Army awards $22.8M for Alaska Battle Command Training Center construction

Contract Overview

Contract Amount: $22,797,391 ($22.8M)

Contractor: Unit Company

Awarding Agency: Department of Defense

Start Date: 2011-05-11

End Date: 2013-10-23

Contract Duration: 896 days

Daily Burn Rate: $25.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT BATTLE COMMAND TRAINING CENTER ON JOINT BASE ELMENDORF-RICHARDSON, ALASKA

Place of Performance

Location: FORT RICHARDSON, ANCHORAGE County, ALASKA, 99505

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $22.8 million to UNIT COMPANY for work described as: CONSTRUCT BATTLE COMMAND TRAINING CENTER ON JOINT BASE ELMENDORF-RICHARDSON, ALASKA Key points: 1. Construction project for a critical military training facility. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract was awarded to a single unit company, raising questions about specialized capabilities. 4. Project duration of 896 days indicates a significant construction undertaking.

Value Assessment

Rating: fair

The award amount of $22.8 million for a training center appears within a reasonable range for large-scale construction projects. However, without specific details on the scope and complexity of the facility, a precise comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a single unit company as the awardee, however, warrants further investigation into the specific evaluation criteria and whether it truly maximized price discovery.

Taxpayer Impact: Taxpayer funds were used for a military training facility, with the competitive process aiming for cost-effectiveness.

Public Impact

Enhances military readiness and training capabilities for Joint Base Elmendorf-Richardson. Supports local and regional construction industry employment during the project's execution. Provides a specialized facility for command and control exercises.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Awardee is a single unit company, potentially limiting specialized expertise.
  • Lack of detailed cost breakdown makes value assessment challenging.
  • Project duration is substantial, increasing risk of cost overruns or delays.

Positive Signals

  • Full and open competition utilized.
  • Project addresses a clear military training need.

Sector Analysis

This project falls under the Commercial and Institutional Building Construction sector. Spending in this sector for military facilities can vary significantly based on geopolitical needs and base infrastructure requirements. Benchmarks are difficult without specific project details.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses for this particular contract. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for overseeing this construction project. Standard procurement regulations and oversight mechanisms would apply to ensure contract compliance and quality.

Related Government Programs

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

Risk Flags

  • Awardee's designation as 'unit company' is atypical for construction.
  • Long project duration increases risk of delays and cost overruns.
  • Limited information on specific project scope hinders detailed value assessment.
  • Potential for weather and logistical challenges in Alaska construction.

Tags

commercial-and-institutional-building-co, department-of-defense, ak, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.8 million to UNIT COMPANY. CONSTRUCT BATTLE COMMAND TRAINING CENTER ON JOINT BASE ELMENDORF-RICHARDSON, ALASKA

Who is the contractor on this award?

The obligated recipient is UNIT COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $22.8 million.

What is the period of performance?

Start: 2011-05-11. End: 2013-10-23.

What specific capabilities does the 'unit company' possess that made them the sole awardee under full and open competition for this complex construction project?

The designation of 'unit company' as the awardee is unusual for a construction project of this magnitude. Typically, construction contracts are awarded to firms with demonstrated experience in commercial and institutional building. Further investigation into the specific requirements of the solicitation and the capabilities of the awarded entity is necessary to understand why a unit company was selected and if they possess the requisite construction expertise or if they subcontracted the work.

How does the $22.8 million cost compare to similar military training center construction projects of comparable size and complexity?

A direct cost comparison is challenging without detailed project specifications, such as square footage, specialized systems (e.g., simulation, communication), and site-specific challenges in Alaska. However, $22.8 million for a significant training facility suggests a substantial investment. Benchmarking against similar DoD construction projects would require access to more granular cost data and project scope details to determine if the pricing is competitive.

What are the potential risks associated with a nearly two-year construction timeline (896 days) for a facility in Alaska, and how were these mitigated?

A long construction timeline in Alaska presents risks such as weather delays, logistical challenges for materials and personnel, and potential cost escalation due to inflation or unforeseen site conditions. Mitigation strategies likely included detailed scheduling, robust contingency planning, and potentially weather-dependent construction phasing. The contract type (Firm Fixed Price) suggests the contractor bears much of the cost overrun risk, but scope creep or change orders could still impact the final price.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911KB07R0006

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 620 E. WHITNEY RD, ANCHORAGE, AK, 99501

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,827,391

Exercised Options: $22,797,391

Current Obligation: $22,797,391

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $15,927,034

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911KB07D0014

IDV Type: IDC

Timeline

Start Date: 2011-05-11

Current End Date: 2013-10-23

Potential End Date: 2013-10-23 00:00:00

Last Modified: 2018-08-23

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