DoD's $13.3M Fort Bragg clinic construction contract awarded to Sauer Construction, LLC

Contract Overview

Contract Amount: $13,304,319 ($13.3M)

Contractor: Sauer Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2008-07-24

End Date: 2010-10-07

Contract Duration: 805 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ADD/ALTER ROBINSON HEALTH CLINIC, FORT BRAGG, NC

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $13.3 million to SAUER CONSTRUCTION, LLC for work described as: ADD/ALTER ROBINSON HEALTH CLINIC, FORT BRAGG, NC Key points: 1. The contract value represents a significant investment in military healthcare infrastructure. 2. Competition dynamics for this project are crucial for ensuring taxpayer value. 3. Performance history and potential risks associated with construction projects of this scale warrant attention. 4. The project's completion within the allocated timeframe and budget will be key performance indicators. 5. This contract fits within the broader context of defense spending on facilities and base improvements.

Value Assessment

Rating: fair

The contract's value of $13.3 million for the ADD/ALTER ROBINSON HEALTH CLINIC at Fort Bragg appears to be within a reasonable range for a project of this scope, though specific benchmarking against similar military construction projects would provide a clearer picture of value for money. The firm-fixed-price contract type suggests that the contractor bears the primary risk for cost overruns, which can be advantageous for the government if the initial price is competitive. However, without detailed cost breakdowns or comparisons to market rates for similar construction services in North Carolina, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders participating, the level of competition appears moderate. While more bidders generally lead to better price discovery, three offers suggest a degree of market interest and potential for competitive pricing. The government's evaluation process would have determined the best value among these proposals.

Taxpayer Impact: Full and open competition, even with a moderate number of bidders, generally benefits taxpayers by driving down prices and encouraging efficiency. It ensures that the government is not limited to a single provider, increasing the likelihood of securing a fair market price for construction services.

Public Impact

Military personnel and their families at Fort Bragg will benefit from an improved healthcare facility. The project delivers enhanced medical services and potentially increased capacity for patient care. The geographic impact is localized to Fort Bragg, North Carolina, supporting the base's operational readiness. The construction work will likely involve local and regional labor, providing employment opportunities in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting clinic operational readiness.
Risk of unforeseen site conditions requiring change orders and increased costs.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

Firm-fixed-price contract structure shifts cost overrun risk to the contractor.
Awarded under full and open competition, suggesting a competitive bidding process.
Project aims to improve critical healthcare infrastructure for military families.

Sector Analysis

The construction sector is a significant component of federal spending, particularly for agencies like the Department of Defense that require extensive infrastructure development and maintenance. This contract for a health clinic falls under the broader category of commercial and institutional building construction. Federal spending in this area is often driven by the need to modernize facilities, enhance operational capabilities, and provide essential services to military personnel and their families. Benchmarking against similar projects would involve comparing costs per square foot or per bed for healthcare facilities of comparable size and complexity.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Sauer Construction, LLC may utilize small businesses as subcontractors, there is no explicit requirement or analysis provided regarding subcontracting goals or their impact on the small business ecosystem in this data. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and engineering divisions, ensuring compliance with contract terms, specifications, and quality standards. The firm-fixed-price nature of the contract places a significant portion of the cost risk on the contractor, incentivizing efficient project management. Transparency is generally maintained through contract award databases and reporting requirements, though detailed project-specific oversight mechanisms are internal to the agency.

Related Government Programs

Military Construction, Army
Healthcare Facilities Construction
Department of Defense Facilities Modernization

Risk Flags

Potential for cost overruns if unforeseen conditions arise.
Risk of project delays impacting operational readiness.
Ensuring quality control throughout the construction process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.3 million to SAUER CONSTRUCTION, LLC. ADD/ALTER ROBINSON HEALTH CLINIC, FORT BRAGG, NC

Who is the contractor on this award?

The obligated recipient is SAUER CONSTRUCTION, 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 $13.3 million.

What is the period of performance?

Start: 2008-07-24. End: 2010-10-07.

What is the track record of Sauer Construction, LLC in completing federal construction projects, particularly healthcare facilities?

Information regarding Sauer Construction, LLC's specific track record on federal projects, especially healthcare facilities, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, including on-time completion rates, adherence to budget, quality of work, and any history of disputes or contract modifications. Examining their award history with the Department of Defense and other federal agencies would offer insights into their experience and reliability as a contractor for projects of this magnitude and type.

How does the awarded price compare to the estimated cost or independent government cost estimate for this project?

The provided data does not include the estimated cost or the independent government cost estimate for the ADD/ALTER ROBINSON HEALTH CLINIC project. Therefore, a direct comparison to assess if the awarded price of $13.3 million represents a good or poor value cannot be made. Typically, contracting officers compare the offered prices against their internal estimates to ensure fair and reasonable pricing. The fact that it was awarded under full and open competition with three bidders suggests that the price was deemed acceptable relative to the government's expectations and market conditions at the time.

What are the primary risks associated with a firm-fixed-price contract for a large-scale construction project like this?

The primary risk associated with a firm-fixed-price (FFP) contract for a large-scale construction project is that the contractor may cut corners on quality or safety to maintain profitability if unforeseen issues arise that increase costs beyond their initial estimates. While the FFP structure shifts cost overrun risk to the contractor, it can also lead to disputes over scope changes or latent defects if not managed meticulously. For the government, the risk is receiving a lower-quality product or facing delays if the contractor struggles financially or operationally. Robust oversight and clear contract specifications are crucial to mitigate these risks.

What is the expected impact of this clinic's renovation on the delivery of healthcare services at Fort Bragg?

The renovation of the Robinson Health Clinic is expected to significantly improve the delivery of healthcare services at Fort Bragg. While the specific enhancements are not detailed, such projects typically aim to modernize facilities, increase capacity, improve patient flow, and incorporate new medical technologies. This can lead to more efficient patient care, better access to services, and an enhanced overall healthcare experience for military personnel and their families stationed at the base. The project's success hinges on its timely completion and the effective integration of the upgraded facilities into the existing healthcare network.

How has federal spending on military construction projects in North Carolina trended over the past decade?

Analyzing the trend of federal spending on military construction projects in North Carolina over the past decade would require access to historical federal procurement data. This specific contract award in 2008 is a single data point. Generally, military construction spending fluctuates based on defense budgets, strategic priorities, and the need for facility upgrades or new installations. North Carolina, hosting significant military installations like Fort Bragg, likely sees consistent investment, but the volume and value of contracts can vary year to year depending on specific modernization efforts or new construction initiatives.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912HN08R0013

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sauer Holdings, Inc. (UEI: 062594069)

Address: 11223 PHILLIPS PARKWAY DR, JACKSONVILLE, FL, 90

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

Financial Breakdown

Contract Ceiling: $13,304,319

Exercised Options: $13,304,319

Current Obligation: $13,304,319

Contract Characteristics

Cost or Pricing Data: NO

Timeline