Army Reserve Awards $17.6M AMSA Construction Contract to Haydon Companies LLC
Contract Overview
Contract Amount: $17,658,532 ($17.7M)
Contractor: Haydon Companies LLC
Awarding Agency: Department of Defense
Start Date: 2025-04-12
End Date: 2027-05-27
Contract Duration: 775 days
Daily Burn Rate: $22.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: UNITED STATES ARMY RESERVE - AWARD FOR THE CONSTRUCTION OF AN AREA MAINTENANCE SUPPORT ACTIVITY (AMSA) LOCATED AT SAN TAN VALLEY, ARIZONA.
Place of Performance
Location: SAN TAN VALLEY, PINAL County, ARIZONA, 85140
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $17.7 million to HAYDON COMPANIES LLC for work described as: UNITED STATES ARMY RESERVE - AWARD FOR THE CONSTRUCTION OF AN AREA MAINTENANCE SUPPORT ACTIVITY (AMSA) LOCATED AT SAN TAN VALLEY, ARIZONA. Key points: 1. Contract awarded for construction of an Area Maintenance Support Activity (AMSA) in San Tan Valley, Arizona. 2. Haydon Companies LLC secured the contract valued at $17,658,532. 3. The contract falls under the Commercial and Institutional Building Construction sector. 4. Awarded via full and open competition, indicating a broad market search. 5. The project duration is 775 days, with an expected completion date of May 27, 2027.
Value Assessment
Rating: good
The contract value of $17.6 million for a significant construction project like an AMSA appears reasonable. Benchmarking against similar large-scale institutional building projects would provide a more precise assessment, but the firm fixed-price structure suggests cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price for the construction services, maximizing the value of taxpayer funds invested in this facility.
Public Impact
Enhances Army Reserve readiness and operational capabilities by providing a new maintenance facility. Supports local economy through construction jobs and related services in Arizona. The new AMSA will improve maintenance efficiency and equipment readiness for reserve units. Long-term asset for the Army Reserve, contributing to infrastructure modernization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction cost overruns if unforeseen site conditions arise.
- Dependence on a single prime contractor for project completion.
- Schedule delays could impact operational readiness timelines.
Positive Signals
- Awarded through full and open competition, promoting market fairness.
- Firm fixed-price contract provides cost certainty for the government.
- Clear project scope and defined completion date.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which encompasses a wide range of non-residential building projects. Spending in this sector can vary significantly based on infrastructure needs and economic conditions.
Small Business Impact
While the contract was awarded to Haydon Companies LLC, a large business, the construction process itself may involve subcontracting opportunities for small businesses in areas such as specialized trades, material supply, and labor.
Oversight & Accountability
The Department of the Army's procurement process, including the use of full and open competition and a firm fixed-price contract, provides a degree of oversight. Further oversight will be managed by the contracting officer and project managers to ensure adherence to specifications and timelines.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays impacting operational readiness.
- Risk of contractor default if cost overruns are significant.
- Quality control challenges inherent in large construction projects.
- Dependence on subcontractor performance for specialized tasks.
Tags
commercial-and-institutional-building-co, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.7 million to HAYDON COMPANIES LLC. UNITED STATES ARMY RESERVE - AWARD FOR THE CONSTRUCTION OF AN AREA MAINTENANCE SUPPORT ACTIVITY (AMSA) LOCATED AT SAN TAN VALLEY, ARIZONA.
Who is the contractor on this award?
The obligated recipient is HAYDON COMPANIES 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 $17.7 million.
What is the period of performance?
Start: 2025-04-12. End: 2027-05-27.
What is the estimated cost per square foot for this AMSA construction, and how does it compare to similar facilities?
The provided data does not include the total square footage of the AMSA, making a direct per-square-foot cost calculation impossible. To assess value, this metric would need to be obtained and compared against industry benchmarks for similar institutional or industrial building construction projects in the region and nationally. Without this, a precise value assessment is limited.
What are the specific risks associated with the firm fixed-price contract for this large-scale construction project?
A firm fixed-price contract shifts most of the risk to the contractor. For the government, the primary risk is that the contractor may cut corners on quality to maintain profitability if costs escalate unexpectedly. Conversely, the contractor bears the risk of cost overruns due to unforeseen site conditions, labor shortages, or material price increases, which could lead to contractor default or disputes.
How will the effectiveness of the new AMSA be measured post-construction?
The effectiveness of the AMSA will likely be measured by its ability to meet the Army Reserve's operational and maintenance needs. Key performance indicators could include reduced equipment downtime, improved maintenance turnaround times, increased readiness rates for deployed units, and overall cost-efficiency of maintenance operations compared to previous methods or locations. User feedback from maintenance personnel will also be crucial.
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: W912QR25R0010
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4640 E COTTON GIN LOOP, PHOENIX, AZ, 85040
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $17,683,323
Exercised Options: $17,658,532
Current Obligation: $17,658,532
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-04-12
Current End Date: 2027-05-27
Potential End Date: 2027-05-27 00:00:00
Last Modified: 2025-12-11
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