DoD's $24.2M Delalio School Replacement contract awarded to United Builders Group-Sundt JV shows mixed value and competition

Contract Overview

Contract Amount: $24,217,250 ($24.2M)

Contractor: United Builders Group-Sundt, a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2014-02-24

End Date: 2019-08-27

Contract Duration: 2,010 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF P025 DELALIO SCHOOL REPLACEMENT MCAS NEW RIVER BASE PLUS EXERCISING OPTION 3 ROOF GARDEN AND OPTIION 7 PV ARRAY.

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to UNITED BUILDERS GROUP-SUNDT, A JOINT VENTURE for work described as: IGF::OT::IGF P025 DELALIO SCHOOL REPLACEMENT MCAS NEW RIVER BASE PLUS EXERCISING OPTION 3 ROOF GARDEN AND OPTIION 7 PV ARRAY. Key points: 1. The contract's value appears reasonable given the scope of construction for a school replacement, including specialized features like a roof garden and PV array. 2. Competition was limited, with the contract being awarded under 'full and open competition after exclusion of sources,' suggesting potential for better pricing if broader competition were pursued. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The project's duration and completion date indicate a multi-year effort, typical for large-scale construction. 5. The contract falls within the broader 'Commercial and Institutional Building Construction' sector, a significant area of federal spending. 6. The absence of small business set-aside or subcontracting requirements warrants further investigation into potential impacts on smaller firms.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific cost breakdowns for the various construction elements. However, the total award of $24.2 million for a school replacement project, including specialized additions like a roof garden and photovoltaic array, appears within a reasonable range for a project of this scale and complexity. The firm fixed-price nature of the contract provides cost certainty to the government, which is a positive indicator. Further analysis would require detailed cost-per-square-foot comparisons with similar educational facility construction projects in the same geographic region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The fact that there were 9 bidders suggests a moderate level of interest, but the exclusion of sources raises questions about whether the most competitive pricing was achieved. A truly 'full and open' competition without exclusions might have yielded more bids and potentially lower prices.

Taxpayer Impact: The limited competition, even within an 'open' framework, may have resulted in higher costs for taxpayers than could have been achieved through a broader, unrestricted competition. This could mean less value for the federal investment.

Public Impact

The primary beneficiaries are students and staff of the Delalio School, who will receive a new, modern educational facility. The project delivers a comprehensive school replacement, including specialized environmental features, enhancing the learning environment and potentially reducing long-term operational costs. The geographic impact is localized to the MCAS New River Base in North Carolina, providing essential infrastructure for military families. The construction activities likely supported local and regional jobs in the construction trades during the project's multi-year duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion could lead to suboptimal pricing.
Lack of explicit small business subcontracting requirements may limit opportunities for smaller firms.
The complexity of specialized features (roof garden, PV array) could introduce unforeseen construction challenges or cost overruns if not managed meticulously.

Positive Signals

Firm fixed-price contract type provides cost certainty.
Multiple bidders (9) indicate some level of market interest.
Project addresses critical infrastructure needs for a military installation.

Sector Analysis

This contract falls under the broad 'Commercial and Institutional Building Construction' sector, which is a substantial component of federal procurement. The Department of Defense, like other federal agencies, frequently invests in construction projects to maintain and upgrade its facilities. Comparable spending benchmarks would involve analyzing the cost per square foot for similar educational or institutional buildings constructed by the government or in the private sector, adjusted for location and specific features.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the 'small business' flag is false and there's no mention of set-asides. This suggests that the prime contractor, a joint venture, likely handled the majority of the work. Without specific subcontracting plans or goals, it's difficult to assess the impact on the small business ecosystem. Federal construction projects often have subcontracting opportunities, and the absence of explicit requirements here might mean fewer avenues for small businesses to participate in this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments. The firm fixed-price nature provides some inherent accountability by capping the government's liability. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle. The multi-year duration and complexity necessitate ongoing monitoring of performance and adherence to specifications.

