To benchmark effectively, one would compare this value against other design-build repair contracts for similar-sized facilities or installations affected by major weather events. Factors such as the type of facility (e.g., industrial plant vs. administrative building), the extent of damage, and the specific geographic location (which can influence labor and material costs) are crucial for a fair comparison. Without access to a comprehensive database of comparable contracts, it's difficult to definitively state if this represents a high, low, or average value, but it falls within the range of significant infrastructure repair projects.

What are the primary risks associated with this fixed-price design-build contract for hurricane damage repair?

The primary risks for the government in a fixed-price design-build contract for hurricane damage repair include potential scope creep if the initial damage assessment is incomplete, leading to change orders that increase costs. There's also the risk that the contractor may cut corners on quality to maintain profitability, requiring robust oversight. For the contractor, the main risk is underestimating the complexity of the design or repair work, or facing unforeseen site conditions (e.g., hazardous materials, unstable soil) that significantly increase costs beyond the fixed price. Delays due to weather, material availability, or permitting can also impact both parties.

How effective are MATOCs in ensuring value for money for recurring or geographically concentrated needs like regional construction?

Multiple Award Task Order Contracts (MATOCs) are generally effective in ensuring value for money for recurring or geographically concentrated needs. By pre-competing a pool of contractors and establishing contract terms and pricing structures upfront, MATOCs streamline the procurement process for subsequent task orders. This reduces administrative burden and allows for quicker response times. For task orders issued under a MATOC, competition can still occur among the awardees, driving competitive pricing. However, the initial competition for the MATOC itself is critical to establishing a strong baseline for value. Effective oversight is needed to ensure task orders are appropriately competed and priced within the MATOC framework.

What is the historical spending pattern for hurricane damage repair contracts within the Department of the Army?

Historical spending patterns for hurricane damage repair contracts within the Department of the Army are highly variable and directly correlated with the frequency and severity of hurricane seasons. Following major hurricane events, there is typically a surge in contract awards for repair and reconstruction across affected installations. This spending can range from tens of millions to billions of dollars annually, depending on the year. Analyzing historical data would reveal specific trends in contract types (e.g., design-build, cost-plus), average award values, and the geographic distribution of spending, often concentrated in coastal regions prone to such natural disasters.

What oversight mechanisms are in place to ensure the quality and timely completion of the repairs under this contract?

Oversight for this contract is primarily managed through the Department of the Army's contracting and project management functions. Key mechanisms include regular progress meetings between the government and the contractor, site inspections to monitor work quality and adherence to design specifications, and review of contractor submittals (e.g., design documents, material certifications). The firm-fixed-price nature incentivizes the contractor to complete the work efficiently, while the contract terms likely include clauses for liquidated damages in case of delays. Robust quality assurance surveillance plans (QASP) are typically employed to ensure the delivered repairs meet all required standards and 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: SEALED BID

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sauer Holdings, Inc. (UEI: 062594069)

Address: 11223 PHILLIPS PARKWAY DR, JACKSONVILLE, FL, 32256

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,605,703

Exercised Options: $24,605,703

Current Obligation: $24,605,703

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127807D0037

IDV Type: IDC

Timeline