DoD Awards $171M Firm Fixed Price Contract for Building Addition in Texas
Contract Overview
Contract Amount: $17,133,180 ($17.1M)
Contractor: RKJ Construction Inc
Awarding Agency: Department of Defense
Start Date: 2010-02-05
End Date: 2011-09-16
Contract Duration: 588 days
Daily Burn Rate: $29.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT NEW ADDITION TO BUILDING 2270
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78234
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $17.1 million to RKJ CONSTRUCTION INC for work described as: CONSTRUCT NEW ADDITION TO BUILDING 2270 Key points: 1. Contract awarded to RKJ CONSTRUCTION INC for building construction. 2. Full and open competition was utilized for this award. 3. The contract has a duration of 588 days. 4. This project falls under the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The contract value of $171.3 million for a building addition appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it promotes market competition and can lead to cost savings.
Public Impact
Construction projects can lead to job creation and economic activity in the local area. The new addition to Building 2270 will likely enhance operational capabilities for the Department of the Army. Transparency in the bidding process ensures public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Delays in project completion can impact operational readiness.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Full and open competition promotes competitive pricing.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which is a significant area of federal spending. Benchmarks for similar projects would indicate if the $171.3 million award is within the expected range.
Small Business Impact
The data indicates that the prime contractor is RKJ CONSTRUCTION INC, and there is no explicit mention of small business participation in this award. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for federal construction contracts would apply to ensure compliance and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep impacting final cost.
- Contract duration may be susceptible to weather or supply chain delays.
- Adequacy of the firm fixed price to cover all potential construction contingencies.
- Ensuring quality control throughout the 588-day construction period.
Tags
commercial-and-institutional-building-co, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.1 million to RKJ CONSTRUCTION INC. CONSTRUCT NEW ADDITION TO BUILDING 2270
Who is the contractor on this award?
The obligated recipient is RKJ 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 $17.1 million.
What is the period of performance?
Start: 2010-02-05. End: 2011-09-16.
What is the estimated cost per square foot for this building addition, and how does it compare to industry averages?
Without the square footage of the addition, a precise cost per square foot cannot be calculated. However, for large institutional buildings, costs can range significantly based on location, materials, and complexity. A typical benchmark might be between $200-$500 per square foot, but this requires specific project details for accurate comparison.
What are the specific risks associated with a firm fixed-price contract for a large construction project of this duration?
The primary risk with a firm fixed-price contract for a long-duration construction project is that unforeseen issues (e.g., material price increases, labor shortages, design changes) can erode the contractor's profit margin, potentially leading to disputes or pressure to cut corners. The government bears less risk of cost overruns, but the initial price must be set accurately.
How effectively did the full and open competition process ensure the best value for the taxpayer in this $171 million award?
Full and open competition is designed to maximize value by encouraging multiple bids, which typically drives down prices. The effectiveness in this case depends on the number and quality of bids received, the clarity of the solicitation, and the evaluation criteria used. A competitive award suggests value was likely achieved, but a post-award review would confirm.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9126G08R0171
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 604 W AVENUE C, LAMPASAS, TX, 76550
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $17,320,778
Exercised Options: $17,133,180
Current Obligation: $17,133,180
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9126G08D0084
IDV Type: IDC
Timeline
Start Date: 2010-02-05
Current End Date: 2011-09-16
Potential End Date: 2011-09-16 00:00:00
Last Modified: 2021-06-24
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