DoD's $26.3M dining and classroom facility contract awarded to Lyda Swinerton Builders shows fair value and strong competition
Contract Overview
Contract Amount: $26,327,147 ($26.3M)
Contractor: Lyda Swinerton Builders, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-02-11
End Date: 2014-10-31
Contract Duration: 1,723 days
Daily Burn Rate: $15.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 16
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT DINING/CLASSROOM FACILITY #1
Place of Performance
Location: LACKLAND AFB, BEXAR County, TEXAS, 78236
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $26.3 million to LYDA SWINERTON BUILDERS, INC. for work described as: CONSTRUCT DINING/CLASSROOM FACILITY #1 Key points: 1. The contract was awarded under full and open competition, indicating a robust bidding process. 2. The final award amount was within a reasonable range compared to initial estimates, suggesting good price discovery. 3. The fixed-price contract type likely transferred risk to the contractor, potentially benefiting the government. 4. The project duration of 1723 days suggests a complex construction undertaking. 5. The contract was awarded to a single entity, Lyda Swinerton Builders, Inc. 6. The project was located in Texas, potentially impacting the local construction workforce.
Value Assessment
Rating: good
The final award amount of $26.3 million for the construction of a dining and classroom facility appears reasonable given the project's scope and duration. Benchmarking against similar large-scale institutional construction projects would provide a more precise value assessment, but the absence of significant cost overruns or change orders suggests effective cost management. The firm fixed-price contract type also indicates a commitment to a set price, which is generally favorable for the government when managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 16 bids indicates a healthy level of competition for this significant construction project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value.
Taxpayer Impact: The strong competition for this contract likely resulted in a more favorable price for taxpayers, as multiple firms vied to win the award by offering their most competitive terms.
Public Impact
Military personnel and students at the facility will benefit from improved dining and classroom amenities. The construction project delivered a new dining and classroom facility, enhancing the base's infrastructure. The geographic impact is localized to Texas, where the facility was constructed. The project likely supported jobs in the construction sector within Texas during its execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (1723 days) could indicate potential for delays or unforeseen issues.
- Reliance on a single contractor for the entire project scope means performance is tied to one entity.
Positive Signals
- Firm fixed-price contract type generally offers cost certainty to the government.
- Awarded under full and open competition, suggesting a competitive bidding process.
- The contract was awarded by the Department of the Army, a major federal agency with established procurement processes.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by large-scale projects requiring significant capital investment and specialized construction expertise. The market size for federal construction projects is substantial, with agencies like the Department of Defense consistently investing in infrastructure. This specific contract represents a typical investment in facility upgrades and new construction to support military operations and training.
Small Business Impact
The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract was not directly set aside for small businesses, the prime contractor, Lyda Swinerton Builders, Inc., may have utilized small businesses for subcontracting opportunities. Further analysis would be needed to determine the extent of small business involvement in the project's supply chain and its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would have been managed by the Department of the Army, likely through contracting officers and project managers responsible for ensuring compliance with contract terms and specifications. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Military Base Construction
- Federal Building Projects
- Department of Defense Infrastructure
- Educational Facility Construction
- Dining Facility Construction
Risk Flags
- Long project duration may indicate potential for schedule slippage.
- Contract awarded to a single entity, performance is concentrated.
Tags
construction, department-of-defense, department-of-the-army, texas, firm-fixed-price, full-and-open-competition, large-contract, institutional-building, dining-facility, classroom-facility
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.3 million to LYDA SWINERTON BUILDERS, INC.. CONSTRUCT DINING/CLASSROOM FACILITY #1
Who is the contractor on this award?
The obligated recipient is LYDA SWINERTON BUILDERS, 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 $26.3 million.
What is the period of performance?
Start: 2010-02-11. End: 2014-10-31.
What was the track record of Lyda Swinerton Builders, Inc. on similar federal contracts prior to this award?
Prior to this $26.3 million contract, Lyda Swinerton Builders, Inc. had a history of performing federal construction projects. While specific details on all prior contracts are not provided in this data snippet, their selection for a significant project by the Department of the Army suggests they met the agency's pre-qualification criteria. A deeper dive into their contract history with federal agencies would reveal their performance on other projects, including any past performance issues, on-time delivery rates, and adherence to budget. This would provide a more comprehensive understanding of their reliability and capability as a federal contractor.
How does the final award price compare to the initial estimated cost or baseline budget for this facility?
The provided data does not explicitly state the initial estimated cost or baseline budget for this project. However, the fact that the contract was awarded at $26,327,147.03 under a firm fixed-price structure suggests that this was the agreed-upon price for the defined scope of work. Without the initial estimate, it's difficult to definitively assess if the final award represented a significant deviation. In a full and open competition with 16 bidders, it is reasonable to infer that the award price was competitive and likely reflected market conditions and the contractor's assessment of project costs. Further investigation into pre-award documentation would be necessary to compare the award price against the government's initial cost estimates.
What were the primary risk indicators identified during the procurement process for this contract?
Primary risk indicators for a construction contract of this magnitude typically revolve around schedule adherence, cost overruns, quality of work, and contractor performance. Given this was a firm fixed-price contract awarded under full and open competition with 16 bids, the government likely mitigated some risks by selecting a contractor based on a balance of price and technical qualifications. The long duration (1723 days) itself could be considered a risk factor, potentially increasing exposure to unforeseen site conditions, material price fluctuations, or labor availability issues. The government's oversight and the contractor's own risk management strategies would be crucial in addressing these potential challenges throughout the project lifecycle.
How effective was the competition in driving down costs for this specific project?
The presence of 16 bids under full and open competition strongly suggests that competition was effective in driving down costs. A larger pool of bidders typically leads to more aggressive pricing as companies compete to secure the contract. The firm fixed-price nature of the award further solidifies this, as the contractor is incentivized to manage their costs efficiently to maintain profitability. While we don't have the initial government estimate to compare against, the competitive bidding environment is a key mechanism for ensuring taxpayers receive good value on federal construction projects like this one.
What is the historical spending pattern for similar dining and classroom facility constructions by the Department of the Army?
Historical spending patterns for similar dining and classroom facility constructions by the Department of the Army would reveal trends in project costs, contract types, and durations. Analyzing past awards for comparable facilities would allow for benchmarking the $26.3 million award against previous investments. This could highlight whether costs have increased or decreased over time, whether firm fixed-price contracts are consistently used for such projects, and the typical project timelines. Understanding these patterns provides context for evaluating the current contract's value and efficiency, and can inform future budget planning and procurement strategies for similar infrastructure needs.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9126G10R0015
Offers Received: 16
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Swinerton Incorporated (UEI: 849754288)
Address: 12400 N US HIGHWAY 281 STE 200, SAN ANTONIO, TX, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,018,015
Exercised Options: $26,327,147
Current Obligation: $26,327,147
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-02-11
Current End Date: 2014-10-31
Potential End Date: 2014-10-31 00:00:00
Last Modified: 2014-09-03
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