DoD Awards $22.1M for Alaska Water/Sewer Construction to Strand Hunt Construction
Contract Overview
Contract Amount: $22,146,856 ($22.1M)
Contractor: Strand Hunt Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-07-09
End Date: 2008-12-31
Contract Duration: 2,002 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: EIELSON AFB, FAIRBANKS NORTH STAR County, ALASKA, 99702
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $22.1 million to STRAND HUNT CONSTRUCTION, INC. for work described as: Key points: 1. Contract awarded for water and sewer line construction in Alaska. 2. Full and open competition was utilized for this procurement. 3. The contract duration spans from 2003 to 2008. 4. This project falls under the construction sector, specifically infrastructure.
Value Assessment
Rating: fair
The award amount of $22.1 million for a 5-year project seems reasonable for infrastructure construction. However, without specific project scope and comparable contract data, a precise pricing assessment is difficult. The contract type is firm-fixed-price, which shifts risk to the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows all responsible sources to submit bids, promoting competitive pricing. The number of bids received (4) indicates some level of interest.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure development. The competitive nature of the award aims to ensure efficient use of these funds.
Public Impact
Enhances critical water and sewer infrastructure in Alaska. Supports military readiness and quality of life for personnel. Provides employment opportunities during the construction period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (5 years) could lead to cost overruns if not managed effectively.
- Firm-fixed-price contract may not fully account for unforeseen material cost increases.
- Limited number of bids (4) might suggest a less competitive market for this specific type of work in the region.
Positive Signals
- Awarded under full and open competition.
- Addresses essential infrastructure needs.
- Supports regional development.
Sector Analysis
This contract falls within the construction sector, specifically focusing on heavy civil infrastructure like water and sewer systems. Spending in this area is crucial for public health and economic development, often seeing significant federal investment for military bases and public works.
Small Business Impact
The data indicates that this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small business set-asides were considered or if the scope of work inherently favored larger firms.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract management teams ensuring adherence to specifications, timelines, and budget. The firm-fixed-price nature implies less direct government oversight on cost, but performance monitoring is key.
Related Government Programs
- Water and Sewer Line and Related Structures Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (5 years).
- Firm-fixed-price contract.
- Limited number of bids received (4).
- Potential for cost escalation in remote/harsh environments.
- No small business participation noted.
Tags
water-and-sewer-line-and-related-structu, department-of-defense, ak, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.1 million to STRAND HUNT CONSTRUCTION, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is STRAND HUNT 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 $22.1 million.
What is the period of performance?
Start: 2003-07-09. End: 2008-12-31.
What was the specific scope of work for the water and sewer lines, and how did it compare to the bids received?
The specific scope of work involved the construction of water and sewer lines and related structures. Without detailed project specifications and bid breakdowns, it's challenging to definitively assess if the bids accurately reflected the complexity and cost of the work. The number of bids (4) suggests moderate competition, but the pricing relative to the scope remains an area for deeper analysis.
What were the primary risks associated with this firm-fixed-price contract in Alaska's environment?
Key risks for a firm-fixed-price contract in Alaska include potential cost overruns due to the harsh climate, remote location, and potential for unforeseen geological conditions impacting excavation and material transport. The contractor bears the primary financial risk for these issues, which could lead to performance issues or claims if not adequately managed.
How effectively did the full and open competition ensure value for the taxpayer?
Full and open competition is designed to maximize value by encouraging multiple bids, thereby driving down prices. With four bids received, there was a degree of competition. However, the ultimate value for the taxpayer depends on the thoroughness of the bid evaluation, the contractor's performance throughout the project's five-year duration, and whether the final cost was indeed the most economical for the required infrastructure.
Industry Classification
NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 12900 NE 180TH STREET, SUI, BOTHELL, WA, 01
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-07-09
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2008-01-15
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