Air Force awards $16.5M for family housing construction, with a 5-bid competition

Contract Overview

Contract Amount: $16,522,554 ($16.5M)

Contractor: K & K Industries Inc

Awarding Agency: Department of Defense

Start Date: 2006-02-28

End Date: 2009-04-23

Contract Duration: 1,150 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200606!000209!5700!FA4418!437 CONS/LGC !FA441806C0003 !A!N! !N! ! !20060228!20080227!093418853!093418853!093418853!N!K & K INDUSTRIES, INC !4996 M 117 !NEWBERRY !MI!49868!13375!019!45!CHARLESTON AFB !CHARLESTON !S CAROLINA!+000015872331!N!N!000000000000!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236115!A!B!3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!005!K! !D!N!Z! ! !N!B!N!Y! ! !D! !K!A!000!A!B!Y!P!Y! ! ! ! !0001! !

Place of Performance

Location: CHARLESTON AFB, CHARLESTON County, SOUTH CAROLINA, 29404

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to K & K INDUSTRIES INC for work described as: 200606!000209!5700!FA4418!437 CONS/LGC !FA441806C0003 !A!N! !N! ! !20060228!20080227!093418853!093418853!093418853!N!K & K INDUSTRIES, INC !4996 M 117 !NEWBERRY !MI!49868!13375!019!45!CHARLESTON AFB !CHAR… Key points: 1. Contract awarded for new single-family housing construction, indicating a need for improved facilities. 2. The competition involved 5 bidders, suggesting a moderately competitive environment for this project. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The project is located at Charleston AFB, South Carolina, impacting local military family housing. 5. The contractor, K & K INDUSTRIES, INC, has secured a significant award for this construction effort.

Value Assessment

Rating: fair

The awarded amount of $16.5 million for new single-family housing construction appears to be within a reasonable range for a project of this scope. Benchmarking against similar family housing construction contracts awarded by the Air Force or other DoD branches would provide a clearer picture of value for money. Without specific cost breakdowns or detailed scope of work comparisons, it's difficult to definitively assess if the pricing is highly competitive or if there are opportunities for cost savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' with 5 bidders participating. This indicates that while the competition was open, certain sources may have been excluded prior to the solicitation, or the exclusion was a result of the competitive process itself. The presence of 5 bidders suggests a reasonable level of interest and competition, which should contribute to price discovery.

Taxpayer Impact: A competition with 5 bidders generally provides a good basis for taxpayers to receive a fair price, balancing the need for qualified contractors with cost-effectiveness.

Public Impact

Military families at Charleston AFB will benefit from new housing facilities. The contract delivers new single-family housing construction services. The geographic impact is localized to Charleston AFB, South Carolina. The project implies a need for construction labor and potentially related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope changes significantly.
Ensuring timely completion to meet military family housing needs.
Quality control and adherence to construction standards.

Positive Signals

Firm Fixed Price contract limits cost risk for the government.
Moderate competition (5 bidders) suggests a competitive pricing environment.
Award to a specific contractor indicates they met the requirements.

Sector Analysis

This contract falls within the Construction sector, specifically new single-family housing construction. The market for military family housing construction is often driven by government appropriations and specific base needs. Comparable spending benchmarks would involve looking at other DoD family housing projects, which can vary significantly based on location, size, and complexity. The overall construction market is substantial, but this niche is government-specific.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract, and the award was made to K & K INDUSTRIES, INC. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this construction project. The impact on the small business ecosystem would depend on the extent of any subcontracting requirements or voluntary participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Air Force contracting and engineering units at Charleston AFB. Accountability measures would include contract performance monitoring, site inspections, and adherence to the firm-fixed-price terms. Transparency is generally maintained through contract award databases, though detailed project-specific oversight reports may not always be publicly accessible.

Related Government Programs

Military Family Housing Construction
Department of Defense Construction Contracts
Air Force Base Infrastructure Projects

Risk Flags

Potential for scope creep impacting final cost.
Contractor's capacity to manage large-scale construction.
Availability of skilled labor in the project region.
Ensuring adherence to quality standards throughout construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to K & K INDUSTRIES INC. 200606!000209!5700!FA4418!437 CONS/LGC !FA441806C0003 !A!N! !N! ! !20060228!20080227!093418853!093418853!093418853!N!K & K INDUSTRIES, INC !4996 M 117 !NEWBERRY !MI!49868!13375!019!45!CHARLESTON AFB !CHARLESTON !S CAROLINA!+000015872331!N!N!000000000000!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236115!A!B!3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is K & K INDUSTRIES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $16.5 million.

What is the period of performance?

Start: 2006-02-28. End: 2009-04-23.

What is the track record of K & K INDUSTRIES, INC. with federal contracts, particularly within the Department of Defense?

A review of federal procurement data indicates that K & K INDUSTRIES, INC. has received multiple federal contracts, primarily within the Department of Defense. This specific contract for family housing construction at Charleston AFB represents a significant award. Further investigation into their past performance, including contract completion history, any past performance issues or awards, and the types of services previously rendered, would be necessary for a comprehensive assessment of their track record. Understanding their experience with similar construction projects, especially those involving military housing, is crucial for evaluating their capability to successfully execute this current contract.

How does the awarded amount of $16.5 million compare to similar single-family housing construction projects for military bases?

Benchmarking this $16.5 million award against similar single-family housing construction projects requires access to detailed cost data for comparable contracts. Factors such as the number of units, square footage per unit, material costs, labor rates in the specific geographic region (South Carolina), and the complexity of site preparation and infrastructure significantly influence project costs. While $16.5 million is a substantial sum, it could represent good value if it covers a significant number of high-quality housing units in an area with high construction costs. Conversely, if it's for a smaller number of units or in a lower-cost area, it might warrant closer scrutiny. A detailed comparison with other Air Force or DoD family housing projects of similar scale and scope would be needed for a definitive value assessment.

What are the primary risk indicators associated with this firm-fixed-price construction contract?

The primary risk indicator for a firm-fixed-price (FFP) contract is the potential for contractor cost overruns, which are borne by the contractor. However, risks for the government can still exist. These include potential compromises in quality if the contractor seeks to reduce costs, delays in project completion if the contractor faces financial or operational difficulties, and potential disputes over scope changes or unforeseen site conditions. For this specific contract, risks might also include the contractor's capacity to manage a project of this size and the availability of skilled labor in the Charleston, SC area. Robust government oversight and clear contract terms are essential to mitigate these risks.

What is the historical spending pattern for family housing construction at Charleston AFB or similar Air Force installations?

Analyzing historical spending patterns for family housing construction at Charleston AFB and comparable Air Force installations is key to understanding the context of this $16.5 million award. This involves examining past contracts for similar projects, noting their values, durations, and the number of bidders. Trends in spending can reveal whether this award is an outlier, part of a larger modernization effort, or consistent with previous investment levels. Understanding the frequency and scale of such contracts helps in assessing the ongoing need for housing infrastructure and the typical investment required. It also provides a baseline for evaluating the current contract's value and the contractor's pricing.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact price discovery and overall value?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOUCAES) method is a variation of full and open competition. It implies that the initial solicitation was open, but certain sources were excluded before or during the bidding process, or the competition was conducted after exclusion of sources. While it aims for broad competition, the exclusion of specific sources could potentially limit the number of highly qualified bidders or reduce the competitive pressure on price. With 5 bidders, there was a reasonable level of competition, which generally aids price discovery. However, understanding the rationale behind any source exclusions is important to ensure that the competition remained robust enough to secure the best possible value for the government and taxpayers.

Industry Classification

NAICS: Construction › Residential Building Construction › New Single-Family Housing Construction (except For-Sale Builders)

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4996 M 117, NEWBERRY, MI, 01

Business Categories: Category Business, Emerging Small Business, HUBZone Firm, Small Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Timeline