DoD's $59.9M Von Braun Complex IV Construction Awarded to Universal Construction Company Inc
Contract Overview
Contract Amount: $59,916,628 ($59.9M)
Contractor: Universal Construction Company Inc.
Awarding Agency: Department of Defense
Start Date: 2012-05-18
End Date: 2014-07-11
Contract Duration: 784 days
Daily Burn Rate: $76.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 21
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF TWO-PHASE D/B FOR DESIGN AND CONTRUCTION OF VON BRAUN COMPLEX IV, REDSTONE ARSENAL, AL
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35808
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $59.9 million to UNIVERSAL CONSTRUCTION COMPANY INC. for work described as: IGF::OT::IGF TWO-PHASE D/B FOR DESIGN AND CONTRUCTION OF VON BRAUN COMPLEX IV, REDSTONE ARSENAL, AL Key points: 1. The contract awarded to Universal Construction Company Inc. for $59.9 million covers the design and construction of Von Braun Complex IV at Redstone Arsenal. 2. This project falls under the Commercial and Institutional Building Construction sector, a common area for large federal infrastructure investments. 3. The award was made under a full and open competition, suggesting a robust price discovery process. 4. The contract type is a Firm Fixed Price definitive contract, which shifts cost risk to the contractor.
Value Assessment
Rating: fair
The contract value of $59.9 million for a complex construction project of this nature appears within a reasonable range for federal projects. Benchmarking against similar large-scale institutional building construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The use of full and open competition is intended to maximize taxpayer value by fostering a competitive environment that drives down costs.
Public Impact
Construction projects at military installations directly impact base operations and personnel, potentially affecting readiness and quality of life. The successful completion of this complex is crucial for the functions it will house at Redstone Arsenal. Investments in infrastructure like this can stimulate local economies through job creation and material sourcing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific PSC code makes detailed sector benchmarking difficult.
- Contract duration of 784 days is substantial, increasing risk of cost escalation or delays.
- Small business participation is not indicated (ss: false, sb: false).
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type shifts cost risk to the contractor.
- Project located at a significant military installation (Redstone Arsenal).
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector is substantial, driven by the need for infrastructure at military bases, government facilities, and research centers. Benchmarks vary widely based on project scope and location.
Small Business Impact
The data indicates no specific small business set-aside or participation (ss: false, sb: false). This suggests that the contract was not specifically targeted towards small businesses, and larger, established construction firms likely competed for and won this award.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reporting, would be in place to ensure compliance and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (784 days) increases risk exposure.
- No indication of small business participation.
- Lack of detailed project scope (e.g., square footage) hinders granular value analysis.
- Potential for cost overruns if unforeseen site conditions arise, despite FFP.
Tags
commercial-and-institutional-building-co, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.9 million to UNIVERSAL CONSTRUCTION COMPANY INC.. IGF::OT::IGF TWO-PHASE D/B FOR DESIGN AND CONTRUCTION OF VON BRAUN COMPLEX IV, REDSTONE ARSENAL, AL
Who is the contractor on this award?
The obligated recipient is UNIVERSAL CONSTRUCTION COMPANY 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 $59.9 million.
What is the period of performance?
Start: 2012-05-18. End: 2014-07-11.
What is the estimated cost per square foot for this construction project, and how does it compare to industry benchmarks for similar facilities?
The provided data does not include square footage, making a per-square-foot cost analysis impossible. To assess value, this metric would need to be obtained and compared against regional and national averages for institutional building construction, considering factors like material costs, labor rates, and specific facility requirements.
What are the primary risks associated with a 784-day construction project, and what mitigation strategies are likely in place?
Key risks include potential delays due to weather, unforeseen site conditions, material shortages, or labor disputes. Mitigation strategies typically involve detailed project scheduling, contingency planning, robust contract management, regular site inspections, and clear communication channels between the government and the contractor.
How effectively does the Firm Fixed Price contract type ensure cost control for this large-scale construction project?
The Firm Fixed Price (FFP) contract type is designed to provide strong cost control by fixing the total price regardless of the contractor's actual costs. This shifts the cost risk to the contractor, incentivizing them to manage expenses efficiently to maintain profitability. However, scope changes can significantly impact the FFP.
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: TWO STEP
Solicitation ID: W9127811R0051
Offers Received: 21
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vinci (UEI: 462009101)
Address: 336 JAMES RECORD RD SW, HUNTSVILLE, AL, 35824
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,406,628
Exercised Options: $59,916,628
Current Obligation: $59,916,628
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-05-18
Current End Date: 2014-07-11
Potential End Date: 2014-07-11 00:00:00
Last Modified: 2016-08-16
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