Related Government Programs

Military Base Construction
Educational Facility Construction
Department of Defense Infrastructure Projects
Renewable Energy Integration in Federal Buildings
Large-Scale Construction Contracts

Risk Flags

Limited competition due to source exclusion.
Lack of explicit small business subcontracting requirements.
Potential for cost efficiencies missed due to restricted bidder pool.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to UNITED BUILDERS GROUP-SUNDT, A JOINT VENTURE. IGF::OT::IGF P025 DELALIO SCHOOL REPLACEMENT MCAS NEW RIVER BASE PLUS EXERCISING OPTION 3 ROOF GARDEN AND OPTIION 7 PV ARRAY.

Who is the contractor on this award?

The obligated recipient is UNITED BUILDERS GROUP-SUNDT, A JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $24.2 million.

What is the period of performance?

Start: 2014-02-24. End: 2019-08-27.

What was the specific rationale for excluding certain sources in the 'full and open competition after exclusion of sources' procurement method?

The specific rationale for excluding certain sources in a 'full and open competition after exclusion of sources' procurement is not detailed in the provided data. Typically, such exclusions are based on specific technical requirements, past performance issues, security concerns, or the need to leverage unique capabilities possessed by a limited number of contractors. For this project, it might have related to specialized construction techniques required for the base environment or the unique features like the roof garden and PV array. Without further documentation from the solicitation or award decision, the exact reasons remain speculative. This method aims to balance competition with the need to ensure specific capabilities are met, but it inherently narrows the bidder pool compared to a truly unrestricted competition.

How does the final cost compare to the initial estimated cost or baseline budget for the Delalio School Replacement project?

The provided data only includes the final award amount of $24,217,249.67. It does not contain information about the initial estimated cost or the baseline budget established before the contract was awarded. Therefore, a direct comparison to assess cost growth or savings is not possible with the given data. To perform this analysis, one would need access to pre-award estimates, budget documents, or contract modification history that details any changes to the original contract value. Without this baseline, it's impossible to determine if the final cost represents an increase or decrease relative to the initial financial plan for the project.

What is the track record of United Builders Group-Sundt, A Joint Venture, on similar large-scale federal construction projects?

The provided data identifies 'UNITED BUILDERS GROUP-SUNDT, A JOINT VENTURE' as the contractor but does not offer details on their specific track record, past performance, or experience with similar federal construction projects. To assess their track record, one would need to consult other federal procurement databases (like SAM.gov or CPARS - Contractor Performance Assessment Reporting System) to review their history on other contracts. This would involve looking at project sizes, types, on-time and on-budget performance, and any documented issues or commendations. A joint venture's track record can also be a composite of its individual members' histories. Without this external data, evaluating their suitability and past success is not possible.

What are the key performance indicators (KPIs) used to measure the success of this construction contract, and how did the contractor perform against them?

The provided data does not specify the Key Performance Indicators (KPIs) established for this construction contract, nor does it include performance assessment details. Typically, construction contracts include metrics related to schedule adherence, quality of work, safety compliance, and adherence to budget (though less critical for firm fixed-price). Performance assessments are often documented in Contractor Performance Assessment Reports (CPARs). Without access to these reports or the contract's statement of work and associated KPIs, it is impossible to evaluate the contractor's performance objectively. The duration of the contract (2014-2019) suggests that performance data should exist, but it is not present in this dataset.

How does the cost per square foot of this school construction compare to national averages for similar institutional buildings?

The provided data does not include the square footage of the Delalio School Replacement project, making it impossible to calculate a cost per square foot. Therefore, a comparison to national averages for similar institutional buildings cannot be made. To conduct such an analysis, the total construction area would be required. Once obtained, this figure could be divided into the total contract value ($24.2 million) to derive a cost per square foot. This metric could then be benchmarked against industry data for educational facilities, adjusted for geographic location (North Carolina) and the specific complexities of the project (e.g., specialized features, military base requirements).

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: N4008513R6009

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6300 CHAPEL HILL RD STE 120, RALEIGH, NC, 27607

Business Categories: Category Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,217,250

Exercised Options: $24,217,250

Current Obligation: $24,217,250

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline