Army awards $44.6M for family housing construction, highlighting a need for infrastructure development

Contract Overview

Contract Amount: $44,626,550 ($44.6M)

Contractor: Watterson Construction CO

Awarding Agency: Department of Defense

Start Date: 2006-04-05

End Date: 2007-06-09

Contract Duration: 430 days

Daily Burn Rate: $103.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200607!600400!2100!W911KB!USA ENGR DISTR ALASKA !W911KB06C0014 !A!N! !N! ! !20060405!20080609!019274943!019274943!019274943!N!WATTERSON CONSTRUCTION CO !6500 INTERSTATE CIR !ANCHORAGE !AK!99518!26430!090!02!FORT WAINWRIGHT !FAIRBANKS NORTH STAR !ALASKA !+000044433057!N!N!000044433057!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236115!E! !3! ! ! ! ! !99990909!B! ! !A! !A!Y!J!2!003!B! !D!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! ! ! ! !0001! !

Place of Performance

Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $44.6 million to WATTERSON CONSTRUCTION CO for work described as: 200607!600400!2100!W911KB!USA ENGR DISTR ALASKA !W911KB06C0014 !A!N! !N! ! !20060405!20080609!019274943!019274943!019274943!N!WATTERSON CONSTRUCTION CO !6500 INTERSTATE CIR !ANCHORAGE !AK!99518!26430!090!02!FORT WAINWRIGHT !FAIR… Key points: 1. Contract value of $44.6 million indicates significant investment in military family housing. 2. The firm-fixed-price contract type suggests a clear scope and budget, potentially reducing cost overruns. 3. A single award to Watterson Construction Co. warrants scrutiny for potential competition limitations. 4. The project's duration of 430 days points to a substantial construction undertaking. 5. This contract falls under the 'Construction' sector, a critical area for military readiness and personnel support. 6. The geographic focus on Fort Wainwright, Alaska, addresses specific regional infrastructure needs.

Value Assessment

Rating: good

The contract value of $44.6 million for new single-family housing construction appears reasonable given the scope and location. Benchmarking against similar military housing projects would provide a more precise value-for-money assessment. The firm-fixed-price structure generally offers predictability, but the absence of multiple bids requires careful consideration of whether the price reflects optimal market value.

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 offers. However, the data shows only one award was made, which could imply that while competition was solicited, only one viable bid was received or selected. This level of competition, while technically open, might not have driven the most aggressive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing, but the lack of multiple bids means the full extent of cost savings may not have been realized.

Public Impact

Military families at Fort Wainwright, Alaska, will benefit from improved housing facilities. The contract delivers new single-family housing, enhancing the quality of life for service members and their families. The geographic impact is concentrated in Alaska, addressing specific infrastructure needs in a remote region. The project supports the construction workforce, creating jobs in the skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite full and open solicitation raises questions about price competitiveness.
The significant dollar amount necessitates robust oversight to ensure efficient use of funds.
Geographic remoteness of Alaska can sometimes lead to higher costs for materials and labor.

Positive Signals

The contract addresses a clear need for family housing, directly impacting military readiness and morale.
Firm-fixed-price contract type provides budget certainty.
Awarding to a single contractor may indicate specialized capabilities required for the project.

Sector Analysis

This contract falls within the construction sector, specifically focusing on new residential building. The U.S. construction market is vast, with federal contracts often representing a significant portion, particularly for infrastructure and specialized facilities like military housing. Comparable spending benchmarks for military family housing projects vary widely based on location, size, and amenities, but a $44.6 million award for new construction suggests a substantial development.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, the prime contractor may engage small businesses for specialized construction services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and inspection commands. Accountability measures are inherent in the firm-fixed-price structure, which places the risk of cost overruns on the contractor. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly accessible.

