Air Force awards $353M construction contract for Cadet Chapel repair to J.E. Dunn Construction

Contract Overview

Contract Amount: $352,821,880 ($352.8M)

Contractor: J. E. Dunn Construction Company

Awarding Agency: Department of Defense

Start Date: 2019-07-30

End Date: 2028-08-04

Contract Duration: 3,293 days

Daily Burn Rate: $107.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION SERVICES FOR REPAIR CADET CHAPEL UNITED STATES AIR FORCE ACADEMY COLORADO

Place of Performance

Location: USAF ACADEMY, EL PASO County, COLORADO, 80840

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $352.8 million to J. E. DUNN CONSTRUCTION COMPANY for work described as: CONSTRUCTION SERVICES FOR REPAIR CADET CHAPEL UNITED STATES AIR FORCE ACADEMY COLORADO Key points: 1. Contract value represents a significant investment in critical infrastructure. 2. Full and open competition suggests a robust bidding process. 3. Long duration indicates a complex, multi-year project. 4. Fixed-price contract type shifts risk to the contractor. 5. Project located in Colorado, impacting regional construction sector. 6. Contractor has a substantial award history, suggesting experience.

Value Assessment

Rating: good

The contract value of $353 million for the repair of the Cadet Chapel is substantial, reflecting the scale and complexity of the project. Benchmarking against similar large-scale institutional building construction projects is difficult without more specific cost breakdowns. However, the firm fixed-price nature of the contract implies that the contractor bears the primary risk for cost overruns, which can be a positive indicator for value if managed effectively. The award amount appears to be within a reasonable range for a project of this magnitude, considering the specialized nature of historical building restoration and the extensive scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of competition, which is generally beneficial for price discovery and achieving a fair market price.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation from contractors.

Public Impact

The primary beneficiaries are the United States Air Force Academy and its cadets, who will have access to a restored and functional Cadet Chapel. The project will deliver essential repair and renovation services to a significant historical and religious landmark. The geographic impact is concentrated in Colorado Springs, Colorado, potentially creating local jobs and economic activity. The construction workforce, including skilled trades and project management, will be directly impacted by this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise during repair.
Delays in project completion could impact the Academy's operations and events.
Ensuring quality of specialized repair work on a historic structure requires rigorous oversight.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Long contract duration allows for phased completion and detailed execution.
Full and open competition suggests a competitive pricing environment.
Contractor's experience in large-scale construction projects is a positive signal.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Projects of this scale, involving specialized repairs to historical or institutional buildings, often require unique expertise and adherence to strict building codes and preservation standards. The total federal spending on construction services is substantial, and this contract represents a notable investment in maintaining critical government facilities. Comparable spending benchmarks would typically involve other large-scale renovation or new construction projects for federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, J. E. Dunn Construction Company, may engage small businesses as subcontractors for various specialized services or materials, contributing to the broader small business ecosystem. The extent of small business participation will depend on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, with specific contracting officers and project managers responsible for monitoring progress, quality, and adherence to terms. Given the significant value and duration, regular reporting and site inspections are expected. Transparency may be enhanced through public contract databases and potential reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Facility Maintenance and Repair
Historic Preservation Projects
Department of Defense Construction Contracts

Risk Flags

Potential for cost overruns if unforeseen issues arise during repair.
Risk of project delays impacting operational readiness or historical preservation timelines.
Ensuring quality and adherence to historical preservation standards requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $352.8 million to J. E. DUNN CONSTRUCTION COMPANY. CONSTRUCTION SERVICES FOR REPAIR CADET CHAPEL UNITED STATES AIR FORCE ACADEMY COLORADO

Who is the contractor on this award?

The obligated recipient is J. E. DUNN CONSTRUCTION COMPANY.

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 $352.8 million.

What is the period of performance?

Start: 2019-07-30. End: 2028-08-04.

What is the track record of J. E. Dunn Construction Company with federal contracts, particularly within the Department of Defense?

J. E. Dunn Construction Company has a significant history of performing work for the federal government, including numerous contracts with the Department of Defense. While specific details on all past contracts are not provided here, their selection for a large-scale project like the Cadet Chapel repair suggests a proven ability to manage complex federal construction endeavors. Their portfolio likely includes a range of projects from military installations to federal buildings. A deeper analysis would involve reviewing their performance ratings on past federal contracts, any past performance issues or awards, and the total value of federal work they have completed. This would provide a clearer picture of their reliability and expertise in meeting government requirements.

How does the awarded amount of $352.8 million compare to similar large-scale institutional building repair projects undertaken by the federal government?

Directly comparing the $352.8 million award for the Cadet Chapel repair to similar federal projects is challenging without a detailed breakdown of the scope of work and specific repair needs. However, the figure is substantial and indicative of a major renovation or restoration effort. Large-scale federal building projects, especially those involving historical preservation or complex structural work, can easily reach hundreds of millions of dollars. For context, other significant federal construction projects, such as courthouse renovations, major hospital upgrades, or large-scale infrastructure repairs at military bases, often fall within or exceed this range. The firm fixed-price nature of this contract suggests that the government has secured a ceiling price, but the actual final cost could vary based on unforeseen conditions.

What are the primary risks associated with a multi-year construction project of this magnitude, and how are they mitigated?

The primary risks associated with a multi-year construction project of this magnitude include potential cost overruns due to unforeseen site conditions (e.g., structural issues, hazardous materials), material price escalation, labor shortages, and project delays. For this specific contract, the firm fixed-price (FFP) structure shifts much of the cost overrun risk to the contractor, J. E. Dunn Construction Company. Mitigation strategies typically involve thorough initial site assessments, detailed project planning, contingency budgeting (managed by the contractor under FFP), robust contract administration by the Air Force, and clear communication channels. The long duration (2019-2028) also necessitates careful scheduling and phased execution to manage complexity and minimize disruption.

What is the expected impact of this contract on the regional construction market in Colorado?

A contract of this size, valued at $352.8 million, is expected to have a significant positive impact on the regional construction market in Colorado. It will likely stimulate economic activity by creating numerous jobs for skilled tradespeople, project managers, engineers, and support staff. The demand for construction materials, equipment, and related services will also increase, benefiting local suppliers and businesses. Furthermore, the project's duration, spanning several years, provides a stable source of work and revenue for the prime contractor and its subcontractors, potentially leading to business expansion and investment in the region. This type of large-scale federal project can also enhance the reputation and capabilities of local construction firms.

How does the 'full and open competition' award type influence the final price and potential for innovation compared to other contracting methods?

Awarding the contract under 'full and open competition' generally promotes a competitive environment where multiple qualified contractors submit proposals, vying for the contract. This process typically leads to more competitive pricing as contractors aim to offer their best value to win the bid. It also encourages innovation, as contractors may propose unique technical solutions or efficiencies to differentiate their offers. Compared to sole-source or limited competition, full and open competition is expected to yield a lower price and potentially higher quality or more innovative solutions due to the broader pool of bidders. The government benefits from a wider range of options and greater assurance that the selected contractor offers the best overall value.

What are the implications of the firm fixed-price (FFP) contract type for the government and the contractor in this project?

The firm fixed-price (FFP) contract type means that the contractor, J. E. Dunn Construction Company, is obligated to complete the work for a predetermined price, regardless of the actual costs incurred. This shifts the majority of the cost risk from the government to the contractor. For the government, this offers budget certainty and protection against cost overruns, making financial planning more predictable. For the contractor, it presents an opportunity for higher profits if they can manage the project efficiently and control costs below the fixed price. However, it also exposes the contractor to potential losses if costs exceed the agreed-upon price. This contract type is generally preferred for projects with well-defined scopes of work to minimize disputes over costs.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1001 LOCUST, KANSAS CITY, MO, 64106

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: $383,321,880

Exercised Options: $383,321,880

Current Obligation: $352,821,880

Actual Outlays: $39,585,638

Subaward Activity

Number of Subawards: 63

Total Subaward Amount: $159,956,710

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline