DOD's $21.5M Barracks Project Awarded to Sundt Construction Shows Strong Competition

Contract Overview

Contract Amount: $21,455,150 ($21.5M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-05-11

End Date: 2013-12-23

Contract Duration: 591 days

Daily Burn Rate: $36.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD SOF BARRACKS, FTC

Place of Performance

Location: FORT CAMPBELL, MONTGOMERY County, TENNESSEE, 42223

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to SUNDT CONSTRUCTION, INC. for work described as: DESIGN/BUILD SOF BARRACKS, FTC Key points: 1. Value for money appears reasonable given the firm fixed-price contract type and competitive award. 2. The contract was awarded under full and open competition, indicating a robust bidding process. 3. Risk indicators are moderate, with a fixed-price contract and a defined performance period. 4. Performance context is a design/build project for Special Operations Forces barracks. 5. Sector positioning is within the commercial and institutional building construction industry.

Value Assessment

Rating: good

The contract was awarded under firm fixed-price terms, which typically shifts risk to the contractor and can lead to better cost control. Benchmarking against similar design/build barracks projects would provide a more precise value assessment, but the competitive nature of the award suggests a fair market price was likely achieved. The total award amount of $21.5 million for a 591-day duration project appears within a reasonable range for this type of construction.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. This level of competition is generally favorable for price discovery and ensures a broad range of contractors had the opportunity to bid. The presence of multiple bidders suggests that the market was receptive to the requirement and that the government likely received competitive pricing.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

Serves Special Operations Forces personnel by providing essential barracks facilities. The project directly benefits military readiness and quality of life for service members. Geographic impact is localized to the facility where the barracks are constructed in Tennessee. Workforce implications include construction jobs and support roles during the project lifecycle.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by fixed-price contract.
Schedule delays could impact operational readiness if not managed effectively.
Quality control is critical to ensure the barracks meet long-term durability standards.

Positive Signals

Firm fixed-price contract provides cost certainty.
Design/build approach can streamline project delivery.
Awarded under full and open competition, suggesting competitive pricing.
Experienced contractor likely selected through a rigorous process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. The construction of military facilities like barracks is a recurring need for the Department of Defense, often involving specialized requirements. Comparable spending benchmarks for similar military construction projects can vary widely based on location, scope, and specific design needs.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this particular award, nor is there explicit information on subcontracting plans. The award went to a large business, Sundt Construction, Inc. Further analysis would be needed to determine if small business subcontracting goals were established and met as part of the overall project execution.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. The firm fixed-price nature of the contract implies a focus on ensuring the contractor meets the defined scope, schedule, and quality requirements. Transparency is generally maintained through contract award databases, though detailed project-specific oversight reports are not publicly available.

Related Government Programs

Military Construction, Army
Design-Build Contracts
Special Operations Forces Facilities

Risk Flags

Potential for schedule delays impacting operational readiness.
Risk of unforeseen site conditions impacting cost and schedule.
Ensuring long-term quality and durability of construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to SUNDT CONSTRUCTION, INC.. DESIGN/BUILD SOF BARRACKS, FTC

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 $21.5 million.

What is the period of performance?

Start: 2012-05-11. End: 2013-12-23.

What is the track record of Sundt Construction, Inc. with Department of Defense contracts?

Sundt Construction, Inc. has a significant history of working with the Department of Defense and other federal agencies on various construction projects. Their portfolio includes a range of military facilities, infrastructure, and specialized buildings. Analyzing their past performance on similar fixed-price, design-build projects for the DoD would provide insight into their ability to deliver projects on time and within budget. Past performance evaluations, if available, would be crucial for assessing their reliability and quality of work. Their experience suggests they are well-equipped to handle complex military construction requirements.

How does the $21.5 million cost compare to similar barracks construction projects?

Benchmarking the $21.5 million cost against similar design/build barracks projects is complex without more specific project details (e.g., square footage, number of occupants, specific site conditions, and level of finish). However, given that this was a firm fixed-price contract awarded under full and open competition with three bidders, it suggests the price was likely competitive within the market for such facilities. The duration of 591 days also provides a context for the cost per day. Generally, military construction costs can be higher than civilian projects due to stringent security, durability, and specific operational requirements. A detailed cost-per-square-foot or cost-per-occupant analysis against comparable DoD projects would be necessary for a precise value assessment.

What are the primary risks associated with this design/build contract?

The primary risks associated with this design/build contract include potential scope creep if the design is not fully defined or if requirements change significantly post-award, although the fixed-price nature aims to mitigate this. Schedule delays are another risk, which could impact the operational readiness of the Special Operations Forces. Unforeseen site conditions, such as difficult soil or environmental issues, could lead to cost increases or delays, though the contractor bears much of this risk under a fixed-price contract. Ensuring the quality of construction meets the demanding standards for military facilities is also a critical risk area. Effective project management and oversight are key to mitigating these risks.

How effective is the design/build delivery method for military barracks?

The design/build delivery method can be highly effective for military barracks projects by consolidating design and construction responsibilities under a single entity. This approach often leads to faster project delivery schedules, as construction can begin before the design is fully finalized, and it fosters better communication and coordination between designers and builders. For the DoD, this can mean quicker deployment of needed facilities. However, it requires robust government oversight to ensure the design meets all requirements and that the final product is of high quality. The success is heavily dependent on the capabilities of the chosen design-build team and the clarity of the initial requirements.

What is the historical spending trend for similar barracks construction by the Department of the Army?

Historical spending trends for similar barracks construction by the Department of the Army show a consistent need for facility upgrades and new construction to support military personnel. Spending in this category can fluctuate based on overall defense budgets, troop deployment needs, and the aging of existing infrastructure. The Army typically procures these projects through various contract types, including design-bid-build and design-build, with firm fixed-price contracts being common for well-defined projects like barracks. Analyzing multi-year spending data for military construction within the Army, specifically for barracks and troop housing, would reveal patterns in award values, competition levels, and the prevalence of different contract types.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,455,150

Exercised Options: $21,455,150

Current Obligation: $21,455,150

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G11D0050

IDV Type: IDC

Timeline