Child Development Center construction contract awarded to Southwind Construction Services for $23.3M

Contract Overview

Contract Amount: $23,295,880 ($23.3M)

Contractor: Southwind Construction Services, LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-20

End Date: 2026-07-31

Contract Duration: 1,502 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT CHILD DEVELOPMENT CENTER

Place of Performance

Location: SHEPPARD AFB, WICHITA County, TEXAS, 76311

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to SOUTHWIND CONSTRUCTION SERVICES, LLC for work described as: CONSTRUCT CHILD DEVELOPMENT CENTER Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The contract duration of 1502 days indicates a significant, multi-year project timeline. 4. Fixed-price contract type may offer cost certainty but could limit flexibility. 5. Project is located in Texas, potentially impacting local construction labor markets. 6. No small business set-aside was applied, suggesting larger firms were primary targets.

Value Assessment

Rating: good

The contract value of $23.3 million for constructing a child development center is within the expected range for a project of this scale and complexity. Benchmarking against similar federal construction projects for educational or community facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests a negotiated price that the contractor is expected to adhere to, which can be advantageous for the government if costs are well-estimated upfront. However, without detailed cost breakdowns or comparisons to private sector construction costs for similar facilities, a definitive assessment of exceptional value is difficult.

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. The presence of 10 bidders, as suggested by the 'no' field (likely representing the number of bids received or offers considered), points to a healthy level of competition for this project. This competitive environment generally leads to more favorable pricing and better terms for the government, as contractors vie to win the award.

Taxpayer Impact: A competitive bidding process for this construction project likely resulted in a more cost-effective outcome for taxpayers compared to a sole-source or limited competition award. The multiple bids received help ensure that the awarded price reflects market rates and efficient project execution.

Public Impact

The primary beneficiaries are military families and children at the specified Army installation, who will gain access to a new, modern child development center. The project will deliver a new institutional building, likely including classrooms, administrative offices, and recreational areas. The geographic impact is concentrated in Texas, where the construction will take place. The construction phase will create temporary jobs for skilled trades and laborers in the local Texas economy. Upon completion, the center will support the operational readiness of the military installation by providing essential family support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price fluctuations occur, despite the fixed-price contract.
Contract duration of over four years could lead to potential delays or changes in requirements.
Reliance on a single prime contractor for a large-scale project introduces risk if the contractor faces financial or operational difficulties.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government, assuming the initial bid was competitive.
Full and open competition with 10 bidders suggests a robust selection process and potentially competitive pricing.
The project addresses a clear need for improved child development facilities, enhancing quality of life for military families.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports military installations, government facilities, and public infrastructure. The market for large-scale federal construction is typically dominated by established firms with experience in government contracting, often requiring specialized security clearances and compliance with federal regulations. Comparable spending benchmarks would involve analyzing the cost per square foot or per child capacity of similar child development centers or educational facilities constructed by the government or in the private sector.

Small Business Impact

The contract was not awarded as a small business set-aside, and the 'sb' field indicates 'false,' suggesting that small business participation was not a primary set-aside objective for this specific award. While the prime contractor, Southwind Construction Services, LLC, may be a small business itself, the absence of a set-aside means larger firms were likely eligible and potentially dominant in the bidding. Subcontracting opportunities for small businesses may arise if Southwind chooses to engage them, but this is not guaranteed by the contract structure. The overall impact on the small business ecosystem depends on the subcontracting practices of the prime.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting office. The firm-fixed-price nature of the contract places the onus on the contractor to manage costs and schedule effectively. Transparency is generally maintained through contract award databases like FPDS. Accountability measures are tied to the contract terms and performance requirements; failure to meet these could result in penalties or termination. Inspector General jurisdiction may be involved if allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Military Construction (MILCON) Program
Department of Defense Family Housing Construction
General Services Administration (GSA) Public Buildings Service Construction
Child Care Facilities Construction

Risk Flags

Long contract duration increases risk of scope creep or requirement changes.
Fixed-price contract places cost escalation risk on the contractor.
Potential for delays if contractor faces resource or supply chain issues.
Dependence on a single prime contractor for a large project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to SOUTHWIND CONSTRUCTION SERVICES, LLC. CONSTRUCT CHILD DEVELOPMENT CENTER

Who is the contractor on this award?

The obligated recipient is SOUTHWIND CONSTRUCTION SERVICES, 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 $23.3 million.

What is the period of performance?

Start: 2022-06-20. End: 2026-07-31.

What is the track record of Southwind Construction Services, LLC with federal contracts, particularly in construction?

Southwind Construction Services, LLC has been awarded federal contracts, with this specific contract for the Child Development Center being a notable example. Analyzing their past performance on similar projects, including adherence to schedule, budget, and quality standards, is crucial for assessing their reliability. Federal procurement data would reveal the number and value of previous contracts, any performance issues or awards, and their experience with government agencies. A review of their contract history can indicate their capacity to handle large-scale construction projects and their history of successful project completion within the federal sector.

How does the awarded price of $23.3 million compare to similar child development center construction projects?

To benchmark the value, we would compare the cost per square foot or cost per child capacity of this $23.3 million contract against similar child development centers constructed for federal agencies or even in the private sector. Factors such as geographic location (affecting labor and material costs), specific facility requirements (e.g., security, specialized equipment), and the overall size of the center are critical for a fair comparison. Without access to detailed project specifications and cost breakdowns, a precise comparison is challenging, but the value appears within a reasonable range for a substantial federal construction project.

What are the primary risks associated with a firm-fixed-price contract for a multi-year construction project?

The primary risk with a firm-fixed-price contract, especially for a project spanning over four years (1502 days), is the potential for the contractor to incur losses if costs escalate beyond their initial estimates due to unforeseen circumstances. This includes fluctuations in material prices, labor shortages, or unexpected site conditions. While the government benefits from cost certainty, the contractor bears the risk. Conversely, if the contractor significantly underbid, they might cut corners on quality or seek change orders, which can negate the fixed-price benefit. Effective project management and oversight are crucial to mitigate these risks.

What is the expected effectiveness of the new Child Development Center once completed?

The new Child Development Center is expected to significantly enhance the quality of life and support services for military families stationed at the relevant Army installation. Improved facilities can lead to better developmental outcomes for children, increased parental morale, and enhanced readiness for service members who rely on dependable childcare. The effectiveness will be measured by its capacity to serve the population, the quality of the environment it provides, and its contribution to the overall mission readiness of the installation by offering essential family support.

How has federal spending on similar construction projects evolved over the past five years?

Federal spending on similar construction projects, particularly within the Department of Defense for facilities like child development centers, has generally remained robust, driven by the need to maintain and modernize military infrastructure. Trends may show increased emphasis on sustainable building practices, energy efficiency, and resilience against environmental factors. Budgetary allocations can fluctuate based on overall defense spending priorities and specific infrastructure needs assessments. Analyzing historical spending patterns for MILCON and related facility construction can reveal trends in project types, average contract values, and the competitive landscape.

What are the implications of awarding this contract to a single prime contractor for a project of this magnitude?

Awarding a large-scale construction project to a single prime contractor like Southwind Construction Services, LLC centralizes responsibility and streamlines communication. This can lead to more efficient project execution and clearer lines of accountability. However, it also concentrates risk; if the prime contractor experiences financial difficulties, operational issues, or fails to perform adequately, the entire project could be jeopardized. The government's ability to manage this risk depends on robust contract oversight, performance monitoring, and contingency planning, including the potential for step-in rights or termination for default.

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: W912BV21R0039

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1701 S STATE ST, EDMOND, OK, 73013

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $23,884,605

Exercised Options: $23,295,880

Current Obligation: $23,295,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline