Air Force awards $17.9M contract for dormitory repair, highlighting construction sector activity

Contract Overview

Contract Amount: $17,907,426 ($17.9M)

Contractor: Alessi-Keyes Construction Company

Awarding Agency: Department of Defense

Start Date: 2023-11-15

End Date: 2026-03-19

Contract Duration: 855 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR AND MAINTENANCE AIRMEN DORMITORY BUILDING 860

Place of Performance

Location: LITTLE ROCK AFB, PULASKI County, ARKANSAS, 72099

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $17.9 million to ALESSI-KEYES CONSTRUCTION COMPANY for work described as: REPAIR AND MAINTENANCE AIRMEN DORMITORY BUILDING 860 Key points: 1. Contract value appears reasonable for a large-scale dormitory renovation project. 2. Competition was open, suggesting a healthy market for construction services. 3. Project duration is substantial, indicating a complex scope of work. 4. Fixed-price contract type shifts risk to the contractor. 5. This award falls within the broader commercial and institutional building construction sector.

Value Assessment

Rating: good

The $17.9 million contract for dormitory repair and maintenance appears to be a fair price for the scope of work, considering the size and complexity of renovating an airmen dormitory. Benchmarking against similar large-scale construction projects for government facilities suggests that this award is within expected cost ranges. The firm fixed-price structure further indicates that the contractor has assessed the risks and costs associated with the project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple qualified bidders were likely considered. While the specific number of bids received isn't detailed, this procurement method generally fosters competitive pricing and encourages contractors to offer their best value. The exclusion of sources clause might suggest specific technical requirements or past performance considerations that narrowed the initial pool, but the overall approach aimed for broad market participation.

Taxpayer Impact: This level of competition is beneficial for taxpayers as it helps ensure that the government is not overpaying for construction services and receives competitive bids, driving down costs.

Public Impact

Service members will benefit from improved living conditions in updated dormitory facilities. The contract supports the construction industry and associated labor in Arkansas. Enhances the quality of life and morale for airmen stationed at the facility. Contributes to the overall infrastructure readiness and maintenance of military installations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during renovation, despite fixed-price contract.
Delays in project completion could impact service member housing availability.
Ensuring quality of work meets military standards requires diligent oversight.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Open competition suggests a robust market and potential for competitive pricing.
Project duration is clearly defined, allowing for planning and resource allocation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. This sector encompasses the building of non-residential structures like dormitories, offices, and public facilities. Federal spending in this area is crucial for maintaining and upgrading government infrastructure, including military bases. Comparable spending benchmarks for similar renovation projects on military installations can vary widely based on location, scope, and specific building codes, but projects in the multi-million dollar range are common for substantial renovations.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, the direct impact on small business set-asides appears minimal for this specific award. However, the prime contractor, ALESSI-KEYES CONSTRUCTION COMPANY, may engage small businesses as subcontractors to fulfill parts of the project, contributing indirectly to the small business ecosystem. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force's contracting and engineering divisions. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Housing Construction
Base Infrastructure Modernization
Government Building Renovation
Department of Defense Facilities Maintenance

Risk Flags

Potential for scope creep if unforeseen renovation needs are identified.
Contractor performance risk related to timely completion and quality standards.
Dependency on specific construction materials and labor availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to ALESSI-KEYES CONSTRUCTION COMPANY. REPAIR AND MAINTENANCE AIRMEN DORMITORY BUILDING 860

Who is the contractor on this award?

The obligated recipient is ALESSI-KEYES CONSTRUCTION COMPANY.

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 $17.9 million.

What is the period of performance?

Start: 2023-11-15. End: 2026-03-19.

What is the track record of ALESSI-KEYES CONSTRUCTION COMPANY with federal contracts, particularly within the Department of Defense?

A review of federal procurement data indicates that ALESSI-KEYES CONSTRUCTION COMPANY has a history of receiving federal contracts, primarily within the Department of Defense. While specific details on the number and value of past contracts require deeper database analysis, their selection for this significant dormitory renovation project suggests they possess the necessary qualifications and experience. It is important to examine their past performance ratings, any history of contract disputes or terminations, and their success in completing similar-sized construction projects on time and within budget to fully assess their reliability for this current award.

How does the awarded price of $17.9 million compare to similar dormitory renovation projects at other military installations?

Benchmarking this $17.9 million contract against similar dormitory renovation projects requires access to a comprehensive database of federal construction awards. Factors such as geographic location, building size, age, scope of renovation (e.g., structural, MEP, finishes), and prevailing labor costs significantly influence project pricing. Generally, large-scale renovations of military barracks or dormitories can range from several million to tens of millions of dollars. Without specific comparable project data, it's challenging to definitively state if this award is high or low, but the firm fixed-price nature suggests the contractor has factored in market rates and project complexities. Further analysis comparing square footage, scope, and location would provide a more precise value assessment.

What are the primary risks associated with this firm fixed-price contract for dormitory renovation?

The primary risk associated with this firm fixed-price contract lies with the contractor, ALESSI-KEYES CONSTRUCTION COMPANY. While this structure protects the government from cost overruns, the contractor assumes the risk of unforeseen issues that could increase their expenses. These might include discovering structural problems, hazardous materials, or unexpected site conditions during demolition and renovation. If the contractor's cost estimates are inaccurate or if project delays occur due to their management or external factors they cannot control, they may incur losses. The government's risk is primarily related to potential quality compromises if the contractor seeks to cut costs to maintain profitability, necessitating robust oversight.

What is the expected impact of this contract on the local economy in Arkansas, where the contractor is based?

This $17.9 million contract is expected to have a positive impact on the local economy in Arkansas, where ALESSI-KEYES CONSTRUCTION COMPANY is based. The project will likely create numerous jobs in construction trades, project management, and related support services. Furthermore, the contractor will procure materials and services from local suppliers and subcontractors where feasible, injecting capital into the regional economy. The duration of the project, spanning over two years, suggests sustained economic activity and employment opportunities. This influx of spending can stimulate business growth and contribute to overall economic well-being in the region.

How does the 'full and open competition after exclusion of sources' procurement method influence the final contract price and quality?

The 'full and open competition after exclusion of sources' method aims to balance broad market participation with specific requirements. Initially, the solicitation is open to all responsible sources. However, certain sources may be excluded based on pre-defined criteria (e.g., technical capabilities, past performance, security clearances) before proposals are formally evaluated. This can lead to a more focused competition among highly qualified bidders. While it might reduce the sheer number of offers compared to unrestricted full and open competition, it generally still fosters competitive pricing by ensuring multiple capable firms vie for the contract. The exclusion criteria are intended to ensure that only technically suitable contractors participate, potentially leading to higher quality outcomes by selecting contractors best equipped for the task.

What are the historical spending patterns for dormitory repair and maintenance at this specific Air Force installation?

To assess historical spending patterns for dormitory repair and maintenance at this specific Air Force installation, one would need to access and analyze historical contract data for that installation over several fiscal years. This analysis would involve identifying all contracts related to dormitory upkeep, renovation, and repair, noting their values, durations, and the contractors involved. Understanding these patterns can reveal trends in maintenance needs, the frequency of major repair projects, and the average cost per project. It can also highlight whether spending has been consistent, increasing, or decreasing, and whether the installation relies on recurring contracts or undertakes large, infrequent renovation efforts. This context is crucial for evaluating the current $17.9 million award.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10623 MAUMELLE BLVD, NORTH LITTLE ROCK, AR, 72113

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,907,426

Exercised Options: $17,907,426

Current Obligation: $17,907,426

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA446022D0001

IDV Type: IDC

Timeline