DoD's $23.5M Cannon AFB facility contract awarded to San Juan Construction, Inc. for building construction

Contract Overview

Contract Amount: $23,514,089 ($23.5M)

Contractor: SAN Juan Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-03-24

End Date: 2014-04-30

Contract Duration: 1,498 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSOLIDATED COMMUNICATIONS FACILITY, CANNON AFB, NM

Place of Performance

Location: CANNON AFB, CURRY County, NEW MEXICO, 88103

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to SAN JUAN CONSTRUCTION, INC. for work described as: CONSOLIDATED COMMUNICATIONS FACILITY, CANNON AFB, NM Key points: 1. The contract's value of $23.5 million represents a significant investment in infrastructure at Cannon Air Force Base. 2. Awarded under full and open competition, this suggests a competitive bidding process was utilized. 3. The fixed-price contract type generally offers cost certainty for the government. 4. The project duration of approximately 1498 days indicates a substantial construction timeline. 5. The contract was awarded by the Department of the Army, serving the Department of Defense. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific construction scope and market rates at the time of award. However, a $23.5 million price tag for a consolidated communications facility suggests a significant undertaking. Without comparable project costs for similar facilities in similar geographic locations, a precise value-for-money assessment is challenging. The firm fixed-price nature of the contract implies that the contractor assumed the risk of cost overruns, which can be a positive indicator for the government if the price was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, certain sources may have been excluded. The presence of 14 bids suggests a healthy level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value.

Taxpayer Impact: The competitive bidding process for this contract 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 Defense and its personnel at Cannon Air Force Base, who will gain improved communication infrastructure. The project delivers essential construction services for a critical facility. The geographic impact is localized to Cannon Air Force Base in New Mexico. The contract supports the construction workforce, likely employing numerous skilled laborers and tradespeople in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope was not fully defined, despite fixed-price.
Risk of delays impacting operational readiness if construction encounters unforeseen issues.
Dependence on the contractor's ability to manage complex construction projects effectively.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
Firm fixed-price contract type shifts cost risk to the contractor.
Multiple bids received (14) indicate significant contractor interest and potential for competitive pricing.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures like offices, communication facilities, and other institutional buildings. The market for such construction is influenced by government infrastructure spending, economic conditions, and the specific needs of agencies like the Department of Defense. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per project for similar government or commercial construction projects.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. As the contract was awarded under full and open competition, it's possible that small businesses could have participated as prime contractors or subcontractors. Further investigation into subcontracting reports would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant contracting activity within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified facility. Transparency is generally facilitated through contract databases like FPDS-NG, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Management
Communications Infrastructure Projects

Risk Flags

Potential for scope creep if not managed tightly.
Risk associated with firm-fixed-price contracts if initial estimates were inaccurate.
Dependence on contractor's financial stability and performance history.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to SAN JUAN CONSTRUCTION, INC.. CONSOLIDATED COMMUNICATIONS FACILITY, CANNON AFB, NM

Who is the contractor on this award?

The obligated recipient is SAN JUAN 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 $23.5 million.

What is the period of performance?

Start: 2010-03-24. End: 2014-04-30.

What was the specific scope of work for the Consolidated Communications Facility at Cannon AFB?

The provided data does not detail the specific scope of work for the Consolidated Communications Facility. However, based on the NAICS code 236220 (Commercial and Institutional Building Construction) and the contract title, it can be inferred that the project involved the construction of a new building intended to house and support communication systems and operations at Cannon Air Force Base. This would typically include site preparation, foundation work, structural erection, installation of utilities, interior finishing, and potentially specialized requirements for housing sensitive communication equipment. A more detailed scope would be found in the original contract solicitation documents.

How does the awarded price of $23.5 million compare to similar communication facility construction projects for the DoD?

Directly comparing the $23.5 million award to similar DoD communication facility projects is challenging without access to a comprehensive database of comparable projects with detailed cost breakdowns and scope similarities. Factors such as facility size (square footage), technological requirements, geographic location (affecting labor and material costs), and the specific year of award significantly influence project costs. Generally, large-scale infrastructure projects for the DoD can range from tens to hundreds of millions of dollars. To provide a meaningful comparison, one would need to identify projects with similar square footage, functional requirements, and construction timelines awarded around the same period and in comparable regions.

What were the key performance indicators (KPIs) or milestones outlined in the contract for San Juan Construction, Inc.?

The provided summary data does not specify the key performance indicators (KPIs) or milestones for this contract. Typically, construction contracts of this magnitude include detailed schedules with phased milestones for critical activities such as site mobilization, foundation completion, structural framing, building envelope enclosure, interior fit-out, systems testing, and final acceptance. Performance would be monitored against these milestones, and payment schedules are often tied to the successful completion of specific phases. Failure to meet milestones could result in penalties or contract modifications. These details would be elaborated in the contract's statement of work and schedule.

Were there any significant challenges or disputes encountered during the performance of this contract?

Information regarding specific challenges or disputes encountered during the performance of this contract is not available in the provided summary data. Large construction projects can face various challenges, including unforeseen site conditions, weather delays, material shortages, labor issues, or design changes. Contract modifications, change orders, and formal dispute resolution processes are common mechanisms for addressing such issues. Without access to contract performance reports, modification logs, or litigation records, it is impossible to determine if any significant disputes arose during the execution of this $23.5 million award.

What is the historical spending pattern for consolidated communications facilities at Cannon AFB or similar installations?

The provided data focuses on a single contract award and does not offer historical spending patterns for consolidated communications facilities at Cannon AFB or similar installations. To analyze historical spending, one would need to query contract databases for all awards related to communication facilities at this specific base or comparable military installations over several fiscal years. This would involve identifying relevant NAICS codes, contract types, and keywords to capture all related procurements. Such an analysis could reveal trends in contract values, frequency of awards, and the primary contractors involved in supporting this type of infrastructure.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912PP10R0012

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 301 N CASCADE AVE, MONTROSE, CO, 81401

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

Financial Breakdown

Contract Ceiling: $23,514,089

Exercised Options: $23,514,089

Current Obligation: $23,514,089

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912PP10D0011

IDV Type: IDC

Timeline