DoD Awards $12.4M for HQ Building Repair in Tennessee, Modernizing 1980s Facility
Contract Overview
Contract Amount: $12,387,598 ($12.4M)
Contractor: Wright Contracting, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-05-15
End Date: 2026-01-30
Contract Duration: 625 days
Daily Burn Rate: $19.8K/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: REPAIR HEADQUARTERS BUILDING 134. THE MULTI-USE FACILITY WILL INCLUDE FULLY FUNCTIONAL AND MODERNIZED FACILITY SUPPORT FOR WING LEADERSHIP AND 15 ADDITIONAL UNITS HOUSED WITHIN. BUILDING 134 WAS ORIGINALLY DESIGNED AND CONSTRUCTED IN THE EARLY 1980S
Place of Performance
Location: KNOXVILLE, KNOX County, TENNESSEE, 37923
Plain-Language Summary
Department of Defense obligated $12.4 million to WRIGHT CONTRACTING, INC. for work described as: REPAIR HEADQUARTERS BUILDING 134. THE MULTI-USE FACILITY WILL INCLUDE FULLY FUNCTIONAL AND MODERNIZED FACILITY SUPPORT FOR WING LEADERSHIP AND 15 ADDITIONAL UNITS HOUSED WITHIN. BUILDING 134 WAS ORIGINALLY DESIGNED AND CONSTRUCTED IN THE EARLY 1980S Key points: 1. Contract awarded to Wright Contracting, Inc. for significant facility upgrades. 2. Project aims to modernize a 1980s-era building for wing leadership and 15 units. 3. Full and open competition was used, but with exclusion of sources. 4. The sector is Commercial and Institutional Building Construction, with a benchmark of $19.8M.
Value Assessment
Rating: good
The contract value of $12.4M appears reasonable for a comprehensive building modernization project of this scale. Benchmarking against similar institutional building construction projects in the region suggests the pricing is within expected ranges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process but with specific limitations. This method may have influenced price discovery by narrowing the pool of potential bidders.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades, aiming for long-term operational efficiency and modernization.
Public Impact
Modernization of critical military infrastructure enhances operational readiness. Upgrades will provide improved working conditions for wing leadership and 15 additional units. The project supports the local economy through construction jobs and material procurement. Investment in aging facilities prevents further degradation and potential higher future costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to source exclusion.
- Potential for cost overruns in complex renovations.
- Project duration of 625 days presents scheduling risks.
Positive Signals
- Modernization of critical infrastructure.
- Firm Fixed Price contract provides cost certainty.
- Award to established contractor with relevant experience.
Sector Analysis
The Commercial and Institutional Building Construction sector involves significant investment in public and private infrastructure. This project falls within the typical scope of government facility modernization, with a benchmark of $19.8M for similar projects.
Small Business Impact
The data indicates that small businesses were not directly involved as prime contractors in this award, as the contract was awarded to Wright Contracting, Inc. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. Standard oversight procedures for construction projects, including progress monitoring and quality assurance, are expected to be in place.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition due to source exclusion.
- Potential for unforeseen issues in older building renovations.
- Extended project duration increases risk of delays.
- Reliance on a single prime contractor for complex work.
Tags
commercial-and-institutional-building-co, department-of-defense, tn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.4 million to WRIGHT CONTRACTING, INC.. REPAIR HEADQUARTERS BUILDING 134. THE MULTI-USE FACILITY WILL INCLUDE FULLY FUNCTIONAL AND MODERNIZED FACILITY SUPPORT FOR WING LEADERSHIP AND 15 ADDITIONAL UNITS HOUSED WITHIN. BUILDING 134 WAS ORIGINALLY DESIGNED AND CONSTRUCTED IN THE EARLY 1980S
Who is the contractor on this award?
The obligated recipient is WRIGHT CONTRACTING, 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 $12.4 million.
What is the period of performance?
Start: 2024-05-15. End: 2026-01-30.
What specific factors led to the exclusion of sources in the 'Full and Open Competition' process?
The exclusion of sources in a 'Full and Open Competition' scenario typically arises from specific technical requirements, unique capabilities needed, or security considerations that limit the pool of eligible contractors. Understanding these specific factors is crucial to assessing whether the competition was truly optimized for value or if it inadvertently restricted potential cost savings.
What are the primary risks associated with modernizing a building constructed in the early 1980s?
Modernizing a building from the early 1980s carries risks such as discovering unforeseen structural issues, outdated electrical or plumbing systems requiring extensive rework, and potential environmental hazards like asbestos. These discoveries can lead to scope changes, delays, and increased costs beyond the initial fixed-price contract, impacting the overall value and taxpayer investment.
How will the modernized facility contribute to the effectiveness of wing leadership and the 15 additional units?
The modernized facility is expected to enhance effectiveness by providing updated, functional workspaces that improve productivity and morale. Modern amenities and infrastructure can support advanced communication systems and collaborative environments, directly benefiting wing leadership and the 15 housed units by enabling more efficient operations and mission accomplishment.
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: SEALED BID
Solicitation ID: W50S9824B0001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1116 FARRINGTON DR, KNOXVILLE, TN, 37923
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,537,598
Exercised Options: $12,387,598
Current Obligation: $12,387,598
Actual Outlays: $846,455
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-05-15
Current End Date: 2026-01-30
Potential End Date: 2026-01-30 00:00:00
Last Modified: 2025-12-04
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