DoD's $25.8M Fort Campbell Barracks Construction Awarded to Sundt Construction Amidst Robust Competition

Contract Overview

Contract Amount: $25,811,798 ($25.8M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-02-06

End Date: 2015-09-21

Contract Duration: 592 days

Daily Burn Rate: $43.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DESIGN&CONSTRUCTION OF BATTALION HEADQUARTERS COMPLEX UEPH BARRACKS AT FT. CAMPBELL, KY

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223, UNITED STATES OF AMERICA

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to SUNDT CONSTRUCTION, INC. for work described as: IGF::OT::IGF DESIGN&CONSTRUCTION OF BATTALION HEADQUARTERS COMPLEX UEPH BARRACKS AT FT. CAMPBELL, KY Key points: 1. The contract value represents a significant investment in military infrastructure at Fort Campbell. 2. Full and open competition suggests a potentially competitive bidding environment, which can drive better pricing. 3. The duration of the contract (592 days) indicates a substantial construction project timeline. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The project falls within the broader category of commercial and institutional building construction. 6. The award was made by the Department of the Army, a key component of the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable projects at Fort Campbell or within the Army Corps of Engineers for similar barracks construction. The total award amount of $25.8 million for a battalion headquarters complex and barracks suggests a significant undertaking. However, without detailed cost breakdowns or comparisons to industry standards for construction of this type and scale, a definitive value-for-money assessment is difficult. The fixed-price nature of the contract provides some cost certainty, but the ultimate value depends on the quality of construction and adherence to schedule.

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. The solicitation received 22 offers, suggesting a healthy level of interest and competition for this significant construction project. A higher number of bidders generally implies a more competitive environment, which can lead to more favorable pricing and terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. The presence of 22 offers suggests that multiple construction firms vied for the project, driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Army soldiers who will be housed in the new barracks, improving living conditions and readiness. The project delivers essential infrastructure for a battalion headquarters complex, supporting military operations at Fort Campbell. The geographic impact is concentrated at Fort Campbell, Kentucky, a major U.S. Army installation. The construction activities will likely involve a significant local workforce, including skilled trades and laborers, providing economic stimulus to the region.

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 firm fixed-price contract.
Ensuring timely completion within the 592-day duration is critical to avoid impacting unit readiness.
Quality control during construction is paramount to ensure the longevity and safety of the barracks and headquarters.
Coordination with existing base operations during construction could present logistical challenges.

Positive Signals

The firm fixed-price contract type transfers significant cost risk to the contractor.
Full and open competition with 22 offers suggests a competitive pricing environment.
The project addresses a critical need for modern military housing and facilities.
The contractor, Sundt Construction, Inc., is a reputable firm with experience in large-scale construction projects.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for military construction is substantial, driven by the Department of Defense's continuous need to modernize facilities, maintain readiness, and improve living conditions for service members. Spending in this area is often influenced by military construction budgets, geopolitical needs, and infrastructure upgrade initiatives. Comparable spending benchmarks would typically be found within the Army Corps of Engineers' construction programs and other federal agency building projects.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, Sundt Construction, Inc., is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the availability of qualified small business firms for specialized construction trades or material supply.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Quality assurance representatives would monitor construction progress and adherence to specifications. The Inspector General's office within the Department of Defense may conduct audits or investigations if specific concerns regarding fraud, waste, or abuse arise. Transparency is generally maintained through contract award databases and public reporting mechanisms.

Related Government Programs

Military Construction, Army
Barracks and Dormitory Construction
Department of Defense Facilities
Army Corps of Engineers Projects
Fort Campbell Infrastructure

Risk Flags

Potential for schedule delays
Risk of cost overruns (contractor risk)
Quality assurance during construction
Coordination with base operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to SUNDT CONSTRUCTION, INC.. IGF::OT::IGF DESIGN&CONSTRUCTION OF BATTALION HEADQUARTERS COMPLEX UEPH BARRACKS AT FT. CAMPBELL, KY

Who is the contractor on this award?

The obligated recipient is SUNDT CONSTRUCTION, 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 $25.8 million.

What is the period of performance?

Start: 2014-02-06. End: 2015-09-21.

What is Sundt Construction, Inc.'s track record with Department of Defense contracts?

Sundt Construction, Inc. has a significant history of working with the Department of Defense and other federal agencies on large-scale construction projects. Their portfolio includes numerous military construction projects, such as barracks, training facilities, and operational buildings, across various military installations. They have demonstrated experience in delivering complex projects under demanding conditions and often within specific military requirements. Reviewing their past performance ratings and project completion history provides insight into their capability to execute contracts like the Fort Campbell barracks project successfully. Their experience suggests a strong understanding of military construction standards, security protocols, and the unique challenges associated with building on active installations.

How does the $25.8 million award compare to similar barracks construction projects?

Directly comparing the $25.8 million award for the Fort Campbell battalion headquarters complex and barracks to similar projects requires access to detailed cost data for comparable military construction initiatives. However, the scale of the project, encompassing both barracks and a headquarters complex, suggests a substantial investment. Factors influencing cost include location, specific design requirements, materials used, and the prevailing construction market conditions at the time of award. Generally, modern barracks construction for a full battalion can range from tens to hundreds of millions of dollars, depending on the scope and amenities. The number of offers (22) suggests the price was likely competitive within the market for such a project.

What are the primary risks associated with this firm fixed-price contract?

The primary risks associated with this firm fixed-price (FFP) contract are borne by the contractor, Sundt Construction, Inc. These include the risk of cost overruns if actual construction costs exceed the agreed-upon price due to unforeseen issues like material price escalations, labor shortages, or unexpected site conditions. The contractor also assumes the risk of schedule delays, as the FFP structure incentivizes timely completion to avoid penalties or reduced profit margins. For the government, the main risk is ensuring the contractor maintains quality standards throughout the project to deliver a durable and functional facility within the fixed price. If the contractor faces significant financial distress or fails to meet performance requirements, the government might face delays or the need to procure a replacement contractor.

How effective is full and open competition in ensuring value for money in military construction?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including military construction. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. The receipt of 22 offers for this Fort Campbell barracks project indicates a robust competition, which likely led to a more favorable price for the Department of the Army than if the contract had been awarded through limited sources or sole-source procedures. This competitive pressure incentivizes contractors to offer their best pricing and performance to win the contract, ultimately benefiting taxpayers through cost savings and higher quality outcomes.

What is the historical spending trend for similar construction projects at Fort Campbell?

Analyzing historical spending trends for similar construction projects at Fort Campbell would require access to detailed historical contract data for the installation. However, it is reasonable to assume that Fort Campbell, as a major Army installation, undergoes regular infrastructure upgrades and new construction to support its troop population and operational needs. Spending on barracks, training facilities, and support infrastructure is a consistent requirement for Army posts. Trends would likely reflect overall military construction budgets, modernization initiatives, and specific unit deployment or relocation needs. Without specific data, it's difficult to pinpoint precise historical spending patterns, but the need for such facilities is ongoing.

What are the potential performance challenges for Sundt Construction on this project?

Potential performance challenges for Sundt Construction on this project could include managing the complexities of building on an active military installation, which involves stringent security protocols, coordination with ongoing base operations, and potential environmental considerations. Ensuring the timely delivery of the project within the 592-day timeframe is crucial, as delays could impact unit readiness. Maintaining high-quality construction standards to meet military specifications for durability and habitability is also a key performance area. Furthermore, managing the supply chain for materials and labor in the current economic climate, and effectively coordinating numerous subcontractors, will be critical to successful project execution.

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: W912QR13R0059

Offers Received: 22

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Sundt Companies Inc (UEI: 073354982)

Address: 2620 S 55TH ST, TEMPE, AZ, 85282

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

Financial Breakdown

Contract Ceiling: $25,811,798

Exercised Options: $25,811,798

Current Obligation: $25,811,798

Contract Characteristics

Cost or Pricing Data: NO

Timeline