DoD Awards $32.8M for Modular Housing in Saudi Arabia to ConTrack Watts Inc

Contract Overview

Contract Amount: $32,803,676 ($32.8M)

Contractor: Contrack Watts Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-09

End Date: 2023-10-03

Contract Duration: 754 days

Daily Burn Rate: $43.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 29

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT MODULAR HOUSING (1,520 CHUS) AT PRINCE SULTAN AIR BASE, KINGDOM OF SAUDI ARABIA

Plain-Language Summary

Department of Defense obligated $32.8 million to CONTRACK WATTS INC for work described as: CONSTRUCT MODULAR HOUSING (1,520 CHUS) AT PRINCE SULTAN AIR BASE, KINGDOM OF SAUDI ARABIA Key points: 1. Contract awarded to ConTrack Watts Inc. for modular housing construction. 2. Project involves 1,520 housing units at Prince Sultan Air Base. 3. Full and open competition was utilized for this contract. 4. The contract type is Firm Fixed Price, indicating price certainty. 5. This project falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $32.8 million for 1,520 housing units suggests a per-unit cost of approximately $21,581. This appears reasonable for modular construction, especially considering potential international deployment and logistical complexities.

Cost Per Unit: $21,581

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery, allowing multiple qualified contractors to bid. This method generally leads to more competitive pricing.

Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing the value of taxpayer funds for essential military housing infrastructure.

Public Impact

Enhances quality of life for service members stationed abroad. Supports military readiness by providing adequate housing. Contributes to infrastructure development in the host nation. Demonstrates US commitment to its military personnel and allies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns due to international location and logistics.
  • Construction delays impacting operational readiness.
  • Quality control challenges in overseas modular construction.

Positive Signals

  • Firm Fixed Price contract limits cost uncertainty for the government.
  • Full and open competition suggests a competitive price was achieved.
  • Modular construction can offer faster deployment and cost savings.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can fluctuate based on infrastructure needs, military deployments, and government investment in facilities. Benchmarks for similar overseas construction projects would provide further context.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was solicited or achieved through subcontracting.

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, should be in place to ensure timely and quality completion.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Geographic location introduces logistical and political risks.
  • Potential for unforeseen site conditions impacting cost and schedule.
  • Reliance on a single awardee for a significant housing requirement.
  • Contract performance risk associated with international construction projects.

Tags

commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.8 million to CONTRACK WATTS INC. CONSTRUCT MODULAR HOUSING (1,520 CHUS) AT PRINCE SULTAN AIR BASE, KINGDOM OF SAUDI ARABIA

Who is the contractor on this award?

The obligated recipient is CONTRACK WATTS 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 $32.8 million.

What is the period of performance?

Start: 2021-09-09. End: 2023-10-03.

What is the projected timeline for completion and potential impact of delays on military operations?

The contract duration is 754 days, with an expected completion date of October 3, 2023. Delays could impact troop morale, operational readiness, and potentially incur additional costs for the government. Robust project management and contingency planning are crucial to mitigate these risks and ensure timely delivery of essential housing.

How does the cost per unit compare to similar modular housing projects in comparable international locations?

The per-unit cost of approximately $21,581 is within a reasonable range for overseas modular housing, considering factors like transportation, specialized labor, and site preparation in Saudi Arabia. Benchmarking against similar projects would confirm if this represents optimal value or if there are opportunities for cost savings in future procurements.

What measures are in place to ensure the quality and durability of the modular housing units in the deployed environment?

Quality assurance should involve rigorous inspection protocols during manufacturing and assembly, adherence to specified building codes and materials, and post-construction assessments. The firm-fixed-price nature of the contract incentivizes the contractor to meet quality standards to avoid costly rework or penalties, but active government oversight remains critical.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W912ER21R0008

Offers Received: 29

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: OCI Overseas Holding Limited

Address: 6862 ELM STREET, 5TH FLOOR, MC LEAN, VA, 22101

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

Financial Breakdown

Contract Ceiling: $52,994,317

Exercised Options: $32,803,676

Current Obligation: $32,803,676

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2021-09-09

Current End Date: 2023-10-03

Potential End Date: 2023-10-03 00:00:00

Last Modified: 2024-07-09

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