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: 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: 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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