Army Awards $18.4M Contract for Dining Facility Construction in Texas
Contract Overview
Contract Amount: $18,418,392 ($18.4M)
Contractor: AU Authum KI Inc
Awarding Agency: Department of Defense
Start Date: 2008-12-30
End Date: 2010-09-30
Contract Duration: 639 days
Daily Burn Rate: $28.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF DINING FAC (IBCT 1)
Place of Performance
Location: VINTON, EL PASO County, TEXAS, 79821
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $18.4 million to AU AUTHUM KI INC for work described as: CONSTRUCTION OF DINING FAC (IBCT 1) Key points: 1. The contract value of $18.4 million falls within a typical range for institutional building construction. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The project duration of 639 days indicates a significant construction undertaking. 4. The firm fixed-price contract type transfers risk to the contractor.
Value Assessment
Rating: good
The contract value of $18.4 million appears reasonable for a large-scale construction project of this nature. Benchmarking against similar Department of Defense construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was broad, certain sources were intentionally excluded, potentially for specific qualifications or reasons. This method aims for competitive pricing while ensuring specialized capabilities.
Taxpayer Impact: The use of full and open competition generally leads to better pricing for taxpayers by leveraging market forces.
Public Impact
Impacts military personnel by providing improved dining facilities. Supports local economy through construction jobs and material sourcing in Texas. Enhances quality of life for service members stationed at the facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Risk of schedule delays due to contractor performance or external factors.
Positive Signals
- Firm fixed-price contract limits government exposure to cost increases.
- Full and open competition generally drives competitive pricing.
- Project located in Texas, potentially leveraging local construction expertise.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense can fluctuate based on infrastructure needs and modernization efforts. Benchmarks vary widely based on project scope and location.
Small Business Impact
The data indicates the prime contractor is AU AUTHUM KI INC. There is no explicit information on small business subcontracting in the provided data. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for construction projects. The firm fixed-price nature of the contract implies performance monitoring is crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration increases risk of delays.
- Exclusion of sources warrants understanding of justification.
- Potential for unforeseen site conditions in construction.
- Contractor performance monitoring is critical for FFP.
Tags
commercial-and-institutional-building-co, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.4 million to AU AUTHUM KI INC. CONSTRUCTION OF DINING FAC (IBCT 1)
Who is the contractor on this award?
The obligated recipient is AU AUTHUM KI 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 $18.4 million.
What is the period of performance?
Start: 2008-12-30. End: 2010-09-30.
What specific criteria led to the exclusion of certain sources in this 'full and open competition after exclusion of sources' procurement?
The exclusion of sources typically occurs when specific technical capabilities, past performance requirements, or security clearances are mandated for a project. For this dining facility construction, it might relate to specialized building techniques, experience with military installations, or adherence to stringent safety and environmental standards required by the Department of the Army.
What is the potential risk associated with the 639-day duration for this construction project?
A duration of 639 days (approximately 21 months) for a $18.4 million construction project presents a moderate to high risk for schedule delays. Factors such as weather, material availability, labor shortages, or unforeseen site conditions can impact such a long timeline, potentially leading to increased costs if not managed effectively by the contractor.
How does the firm fixed-price contract type impact the overall value and effectiveness of this award?
The firm fixed-price (FFP) contract type is generally advantageous for the government as it establishes a ceiling price, transferring most of the cost risk to the contractor. This promotes cost control and predictability. For effectiveness, it incentivizes the contractor to complete the project efficiently to maximize profit, potentially leading to timely delivery and quality construction.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9123608R0013
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 665 E MORELOS ST STE 101, CHANDLER, AZ, 90
Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $18,616,052
Exercised Options: $18,418,392
Current Obligation: $18,418,392
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9123608D0067
IDV Type: IDC
Timeline
Start Date: 2008-12-30
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2011-04-12
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