DoD Awards $16.4M for C-BIG SIOUX Phase 2C to Runge Enterprises, Inc
Contract Overview
Contract Amount: $16,438,592 ($16.4M)
Contractor: Runge Enterprises, Inc
Awarding Agency: Department of Defense
Start Date: 2010-02-10
End Date: 2013-10-16
Contract Duration: 1,344 days
Daily Burn Rate: $12.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: C-BIG SIOUX PHASE 2C SPONSOR FUNDING
Place of Performance
Location: SIOUX FALLS, MINNEHAHA County, SOUTH DAKOTA, 57105
Plain-Language Summary
Department of Defense obligated $16.4 million to RUNGE ENTERPRISES, INC for work described as: C-BIG SIOUX PHASE 2C SPONSOR FUNDING Key points: 1. Contract awarded for heavy and civil engineering construction. 2. Runge Enterprises, Inc. secured the $16.4M contract. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The sector is Other Heavy and Civil Engineering Construction.
Value Assessment
Rating: fair
The award amount of $16.4M for a 1344-day duration appears reasonable for heavy civil engineering construction. Benchmarking against similar large-scale infrastructure projects 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 multiple bidders likely participated. This method generally promotes price discovery and competitive pricing for the government.
Taxpayer Impact: Taxpayer funds are being utilized for a significant construction project, with the expectation of value derived from competitive bidding.
Public Impact
Infrastructure development in South Dakota will be supported by this funding. The project contributes to the Department of the Army's construction capabilities. Job creation and economic activity are anticipated in the region due to the construction work.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns in long-term construction projects.
- Dependence on a single prime contractor for execution.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type can limit cost uncertainty.
- Experienced contractor likely involved in a large project.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which is critical for national infrastructure. Spending in this sector can vary significantly based on government priorities and economic conditions.
Small Business Impact
The data indicates the prime contractor is Runge Enterprises, Inc. and that small business participation (sb) was false. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The Department of the Army is responsible for oversight of this contract. The firm fixed price nature of the contract provides some level of cost control, but ongoing monitoring of performance and schedule is crucial.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk exposure.
- Firm Fixed Price can lead to contractor claims if scope changes.
- No explicit mention of small business subcontracting goals.
- Potential for unforeseen site conditions in civil engineering.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, sd, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.4 million to RUNGE ENTERPRISES, INC. C-BIG SIOUX PHASE 2C SPONSOR FUNDING
Who is the contractor on this award?
The obligated recipient is RUNGE ENTERPRISES, 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 $16.4 million.
What is the period of performance?
Start: 2010-02-10. End: 2013-10-16.
What specific construction activities does C-BIG SIOUX PHASE 2C entail, and how do they align with the Army's strategic infrastructure needs?
The provided data does not detail the specific construction activities for C-BIG SIOUX PHASE 2C. However, as a Phase 2C project within the Department of the Army, it likely involves significant civil engineering work, potentially related to base infrastructure, training facilities, or logistical support. Understanding the precise scope is crucial to assess its alignment with the Army's long-term strategic infrastructure development and modernization goals.
Given the 1344-day duration and firm fixed price, what are the primary risks associated with cost overruns or schedule delays for this contract?
The primary risks for a long-duration, firm fixed-price contract include unforeseen site conditions, material price escalation beyond initial estimates, labor shortages, and scope creep. While the fixed price aims to cap costs, significant delays or required changes could lead to claims from the contractor for additional compensation or extensions, impacting the overall value and timeline. Effective project management and contingency planning are vital to mitigate these risks.
How does the $16.4M award compare to typical spending for similar large-scale civil engineering construction projects undertaken by the Department of Defense?
Without specific details on the project's scope and complexity, a direct comparison is challenging. However, $16.4 million for a multi-year heavy civil engineering construction project is within the range for significant infrastructure development. Benchmarking against similar projects for barracks, airfields, or utility upgrades within the DoD would provide a clearer picture of whether this award represents competitive or outlier pricing for its category.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4801 N VELOCITY AVE, SIOUX FALLS, SD, 00
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,438,592
Exercised Options: $16,438,592
Current Obligation: $16,438,592
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-02-10
Current End Date: 2013-10-16
Potential End Date: 2013-10-16 00:00:00
Last Modified: 2013-08-08
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