DoD awards $18.3M for Building 2 & 3 construction to RKJ Construction Inc
Contract Overview
Contract Amount: $18,322,858 ($18.3M)
Contractor: RKJ Construction Inc
Awarding Agency: Department of Defense
Start Date: 2011-09-27
End Date: 2012-12-26
Contract Duration: 456 days
Daily Burn Rate: $40.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCTION PHASE BUILDING#2 AND 3
Place of Performance
Location: TEMPLE, BELL County, TEXAS, 76504
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $18.3 million to RKJ CONSTRUCTION INC for work described as: DESIGN AND CONSTRUCTION PHASE BUILDING#2 AND 3 Key points: 1. Contract awarded for design and construction of two buildings. 2. RKJ Construction Inc. is the prime contractor. 3. The contract falls under the Commercial and Institutional Building Construction NAICS code. 4. The award was made under full and open competition.
Value Assessment
Rating: fair
The contract value of $18.3M for two buildings seems within a reasonable range for construction projects of this nature. However, without specific details on the scope of work, size, and complexity of Buildings #2 and #3, a precise pricing assessment against similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple 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 a positive indicator for taxpayer value, as it encourages a competitive bidding process that should lead to more efficient use of funds.
Public Impact
Construction of new facilities for the Department of Defense. Potential impact on local economy through job creation and material sourcing. Ensures necessary infrastructure development for military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed scope of work for accurate cost comparison.
- Limited information on project complexity and specific building requirements.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type helps control costs.
Sector Analysis
This contract falls within the construction sector, specifically commercial and institutional building construction. Spending in this sector can fluctuate based on government infrastructure needs and budget allocations. Benchmarks for similar projects would require detailed specifications.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors on this contract. Further analysis would be needed to determine the extent of small business participation.
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, including monitoring progress, quality, and adherence to specifications.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration of 456 days seems reasonable for the scope.
- Firm fixed price contract type offers cost control.
- Awarded under full and open competition.
- Department of Defense is a major federal agency with established procurement processes.
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 $18.3 million to RKJ CONSTRUCTION INC. DESIGN AND CONSTRUCTION PHASE BUILDING#2 AND 3
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 $18.3 million.
What is the period of performance?
Start: 2011-09-27. End: 2012-12-26.
What is the estimated cost per square foot for the construction of Buildings #2 and #3, and how does it compare to industry benchmarks for similar government facilities?
Without the square footage of Buildings #2 and #3, a precise cost per square foot cannot be calculated. However, the total award of $18.3M for two buildings suggests a significant investment. To assess value, this figure would need to be compared against per-square-foot costs of comparable government or commercial construction projects, considering factors like building type, materials, and location.
What specific risks were identified during the full and open competition process, and how were they mitigated by the Department of the Army?
The provided data does not detail specific risks identified during the competition. Typically, risks in construction contracts can include schedule delays, cost overruns, or quality issues. Mitigation strategies would involve thorough proposal evaluations, clear contract terms, performance bonds, and ongoing project monitoring by the contracting officer's representative.
How effectively does the firm fixed price contract type ensure that the final cost of the buildings aligns with the initial $18.3M award, given potential construction complexities?
A firm fixed price contract is designed to provide cost certainty for the government, meaning the contractor bears the risk of cost overruns. This contract type is effective in ensuring the final cost aligns with the award amount, provided the scope of work was well-defined and the contractor accurately estimated their costs. Changes to the scope would require formal modification and potentially impact the price.
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
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 604 W AVENUE C, LAMPASAS, TX, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $18,322,858
Exercised Options: $18,322,858
Current Obligation: $18,322,858
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9126G08D0084
IDV Type: IDC
Timeline
Start Date: 2011-09-27
Current End Date: 2012-12-26
Potential End Date: 2012-12-26 00:00:00
Last Modified: 2012-04-24
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