Air Force awards $49M design-build contract for multi-dormitory construction in Texas

Contract Overview

Contract Amount: $49,024,934 ($49.0M)

Contractor: Journey Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-26

End Date: 2023-01-09

Contract Duration: 1,201 days

Daily Burn Rate: $40.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MULTI-DORM DESIGN/BUILD

Place of Performance

Location: DYESS AFB, TAYLOR County, TEXAS, 79607

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $49.0 million to JOURNEY CONSTRUCTION, INC. for work described as: MULTI-DORM DESIGN/BUILD Key points: 1. Contract value appears reasonable given the scope of a multi-dormitory design-build project. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 1201 days indicates a significant, long-term construction effort. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The project is located in Texas, a state with a robust construction market. 6. No small business set-aside was noted, potentially limiting direct participation for smaller firms.

Value Assessment

Rating: good

The $49 million contract for multi-dormitory design and build appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale dormitory construction projects, especially those involving design-build elements, would provide a more precise value assessment. The firm-fixed-price structure is generally favorable for the government in managing costs over the project's lifecycle.

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 while the competition was broad, specific sources may have been excluded based on pre-defined criteria. The number of bidders is not specified, but the 'full and open' nature suggests a competitive environment that should drive price discovery and potentially lead to better value.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it encourages multiple companies to bid, fostering a competitive environment that can lead to lower prices and better quality services.

Public Impact

Service members stationed in Texas will benefit from new, modern dormitory facilities. The project delivers essential infrastructure supporting military readiness and personnel well-being. The construction will have a positive economic impact within the local Texas economy through job creation and material sourcing. The project supports the Department of the Air Force's infrastructure modernization goals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in design-build projects if not managed tightly.
Reliance on a single prime contractor for both design and construction could concentrate risk.
Ensuring timely completion within the 1201-day duration will be critical.

Positive Signals

Firm-fixed-price contract offers cost certainty to the government.
Full and open competition suggests a robust bidding process.
The project addresses a clear need for improved military housing.

Sector Analysis

The construction sector, particularly commercial and institutional building, is a significant part of the federal contracting landscape. This contract falls within the broader category of facility construction and renovation. Federal spending in this area often supports military infrastructure, government buildings, and research facilities. The market size for large-scale design-build projects is substantial, with numerous firms capable of undertaking such complex endeavors.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This means that while small businesses may participate as subcontractors to the prime contractor, Journey Construction, Inc., their direct involvement as a set-aside awardee is not present. The impact on the small business ecosystem would depend on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and engineering offices. Accountability measures are inherent in the firm-fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Housing Construction
Department of Defense Facilities
Design-Build Contracts
Air Force Infrastructure Projects

Risk Flags

Potential for schedule delays
Risk of design integration issues in design-build
Contractor performance variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.0 million to JOURNEY CONSTRUCTION, INC.. MULTI-DORM DESIGN/BUILD

Who is the contractor on this award?

The obligated recipient is JOURNEY CONSTRUCTION, INC..

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 $49.0 million.

What is the period of performance?

Start: 2019-09-26. End: 2023-01-09.

What is the track record of Journey Construction, Inc. with federal contracts, particularly with the Department of Defense?

Journey Construction, Inc. has a history of federal contracting, primarily with the Department of Defense. While specific details on past performance metrics, past disputes, or the number of previous contracts are not provided in this summary, their selection for a significant $49 million design-build project suggests they meet the necessary qualifications and experience requirements set forth by the Air Force. A deeper dive into their contract history, including on-time delivery rates, quality of work on previous projects, and any past performance issues, would be necessary for a comprehensive assessment of their reliability.

How does the awarded price of $49 million compare to similar multi-dormitory design-build projects awarded by the Department of Defense or other federal agencies?

Without specific data on comparable projects (e.g., size in square footage, number of beds, specific amenities, geographic location, and year of award), a precise benchmark is difficult. However, $49 million for a multi-dormitory design-build project indicates a substantial undertaking. Factors influencing cost include labor rates, material costs, site complexity, and the level of finishes. Generally, design-build projects can offer cost efficiencies compared to separate design and construction contracts. A thorough value analysis would involve comparing cost per square foot or cost per bed against similar recent federal projects.

What are the primary risks associated with this specific design-build contract, and how are they being mitigated?

Key risks include potential design deficiencies leading to construction issues, cost overruns (though mitigated by the firm-fixed-price structure), schedule delays, and contractor performance issues. Mitigation strategies include the Air Force's oversight of the design and construction process, the firm-fixed-price contract type which places cost risk on the contractor, and the requirement for performance bonds. The 'Full and Open Competition After Exclusion of Sources' also implies a vetting process for bidders. Ensuring clear communication channels and robust project management are crucial for mitigating these risks.

What is the expected effectiveness of the new dormitories in improving living conditions and supporting Air Force personnel?

The effectiveness is expected to be high, as new dormitory construction typically addresses aging infrastructure, improves habitability, and enhances quality of life for service members. Modern design standards often incorporate better energy efficiency, improved security features, and more comfortable living spaces compared to older facilities. This project directly supports the Air Force's mission by providing adequate and modern housing, which is crucial for morale, retention, and overall readiness of the force stationed at the facility.

How has federal spending on dormitory construction and military infrastructure evolved over the past five years, and does this contract align with those trends?

Federal spending on military construction, including dormitories, generally fluctuates based on military readiness needs, aging infrastructure replacement cycles, and overall defense budgets. Over the past five years, there has been a consistent focus on modernizing military facilities to improve living conditions and operational capabilities. This $49 million contract aligns with this trend by addressing the need for new dormitory facilities. Trends may show increased investment in design-build approaches for efficiency and a focus on sustainable building practices.

What are the potential long-term operational and maintenance costs associated with these new dormitories?

Long-term operational and maintenance costs are influenced by the design, materials used, and energy efficiency features incorporated into the new dormitories. Modern construction often prioritizes durability and lower maintenance materials, which can reduce lifecycle costs. Energy-efficient designs can lead to significant savings in utility expenses. The initial design phase should include considerations for maintainability to ensure that the facilities remain cost-effective to operate and sustain throughout their intended lifespan. Specific projections would depend on the detailed design specifications.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA466119R0018

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2408 S MAIN ST, TAYLOR, TX, 76574

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,024,934

Exercised Options: $49,024,934

Current Obligation: $49,024,934

Actual Outlays: $23,442,012

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA466115D0002

IDV Type: IDC

Timeline