Related Government Programs

Military Family Housing Construction
Department of Defense Construction Contracts
Army Corps of Engineers Projects
Alaska Infrastructure Development

Risk Flags

Potential for higher costs due to Alaska location.
Limited competition may impact price optimization.
Need for robust oversight on large construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.6 million to WATTERSON CONSTRUCTION CO. 200607!600400!2100!W911KB!USA ENGR DISTR ALASKA !W911KB06C0014 !A!N! !N! ! !20060405!20080609!019274943!019274943!019274943!N!WATTERSON CONSTRUCTION CO !6500 INTERSTATE CIR !ANCHORAGE !AK!99518!26430!090!02!FORT WAINWRIGHT !FAIRBANKS NORTH STAR !ALASKA !+000044433057!N!N!000044433057!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236115!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is WATTERSON CONSTRUCTION CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $44.6 million.

What is the period of performance?

Start: 2006-04-05. End: 2007-06-09.

What is the track record of Watterson Construction Co. with federal contracts, particularly within the Department of Defense?

Watterson Construction Co. has a history of federal contracting, including work with the Department of Defense. Analyzing their past performance, including contract values, types of projects, and any reported issues or awards, is crucial. For this specific contract (W911KB06C0014), understanding their experience with similar large-scale construction projects in challenging environments like Alaska would provide insight into their capability and reliability. A review of their past performance ratings and any debriefings from previous solicitations could reveal strengths or weaknesses relevant to this award.

How does the awarded price of $44.6 million compare to similar family housing construction projects in Alaska or other remote military installations?

Benchmarking the $44.6 million award requires comparing it to similar projects in terms of square footage, number of units, material costs, and labor rates in comparable geographic locations. Construction costs in Alaska are generally higher due to logistical challenges and climate. Without specific data on comparable projects, it's difficult to definitively assess value. However, the contract's duration of 430 days suggests a significant undertaking, and the firm-fixed-price nature implies the contractor absorbed potential cost escalations. Further analysis would involve examining cost breakdowns if available or comparing per-square-foot costs against industry averages for military housing.

What specific risks were identified during the solicitation and award process for this contract, and how were they mitigated?

Potential risks for a contract of this magnitude and location include cost overruns, schedule delays, quality control issues, and logistical challenges specific to Alaska. Given it was a firm-fixed-price contract, the primary financial risk was borne by the contractor. Mitigation strategies likely involved detailed technical specifications, pre-award contractor assessments, and potentially performance bonds. The limited number of bids, despite full and open competition, might suggest that potential bidders identified significant risks or that the requirements were highly specialized, leading to fewer competitive offers. The Army's contracting office would have assessed these risks and ensured appropriate safeguards were in place.

What is the expected impact of these new family housing facilities on military readiness and personnel retention at Fort Wainwright?

The construction of new family housing facilities is directly linked to improving the quality of life for service members and their families, which is a critical factor in personnel retention and overall morale. Adequate, modern housing can reduce stress, enhance family well-being, and contribute to a more stable military community. For Fort Wainwright, this investment signals a commitment to supporting its personnel, potentially making assignments there more attractive and reducing turnover. Improved housing can also indirectly support readiness by ensuring that service members are well-rested and focused on their duties, rather than concerned about substandard living conditions.

How has federal spending on military family housing construction evolved over the years, and does this contract represent a typical investment?

Federal spending on military family housing has fluctuated over the years, influenced by budget priorities, infrastructure needs assessments, and public-private partnership initiatives. Historically, significant investments have been made to address housing shortages and upgrade aging facilities. This $44.6 million contract for new construction at Fort Wainwright appears to be a substantial, targeted investment addressing specific needs at that installation. To determine if it's 'typical,' one would need to analyze aggregate spending data for military family housing construction across the DoD over several fiscal years, looking at average contract values, project scopes, and regional cost variations.

Industry Classification

NAICS: Construction › Residential Building Construction › New Single-Family Housing Construction (except For-Sale Builders)

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6500 INTERSTATE CIR, ANCHORAGE, AK, 00

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline