Department of the Army awards $9.8M contract for new multifamily housing construction in Alaska
Contract Overview
Contract Amount: $9,837,204 ($9.8M)
Contractor: Osborne Construction CO
Awarding Agency: Department of Defense
Start Date: 2002-09-27
End Date: 2007-12-30
Contract Duration: 1,920 days
Daily Burn Rate: $5.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: EIELSON AFB, FAIRBANKS NORTH STAR County, ALASKA, 99702
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $9.8 million to OSBORNE CONSTRUCTION CO for work described as: Key points: 1. The contract value of $9.8 million is a significant investment in military housing infrastructure. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The project duration of 1920 days (approximately 5.3 years) indicates a long-term commitment. 4. The absence of small business participation warrants further investigation into contracting opportunities.
Value Assessment
Rating: fair
The award amount of $9.8 million for multifamily housing construction needs to be benchmarked against similar projects in Alaska to determine its value. Without specific per-unit cost data or comparable contract information, a precise pricing assessment 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. However, the final price achieved depends on the number and quality of bids received.
Taxpayer Impact: The $9.8 million expenditure represents taxpayer funds allocated for military housing, aiming to provide adequate living conditions for service members and their families.
Public Impact
Improved housing for military personnel and their families stationed in Alaska. Potential economic stimulus for the local Alaskan economy through construction activities. Long-term infrastructure development for the Department of the Army.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long project duration may introduce cost escalation risks.
Positive Signals
- Awarded under full and open competition.
- Addresses critical housing needs.
Sector Analysis
Construction spending in the multifamily housing sector is influenced by factors like interest rates, material costs, and labor availability. This contract falls within the broader construction and real estate development sector, with significant government investment in military infrastructure.
Small Business Impact
The data indicates no small business participation in this contract. This raises questions about whether opportunities were adequately advertised or if small businesses had the capacity to bid on a project of this scale.
Oversight & Accountability
Oversight would focus on project milestones, budget adherence, and quality control throughout the 1920-day duration to ensure taxpayer funds are used effectively and the housing meets required standards.
Related Government Programs
- New Multifamily Housing Construction (except For-Sale Builders)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration.
- No small business participation.
- Potential for cost escalation over 5+ years.
- Geographic location in Alaska may present logistical challenges.
Tags
new-multifamily-housing-construction-exc, department-of-defense, ak, dca, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.8 million to OSBORNE CONSTRUCTION CO. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is OSBORNE CONSTRUCTION CO.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $9.8 million.
What is the period of performance?
Start: 2002-09-27. End: 2007-12-30.
What was the basis for the $9.8 million award amount, and how does it compare to industry benchmarks for similar housing projects in Alaska?
The basis for the $9.8 million award is not detailed in the provided data. A thorough analysis would require comparing this figure against per-unit construction costs for comparable multifamily housing projects in Alaska, considering regional economic factors, material costs, and labor rates. Benchmarking against similar government contracts or private sector developments would reveal if the price was competitive and represented good value for the taxpayer.
Given the 5.3-year duration, what mechanisms are in place to mitigate risks associated with potential cost overruns or material price fluctuations?
The contract type, 'FIRM FIXED PRICE,' is designed to transfer most cost overrun risks to the contractor, Osborne Construction Co. However, the long duration necessitates robust contract management, including provisions for escalation clauses (if any), regular progress reviews, and clear change order procedures to address unforeseen circumstances without significantly impacting the final price or schedule.
How effectively does this housing project address the specific needs of the military personnel and their families in Alaska, considering the unique environmental and logistical challenges?
The effectiveness of this project hinges on its alignment with the specific housing requirements of military families in Alaska. This includes considerations for climate resilience, energy efficiency, and proximity to military installations. Successful execution would mean providing safe, durable, and comfortable living spaces that enhance morale and retention, thereby fulfilling a critical operational support function for the Department of the Army.
Industry Classification
NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 401PARKPLACE, SUITE 400, KIRKLAND, WA, 01
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-09-27
Current End Date: 2007-12-30
Potential End Date: 2007-12-30 00:00:00
Last Modified: 2007-12-11
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