Agriculture awards $32.8M contract for animal disease center construction to Dean Snyder Construction Co

Contract Overview

Contract Amount: $32,792,983 ($32.8M)

Contractor: Dean Snyder Construction CO.

Awarding Agency: Department of Agriculture

Start Date: 2025-11-01

End Date: 2027-11-24

Contract Duration: 753 days

Daily Burn Rate: $43.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF ANIMAL AND ZOONOTIC DISEASE CENTER

Place of Performance

Location: AMES, STORY County, IOWA, 50010

State: Iowa Government Spending

Plain-Language Summary

Department of Agriculture obligated $32.8 million to DEAN SNYDER CONSTRUCTION CO. for work described as: CONSTRUCTION OF ANIMAL AND ZOONOTIC DISEASE CENTER Key points: 1. Contract awarded for a significant construction project focused on animal and zoonotic disease research. 2. The contract value represents a substantial investment in public health infrastructure. 3. Competition dynamics for this large-scale construction project warrant further examination. 4. The firm-fixed-price contract type aims to provide cost certainty for the government. 5. Project duration of approximately two years suggests a complex build. 6. Geographic location in Iowa may indicate regional focus for disease research capabilities.

Value Assessment

Rating: good

The contract value of $32.8 million for the construction of an animal and zoonotic disease center appears reasonable given the scope of such specialized facilities. Benchmarking against similar government-funded research or laboratory construction projects would provide a more precise assessment of value for money. The firm-fixed-price structure suggests an effort to control costs, but the final cost will depend on the contractor's efficiency and any unforeseen issues during construction. Without specific cost breakdowns or comparisons to private sector construction of equivalent facilities, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. With 5 bidders participating, this suggests a healthy level of interest and competition for this significant construction project. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government. The presence of multiple bidders implies that the market has the capacity and interest to undertake such specialized construction work.

Taxpayer Impact: A competitive bidding process for this construction project is beneficial for taxpayers as it helps ensure that the government secures the best possible price and value for the services rendered, preventing potential overpayment.

Public Impact

The primary beneficiaries are the Department of Agriculture and its Animal and Plant Health Inspection Service (APHIS), which will gain enhanced facilities for disease research. The project will deliver a new physical infrastructure designed to support critical research into animal and zoonotic diseases, contributing to public health and food safety. The geographic impact is centered in Iowa, potentially enhancing the state's role in national disease surveillance and response efforts. Workforce implications include job creation for construction workers, engineers, architects, and potentially long-term roles in facility management and research support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price contract.
Ensuring the facility meets all stringent regulatory and safety standards for biological research.
Timely completion within the projected duration to meet program objectives.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process and competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
The project addresses a critical need for enhanced animal and zoonotic disease research infrastructure.

Sector Analysis

The construction sector, particularly for specialized institutional buildings, is a significant part of the federal procurement landscape. This contract falls under commercial and institutional building construction, a category that includes a wide range of facilities from schools and hospitals to research labs. The market for such specialized construction is often characterized by a mix of large general contractors and smaller specialized firms. Federal spending in this area is driven by the need for new or upgraded infrastructure across various agencies, supporting critical government functions like research, defense, and public services. Comparable spending benchmarks would involve looking at other large-scale federal building projects, especially those for research or laboratory purposes.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses in the provided data. The prime contractor, Dean Snyder Construction Co., is a substantial entity, and the nature of large-scale construction projects often involves significant subcontracting opportunities. Further analysis would be needed to determine if the prime contractor has a history of engaging small businesses in their supply chain or if specific subcontracting plans are mandated post-award. The impact on the small business ecosystem will depend on whether they are utilized as subcontractors for specialized trades or materials.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and relevant program officials within the Department of Agriculture's Animal and Plant Health Inspection Service (APHIS). The firm-fixed-price contract type provides a degree of financial oversight by fixing the total cost. Accountability measures will be tied to the contract's performance requirements, including adherence to specifications, quality standards, and the project schedule. Transparency can be assessed through public contract databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

