Terra Construction awarded $5.6M contract for unaccompanied officer dorms, highlighting construction sector activity

Contract Overview

Contract Amount: $5,574,122 ($5.6M)

Contractor: Terra Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2025-01-06

End Date: 2026-01-11

Contract Duration: 370 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: XTLF 19-1013, UNACCOMPANIED OFFICER DORM F642. THIS PROJECT WILL BE EXECUTED AS A DESIGN-BID-BUILD PROJECT IN ACCORDANCE WITH THE SPECIFICATIONS.

Place of Performance

Location: ENID, GARFIELD County, OKLAHOMA, 73705

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $5.6 million to TERRA CONSTRUCTION, LLC for work described as: XTLF 19-1013, UNACCOMPANIED OFFICER DORM F642. THIS PROJECT WILL BE EXECUTED AS A DESIGN-BID-BUILD PROJECT IN ACCORDANCE WITH THE SPECIFICATIONS. Key points: 1. Contract value of $5.6 million indicates significant investment in military housing infrastructure. 2. Full and open competition suggests a healthy bidding environment for this type of construction. 3. The project's fixed-price nature aims to control costs and manage financial risk. 4. Project duration of 370 days points to a substantial construction timeline. 5. This contract contributes to the broader commercial and institutional building construction market. 6. The award to Terra Construction, LLC, reflects their capacity to handle large-scale government projects.

Value Assessment

Rating: good

The contract value of $5.6 million for constructing an unaccompanied officer dorm appears reasonable for a project of this scope, especially considering it's a design-bid-build approach. Benchmarking against similar military housing construction projects would provide a more precise value-for-money assessment. However, the firm fixed-price contract type suggests an effort to establish a clear cost ceiling, which is a positive indicator for budget adherence. The bid range of $1.5 million suggests that Terra Construction's winning bid was competitive within the established parameters.

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 the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the exact number of bidders is not explicitly stated, the 'full and open' designation implies a competitive process. This level of competition is generally expected to drive down prices and ensure fair market value for the government.

Taxpayer Impact: A competitive bidding process for construction projects like this helps ensure that taxpayer dollars are used efficiently by fostering price discovery and encouraging contractors to offer their best pricing.

Public Impact

Service members will benefit from improved on-base housing, enhancing quality of life and readiness. The project will deliver a new unaccompanied officer dormitory (F642), providing essential accommodation. The geographic impact is localized to the specific Air Force base where the dormitory will be constructed. The construction will likely create temporary employment opportunities for skilled trades and laborers in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting project completion and occupancy.
Risk of cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Ensuring quality of construction meets military standards and long-term durability.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust market response and competitive pricing.
Project addresses a clear need for improved military housing infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Government construction projects, particularly for defense, often represent a substantial portion of this market. The design-bid-build method is a traditional approach for such projects, involving separate contracts for design and construction. Comparable spending benchmarks would involve analyzing other military barracks or dormitory construction contracts awarded by the Department of Defense or other federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Terra Construction, LLC, chooses to engage them for specialized services. The absence of a small business set-aside means larger firms were likely the primary focus of the competition.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant project management office within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract, which penalizes the contractor for cost overruns. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Housing Construction
Department of Defense Facilities
Unaccompanied Personnel Housing
Design-Bid-Build Projects
Air Force Construction Contracts

Risk Flags

Potential for construction delays
Risk of unforeseen site conditions
Quality control during construction
Contractor performance and financial stability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.6 million to TERRA CONSTRUCTION, LLC. XTLF 19-1013, UNACCOMPANIED OFFICER DORM F642. THIS PROJECT WILL BE EXECUTED AS A DESIGN-BID-BUILD PROJECT IN ACCORDANCE WITH THE SPECIFICATIONS.

Who is the contractor on this award?

The obligated recipient is TERRA CONSTRUCTION, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

Start: 2025-01-06. End: 2026-01-11.

What is Terra Construction, LLC's track record with federal construction contracts, particularly for the Department of Defense?

Terra Construction, LLC has a history of performing federal construction contracts. While specific details on past performance metrics are not provided in this data snippet, their ability to win a $5.6 million contract for a military dormitory suggests they have met the necessary qualifications and demonstrated capability. A deeper dive into their contract history, including past performance reviews, any disputes, and the types of projects completed, would offer a more comprehensive understanding of their reliability and expertise in executing government projects, especially within the defense sector.

How does the $5.6 million contract value compare to similar unaccompanied officer dormitory projects?

The $5.6 million contract value for constructing an unaccompanied officer dormitory is a significant investment. To assess its value for money, it should be benchmarked against similar projects in terms of size (square footage, number of rooms), location (regional construction costs), and complexity. For instance, comparing this cost per square foot or cost per unit to other recently awarded military housing projects of similar scope would reveal if this contract is within the expected market range. Without specific comparable data, it's difficult to definitively state if it represents excellent or fair value, but it aligns with substantial infrastructure investments.

What are the primary risks associated with this firm fixed-price construction contract?

The primary risks associated with this firm fixed-price contract, despite its cost control benefits, include potential for scope creep if changes are not managed rigorously, and the contractor's incentive to cut corners on quality to maintain profitability if unforeseen issues arise. Unforeseen site conditions (e.g., soil issues, hazardous materials) could lead to change orders, potentially increasing the total cost, although the fixed price provides a baseline. Furthermore, contractor performance risk remains; if Terra Construction, LLC underperforms or faces financial difficulties, project delays and quality issues could arise, necessitating government intervention.

How effective is the 'full and open competition after exclusion of sources' method for ensuring competitive pricing in construction?

The 'full and open competition after exclusion of sources' method is generally considered highly effective for ensuring competitive pricing in construction. By broadly advertising the opportunity and allowing all responsible bidders to participate, it maximizes the pool of potential offerors. This increased competition typically drives down prices as contractors vie for the award. The 'exclusion of sources' aspect suggests that while the competition was open, certain pre-qualification criteria might have been applied, ensuring bidders have the necessary capacity and experience, which can also contribute to a more efficient and predictable bidding process.

What are the historical spending patterns for similar construction projects by the Department of the Air Force?

Historical spending patterns for similar construction projects by the Department of the Air Force reveal a consistent need for infrastructure development and modernization. Awards for barracks, dormitories, and other facilities often range from several million to tens of millions of dollars, depending on scale and complexity. The Air Force, like other branches of the DoD, frequently utilizes firm fixed-price contracts for construction to manage costs. Spending in this category can fluctuate based on military readiness requirements, base consolidation or expansion plans, and overall defense budget allocations. Analyzing past awards provides context for the current $5.6 million contract.

What are the implications of the 370-day duration for project completion and potential impact on service members?

A 370-day duration for this construction project indicates a substantial timeline, likely encompassing design finalization, procurement, construction, and inspection phases. This duration implies that the need for new unaccompanied officer housing is not immediate, or the project scope is significant. For service members, this means the current housing situation will persist for over a year. Delays beyond the planned duration could exacerbate housing shortages or impact morale. Conversely, timely completion within this timeframe would provide much-needed modern accommodations, improving living conditions and supporting personnel retention.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA302924R0002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7429 NW 84TH STREET, OKLAHOMA CITY, OK, 73132

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,597,941

Exercised Options: $5,597,941

Current Obligation: $5,574,122

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline