Department of Defense awards $13.1M contract for dorm repair, highlighting construction sector activity

Contract Overview

Contract Amount: $13,099,403 ($13.1M)

Contractor: Olympic Enterprises Inc

Awarding Agency: Department of Defense

Start Date: 2022-11-03

End Date: 2026-03-01

Contract Duration: 1,214 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FURNISHING ALL PLANT,LABOR,EQUIPMENT AND MATERIAL, AND PERFORMING ALL WORK IN CONNECTION WITH VKAG 09-1012 REPAIR DORM BUILDING 3607 IN STRICT ACCORDANCE WITH THESE SPECIFICATIONS AND DRAWINGS AND SUBJECT TO THE TERMS AND CONDITIONS OF THIS CONTRACT.

Place of Performance

Location: GOLDSBORO, WAYNE County, NORTH CAROLINA, 27531

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to OLYMPIC ENTERPRISES INC for work described as: FURNISHING ALL PLANT,LABOR,EQUIPMENT AND MATERIAL, AND PERFORMING ALL WORK IN CONNECTION WITH VKAG 09-1012 REPAIR DORM BUILDING 3607 IN STRICT ACCORDANCE WITH THESE SPECIFICATIONS AND DRAWINGS AND SUBJECT TO THE TERMS AND CONDITIONS OF THIS CONTRACT. Key points: 1. Contract focuses on essential infrastructure repair, indicating a need for facility modernization. 2. The firm-fixed-price structure aims to control costs for the government. 3. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a potentially limited but justified bidding process. 4. The contract duration of over three years points to a significant scope of work. 5. The project is located in North Carolina, impacting the regional construction labor market. 6. This award falls within the broader category of commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $13.1 million for dorm building repair appears reasonable for a multi-year construction project of this nature. Benchmarking against similar large-scale renovation projects for military barracks would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government in stable market conditions. However, without specific details on the scope of work and materials, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, certain sources were excluded, possibly due to specific requirements or pre-qualification. The number of bidders is not specified, but the exclusion of sources suggests it may not have been as broad as a standard full and open competition. This could potentially limit price discovery compared to a truly open process.

Taxpayer Impact: While the competition was not fully open, the exclusion of sources was likely based on specific technical or capability requirements. This approach aims to ensure that only qualified contractors bid, potentially leading to a more efficient execution, but taxpayers may not benefit from the widest possible range of competitive pricing.

Public Impact

Service members residing in Dorm Building 3607 will benefit from improved living conditions. The contract delivers essential repair and renovation services for critical military infrastructure. The project's geographic impact is concentrated in North Carolina. The construction work will likely create or sustain jobs within the regional construction workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise during renovation.
Risk of schedule delays due to weather or material availability.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

Firm-fixed-price contract helps manage budget certainty.
Experienced contractor (Olympic Enterprises Inc.) likely has a track record in similar projects.
Project addresses a clear need for facility maintenance and improvement.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The Department of Defense is a significant client for construction services, undertaking numerous projects for barracks, administrative buildings, and training facilities. The market for such services is competitive, with many firms capable of undertaking large-scale projects. This award represents a typical investment in maintaining and upgrading aging military infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information on subcontracting plans for small businesses. Without a small business set-aside, the primary contractor, Olympic Enterprises Inc., will likely manage the majority of the work, with potential for subcontracting opportunities to be determined by the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and engineering divisions. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Barracks Renovation Projects
Department of Defense Facilities Maintenance
Commercial Building Construction Contracts
Air Force Infrastructure Modernization

Risk Flags

Potential for limited competition due to source exclusion.
Firm-fixed-price risk for contractor if unforeseen conditions arise.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to OLYMPIC ENTERPRISES INC. FURNISHING ALL PLANT,LABOR,EQUIPMENT AND MATERIAL, AND PERFORMING ALL WORK IN CONNECTION WITH VKAG 09-1012 REPAIR DORM BUILDING 3607 IN STRICT ACCORDANCE WITH THESE SPECIFICATIONS AND DRAWINGS AND SUBJECT TO THE TERMS AND CONDITIONS OF THIS CONTRACT.

Who is the contractor on this award?

The obligated recipient is OLYMPIC ENTERPRISES 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 $13.1 million.

What is the period of performance?

Start: 2022-11-03. End: 2026-03-01.

What is the track record of Olympic Enterprises Inc. in performing similar government construction contracts?

Olympic Enterprises Inc. has a history of performing government contracts, primarily within the construction domain. While specific details on past projects of identical scope and value are not provided in this data snippet, their involvement in 'Commercial and Institutional Building Construction' suggests relevant experience. A deeper dive into their contract history with federal agencies, particularly the Department of Defense and Air Force, would reveal their performance metrics, past issues, and successful project completions. Analyzing past performance ratings and any debriefings from previous solicitations could offer further insights into their capabilities and reliability for this dorm repair project.

How does the awarded amount compare to similar dorm repair projects at other military installations?

Benchmarking this $13.1 million contract against similar dorm repair projects at other military installations requires access to a broader dataset of comparable contracts. Factors such as the size of the dorm, the extent of repairs needed (e.g., structural, electrical, plumbing, cosmetic), the specific location's labor and material costs, and the year of award significantly influence project costs. Without these comparative data points, it is difficult to definitively state whether this award represents excellent, fair, or questionable value. However, for a multi-year project involving significant renovation of a large dormitory building, $13.1 million is within a plausible range for substantial infrastructure work.

What are the primary risks associated with this firm-fixed-price contract for dorm repair?

The primary risk associated with this firm-fixed-price contract lies in potential cost overruns for the contractor if unforeseen issues arise during the renovation. For example, discovering significant structural damage, outdated electrical or plumbing systems requiring extensive replacement beyond initial estimates, or hazardous materials like asbestos could lead to substantial unexpected costs for Olympic Enterprises Inc. While the firm-fixed-price structure protects the government from direct cost increases, severe contractor financial distress due to underestimation could lead to project delays or quality compromises. The government's risk is mitigated by thorough initial site assessments and clear contract specifications, but the contractor bears the brunt of execution-related cost uncertainties.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for construction projects?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with specific capability requirements. It is generally less effective in ensuring the widest possible competitive pricing compared to a standard 'full and open' competition where all responsible sources are permitted to bid without restriction. By excluding certain sources, the pool of potential bidders is narrowed. This exclusion is typically justified by unique technical requirements, past performance, or specific security needs. While it can lead to a selection of highly qualified contractors, the reduced number of bidders may lessen the downward pressure on prices that a larger, more diverse competitive field might generate. The effectiveness hinges on the justification for the exclusions and the actual number of bidders that remain.

What is the historical spending trend for dormitories and related construction at this specific Air Force base or region?

Analyzing historical spending trends for dormitories and related construction at the specific Air Force base or region where VKAG 09-1012 is located would provide valuable context. This would involve examining past contracts awarded for similar facilities, their values, durations, and the types of work performed. A consistent pattern of significant investment might indicate ongoing infrastructure needs or a base expansion. Conversely, a sudden increase in spending could signal deferred maintenance finally being addressed or a new strategic priority. Without access to that specific historical data, it's challenging to determine if this $13.1 million award is an anomaly, part of a larger trend, or a response to a specific, recent need.

What are the potential implications of the contract duration (1214 days) on project oversight and resource allocation?

A contract duration of 1214 days (approximately 3.3 years) for dorm repair implies a substantial and complex project. This extended timeline necessitates robust, long-term project oversight from the Department of the Air Force to ensure adherence to specifications, quality control, and schedule milestones. It also requires consistent resource allocation from the government side for contract management, inspections, and potentially site access coordination. For the contractor, the long duration allows for phased execution and potentially better management of resources and workforce, but also increases exposure to market fluctuations in material costs and labor availability over time. The extended period also means that accountability measures must remain active and effective throughout the project lifecycle.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 282 HUBERT BLVD, HUBERT, NC, 28539

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

Financial Breakdown

Contract Ceiling: $13,099,403

Exercised Options: $13,099,403

Current Obligation: $13,099,403

Actual Outlays: $2,135,923

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA480018D0002

IDV Type: IDC

Timeline