Army awards $11.3M Utilidor Upgrade to Tunista Inc. for Water/Sewer Construction
Contract Overview
Contract Amount: $11,339,410 ($11.3M)
Contractor: Tunista Inc
Awarding Agency: Department of Defense
Start Date: 2007-08-28
End Date: 2008-10-01
Contract Duration: 400 days
Daily Burn Rate: $28.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FTW 319 601ST ST UTILIDOR UPGRADE
Place of Performance
Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $11.3 million to TUNISTA INC for work described as: FTW 319 601ST ST UTILIDOR UPGRADE Key points: 1. Contract awarded for critical infrastructure upgrade at an undisclosed Army facility. 2. Limited competition due to contract type and potential site-specific requirements. 3. Risk associated with fixed-price contract for construction with potential for unforeseen issues. 4. Sector is Construction, specifically water and sewer infrastructure.
Value Assessment
Rating: fair
The award amount of $11.3M for a Utilidor Upgrade is difficult to benchmark without specific project details. However, the NAICS code 237110 (Water and Sewer Line and Related Structures Construction) suggests a standard construction project. The lack of a stated budget or comparison data makes a precise pricing assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT AVAILABLE FOR COMPETITION', indicating a limited competition approach. This likely means only one or a few sources were solicited. The lack of broad competition may have limited price discovery and potentially led to a higher price than if it were fully competed.
Taxpayer Impact: Taxpayer impact is the full contract value of $11.3M, with potential for increased cost if change orders arise due to the fixed-price nature and limited competition.
Public Impact
Ensures operational readiness by upgrading essential utility infrastructure. Supports military personnel and families by maintaining reliable water and sewer services. Investment in aging infrastructure contributes to long-term facility sustainability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have inflated costs.
- Fixed-price contract risk for construction projects.
- Lack of detailed project scope for benchmarking.
Positive Signals
- Addresses critical infrastructure needs.
- Supports military base operations.
- Long-term asset improvement.
Sector Analysis
The construction sector, particularly for utility infrastructure like water and sewer lines, is vital for government operations. Spending benchmarks vary widely based on project complexity, location, and material costs. This $11.3M award falls within a typical range for significant infrastructure upgrades at a federal facility.
Small Business Impact
The contract was awarded to Tunista Inc. There is no indication from the provided data whether this award specifically benefited small businesses or if small business subcontracting goals were set or met.
Oversight & Accountability
Oversight would typically be managed by the Department of the Army contracting and project management offices. Accountability for the project's success and adherence to the fixed-price contract rests with the contracting officer and the contractor, Tunista Inc.
Related Government Programs
- Water and Sewer Line and Related Structures Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Fixed-price contract risk
- Lack of detailed scope/budget for benchmarking
- Potential for cost overruns impacting taxpayer funds
Tags
water-and-sewer-line-and-related-structu, department-of-defense, ak, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.3 million to TUNISTA INC. FTW 319 601ST ST UTILIDOR UPGRADE
Who is the contractor on this award?
The obligated recipient is TUNISTA 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 $11.3 million.
What is the period of performance?
Start: 2007-08-28. End: 2008-10-01.
What was the justification for limiting competition on this significant infrastructure project?
The justification for limiting competition is not provided in the data. Typically, reasons could include urgent and compelling needs, specific technical requirements only a single source can meet, or a lack of adequate sources identified during market research. Without this information, it's difficult to assess if the limited competition was appropriate or if it potentially led to suboptimal pricing for the government.
What are the primary risks associated with a fixed-price contract for this type of construction project?
The primary risks of a fixed-price contract for construction include the contractor potentially cutting corners on quality to maintain profitability if unforeseen issues arise, or the government overpaying if the initial price was set too high due to limited competition. For the government, the risk is that the contractor may not be incentivized to find cost savings, and the contractor bears the risk of cost overruns, which could lead to disputes or contractor failure.
How does the lack of a stated budget or baseline estimate impact the assessment of this contract's value?
The absence of a stated budget or baseline estimate significantly hinders a thorough value assessment. It prevents a direct comparison of the awarded price against pre-determined government expectations or industry benchmarks. This makes it harder to determine if the $11.3M represents a fair and reasonable price, increasing the reliance on qualitative assessments of competition and contractor performance.
Industry Classification
NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W911KB07R0027
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 301 CALISTA CT. STE A, ANCHORAGE, AK, 00
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $11,339,410
Exercised Options: $11,339,410
Current Obligation: $11,339,410
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-08-28
Current End Date: 2008-10-01
Potential End Date: 2008-10-01 00:00:00
Last Modified: 2008-11-14
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