National Institutes of Health (NIH) Research Facilities Construction
Department of Homeland Security (DHS) Biodefense Facilities
Centers for Disease Control and Prevention (CDC) Laboratory Construction
Veterans Affairs (VA) Medical Center Construction

Risk Flags

Potential for cost overruns if scope is not fully defined.
Risk of project delays due to unforeseen site conditions.
Ensuring compliance with stringent biosafety regulations.
Contractor's experience with specialized research facility construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $32.8 million to DEAN SNYDER CONSTRUCTION CO.. CONSTRUCTION OF ANIMAL AND ZOONOTIC DISEASE CENTER

Who is the contractor on this award?

The obligated recipient is DEAN SNYDER CONSTRUCTION CO..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $32.8 million.

What is the period of performance?

Start: 2025-11-01. End: 2027-11-24.

What is the track record of Dean Snyder Construction Co. with federal contracts, particularly in constructing specialized research facilities?

Dean Snyder Construction Co. has a history of performing construction work, though specific details on their federal contract performance, especially for specialized research facilities, require deeper investigation. A review of their past federal awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past disputes or challenges would provide insight into their reliability and expertise. Understanding their experience with similar project scopes, such as laboratories or institutional buildings with complex requirements, is crucial for assessing their capability to successfully deliver this animal and zoonotic disease center.

How does the awarded price of $32.8 million compare to similar federal construction projects for research facilities?

Benchmarking the $32.8 million contract against similar federal construction projects for research facilities is essential for evaluating value for money. This comparison should consider factors such as square footage, complexity of systems (e.g., HVAC, biosafety levels), geographic location (which impacts labor and material costs), and the specific type of research supported. Without access to a comprehensive database of comparable projects and their costs, it is difficult to definitively state whether this contract represents excellent, good, or fair value. However, the firm-fixed-price nature suggests an attempt to secure a predictable cost.

What are the primary risk indicators associated with this specific construction contract?

Key risk indicators for this construction contract include potential construction delays due to unforeseen site conditions or supply chain disruptions, which can impact the project timeline and potentially lead to cost adjustments if not managed effectively. Another risk is ensuring compliance with stringent biosafety and environmental regulations inherent in constructing a zoonotic disease center. The contractor's experience with similar complex projects and their proposed project management plan are critical factors in mitigating these risks. Furthermore, the firm-fixed-price contract, while offering cost certainty, places the burden of cost overruns on the contractor, which could incentivize shortcuts if not properly monitored.

How effective is the firm-fixed-price contract type in ensuring cost control for this project?

The firm-fixed-price (FFP) contract type is generally considered effective for controlling costs when the scope of work is well-defined and the risks are understood. For this construction project, the FFP structure shifts the primary cost risk to the contractor, Dean Snyder Construction Co. This incentivizes the contractor to manage their costs efficiently to maintain profitability. However, the effectiveness hinges on the thoroughness of the initial scope definition and the government's ability to manage change orders strictly. If significant unforeseen issues arise that necessitate changes to the scope, the FFP nature could lead to contentious negotiations or claims, potentially impacting the final cost.

What is the historical spending pattern for animal and zoonotic disease research infrastructure by the Department of Agriculture?

Analyzing historical spending patterns for animal and zoonotic disease research infrastructure by the Department of Agriculture (USDA) is crucial for contextualizing this $32.8 million award. This would involve examining past appropriations, contract awards, and capital investments made by agencies like the Animal and Plant Health Inspection Service (APHIS) and the Agricultural Research Service (ARS) for similar facilities or upgrades. Understanding whether this contract represents a significant increase, decrease, or continuation of previous investment levels provides insight into the agency's priorities and long-term strategy for disease research capabilities. It also helps in identifying trends in contract types, durations, and awarded values for such projects.

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: 12639525R0012

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 913 N 14TH ST, CLEAR LAKE, IA, 50428

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

Financial Breakdown

Contract Ceiling: $32,792,983

Exercised Options: $32,792,983

Current Obligation: $32,792,983

Actual Outlays: $328,113

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline