DoD Awards $130M Industrial Building Construction Contract to Strand Hunt Construction, Inc

Contract Overview

Contract Amount: $13,049,016 ($13.0M)

Contractor: Strand Hunt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-02-11

End Date: 2008-02-21

Contract Duration: 1,471 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: CLEAR, DENALI County, ALASKA, 99704

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to STRAND HUNT CONSTRUCTION, INC. for work described as: Key points: 1. Contract awarded for industrial building construction services. 2. Competition method was full and open, suggesting broad market engagement. 3. The contract duration is substantial at 1471 days. 4. No small business participation was noted in the award.

Value Assessment

Rating: fair

The award amount of $130,490,160 for industrial building construction is significant. Benchmarking against similar large-scale construction projects is necessary to assess value, but the duration and scope suggest a substantial undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for this large construction project.

Public Impact

Significant federal investment in industrial infrastructure. Potential for job creation and economic activity in Alaska. Long-term commitment to a specific construction firm.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Long contract duration may pose risks if requirements change.
Firm fixed price contract may not account for unforeseen cost escalations.

Positive Signals

Full and open competition utilized.
Clear contract award with defined start and end dates.

Sector Analysis

This contract falls within the construction sector, specifically industrial building construction. Large-scale government construction projects often involve significant capital outlays and can be subject to market fluctuations and regulatory requirements.

Small Business Impact

The award data indicates that small businesses were not involved in this contract, as the 'sb' field is false. For future contracts of this magnitude, exploring opportunities for small business subcontracting could enhance economic impact.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve project management and contract administration to ensure compliance with terms and quality standards.

Related Government Programs

Industrial Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration.
Firm Fixed Price contract type.
No small business participation.
Potential for cost escalation in remote locations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to STRAND HUNT CONSTRUCTION, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is STRAND HUNT CONSTRUCTION, 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 $13.0 million.

What is the period of performance?

Start: 2004-02-11. End: 2008-02-21.

What was the basis for the firm fixed price determination, and how does it compare to industry standards for similar projects?

The basis for the firm fixed price (FFP) determination is not detailed in the provided data. Typically, FFP contracts are used when the scope of work is well-defined. Assessing industry standards would require comparing the per-square-foot cost, complexity, and location against similar government or private sector industrial building projects awarded around the same period.

What are the potential risks associated with a 4-year firm fixed price contract for industrial building construction in Alaska?

A 4-year FFP contract in Alaska presents risks such as potential cost overruns due to unforeseen site conditions, material price volatility, and labor shortages common in remote or challenging environments. The fixed price may not adequately account for these factors, potentially impacting contractor profitability or requiring change orders if not managed meticulously.

How effectively does the full and open competition process ensure value for money for this large-scale construction award?

Full and open competition is designed to maximize value for money by encouraging a wide range of qualified bidders to submit proposals, driving down prices and fostering innovation. The success of this process hinges on the clarity of the solicitation, the evaluation criteria, and the government's ability to negotiate effectively with the winning offeror.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 12900 NE 180TH STREET, SUI, BOTHELL, WA, 01

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline