DoD Awards $40.8M for Human Engineering Lab Construction, Raising Questions on Value and Competition

Contract Overview

Contract Amount: $40,837,562 ($40.8M)

Contractor: CTA Construction Managers, LLC

Awarding Agency: Department of Defense

Start Date: 2020-06-30

End Date: 2024-11-13

Contract Duration: 1,597 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT NEW HUMAN ENGINEERING LAB, SOLDIER SQUAD PERFORMANCE RESEARCH INSTITUTE (S2PRINT), NATICK, MA.

Place of Performance

Location: NATICK, MIDDLESEX County, MASSACHUSETTS, 01760

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $40.8 million to CTA CONSTRUCTION MANAGERS, LLC for work described as: CONSTRUCT NEW HUMAN ENGINEERING LAB, SOLDIER SQUAD PERFORMANCE RESEARCH INSTITUTE (S2PRINT), NATICK, MA. Key points: 1. The $40.8M contract for the Soldier Squad Performance Research Institute (S2PRINT) lab is a significant investment in defense research infrastructure. 2. CTA Construction Managers, LLC secured the award under full and open competition, indicating a potentially competitive bidding process. 3. The project's duration of 1597 days (over 4 years) suggests a complex undertaking with potential for cost overruns or delays. 4. The absence of small business participation warrants further investigation into contracting opportunities for smaller firms in this sector.

Value Assessment

Rating: fair

The $40.8M award for a specialized research lab appears substantial. Benchmarking against similar government or private sector construction projects of this scale and complexity is needed to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a broad solicitation. However, the number of bids received (4) is on the lower side for a project of this magnitude, potentially impacting the final price discovery.

Taxpayer Impact: Taxpayer funds are being utilized for a critical defense research facility. The value for money will depend on the successful completion and utility of the lab.

Public Impact

Enhances Soldier Performance Research: The lab will support critical research aimed at improving soldier capabilities and effectiveness. Defense Infrastructure Investment: Represents a significant investment in the Department of Defense's research and development infrastructure. Potential for Technological Advancement: The facility could lead to breakthroughs in human engineering and soldier support technologies. Long-Term Project Timeline: The extended duration indicates a complex, multi-year project with ongoing resource allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bids received (4) for a large contract.
No small business participation noted.
Long project duration (over 4 years) increases risk of cost escalation.

Positive Signals

Awarded under full and open competition.
Supports critical defense research mission.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, a sector vital for developing specialized research facilities. Spending benchmarks for similar government-funded R&D construction projects would provide better context for the $40.8M award.

Small Business Impact

The contract explicitly states no small business participation. This raises concerns about whether opportunities were adequately presented or if the project's scope inherently excluded smaller firms, potentially limiting broader economic impact.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is the awarding agency. Standard oversight mechanisms for large construction projects should be in place, but the long duration necessitates continuous monitoring for cost, schedule, and performance.

Related Government Programs

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

Risk Flags

Potential for cost escalation due to long project duration.
Limited competition (4 bids) may indicate suboptimal price discovery.
No small business participation.
Firm Fixed Price contract with a long duration increases risk of claims.
Complexity of specialized research facility construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.8 million to CTA CONSTRUCTION MANAGERS, LLC. CONSTRUCT NEW HUMAN ENGINEERING LAB, SOLDIER SQUAD PERFORMANCE RESEARCH INSTITUTE (S2PRINT), NATICK, MA.

Who is the contractor on this award?

The obligated recipient is CTA CONSTRUCTION MANAGERS, 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 $40.8 million.

What is the period of performance?

Start: 2020-06-30. End: 2024-11-13.

What specific research capabilities will the new Human Engineering Lab enable, and how do these align with current and future Army modernization priorities?

The lab is intended for Soldier Squad Performance Research (S2PRINT), focusing on optimizing human factors in military operations. This likely includes research into soldier physiology, psychology, equipment integration, and team dynamics. Alignment with Army priorities would depend on how these research areas directly contribute to enhancing combat effectiveness, reducing injuries, and improving soldier survivability in evolving threat environments.

Given the long project duration and firm fixed price, what are the primary risks to the government regarding potential cost overruns or schedule delays?

The primary risks stem from unforeseen site conditions, material price volatility, labor shortages, and design changes during the extended 1597-day performance period. Although it's a firm fixed price, the government could face claims for equitable adjustments if significant scope changes are directed or if contractor performance is impacted by external factors beyond their control, potentially leading to delays and indirect cost increases.

How will the effectiveness of the Soldier Squad Performance Research Institute be measured post-construction, and what key performance indicators will be used?

Effectiveness will likely be measured by the institute's output: the number and quality of research findings, their adoption into doctrine or technology, and demonstrable improvements in soldier performance or safety attributed to the research. Key performance indicators could include publication rates in peer-reviewed journals, successful technology transfer to acquisition programs, and positive feedback from operational units benefiting from the research outcomes.

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: SEALED BID

Solicitation ID: W912WJ20B0001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CTA Construction Managers LLC

Address: 400 TOTTEN POND RD STE 200, WALTHAM, MA, 02451

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

Financial Breakdown

Contract Ceiling: $40,837,562

Exercised Options: $40,837,562

Current Obligation: $40,837,562

Actual Outlays: $786,052

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline