Army awards $109.2M construction contract for airport runway work to Sunmount Corporation

Contract Overview

Contract Amount: $16,666,629 ($16.7M)

Contractor: Sunmount Corporation

Awarding Agency: Department of Defense

Start Date: 2004-09-29

End Date: 2005-08-03

Contract Duration: 308 days

Daily Burn Rate: $54.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200412!003812!2100!W91278!* !W9127804C0061 !A!N! !N! ! !20040929!20050803!109210047!109210047!101258739!N!SUNMOUNT CORPORATION !344 HARMONSON ROAD !ROANOKE !TX!76262!32275!025!12!HOMESTEAD !DADE !FLORIDA !+000014900910!N!N!000017701035!Y124!AIRPORT RUNWAYS !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!003!B! !D!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!Y! !N! ! ! ! !0001! !

Place of Performance

Location: HOMESTEAD, MIAMI-DADE County, FLORIDA, 33039

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to SUNMOUNT CORPORATION for work described as: 200412!003812!2100!W91278!* !W9127804C0061 !A!N! !N! ! !20040929!20050803!109210047!109210047!101258739!N!SUNMOUNT CORPORATION !344 HARMONSON ROAD !ROANOKE !TX!76262!32275!025!12!HOMESTEAD !DADE… Key points: 1. Contract value of $109.2 million for airport runway construction. 2. Awarded by the Department of the Army, indicating a defense-related infrastructure project. 3. Fixed-price contract type suggests a defined scope and cost structure. 4. Contract duration of 308 days implies a focused, medium-term project. 5. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction. 6. The contract was awarded under full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: fair

The contract value of $109.2 million for airport runway construction appears to be within a reasonable range for such projects, though specific benchmarks are difficult without more detailed project specifications. The fixed-price nature of the contract provides cost certainty for the government, but could expose the contractor to risks if unforeseen issues arise. Without comparative data on similar runway projects in terms of scope, materials, and location, a precise value-for-money assessment is challenging.

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 a bid. This suggests a robust bidding process where multiple companies likely vied for the contract. The presence of multiple bidders generally leads to more competitive pricing and a greater likelihood of selecting the best value proposal.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring the government receives competitive pricing for services rendered.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other military branches utilizing the airport infrastructure. The service delivered is the construction and improvement of airport runways. The geographic impact is localized to Homestead, Florida, and the surrounding DADE county area. Workforce implications include job creation for construction workers, engineers, and project managers in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions are encountered in fixed-price contracts.
Dependence on contractor's ability to meet stringent construction timelines and quality standards.
Risk of supply chain disruptions affecting material availability and project schedule.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded fair pricing.
Fixed-price contract provides budget certainty for the government.
Clear project scope for runway construction indicates a defined deliverable.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to airport infrastructure. The market for airport construction is significant, driven by both commercial and military needs for modernization and expansion. Comparable spending benchmarks would typically involve other large-scale runway repair or construction projects, often awarded by federal agencies like the FAA or military branches. The size of this contract ($109.2M) places it in the large-project category within this sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary award went to a large business, Sunmount Corporation. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of specific set-aside language or reporting here implies a limited direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and project managers within the Department of the Army. Accountability measures are embedded in the fixed-price contract terms, requiring Sunmount Corporation to deliver the specified runway construction within the agreed-upon budget and timeline. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing oversight are not provided in this data.

Related Government Programs

Military Construction Program
Airport Improvement Program (FAA)
Defense Infrastructure Projects

Risk Flags

Potential for cost overruns in fixed-price contracts due to unforeseen site conditions.
Contractor performance risk impacting project timeline and quality.
Dependence on supply chain stability for construction materials.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to SUNMOUNT CORPORATION. 200412!003812!2100!W91278!* !W9127804C0061 !A!N! !N! ! !20040929!20050803!109210047!109210047!101258739!N!SUNMOUNT CORPORATION !344 HARMONSON ROAD !ROANOKE !TX!76262!32275!025!12!HOMESTEAD !DADE !FLORIDA !+000014900910!N!N!000017701035!Y124!AIRPORT RUNWAYS !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is SUNMOUNT CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2004-09-29. End: 2005-08-03.

What is the track record of Sunmount Corporation in completing similar large-scale construction projects for the federal government?

Detailed information on Sunmount Corporation's track record for similar large-scale federal construction projects is not provided in the given data. To assess their capability, one would need to review past performance evaluations, contract completion history, and any reported disputes or successes on previous government contracts. Federal procurement databases and contract award histories can offer insights into their experience with projects of comparable size, scope (e.g., runway construction), and complexity. A thorough review would also consider their financial stability and capacity to manage a project valued at over $100 million.

How does the awarded amount of $109.2 million compare to the estimated cost or market rates for similar airport runway construction projects?

Without specific details on the scope, materials, and location of the runway work, a precise comparison of the $109.2 million award to market rates is challenging. However, large-scale airport runway construction and rehabilitation projects can range significantly in cost, often running into tens or hundreds of millions of dollars, depending on factors like length, width, pavement type, lighting systems, and drainage requirements. The fact that this contract was awarded under full and open competition suggests that the pricing was vetted against multiple bids. To provide a more accurate benchmark, one would need to compare this contract's specifications against similar projects awarded by the Department of Defense or the Federal Aviation Administration (FAA) in recent years.

What are the primary risks associated with this fixed-price construction contract for the Department of the Army?

The primary risks for the Department of the Army in this fixed-price contract revolve around potential cost overruns if the contractor encounters unforeseen site conditions (e.g., subsurface issues, environmental hazards) that were not adequately accounted for in the bid. There's also a risk related to the contractor's performance; if Sunmount Corporation fails to meet quality standards or project timelines, the Army may face delays, require corrective actions, or incur additional costs to rectify deficiencies. Ensuring adequate oversight and robust contract management are crucial to mitigating these risks and ensuring the project's successful completion within the agreed-upon terms.

What is the expected effectiveness of the completed runway construction in meeting the Army's operational requirements?

The effectiveness of the completed runway construction will be measured by its ability to meet the specific operational requirements of the Army, which are not detailed in the provided data. Typically, runway construction projects aim to enhance safety, increase load-bearing capacity, extend operational life, or accommodate specific aircraft types. Assuming the project is executed according to the contract specifications, the new or improved runway should enhance the base's operational capabilities, potentially improving aircraft safety, reducing maintenance needs, and ensuring readiness. Performance metrics would likely include adherence to engineering standards, durability, and functionality for intended military aviation use.

How does the historical spending on airport runway construction by the Department of the Army compare to this specific award?

The provided data focuses on a single contract award of $109.2 million. To understand historical spending patterns, one would need to analyze aggregate data on all airport runway construction contracts awarded by the Department of the Army over several fiscal years. This would involve identifying trends in contract values, types of construction (new build vs. repair), geographic distribution, and the number of competitors. Without this broader context, it's difficult to determine if this $109.2 million award represents a typical, high, or low expenditure for such projects within the Army's budget.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

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: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lane Industries Incorporated (UEI: 101258739)

Address: 344 HARMONSON ROAD, ROANOKE, TX, 76262

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $385,370

Exercised Options: $385,370

Current Obligation: $16,666,629

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline