Fort Sam Houston student center construction contract awarded to Federal Program Integrators for $21.8M

Contract Overview

Contract Amount: $21,823,245 ($21.8M)

Contractor: Federal Program Integrators, LLC

Awarding Agency: Department of Defense

Start Date: 2011-09-08

End Date: 2013-07-21

Contract Duration: 682 days

Daily Burn Rate: $32.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: STUDENT ACTIVITY CENTER, FORT SAM HOUSTON, TEXAS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to FEDERAL PROGRAM INTEGRATORS, LLC for work described as: STUDENT ACTIVITY CENTER, FORT SAM HOUSTON, TEXAS Key points: 1. Contract value appears reasonable for a large construction project of this nature. 2. Limited competition suggests potential for higher pricing than a fully competed contract. 3. Project duration of 682 days is within typical ranges for similar construction. 4. Fixed-price contract type shifts risk to the contractor. 5. Project located in Texas, contributing to local construction sector employment.

Value Assessment

Rating: fair

The contract value of $21.8 million for the Student Activity Center at Fort Sam Houston is difficult to benchmark precisely without more detailed project specifications and comparable construction costs in the San Antonio area during 2011-2013. However, for a definitive contract of this size and scope, the price appears within a plausible range. The fixed-price nature of the award suggests that the contractor assumed the risk for cost overruns, which is a positive indicator for value if the project was completed within budget. Further analysis would require comparing the final cost against the initial bid and the scope of work delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'not available for competition' justification, indicating a sole-source procurement. This means that only one offeror was solicited and considered. While sole-source awards can be necessary in specific circumstances, they generally limit price discovery and can lead to higher costs for the government compared to contracts awarded under full and open competition. The lack of multiple bidders means there was no competitive pressure to drive down the price.

Taxpayer Impact: The absence of competition for this contract means taxpayers may have paid a premium, as there was no mechanism to ensure the lowest possible price was secured through bidding.

Public Impact

The primary beneficiaries are the military personnel and students at Fort Sam Houston, who will gain access to a new student activity center. The project delivers a new facility for recreational and social activities, enhancing the quality of life for service members. The geographic impact is localized to Fort Sam Houston, Texas, providing construction jobs and economic activity within the local community. The construction workforce, likely including skilled trades and laborers, directly benefits from the employment opportunities created by this project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of transparency in the 'not available for competition' justification requires further scrutiny.
Fixed-price contract, while shifting risk, could still lead to cost overruns if scope creep occurs without proper change order management.

Positive Signals

Fixed-price contract type generally provides cost certainty for the government.
Project awarded to a specific contractor, implying they met the necessary qualifications for the work.
Construction project contributes to infrastructure development at a key military installation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by a wide range of projects, from small renovations to large-scale new builds. Federal construction spending is a significant component of this market. Benchmarking this contract's value against similar military construction projects awarded around 2011-2013 would provide a clearer picture of its cost-effectiveness. The market for federal construction is competitive, but specific project requirements or locations can sometimes lead to limited competition.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. The award to Federal Program Integrators, LLC, does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. Further investigation into the contractor's own use of small business subcontractors would be needed to assess any indirect impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. The fixed-price nature of the contract implies that oversight would focus on ensuring the contractor adheres to the scope of work, schedule, and quality standards. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction Projects
Fort Sam Houston Facilities
Department of Defense Construction Contracts
Federal Building Construction

Risk Flags

Sole-source award
Limited competition justification
Lack of detailed cost breakdown

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to FEDERAL PROGRAM INTEGRATORS, LLC. STUDENT ACTIVITY CENTER, FORT SAM HOUSTON, TEXAS

Who is the contractor on this award?

The obligated recipient is FEDERAL PROGRAM INTEGRATORS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.8 million.

What is the period of performance?

Start: 2011-09-08. End: 2013-07-21.

What specific factors led to the 'not available for competition' justification for this contract?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION'. This justification typically arises when only one source is capable of meeting the government's needs. Reasons can include unique capabilities, urgent and compelling needs where only one contractor can respond in time, or specific government property requirements. Without further documentation from the Department of the Army's contracting office at the time of award, the precise reason remains unspecified. This lack of detail limits the ability to assess if a sole-source award was truly the only viable option or if it represented a missed opportunity for competition.

How does the $21.8 million cost compare to similar student activity center construction projects at military installations?

Comparing the $21.8 million cost requires detailed project specifications (square footage, amenities, materials) and the specific time of construction (2011-2013) for accurate benchmarking. Construction costs vary significantly by location, labor rates, and material prices. A general comparison suggests that for a facility of substantial size, this figure is within a plausible range for military construction during that period. However, without access to comparable project data from the Department of Defense or industry cost databases for that specific timeframe and region, a definitive value-for-money assessment is challenging. The fixed-price nature offers some cost certainty, but the sole-source award raises concerns about potential overpayment.

What was the track record of Federal Program Integrators, LLC, prior to or around the time of this award?

Information regarding the specific track record of Federal Program Integrators, LLC, around the 2011 award date for the Fort Sam Houston project is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar government contracts, including project complexity, adherence to schedule and budget, and client satisfaction. Their ability to secure a sole-source definitive contract valued at over $21 million suggests they possessed the necessary qualifications and capacity at the time. However, without access to past performance evaluations or contract histories, it's difficult to definitively assess their reliability and expertise.

What are the potential risks associated with a sole-source definitive contract for construction?

The primary risk associated with a sole-source definitive contract for construction is the lack of price competition, which can lead to the government paying a higher price than if multiple bids were solicited. This reduces the government's leverage in negotiating favorable terms and pricing. Additionally, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single contractor, potentially limiting innovation and broader market engagement. For taxpayers, this translates to a higher likelihood of suboptimal value for their investment. Oversight becomes even more critical to ensure the contractor delivers quality work within the agreed-upon scope and timeline.

How does the duration of 682 days (approx. 22.4 months) compare to typical construction timelines for similar facilities?

A duration of 682 days, approximately 22.4 months, for a student activity center construction project of this magnitude is generally within the expected range for large-scale institutional or military construction. Such projects involve complex planning, site preparation, foundation work, structural erection, interior finishing, and landscaping. Factors like weather, unforeseen site conditions, and the complexity of the building's design can influence the timeline. While not excessively long, it's important to compare this duration against the contractor's proposed schedule and any subsequent modifications or delays to fully assess project management efficiency.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9126G11R0171

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Penobscot Indian Nation Enterprises (UEI: 832154145)

Address: 12 WABANAKI WAY, INDIAN ISLAND, ME, 04468

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Emerging Small Business, Government, HUBZone Firm, Native American Tribal Government, Limited Liability Corporation, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,823,245

Exercised Options: $21,823,245

Current Obligation: $21,823,245

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline