DoD's $26.1M Malmstrom AFB housing repair contract awarded to Sunstar, LLC, faced limited competition

Contract Overview

Contract Amount: $26,108,661 ($26.1M)

Contractor: Sunstar, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-16

End Date: 2013-01-23

Contract Duration: 1,225 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::57 0743::TAS RECOVERYPROJECT#::NZAS034001C:RP# NZAS034001C MALMSTROM REPAIR STRUCTURAL FOUNDATIONS IN MINUTEMAN VILLAGE (179 UNITS) THIS PROJECT IS FOR THE DESIGN AND CONSTRUCTION EFFORT TO CORRECT STRUCTURAL WALLS AND FLOOR SLABS IN 179 MILITARY FAMILY HOUSING UNITS. WORK INCLUDES REPLACING PARTITION WALLS, WINDOW WELLS,CAULKING FLOOR SLAB PERIMETER, INSTALLING DRAIN SYSTEM WITH SUMP PUMP UNDER FLOOR SLAB, TOPSOIL AND SOD REPLACEMENT FOR SURFACE DRAINAGE. ADDITIONALLY, CONSTRUCTION WILL CORRECT SURROUNDING PAVEMENTS AND UTILITIES THAT HAVE BEEN DAMAGED AND REQUIRE REPAIR.

Place of Performance

Location: GREAT FALLS, CASCADE County, MONTANA, 59401

State: Montana Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to SUNSTAR, LLC for work described as: TAS::57 0743::TAS RECOVERYPROJECT#::NZAS034001C:RP# NZAS034001C MALMSTROM REPAIR STRUCTURAL FOUNDATIONS IN MINUTEMAN VILLAGE (179 UNITS) THIS PROJECT IS FOR THE DESIGN AND CONSTRUCTION EFFORT TO CORRECT STRUCTURAL WALLS AND FLOOR SLABS IN 179 MILITARY FAMILY HOUSING UNITS. WORK I… Key points: 1. The contract aimed to address structural issues in 179 military family housing units at Malmstrom Air Force Base. 2. Workscope included foundation repair, wall replacement, drainage systems, and utility restoration. 3. The project was awarded as a definitive contract with a firm-fixed-price structure. 4. The duration of the contract was 1225 days, spanning from September 2009 to January 2013. 5. The contract was awarded to Sunstar, LLC, with 6 bids received during the procurement process.

Value Assessment

Rating: fair

The total award amount of $26.1 million for the repair of 179 housing units at Malmstrom AFB suggests a per-unit cost of approximately $145,854. Benchmarking this against similar military housing repair projects is challenging without specific scope details, but it appears to be within a reasonable range for comprehensive structural repairs. The firm-fixed-price contract type indicates that the government sought to control costs, but the final price reflects the contractor's bid after competition.

Cost Per Unit: Approximately $145,854 per unit for comprehensive structural repairs.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bids received. While six bidders indicate a degree of competition, the specific details of the bidding process and the qualifications of the bidders are not provided. A moderate number of bids can sometimes lead to competitive pricing, but the ultimate price is also influenced by the complexity and scope of the required repairs.

Taxpayer Impact: The full and open competition with six bids suggests that taxpayers benefited from a process designed to solicit multiple offers, potentially leading to a more competitive price than a sole-source award.

Public Impact

Military families residing in 179 housing units at Malmstrom Air Force Base, Montana, benefited from improved living conditions. The project delivered essential structural repairs, including foundation and wall replacements, and enhanced drainage systems. The geographic impact is localized to Malmstrom Air Force Base in Montana. The contract supported construction and repair workforces, likely including skilled tradespeople and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues were encountered beyond the initial scope.
The firm-fixed-price contract may have limited flexibility for design changes or scope adjustments during execution.
Dependence on a single contractor (Sunstar, LLC) for the entire project duration could pose risks if performance issues arose.

Positive Signals

Awarded under full and open competition, suggesting a structured procurement process.
Firm-fixed-price contract type helps in cost control and predictability for the government.
The project addressed critical infrastructure needs for military housing, enhancing quality of life for service members and their families.

Sector Analysis

This contract falls within the construction sector, specifically focusing on building exterior and interior work, and foundation repair. The market for military base construction and renovation is significant, driven by the need to maintain and upgrade aging infrastructure. Comparable spending benchmarks would typically involve other large-scale renovation or new construction projects on federal installations, where pricing is influenced by prevailing labor rates, material costs, and regulatory requirements.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As this was a full and open competition, there is no specific indication that it was set aside for small businesses. The impact on the small business ecosystem would depend on whether Sunstar, LLC utilized small business subcontractors, which is not specified.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and project managers. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally facilitated through contract award databases, though detailed project execution reports may not be publicly accessible.

Related Government Programs

Military Family Housing Construction
Base Infrastructure Renovation
Department of Defense Construction Contracts
Federal Building Repair and Maintenance

Risk Flags

Potential for cost increases due to unforeseen structural issues.
Risk of project delays impacting military family housing availability.
Contractor performance and quality control are critical for success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to SUNSTAR, LLC. TAS::57 0743::TAS RECOVERYPROJECT#::NZAS034001C:RP# NZAS034001C MALMSTROM REPAIR STRUCTURAL FOUNDATIONS IN MINUTEMAN VILLAGE (179 UNITS) THIS PROJECT IS FOR THE DESIGN AND CONSTRUCTION EFFORT TO CORRECT STRUCTURAL WALLS AND FLOOR SLABS IN 179 MILITARY FAMILY HOUSING UNITS. WORK INCLUDES REPLACING PARTITION WALLS, WINDOW WELLS,CAULKING FLOOR SLAB PERIMETER, INSTALLING DRAIN SYSTEM WITH SUMP PUMP UNDER FLOOR SLAB, TOPSOIL AND SOD REPLACEMENT FOR SURFACE DRAINAGE. ADDITIONALLY, CONSTRUCTION WILL CO

Who is the contractor on this award?

The obligated recipient is SUNSTAR, 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 $26.1 million.

What is the period of performance?

Start: 2009-09-16. End: 2013-01-23.

What was the track record of Sunstar, LLC prior to this contract award?

The provided data does not include specific details about Sunstar, LLC's track record prior to or during this contract. To assess their performance, one would need to review past performance evaluations, other federal contract awards, and any reported disputes or claims associated with the company. A comprehensive review would involve searching federal procurement databases and potentially industry-specific resources to understand their history in completing similar construction and repair projects, especially for the Department of Defense. Without this information, it is difficult to gauge their reliability and expertise based solely on this award.

How does the per-unit cost of $145,854 compare to similar military housing repair projects?

The per-unit cost of approximately $145,854 for structural repairs at Malmstrom AFB is difficult to benchmark precisely without detailed comparisons of scope, location, and time. However, military housing repairs can be extensive, involving foundation, structural, and utility work, which can drive up costs significantly. Projects involving complete gutting and rebuilding or major structural reinforcements would naturally be more expensive than cosmetic updates. Factors like the age of the housing stock, specific environmental conditions (e.g., soil stability), and the complexity of integrating modern building codes into older structures all influence the final cost. Generally, comprehensive structural rehabilitation of this nature can range from $100,000 to over $200,000 per unit, depending on these variables.

What were the primary risks associated with this contract, and how were they mitigated?

The primary risks associated with this contract likely included unforeseen structural issues discovered during demolition or repair, potential delays due to weather or material availability, and contractor performance issues. The firm-fixed-price contract structure aimed to mitigate cost overrun risks by fixing the price upfront, though it could shift risk to the contractor if unexpected problems arose. Mitigation strategies would typically involve thorough site investigations before award, clear contract language defining scope and change order procedures, and robust project oversight by the government to monitor progress and address issues promptly. The contractor's own risk management plan would also be a key factor in successful project completion.

How effective was the competition in ensuring value for money for this contract?

The contract was awarded under full and open competition with six bids received. This level of competition is generally considered adequate to promote price discovery and encourage competitive bidding. While six bidders suggest a reasonable market interest, the ultimate value for money depends on the quality of the bids received and the government's negotiation and oversight capabilities. A more definitive assessment would require knowing if the bids were highly competitive, if there were any unusual bid patterns, and if the final price was considered fair and reasonable by the contracting officer. Without further details on the bid analysis, it's assumed that the competition provided a basis for achieving reasonable value.

What is the historical spending pattern for structural repairs of military family housing at Malmstrom AFB?

The provided data focuses on a single contract award for structural repairs at Malmstrom AFB. To understand historical spending patterns, one would need to analyze all contracts awarded for similar work at this base over an extended period. This would involve identifying previous repair projects, their scope, duration, and total cost, as well as the contractors involved. Analyzing these patterns would reveal trends in spending, identify recurring issues, and potentially highlight periods of increased investment in housing infrastructure. Without access to this broader historical contract data, it is impossible to establish a spending pattern for this specific type of repair at Malmstrom AFB.

Were there any significant changes or modifications to the contract scope after its initial award?

The provided data indicates the initial award details but does not specify any contract modifications, change orders, or scope adjustments that may have occurred during the contract's performance period (2009-2013). In large construction projects, modifications are common due to unforeseen site conditions, design clarifications, or evolving requirements. To determine if significant changes occurred, one would need to consult the contract's official modification history, often available through federal procurement databases. Such modifications could impact the total contract value and duration, and their necessity and cost-effectiveness would be crucial for a complete value assessment.

Industry Classification

NAICS: Construction › Foundation, Structure, and Building Exterior Contractors › Poured Concrete Foundation and Structure Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DW09R0074

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12250 EL CAMINO REAL STE 300, SAN DIEGO, CA, 92130

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,108,661

Exercised Options: $26,108,661

Current Obligation: $26,108,661

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline