Fort Polk UEPH construction contract awarded to Sundt Construction for $24.5M, utilizing full and open competition

Contract Overview

Contract Amount: $24,476,046 ($24.5M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-08-09

End Date: 2013-08-23

Contract Duration: 745 days

Daily Burn Rate: $32.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF THE UEPH AT FORT POLK, LA

Place of Performance

Location: FORT POLK, VERNON County, LOUISIANA, 71459

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to SUNDT CONSTRUCTION, INC. for work described as: CONSTRUCTION OF THE UEPH AT FORT POLK, LA Key points: 1. The contract value of $24.5 million for the UEPH construction at Fort Polk represents a significant investment in military housing infrastructure. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process that could lead to better pricing. 3. The contract duration of 745 days indicates a substantial construction timeline for the project. 4. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 5. The fixed-price contract type shifts cost risk to the contractor, potentially stabilizing the final project cost. 6. The project is located in Louisiana, potentially impacting the local construction workforce and economy.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable UEPH construction projects from the same period and region. The firm fixed-price nature suggests the contractor assumed cost risks. However, the raw dollar amount of $24.5 million for a construction project of this scale requires further analysis against industry standards for similar military housing units to definitively assess value for money. Without detailed cost breakdowns or comparisons to similar projects, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 6 bidders indicates a reasonable level of competition for this project. A higher number of bidders generally suggests a more robust competition, which can drive down prices and improve the quality of proposals. The fact that six firms participated is a positive sign for price discovery.

Taxpayer Impact: The use of full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for the construction services, preventing potential overpayment.

Public Impact

Service members and their families at Fort Polk will benefit from improved housing facilities. The construction project delivers essential infrastructure upgrades to a U.S. Army installation. The project's geographic impact is concentrated in Vernon Parish, Louisiana. The construction activities will likely involve a significant number of skilled laborers and tradespeople, impacting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Delays in construction could impact soldier housing availability.
Quality control during construction needs rigorous oversight to ensure durability and safety.
Contract duration of 745 days may be subject to extensions, impacting project completion timeline.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process.
Awarded by the Department of the Army, indicating a focus on military readiness and infrastructure.
Project completion will enhance quality of life for service members and their families.

Sector Analysis

The construction sector, particularly for institutional and commercial buildings, is a significant part of the federal contracting landscape. This contract falls within the broader category of military construction and infrastructure development. Federal spending in this sector often involves large-scale projects with complex requirements, and competition dynamics can vary widely depending on the project's specialization and location. Benchmarking against similar military housing projects would provide further context on cost-effectiveness.

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, Sundt Construction, Inc., may engage small businesses as subcontractors based on their own procurement strategies and project needs, which is common in the construction industry.

Oversight & Accountability

Oversight for this construction contract would typically be managed by the U.S. Army Corps of Engineers or the relevant installation's contracting command. Accountability measures would include adherence to the contract's specifications, quality assurance inspections, and progress reporting. Transparency is generally maintained through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction Projects
Family Housing Construction
Department of Defense Infrastructure
Army Base Development
General Building Construction

Risk Flags

Potential for cost overruns
Schedule delay risk
Quality control concerns
Site condition variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to SUNDT CONSTRUCTION, INC.. CONSTRUCTION OF THE UEPH AT FORT POLK, LA

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 $24.5 million.

What is the period of performance?

Start: 2011-08-09. End: 2013-08-23.

What is the track record of Sundt Construction, Inc. with federal construction contracts, particularly for military housing?

Sundt Construction, Inc. has a significant history of working with the federal government, including numerous contracts with the Department of Defense and other agencies. Their portfolio includes a variety of construction projects, often involving large-scale infrastructure and facilities. For military housing specifically, Sundt has been involved in projects aimed at improving barracks and family housing on bases across the United States. Analyzing their past performance on similar projects, including on-time completion rates, budget adherence, and any documented disputes or performance issues, would provide a clearer picture of their reliability and capability for this specific UEPH construction at Fort Polk. Their extensive experience suggests a strong understanding of federal contracting requirements and military construction standards.

How does the awarded amount of $24.5 million compare to similar UEPH construction projects at other military installations?

Comparing the $24.5 million award for the UEPH at Fort Polk requires identifying comparable projects in terms of size (number of units), scope (amenities, construction type), and location (regional construction costs) awarded around the same time (2011-2013). Without access to a detailed database of similar projects with cost breakdowns, a precise benchmark is difficult. However, federal construction projects for military housing can range significantly. Factors like prevailing wage rates, material costs, site preparation complexity, and specific design requirements heavily influence the final price. A preliminary assessment suggests that $24.5 million is a substantial sum, indicative of a significant housing development, but its value-for-money can only be truly assessed against detailed project specifications and comparable market data.

What are the primary risks associated with this construction contract, and how were they mitigated?

Primary risks for a large construction project like the UEPH at Fort Polk include potential cost overruns due to unforeseen site conditions, material price fluctuations, labor shortages, or design changes. Schedule delays are also a significant risk, impacting operational readiness and soldier welfare. Given the firm fixed-price contract type, the primary financial risk is borne by Sundt Construction, Inc. Mitigation strategies would typically involve thorough site investigations prior to bidding, robust contract clauses addressing change orders and delays, stringent quality control and inspection protocols, and clear communication channels between the contractor and the contracting officer. The government's mitigation would focus on detailed oversight and ensuring contract compliance.

How effective was the full and open competition in ensuring a competitive price for this project?

The utilization of full and open competition, with six bidders participating, is a strong indicator that the process was designed to foster a competitive environment. This approach allows all qualified contractors to submit proposals, driving down prices through market forces. The effectiveness in ensuring a competitive price is suggested by the number of bidders, as more bids generally lead to more competitive pricing. However, the ultimate measure of effectiveness would be a detailed cost analysis comparing the winning bid against independent cost estimates or historical data for similar projects. Without that granular data, we infer effectiveness from the competitive process itself.

What is the historical spending trend for similar construction projects by the Department of the Army in Louisiana?

Analyzing historical spending trends for similar construction projects by the Department of the Army in Louisiana requires accessing historical contract databases. This would involve filtering for construction contracts, specifically those related to housing or institutional buildings, awarded within Louisiana over a period of several years. Such an analysis would reveal average contract values, common contract types, and the typical number of bidders for projects in that region. Understanding these trends can help contextualize the $24.5 million award for the Fort Polk UEPH, indicating whether it falls within the expected range or represents an outlier, and highlighting any patterns in contractor selection or pricing within the state.

What are the potential long-term implications of this housing construction on soldier morale and retention at Fort Polk?

The construction of new or upgraded Unaccompanied Enlisted Personnel Housing (UEPH) at Fort Polk is directly linked to improving the quality of life for service members. Modern, well-maintained housing can significantly boost morale, reduce stress, and contribute to higher job satisfaction. For retention, adequate and comfortable living conditions are a key factor, especially for junior enlisted personnel who may have limited options for off-post housing. By providing better on-post accommodations, the Army aims to make Fort Polk a more attractive assignment, potentially aiding in the retention of valuable personnel and contributing to overall unit cohesion and readiness.

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: W9126G07R0111

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 2620 S 55TH ST, TEMPE, AZ, 85282

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,476,046

Exercised Options: $24,476,046

Current Obligation: $24,476,046

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G09D0011

IDV Type: IDC

Timeline