DoD Awards $33.5M for Alaska Child Development Center Construction to Watterson Construction
Contract Overview
Contract Amount: $33,529,844 ($33.5M)
Contractor: Watterson Construction CO
Awarding Agency: Department of Defense
Start Date: 2021-11-10
End Date: 2024-02-13
Contract Duration: 825 days
Daily Burn Rate: $40.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCT CHILD DEVELOPMENT CENTER FORT WAINWRIGHT, AK
Place of Performance
Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $33.5 million to WATTERSON CONSTRUCTION CO for work described as: DESIGN AND CONSTRUCT CHILD DEVELOPMENT CENTER FORT WAINWRIGHT, AK Key points: 1. Significant investment in military family infrastructure. 2. Construction sector faces potential material cost volatility. 3. Project duration of 825 days indicates complex scope. 4. Firm Fixed Price contract aims to control costs.
Value Assessment
Rating: good
The contract value of $33.5M for a child development center appears reasonable given the scope and location. Benchmarking against similar large-scale construction projects for government facilities suggests this price is within expected ranges, though specific regional cost factors are critical.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, allowing multiple contractors to bid. This method generally promotes competitive pricing and ensures the government receives the best value. The firm fixed price contract further solidifies cost certainty.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective solution for essential infrastructure.
Public Impact
Enhances quality of life for military families stationed at Fort Wainwright. Supports early childhood education and care services. Creates local construction jobs and stimulates economic activity in Alaska.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays due to weather or supply chain issues in Alaska.
- Risk of cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Positive Signals
- Addresses critical need for family support facilities.
- Utilizes a competitive procurement process.
- Firm fixed price contract provides cost predictability.
Sector Analysis
This project falls under industrial building construction, a sector often subject to fluctuations in material costs and labor availability. The $33.5M award is substantial for a single facility, reflecting the complexity and scale of military infrastructure projects.
Small Business Impact
While the prime contractor is Watterson Construction Co., the contract details do not specify subcontracting goals for small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. The firm fixed price contract and defined completion date provide clear accountability metrics.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays due to remote location and climate.
- Risk of unforeseen site conditions impacting fixed price.
- Dependence on specialized construction labor in Alaska.
- Supply chain vulnerabilities for materials.
Tags
industrial-building-construction, department-of-defense, ak, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.5 million to WATTERSON CONSTRUCTION CO. DESIGN AND CONSTRUCT CHILD DEVELOPMENT CENTER FORT WAINWRIGHT, AK
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 $33.5 million.
What is the period of performance?
Start: 2021-11-10. End: 2024-02-13.
What is the estimated cost per square foot for this child development center, and how does it compare to similar facilities?
Without the square footage, a precise cost per square foot cannot be calculated. However, based on the total award of $33.5M, if the center were, for example, 50,000 sq ft, the cost would be approximately $670/sq ft. This figure would need to be benchmarked against regional construction costs for similar government facilities to assess value.
What are the specific risks associated with constructing in Alaska, and how are they mitigated in the contract?
Construction in Alaska presents unique risks such as extreme weather, permafrost, logistical challenges for material delivery, and a limited local labor pool. The contract's firm fixed price structure aims to transfer cost risk to the contractor, but potential mitigation strategies within the contract might include detailed site surveys, phased construction schedules, and allowances for specific environmental conditions.
How effectively will this facility serve the long-term needs of military families at Fort Wainwright?
The effectiveness hinges on the facility's design meeting current and future childcare needs, including capacity, safety features, and accessibility. Its strategic location on base should enhance convenience for military personnel. Long-term effectiveness will also depend on maintenance and operational support post-construction.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911KB21R0005
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6500 INTERSTATE CIR, ANCHORAGE, AK, 99518
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,529,844
Exercised Options: $33,529,844
Current Obligation: $33,529,844
Subaward Activity
Number of Subawards: 31
Total Subaward Amount: $18,297,784
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-11-10
Current End Date: 2024-02-13
Potential End Date: 2024-02-13 00:00:00
Last Modified: 2025-07-03
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